4 Best No Foreign Transaction Fee Credit Cards

The best way to avoid foreign transaction fees is to us a debit or credit card that waives such fees while traveling abroad. 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.

1. Get a credit card with no foreign transaction fee.

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.

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.

2. 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.

3. 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.

4. 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.

5. 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.

Banks that have no foreign transaction fees on at least some debit card purchases, ATM withdrawals and credit card transactions include Capital One and HSBC. There are also plenty of banks that offer no foreign transaction fees on certain types of financial products but not others. Below, you can see what each major bank offers.

Banks With No Foreign Transaction Fees

• American Express: certain credit cards
• Bank of America: certain credit cards
• Barclays: certain credit cards
• Capital One: all credit cards, certain debit cards, certain ATM transactions
• Charles Schwab Bank: certain debit cards, certain ATM transactions
• Chase: certain credit cards
• Citibank: certain credit cards, certain ATM transactions
• SBC: all credit cards, certain debit cards, certain ATM transactions
• PNC: certain credit cards, certain ATM transactions
• Santander Bank: certain credit cards, certain debit cards
• U.S. Bank: certain credit cards
• Wells Fargo: certain credit cards, certain ATM transactions

You can learn more about the best credit cards with no foreign transaction fees and debit cards with no foreign transaction fees on WalletHub.

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.

International credit cards have $0 foreign transaction fees and can be used in more than 200 countries and territories internationally. Using an international credit card abroad can also help you save 7% to 10% on foreign currency conversion. Plus, the best credit cards for international travel have great rewards, travel insurance and other helpful perks (some cards are from WalletHub partners). There are lots of great options available right now, too.

In a sense, any Visa, Mastercard, American Express or Discover card qualifies as an international credit card because you’ll be able to use it in most countries outside the U.S. But not all credit cards that work internationally are equally equipped to save you money and aggravation abroad, due to differences in rewards, card acceptance and more. Keep that in mind as you compare offers in search of the best credit card for international travel.

Below, you can see which cards best meet the needs of international travelers and shoppers of all types, as selected by WalletHub’s editors from 1,500+ offers.

Best Credit Cards for International Travel of 2022

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The Visa foreign transaction fee is usually either 0% or 3%, depending on which Visa credit card or debit card you have. The Visa foreign transaction fee is typically 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 Reflect® 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 everywhere that takes credit cards worldwide. 

The Mastercard foreign transaction fee is usually 0% or 3%, depending on which card you have and the bank or credit union that issued it.

Here’s how the Mastercard foreign transaction fee works:

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.

If you have a Mastercard that charges a foreign transaction fee, you will be charged a fee every time you make a purchase at a physical location in a foreign country or an online transaction through an internationally-based merchant. So, if you’re travelling a lot, make sure to get a Mastercard that doesn’t charge this fee.

Best Mastercard Credit Cards with No Foreign Transaction Fee

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. Also, 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 could get approved for. 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.

The Bank of America Customized Cash Rewards credit card foreign transaction fee is 3%. The 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 foreign transaction fees. 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 Customized Cash Rewards credit card.

Bank of America Customized Cash Rewards credit card Foreign Transaction Fee Info:

• 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.
• Other Bank of America 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 Customized Cash Rewards credit card foreign transaction fee isn’t the only fee you have to worry about with the Bank of America Customized Cash Rewards credit 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. Plus, 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 Customized 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. You can also check our editors’ latest picks for the best no foreign transaction fee credit cards on the market to weigh your options.