No Foreign Transaction Fee Credit Cards

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 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 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 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 fees:

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 credit cards with no foreign transaction fees:

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 0% or 3% of purchases processed internationally, depending on the card. Citi travel rewards cards such as the Citi® / AAdvantage® Platinum Select® World Elite Mastercard® and the Costco Anywhere Visa® Card by Citi have no foreign transaction fees. But when you spend money abroad with other Citi credit cards, like the Citi® Double Cash Card or the Citi Simplicity® Card - No Late Fees Ever, you’ll have to pay an extra 3% on whatever you buy.

That could cramp anyone’s style, whether you’re traveling or just shopping online. So, it’s good to know there are several Citibank credit cards with no foreign transaction fee. Some of the most popular Citi cards without foreign fees include the Citi Premier® Card, the Citi® / AAdvantage® Platinum Select® World Elite Mastercard® and the Expedia Voyager Credit Card. However, just because these cards have no foreign transaction fees doesn’t mean they’re free. Most charge annual fees.

If you want a Citi credit card with 0% foreign transaction fees and $0 annual fee, consider the Costco Anywhere Visa® Card by Citi. It gives unlimited 3% cash back on travel and restaurant purchases. You also get 4% back on gas purchases, up to the first $7,000 spent each year, among other perks.

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: 0% foreign fee
• Bank of America Travel Rewards: 0% foreign fee
• Bank of America Premium Rewards: 0% foreign fee
• Chase Freedom Unlimited: 3% foreign fee
• Wells Fargo Cash Wise Visa: 3% foreign fee
• Credit One Bank Platinum Visa: 3% 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 best credit cards with no annual fee and no foreign transaction fee are the Capital One VentureOne Visa and the HSBC Cash Rewards Mastercard. That’s because they offer the most rewards in addition to their lack of fees. Capital One VentureOne gives you a 20,000-mile bonus for spending $500 in the first 3 months and 1.25 miles per $1 on all purchases. With the HSBC Cash Rewards Mastercard, you get 1.5% cash back on all purchases. You also get a 10% of all the cash you’ve earned over the year as an anniversary bonus.

But the best credit card with no annual or foreign fees really depends on your credit standing and what type of rewards you’re looking for. Fortunately, there’s a whole range of attractive possibilities.

Here are the best credit cards with no annual fee and no foreign transaction fee:

• Travel Rewards: Capital One VentureOne Rewards Credit Card - 20,000-mile initial bonus for spending $500 in the first 3 months and 1.25 miles per $1 on all purchases. The VentureOne card requires good credit.
• Cash Back: HSBC Cash Rewards Mastercard - 1.5 - 3 points per $1 on all purchases. 10% of all the cash you’ve earned in the past year as an anniversary bonus. You’ll need good credit to get the HSBC Cash Rewards Mastercard. The Capital One Quicksilver Card is a close second.
• Hotel Points: Best Western Credit Card - 16,000 bonus points after you make your first purchase, and another 16,000 after your first Best Western stay. 3 points per $1 on Best Western stays, and 2 points per $1 on all other purchases. 10% discount when you book a room at the Rewards Member Rate on the Best Western site. This card requires good credit.
• Airline Miles: United Gateway Card - 10,000 miles for spending $1,000 in your first 3 months. Each mile can be redeemed for $1 toward a United flight. 2 miles per $1 on United tickets, and 1 mile on all other purchases. 25% off in-flight purchases on United flights. This card requires good credit.
• Bonus Rewards: Discover it Cash Back- 5% cash back on a new set of bonus categories every three months, plus 1% cash back on all other purchases. 1st year anniversary bonus matches all the cash back you’ve earned. You need good credit to get this card.
• Dining: Capital One Savor Cash Rewards Card - $300 bonus for spending $3,000 in your first 3 months of card membership. 3% cash back on dining, 2% on groceries, and 1% on all other purchases. This card requires good credit.
• Students: Bank of America Travel Rewards Credit Card for Students - 25,000-point bonus for spending $1,000 in purchases within 90 days of opening your account. 3 points per $1 at the Bank of America Travel Center, and 1 point per $1 everywhere else. You can get this card with limited credit.
• Small Business: Capital One Spark Cash for Business - $500 bonus for spending $4,500 on purchases within 3 months of account opening. 2% cash back on all purchases. You need good credit to get this card.
• No Credit: Capital One QuicksilverOne Cash Rewards Credit Card - 1.5% cash back on all purchases.
• Bad Credit: Discover it Secured Credit Card - 2% cash back at restaurants and gas stations, up to $1,000 spent each quarter. 1% cash back everywhere else. 1st year anniversary bonus matches all the rewards you’ve earned. You can get this card with limited history.

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.

The Chase Freedom Unlimited® foreign transaction fee is 3% of each transaction in U.S. dollars. So, if you spend $100 at a merchant based in a foreign country, you’ll end up owing $103.

This fee applies to transactions made both in person and online. So, if you plan on spending a lot of money overseas or at foreign-based merchants, it can really add up quickly. Hence, you’re better off using Chase Freedom Unlimited® for your everyday purchases and getting a second card with no foreign transaction fee for your foreign purchases.

There are several Chase credit cards with 0% foreign fee, but the best is the Chase Sapphire Preferred® Card. It gives an initial bonus worth $750 toward travel when you spend $4,000 in the first 3 months. Plus, you get 2 points per $1 on travel and dining and 1 point on everything else. The Chase Sapphire Preferred® Card costs $95 per year.

One of the best no foreign transaction fee cards from another issuer is the Capital One Venture Rewards Credit Card, which gives 60,000 miles as a bonus when you spend $3,000 in the first 3 months, plus 2 miles per $1 on all purchases. This card has a $95 annual fee.

Ultimately, there are credit card issuers, such as Capital One and Discover, that do away with foreign transaction fees altogether. And there are $0 foreign fee credit cards available to people of all credit levels, from bad credit to excellent credit. So, there is no reason why you should ever pay extra when buying something from abroad.