Traveling internationally can be a thrilling experience — new cultures, foods, and adventures await. However, for many travelers, hidden costs like foreign transaction fees can quickly sour the excitement.
Fortunately, more credit cards today offer ways to avoid these pesky charges, saving savvy travelers significant amounts of money.
In this article, we’ll explore what foreign transaction fees are, how they can affect your travels, and which credit cards help you avoid them entirely.
What Are Foreign Transaction Fees?
Foreign transaction fees are charges imposed by credit card issuers when you make a purchase outside of your home country or from a foreign-based merchant.
Typically, this fee is around 3% of the transaction amount and covers:
- Currency conversion costs
- International processing fees
Example:
If you spend $1,000 abroad, a 3% foreign transaction fee would cost you an extra $30.
Even purchases made online from merchants based in other countries can trigger these fees, not just in-person transactions while traveling.
Why Do Foreign Transaction Fees Exist?
Foreign transaction fees cover several expenses that banks and payment processors incur when handling cross-border transactions, including:
- Currency conversion between local money and your home currency.
- Payment network charges for facilitating international purchases.
- Risk management for fraud detection and prevention in international transactions.
While understandable from a business standpoint, these fees can add up quickly for frequent travelers.
How Foreign Transaction Fees Affect Travelers
If you’re a frequent traveler or someone planning a major international trip, foreign transaction fees can eat away at your budget without you even realizing it.
- Daily purchases: Coffee, transportation, meals — each transaction could carry a fee.
- Hotel bills: A $1,500 hotel stay could cost an extra $45 just in fees.
- Tours and activities: Booking a local tour operator in euros or yen could tack on 3% more.
Over the course of a week-long vacation, these fees can easily reach hundreds of dollars.
The Solution: No Foreign Transaction Fee Credit Cards
The good news? Many credit card issuers have responded to consumer demand by offering cards that waive foreign transaction fees entirely.
These cards allow you to:
- Spend abroad at no extra cost
- Enjoy better exchange rates (credit card networks often offer better rates than cash exchanges)
- Maximize rewards without penalties
Best Types of Cards That Don’t Charge Foreign Transaction Fees
Cards that waive foreign transaction fees often fall into one of these categories:
1. Travel Rewards Credit Cards
Designed for globetrotters, travel rewards cards often eliminate foreign transaction fees as part of their benefits package. They also offer bonus points or miles for travel-related purchases.
2. Premium Credit Cards
High-end cards with steep annual fees (like those offering airport lounge access) usually eliminate foreign transaction fees as a matter of course.
3. Some No-Annual-Fee Cards
Surprisingly, a growing number of no-annual-fee cards also now waive foreign transaction fees, making international travel more accessible to budget-conscious users.
Top Credit Cards with No Foreign Transaction Fees (2025)
Here’s a roundup of some of the most popular and traveler-friendly cards that eliminate foreign transaction fees:
1. Chase Sapphire Preferred® Card
- Annual Fee: $95
- Rewards: 2x points on travel and dining, 1x points on other purchases
- Perks: Trip cancellation insurance, travel protections, flexible Ultimate Rewards® points
- Why It’s Great: Outstanding travel protections and strong points-earning potential.
2. Capital One Venture Rewards Credit Card
- Annual Fee: $95
- Rewards: 2x miles on all purchases
- Perks: Easy redemption for travel purchases, Global Entry/TSA PreCheck fee credit
- Why It’s Great: Simple rewards structure and strong travel benefits.
3. Chase Sapphire Reserve®
- Annual Fee: $550
- Rewards: 3x points on travel and dining
- Perks: $300 annual travel credit, Priority Pass lounge access, top-tier insurance benefits
- Why It’s Great: Premium perks more than offset the high annual fee for frequent travelers.
4. American Express® Gold Card
- Annual Fee: $250
- Rewards: 4x points at restaurants, 3x points on flights
- Perks: Travel protections, flexible Membership Rewards® points
- Why It’s Great: Exceptional rewards for foodies and frequent flyers.
(Note: Not all Amex cards are as widely accepted internationally as Visa/Mastercard, especially in remote areas.)
5. Capital One Quicksilver Cash Rewards Credit Card
- Annual Fee: $0
- Rewards: 1.5% cash back on all purchases
- Perks: No foreign transaction fees, cash back simplicity
- Why It’s Great: Perfect for budget travelers who want cash back rewards without complexity.
6. Bank of America® Travel Rewards Credit Card
- Annual Fee: $0
- Rewards: 1.5x points on all purchases
- Perks: Flexible travel redemptions, no blackout dates
- Why It’s Great: Strong for casual travelers who prefer no annual fee.
Other Benefits to Look for in a Travel Credit Card
Cards without foreign transaction fees often come packed with additional perks, such as:
- Travel insurance: Trip delay, trip cancellation, and lost luggage coverage.
- Purchase protections: Extended warranty, return protection, and purchase security.
- Airport perks: Lounge access, Global Entry/TSA PreCheck credits.
- Car rental insurance: Primary rental car coverage when renting abroad.
Choosing a card that bundles several benefits together can deliver even more value for your travel adventures.
Tips for Using Credit Cards Abroad
Even with a card that has no foreign transaction fees, it’s wise to keep a few best practices in mind:
1. Always Choose Local Currency
When given the option at checkout, always opt to pay in the local currency instead of your home currency.
Dynamic Currency Conversion (DCC) allows merchants to convert the transaction to your currency at a poor exchange rate — often costing you much more.
2. Notify Your Bank Before You Travel
Some card issuers no longer require travel notices, but it’s still a good idea to inform them. Otherwise, unexpected foreign charges might trigger fraud alerts and block your card.
3. Carry Backup Payment Methods
Not every merchant abroad accepts credit cards, especially in rural areas. Always have a backup method like:
- A second credit card
- A debit card for ATM withdrawals
- Some local cash
4. Use Credit Cards for Big Purchases
Credit cards offer fraud protection and purchase security that cash can’t match, making them ideal for:
- Hotel bills
- Tours and excursions
- Expensive dinners
5. Know the Fees for ATM Withdrawals
While your credit card may not charge foreign transaction fees, cash advances (ATM withdrawals) can still incur hefty charges and high interest rates. Use a debit card designed for travel when cash is necessary.
Are No Foreign Transaction Fee Cards Worth It?
Absolutely — if you travel internationally even once a year.
Consider this:
- If you spend $5,000 abroad in one year, you would save $150 just by using a card with no foreign transaction fees.
- Combine that savings with rewards earning (points, miles, or cash back), and the card easily pays for itself — even cards with modest annual fees.
For frequent travelers, it’s almost a no-brainer. But even occasional travelers benefit from carrying a card that doesn’t penalize them for international spending.
Conclusion
Foreign transaction fees might seem like small potatoes on each individual purchase, but they add up quickly — costing travelers hundreds of dollars over the course of a single trip.
Luckily, today’s credit card market offers plenty of options that waive these fees entirely, from premium travel cards to no-annual-fee choices.
By choosing the right card and using it wisely while traveling, you can:
- Save significant money
- Earn valuable rewards
- Enjoy peace of mind abroad
If you’re planning an international journey — whether it’s a luxury safari in Africa, a backpacking trip across Europe, or simply ordering a product from an overseas retailer — carrying a no-foreign-transaction-fee credit card should be as essential as packing your passport.