Best No Foreign Transaction Fee Credit Cards

No foreign transaction fee means that a credit card or debit card does not include a surcharge for international purchases. In other words, a consumer won’t be charged extra for using the card outside of the U.S. Foreign transaction fees are usually charged as a percentage of every transaction made abroad. Most issuers charge around 0%-3%, but many offer at least one card that does not come with a foreign transaction fee. Some issuers, such as Capital One and Discover, do not include the fee on any of their cards. Refer to the card’s terms and conditions to know for sure if it comes with a fee for foreign transactions.

It’s important to note that you don’t have to physically use a card outside of the U.S. to get hit with a foreign transaction fee. The fee can also apply when you buy something online from a company based in another country. So, getting a no foreign transaction fee card can be very helpful if you buy a lot of things from abroad. It also offers consumers the best value for currency exchanges. On average, a no foreign transaction fee credit card saves international travelers 7.14% over the average bank or credit union. When compared to foreign exchange company Travelex, the savings jump to 9.31%.

However, not all credit cards with no foreign transaction fee are equal when it comes to worldwide acceptance. The card’s network dictates where you can use it outside the U.S. Cards on the Mastercard networks are accepted by merchants in more than 210 countries and territories, while Visa credit cards are accepted in more than 200. Discover cards work in about 185 countries and territories, and merchants in 160+ countries and territories take American Express cards.

The best way to avoid foreign transaction fees is to get a credit card that doesn’t charge them. About 25% of the available credit card offers on the market don’t charge foreign transaction fees, and those cards are available to people of all credit levels, so there’s really no reason to pay the extra charge when you travel abroad.

Foreign transaction fees are charged by credit card companies, not merchants, and the surcharge could add as much as 4% to purchases made outside the U.S. These fees also apply to online purchases processed abroad, even if you’re sitting in front of your computer at home when you complete the transaction. If a card charges a foreign transaction fee, it will be listed in the card’s terms and conditions.

How to Avoid Foreign Transaction Fees

Get a credit card with no foreign transaction fee.

The 10 largest credit card companies all offer at least some cards without foreign transaction fees, and some issuers don’t charge these fees on any of their credit cards. Using credit cards with no foreign fees rather than cash also is a convenient, inexpensive way to avoid having to convert physical currency while traveling abroad.

Understand that foreign fees can be an issue even when you’re not traveling.

You don’t have to be in another country to get hit with a foreign transaction fee. If you do business online or by phone through a merchant based outside of the U.S., make sure you pay for your purchase with a no foreign fee credit card to sidestep the surcharge. If you use a card with a foreign fee, you’ll be charged this fee on top of your transaction, the same as you would if you had made the purchase at a physical location abroad.

Have a no foreign fee debit card handy.

You probably won’t be able to use credit cards for all your international purchases if you travel abroad, so having a debit card will allow you to get cash in the local currency when you need it. Many debit cards also charge foreign transaction fees, so make sure to bring a Visa or Mastercard debit card with no foreign fee when you head out of the country.

Avoid converting currency at airport kiosks.

Converting your cash at an airport kiosk outside of the U.S. may be convenient, but that convenience will cost you. Currency conversions at airport-based exchange stations come with extraordinarily high fees and less-than-favorable exchange rates.

Instead, use a no foreign transaction fee credit card for most of your purchases, and a no foreign fee debit card to withdraw physical currency. These options are very convenient, and each allows you to take advantage of low Visa and Mastercard currency conversion rates automatically.

Do not accept offers for dynamic currency conversion.

Dynamic currency conversion (DCC) is a practice in which foreign merchants may offer to charge your purchase in U.S. dollars instead of the local currency. You should never accept these offers because if the merchant converts your payment for you, they may set their own high exchange rate to increase their profits.

With that, you know the basics of how to avoid unnecessary costs when spending money internationally. If you already have a credit card that charges foreign transaction fees, there’s not much you can do to avoid them, save for not using the card abroad. Consider applying for a travel credit card with good ongoing rewards and no foreign transaction fees to use instead. There are plenty to choose from.

Best Credit Cards with No Annual Fees and No Foreign Transaction Fees

If you are new to credit, the Petal® 2 Visa® Credit Card is available to people with limited credit. It has a $0 annual fee and a 0% foreign fee, and it offers rewards equal to 1 - 1.5% cash back on eligible purchases.

The HSBC Gold Credit Card is another card with a $0 annual fee and a 0% foreign fee. But its best value is in its introductory APR periods. This card offers 0% for 18 months on balance transfers and 0% for 18 months on purchases – which is months longer than the average 0% APR period.

There are several American Express credit cards that have no foreign transaction fees, including the American Express Platinum card, the American Express® Gold Card, and cards with rewards for Hilton, Marriott and Delta. The Amex cards without international fees have annual fees ranging from $0 to $500+. They also offer valuable travel benefits, such as free checked bags and luxury airport lounge access.

The best American Express credit card with 0% foreign transaction fee is the Hilton Honors American Express Card because it’s one of the two general-consumer offer with a $0 annual fee. The Hilton Honors Credit Card also has a nice initial bonus, giving 80,000 points for spending $1,000 in the first 3 months plus an additional 50,000 points for spending a total of $5,000 in the first 6 months. The ongoing rewards are pretty good, too; cardholders earn 3 - 7 points per $1, depending on the type of purchase.

American Express Cards with No Foreign Transaction Fees:

• American Express Platinum card ($695 annual fee)
• Hilton Honors American Express Surpass® Card ($95 annual fee)
• Hilton Honors Credit Card ($0 annual fee)
• American Express® Gold Card ($250 annual fee)
• Marriott Bonvoy Brilliant™ American Express® Card ($450 annual fee)
• Delta SkyMiles® Reserve American Express Card ($550 annual fee)
• Delta SkyMiles® Gold American Express Card ($0 intro 1st yr, $99 after annual fee)
• Delta SkyMiles® Platinum American Express Card ($250 annual fee)
• American Express® Green Card (($150 annual fee)
• Hilton Honors American Express Surpass® Card ($95 annual fee)
• Delta SkyMiles® Blue American Express Card ($0 annual fee)

While American Express no-foreign transaction fee credit cards make it cheaper to travel with your Amex card, they’re not accepted everywhere. You should be able to find businesses that accept American Express in places like Canada and Mexico. However, it’ll be harder in smaller countries, especially those that don’t typically do business with the U.S.

A Visa foreign transaction fee of 0% to 3% could apply to purchases processed outside the U.S., depending on which Visa credit card or debit card you have. The Visa foreign transaction fee is usually 0% on travel rewards credit cards, which are built for spending all around the world. And some credit card companies, such as Capital One, don’t charge foreign fees on any of their cards, Visa or Mastercard. But many other Visa cards come with foreign transaction fees of 1%, 2% or even 3%.

If your Visa card does have a foreign transaction fee, you’ll have to pay it any time you make a purchase from a merchant that’s based in a country other than the U.S. So that means it applies to online purchases, too.

While it’s difficult to list every Visa’s foreign transaction fee – the are a ton of Visa cards – we can go over a few popular examples.

Here are some Visa foreign transaction fees:

• All Capital One Visa cards: $0 foreign fee
• All USAA Visa cards: 0% foreign fee
• All PenFed Visa cards: 0% foreign fee
• Chase Sapphire Preferred® Card: $0 foreign fee
• Bank of America® Travel Rewards Credit Card for Students: 0% foreign fee
• Bank of America® Premium Rewards® credit card: 0% foreign fee
• Chase Freedom Unlimited®: 3% of each transaction in U.S. dollars foreign fee
• Wells Fargo Cash Wise Visa® card: 3% foreign fee
• Credit One Bank® Platinum Visa®: 3% or $1, whichever is greater foreign fee

As you can see, there are a lot of opportunities to get a Visa card with no foreign transaction fee. That’s definitely a good idea before traveling (or shopping) abroad, since Visa is accepted just about anywhere that takes credit cards worldwide.

The Mastercard foreign transaction fee is 0% to 3%, depending on which card you have and which bank or credit union issued it. There are plenty of Mastercards with no foreign transaction fee, and that goes for both credit cards and debit cards. But many Mastercards charge up to 3% of each international purchase you make.

The Mastercard foreign transaction fee comes in two parts. Mastercard, as the credit card network, always charges a 1% fee. Then, the credit card issuer can choose to add their own fee on top of that, or cover Mastercard’s fee for you. If your card’s foreign fee is higher than 1%, it means the issuer added their own fees. If your Mastercard’s foreign transaction fee is 0%, it’s because the issuer pays the 1% network fee for you.

You certainly don’t want to pay 3% more than you have to when traveling abroad or shopping from foreign merchants while in the U.S. After all, the average foreign transaction fee on a credit card is about 1.5%. And some major credit card issuers have done away with foreign transaction fees altogether.

It’s also worth noting that Mastercard foreign transaction fees and Visa foreign transaction fees are pretty much the same. Some cards charge as much as 3%. Others don’t charge a dime. And like Mastercard, Visa is accepted in 200+ countries and territories.

The best approach is to compare no foreign transaction fee credit cards on both the Visa and Mastercard networks. Check your credit score to see which ones you have best chance of getting approved for. And then find the card with the best collection of rewards, rates and fees for your needs. If you’re approved, you’ll save up to 3% on each foreign transaction. It’s as easy as that.

The Bank of America Cash Rewards credit card foreign transaction fee is 3%. This card's foreign transaction fee can apply whether you travel to another country or you go shopping internationally through your computer.

Not every Bank of America credit card charges a foreign transaction fee. The Bank of America® Travel Rewards credit card card has 0% foreign fees, for example, as does the Bank of America® Premium Rewards® credit card. So, they are better options to use for foreign purchases than Bank of America Cash Rewards credit card.

Bank of America Cash Rewards foreign transaction fee info:

• Bank of America Cash Rewards credit card foreign transaction fee: 3% of any purchase from a foreign-based merchant.
• When you owe the foreign transaction fee: In-person and online purchases processed internationally.
• Bank of America Cash Rewards credit card vs. other BofA cards: Nearly 10 Bank of America credit cards have a 3% foreign transaction fee. All other BofA credit cards, including the Bank of America Travel Rewards credit card and the Bank of America Premium Rewards credit card, have 0% foreign transaction fees.

The Bank of America Cash Rewards credit card foreign transaction fee isn’t the only fee you have to worry about with this card. If you take out a cash advance, you will owe $10 or up to 5% of the transaction amount, whichever is greater. Late payments will cost you up to $40 extra. And if you transfer a balance to the card, you’ll pay a fee equal to 3% (min $10) of the amount. Fortunately, the Bank of America Cash Rewards credit card has a $0 annual fee.

One of the best cash back credit cards with $0 foreign transaction fees is the Capital One Quicksilver Cash Rewards Credit Card, which gives a $200 bonus when you spend $500 in the first 3 months, plus 1.5% cash back on all purchases. Discover it® Cash Back is another good choice, offering 1 - 5% cash back on purchases and matching all the rewards you earn the first year. Discover and Capital One don’t have foreign transaction fees on any of their cards.

The best U.S. Bank credit cards with no foreign transaction fee are the U.S. Bank Altitude Reserve Visa Infinite® Card and the U.S. Bank Altitude Connect. In addition to their $0 foreign fees, these U.S. Bank cards are good for international travel because they offer great ongoing rewards rates.

Best U.S. Bank Credit Cards with No Foreign Transaction Fee

• U.S. Bank Altitude Reserve Visa Infinite® Card
• U.S. Bank Altitude® Connect Visa Signature® Card
• SKYPASS Visa® Signature Credit Card
• U.S. Bank Altitude® Go Visa Signature® Card
• Fred Meyer Credit Card

In addition to using a card with no foreign transaction fee, you’ll want to avoid dynamic currency conversion while you’re abroad. By doing these two things, you could save up to 10% when traveling internationally.

The best Mastercard with no foreign transaction fees is the Citi Premier® Card. The Citi Premier has no foreign fees and offers a sign-up bonus of 80,000 points for spending $4,000 in the first 3 months. You also get 3 points / $1 spent on travel (including gas stations), on dining, and at supermarkets (1 point / $1 spent everywhere else).

The points you earn are worth more when redeemed for airfare with Citi, too. So not only does the Citi Premier have a 0% foreign transaction fee, but it can also help you get to your destination abroad for less.

Best Mastercard Credit Cards with No Foreign Transaction Fees

• Best for Initial Bonus: Citi Premier® Card
• Best for Airline Rewards: JetBlue Plus Card
• Best for Hotel Perks: IHG® Rewards Club Premier Credit Card
• Best for Fair Credit: Capital One QuicksilverOne Cash Rewards Credit Card
• Best for No Credit: Capital One Platinum Credit Card
• Best for Bad Credit: Capital One Platinum Secured Credit Card

For more options, check out WalletHub's latest picks for the best credit cards without foreign fees, from all card networks and issuers.

There’s a different Mastercard exchange rate between the U.S. dollar and approximately 150 other currencies, and they all fluctuate from day to day. You can easily see what exchange rate your transaction will have by going to Mastercard’s exchange rate calculator. 

It’s very simple to use. All you have to do is put in the date, currency of the merchant, transaction amount, foreign transaction fee (if applicable) and United States Dollar (USD) as your card’s currency. Then click “calculate,” and you’ll see the amount you’re paying in USD at the bottom right. The exchange rate will be to the left of that.

Let’s take a look at some of today’s exchange rates for popular travel spots. These rates are current as of 06/06/18 but are subject to change as time goes on. 

Popular Mastercard exchange rates:

• Euro: 1 EUR = 1.17 USD
• Bahamian Dollar: 1 BHD = 1 USD
• Canadian Dollar: 1 CAD = 0.77 USD
• Great British Pound: 1 GBP = 1.34 USD
• Mexican Peso: 1 MXN = 0.05 USD
• Chinese Yuan Renminbi: 1CNY = 0.16 USD
• Japanese Yen: 1 JPY = 0.01 USD
• Russian Ruble: 1 RUB = 0.02 USD

Credit cards are actually the cheapest way to convert currency. But you may still be subject to a foreign transaction fee, which is an extra charge when you buy from a foreign merchant. While all Mastercards offer the same exchange rates, only some of them charge foreign transaction fees. 

You can compare no foreign fee Mastercard credit cards on WalletHub. And if you’re still unsure about which to apply for, you can join WalletHub for free to get personalized credit card recommendations with high approval odds.