No Foreign Transaction Fee Credit Cards

The Chase Freedom foreign transaction fee is 3%. That means a 3% surcharge gets added to the total amount of any transaction processed in another country, whether the cardholder is traveling abroad or shopping online from a foreign merchant. Like Chase Freedom, the Chase Freedom Unlimited card has a 3% foreign transaction fee. But not all Chase cards charge 3% internationally. Two of the most popular Chase credit cards with no foreign transaction fees are the Sapphire Preferred and Sapphire Reserve travel rewards cards.

Here are the Chase Freedom foreign transaction fees and more:

• Chase Freedom foreign transaction fee: 3%
• Chase Freedom Unlimited foreign transaction fee: 3%
• When the foreign transaction fee applies: On all transactions processed outside the U.S., either for point-of-sale or online purchases.
• Chase Freedom’s other fees: $0 annual fee. 3% balance transfer fee ($5 min). 5% cash advance fee ($10 min). Late fee up to $38.
• Chase Freedom Unlimited’s other fees: $0 annual fee. 3% balance transfer fee ($5 min). 5% cash advance fee ($10 min). Late fee up to $38.
• Best Chase credit cards with no foreign transaction fee: Chase Sapphire Preferred and Sapphire Reserve

Despite the Chase Freedom foreign transaction fee, both the Freedom and the Freedom Unlimited cards provide plenty of value when used strictly for domestic transactions. Both offer a $150 bonus for spending $500 in purchases in the first 3 months. There’s also a 0% APR for 15 months on purchases and balance transfers.

Where the two cards differ is in their rewards structures. The Freedom offers 5% back on the first $1,500 spent per quarter in rotating spending categories. In the past, that has included gas, restaurants, Amazon.com purchases and more. The card also offers 1% cash back on all other purchases. The Freedom Unlimited card offers 1.5% cash back on all purchases.

Major credit card foreign transaction fees range from 0% to 3% of each purchase processed internationally. The average credit card’s foreign fee is roughly 1.5%. Some credit card companies do not charge foreign transaction fees on any of their cards, including Capital One, Discover and USAA. Other credit card companies charge foreign transaction fees on some, or even most, of their cards. But each of the 10 largest credit card issuers has at least one credit card with no foreign transaction fees.

Foreign Transaction Fees by Credit Card Company:
                                                                                                                  

 
Issuers charge foreign transaction fees on purchases made outside the U.S., whether in-person or online. The fee is always a percentage of the total purchase amount. The reason credit card companies charge foreign transaction fees is to help pay for the costs of currency conversion in international purchases. It’s essential to take a no foreign transaction fee credit card when going abroad, because those charges can quickly build up.

The American Express foreign transaction fee is 2.7% of all international transactions or $0, depending on the Amex card. There are plenty of American Express cards with no foreign transaction fee. Those cards tend to be the best options for travel.

If you’re unfamiliar with foreign transaction fees, they’re a surcharge for using a credit card with a foreign merchant. Credit cards with foreign fees usually charge 1%-3% of the purchase price. That can really add up, especially since Amex’s 2.7% foreign fee is on the higher end of the spectrum.

Here are the American Express foreign transaction fees:

• American Express cards with a foreign transaction fee charge 2.7%.
• Many American Express credit cards have no foreign transaction fees.
• Amex foreign transaction fees apply when you buy things abroad OR shop at foreign merchants online.
• Some of the best American Express cards with no foreign fees include Amex Platinum and Premier Rewards Gold as well as the PenFed Premium Travel Rewards card and the Amex cards affiliated with Starwood, Hilton and Delta.

If you’re looking for an international credit card, it’s best to get one with no foreign transaction fee, and American Express does have a good selection. But American Express cards aren’t accepted by nearly as many foreign merchants as Visa and Mastercard. So you may find yourself somewhere your Amex won’t work. And that’s why it’s probably better to have a Visa or Mastercard for travel.

The Discover foreign transaction fee is 0%, or $0, on all cards. That means any Discover credit card you apply for now will have no foreign transaction fee, and you won’t be charged extra for making purchases that are processed internationally. Discover’s foreign fees went away in 2011, when Discover joined Capital One as the only major credit card issuers to remove foreign fees from all of their offers.

The only Discover cards with foreign transaction fees are discontinued offers issued prior to 2011. They charge 2%. You can’t get them anymore, but some people still have them.

Here are the Discover card foreign transaction fees:
                        

                                                            
So if you’re in the market for a new credit card, any Discover card you get will have no foreign transaction fees. But keep in mind that Discover has far less international acceptance than Visa or Mastercard. So you could run into places abroad where you can’t use your Discover card anyway – France, for example.

Assuming Discover is accepted where you’re going, the only thing that might actually cost you more is Dynamic Currency Conversion. That’s when a merchant asks if you want to pay in the local currency rather than U.S. dollars. You should always say no to that. Most of the time, you’ll get ripped off with high exchange rates.

The Bank of America foreign transaction fee is 3% or 0% of all international transactions, depending on the BofA card. There are 9 Bank of America credit cards with no foreign transaction fees, including the BofA Premium Rewards and Travel Rewards cards.

Those no foreign fee BofA cards clearly are a better choice for international spending than the ones with a 3% surcharge for everything you buy abroad. That’s actually one of the highest foreign fees on the market. So international shoppers need to be careful when picking a Bank of America credit card and perhaps consider cards from other issuers too.

Bank of America foreign transaction fee info:

• Some Bank of America credit cards have a 3% foreign transaction fee.
• Other Bank of America credit cards have no foreign transaction fee.
• Foreign transaction fees can apply when you travel abroad or make online purchases from foreign merchants.

At 3%, the Bank of America foreign transaction fee is too steep for anyone planning to make international purchases. But the cards that charge it are meant more for everyday spending than travel. The good news is there are a handful of foreign fee-less alternatives.

Best Bank of America no foreign transaction fee credit cards:

1. Bank of America Premium Rewards - Biggest Bonus
2. Bank of America Travel Rewards - No Annual Fee
3. Alaska Airlines Credit Card - Best Airline Rewards
4. Bank of America Travel Rewards for Students - Best Student Card

Plus, more and more cards from other issuers are shedding their foreign fees. So you can shop around for the best deal.

There is no Capital One foreign transaction fee. Or, in other words, the Capital One foreign transaction fee is 0%. That goes for every single Capital One credit card and debit card, too from travel rewards cards like Venture to cash back cards like Quicksilver. Want proof? The Capital One website says: “Capital One does not charge a fee for using your credit card for foreign currency transactions.”

That means you won’t pay extra just for shopping at foreign merchants, whether you’re traveling abroad or buying things online from merchants in other countries. Typically, a foreign transaction fee will cost you an extra 1%-3% of the purchase amount. Capital One, Discover, USAA and PenFed are the only major credit card companies that don’t charge foreign fees on any of their cards.

Even though there are no Capital One credit card foreign transaction fees, there’s still one thing you need to watch out for: Dynamic Currency Conversion (DCC). Capital One doesn’t impose this on you, but they can’t protect you from it, either, unfortunately. Dynamic currency conversion is when a merchant charges you in U.S. dollars rather than the local currency and uses an unfair exchange rate to inflate the price. You should always tell merchants to charge you in the local currency. And if you see on your receipt that they didn’t, you should ask them to void the transaction and do it over.

As long as you avoid DCC, you won’t have to worry about extra charges when using a Capital One credit card abroad, thanks to your $0 Capital One foreign transaction fee.

The Citibank foreign transaction fee is 3%, but only some cards charge it. Citi’s travel rewards cards, such as the AAdvantage Mastercards, don’t have foreign fees. But when you spend money abroad with other Citi credit cards, whether you’re traveling or just shopping online, you’ll have to grease Citibank’s palms with a payoff equal to 3% of whatever you buy. That could cramp anyone’s style, so it’s good there are several Citibank credit cards with no foreign transaction fee.

These cards don’t charge the 3% Citibank foreign transaction fee:

• Citi Premier℠ Card: $95 annual fee waived the first year. 50,000 bonus points for spending $4000 in the first three months. 3 points per $1 on travel, 2 points per $1 on entertainment and dining, and 1 point per $1 on everything else. Excellent credit needed.
• Citi/AAdvantage Platinum Select World Elite Mastercard: $95 annual fee waived the first year. 30,000 miles for spending $1,000 in the first three months. 2 miles per $1 on American Airlines, 1 mile per $1 on everything else. First checked bag free for you and 4 companions, preferred boarding, and 25% off in-flight food and beverages on American Airlines flights. Good credit needed.
• Citi/AAdvantage Executive World Elite Mastercard: $450 annual fee. 50,000 miles for spending $5,000 in the first three months. 2 miles per $1 spent on American Airlines, and 1 mile per $1 on everything else. First checked bag free for you and 8 companions on American Airlines flights. Free Admirals Club lounge access. Excellent credit needed.
• Expedia+ Voyager Card: $95 annual fee. 25,000 Expedia+ points for spending $2,000 in the first three months. 4 points per $1 spent on Expedia+, 2 points per $1 on dining and entertainment, 1 point per $1 on everything else. Expedia+ Gold Status. Annual $100 airline fee credit. Excellent credit needed.
• Costco Anywhere Visa: No annual fee. 4% cash back on up to $7,000 spent on gas per year. Unlimited 3% cash back on restaurants and travel, 2% cash back at Costco and 1% everywhere else. Must be a Costco member. Excellent credit needed.

These Citibank cards have no foreign transaction fees, but that doesn’t mean they’re free. All but the Costco Anywhere Visa have annual fees. So if you’re a Costco member, that might be your best bet, since you’ll earn unlimited 3% cash back on travel.