No Foreign Transaction Fee Credit Card Guide

No Foreign Transaction Fee Credit Cards

Avoid the sting of fees when you travel overseas with your cards

When you’re traveling internationally, you may be subject to a fee on every credit card purchase you make. The foreign transaction fee increases the cost of using your credit card on international travel without providing any extra benefits. Using a no foreign transaction fee credit card can eliminate the extra fees you pay on international transactions and save you hundreds of dollars in unnecessary fees.In this guide, you’ll learn what a no foreign transaction fee is and why it’s important to use one, how to compare no foreign transaction fee credit cards, and get answers to common questions about no foreign transaction fee credit cards.

No Foreign Transaction Fee Credit Card Guide

Rates last updated October 20th, 2017
Name Product Product Description Foreign Currency Conversion Fee (MC) Foreign Currency Conversion Fee (VISA) Foreign Currency Conversion Fee (AMEX) Overseas ATM Withdrawal Fee
Barclaycard Arrival Plus® World Elite Mastercard®
Enjoy 40000 bonus miles after you spend $3,000 on purchases in the first 90 days — that's enough to redeem for a $400 travel statement credit toward an eligible travel purchase.
0% of transaction value
$0
Chase Ink Business Preferred credit card
80000 bonus points after you spend $5,000 on purchases in the first 3 months after account opening. That's $1,000 toward travel rewards when you redeem through Chase Ultimate Rewards®
0% of transaction value
State Department Federal Credit Union Savings Secured Visa Platinum Card
State Department Federal Credit Union Savings Secured Visa Platinum Card
Created to help you establish or rebuild credit
0% of transaction value
Royal Caribbean Visa Signature® Credit Card
10000 MyCruise® bonus points offer. Good for onboard credits, stateroom upgrades, discounts, cruises and more.
0% of transaction value
UBS Visa Infinite credit card
Earn 3x points for commercial air travel, 2x points for gas and groceries, and 1 point for all other eligible purchases.
0% of transaction value
Navy Federal Credit Union nRewards® Secured Credit Card
Earn rewards while building credit.
0% of transaction value
DCU Visa® Platinum Secured Credit Card
A great way to establish or improve your credit history.
0% of transaction value
Capital One Spark® Classic for Business
Get the credit you want for your business, and unlimited 1% cash back on every purchase, every day
0% of transaction value
Capital One Spark Miles Select for Business
Unlimited 1.5X miles per dollar on every purchase, every day
0% of transaction value
Capital One Spark Miles for Business
Unlimited 2X miles per dollar on every purchase, every day
0% of transaction value
United MileagePlus® Explorer Business card
50000 bonus miles after you spend $3,000 on purchases in the first 3 months your account is open.
0% of transaction value
The Ritz-Carlton Rewards® Credit Card
2 complimentary nights at any participating Tier 1-4 Ritz-Carlton hotel, after you spend $4,000 on purchases in the first 3 months after account opening.
0% of transaction value
United MileagePlus® Club card
Enjoy United Club membership, Premier Access® travel services, free checked bags, plus earn miles on every purchase.
0% of transaction value
Capital One Spark® Cash Select for Business
Unlimited 1.5% cash back on every purchase, every day.
0% of transaction value
Capital One Spark Cash for Business
Unlimited 2% cash back from Spark Cash could mean thousands of dollars each year going back into your business. No minimum to redeem.
0% of transaction value
Amazon Prime Rewards Visa Signature Card
Earn 5% Back at Amazon.com
0% of transaction value
Capital One® Premier Dining Rewards Credit Card
Earn unlimited 3% cash back on dining, 2% on groceries and 1% on all other purchases.
0% of transaction value
Capital One Quicksilver® Rewards Credit Card
Earn unlimited 1.5% cash back on every purchase, every day
0% of transaction value
Capital One® Venture® Rewards Credit Card
Earn 40000 bonus miles once after spending $3,000 on purchases within the first 3 months from account opening.
0% of transaction value
Chase Sapphire Reserve
Earn 50000 BONUS POINTS after spending $4,000 on purchases in the first 3 months from account opening* — that's $750 toward travel when you redeem through Chase Ultimate Rewards®.
0% of transaction value
Southwest Rapid Rewards® Premier Business Credit Card
Earn 2x points on Southwest® purchases and points on all other purchases. Plus 6,000 anniversary bonus points.
0% of transaction value
Alaska Airlines Visa Signature® Card
Buy one ticket, get one for just the taxes and fees with Alaska’s Famous Companion Fare™ offer.
0% of transaction value
The Hyatt Credit Card
Get 40000 Bonus Points after spending $2,000 on purchases with the Hyatt Credit Card in the first 3 months from account opening.
0% of transaction value
Chase Sapphire Preferred® credit card
Earn 2X points on travel and dining at restaurants.
0% of transaction value
BankAmericard Travel Rewards® Credit Card
Ditch the restrictions of typical airline rewards cards. Any airline, any hotel, anytime. No blackout dates.
0% of transaction value
USAA Secured Credit Card
Declare your independence with a different kind of credit card.
0% of transaction value
USAA Active Military MasterCard®
You can chose between cash rebates based on purchases or points that you can spend on flights, cruises, and more.
0% of transaction value
Starwood Preferred Guest American Express Credit Card
Earn 25000 bonus Starpoints® after you use your new Card to make $3,000 in purchases within the first 3 months.
0% of transaction value
Platinum Delta SkyMiles® Credit Card
Earn bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $1,000 in purchases on your new Card in your first 3 months.
0% of transaction value
Marriott Rewards® Premier credit card
80000 bonus points after you spend $3,000 on purchases in your first 3 months from your account opening with your Marriott Rewards Premier credit card.
0% of transaction value
USAA Rewards™ American Express® Card
You can get cash back (unlimited) on groceries and gas and on most purchases and get car rental insurance as well.
0% of transaction value
USAA Secured Card Visa Platinum®
Get a card that can help you build credit. Determine your own credit limit. When you apply, you'll open a two-year certificate of deposit (CD) with $250 to $5,000. The balance of your CD is your credit limit.
0% of transaction value
USAA Preferred Cash Rewards Visa Signature®
Earn 1.5% cash back on every purchase. There's no limit on the amount you can earn.
0% of transaction value
$0
USAA Rewards™ Visa Signature®
Earn points on everyday purchases. Earn one point for every dollar spent on your everyday purchases. Get 2500 bonus points with your first purchase.
0% of transaction value
USAA Military Affiliate Cards
Earn 2,500 bonus points credited to your account with your first purchase and then 1 point per $1 spent. No expiration date.
0% of transaction value
USAA Rate Advantage Visa Platinum®
This card offers the same low rate for purchases, cash advances and balance transfers.
0% of transaction value
$0

Compare up to 4 providers

Why you would want to avoid a foreign transaction fee

To understand what a no foreign transaction fee credit card is, first let’s understand foreign transaction fees and how they work.

Many credit cards charge a fee on all transactions processed outside of the United States. The fee – a foreign transaction fee – is charged regardless of where you are when you make the purchase. You can be charged a foreign transaction fee even when you’re making purchases from the comfort of your own home.

The foreign transaction fee is typically a percentage, often 3%, of the transaction in U.S. dollars. It’s charged whenever you make a purchase from a company located in another country or a business uses a credit card processor that’s located outside the United States.

Foreign transaction fees aren’t based on the type of currency and might be charged even when the purchase is made in U.S. dollars. Some credit card issuers charge a slightly lower foreign transaction fee for purchases made in U.S. dollars versus those made in another currency.

The 3% fee may not sound like much. It’s just under $5 on a $150 transaction. If you don’t travel internationally or you don’t do business with companies outside the U.S., you may not mind paying a few dollars here and there. However, if you travel outside the country, you can easily spend thousands of dollars on hotel stays, transportation, food and other travel expenses. Spending $3,000 on foreign transactions will result in $100 in foreign transaction fees. It’s an expense you can easily avoid with the right credit card.

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What is a no foreign transaction fee credit card?

A no foreign transaction fee credit card is one that doesn’t charge a fee on purchases you make in other currencies. Using a no foreign transaction fee credit card when you’re traveling can save you hundreds of dollars in additional fees over the lifetime of the credit card.

What’s great about a no foreign transaction fee is that the savings is automatic. You don’t have to make any redemption or take extra steps to have the foreign transaction fee waived; the fee simply isn’t charged to you at all.

No foreign transaction fee credit cards might come with other perks like rewards or introductory rates on balance transfers or purchases. These perks make the card more beneficial for using even when you’re not traveling out of the country.

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How to choose a no foreign transaction fee credit card

The lack of a foreign transaction fee itself is a great perk, but it’s not the only thing that matters in a credit card. As you consider no foreign transaction fee credit cards, check out the other features of the credit card to choose the best one for you.

  • Annual fee. If you want to avoid foreign transaction fees, you might also want to minimize your credit card cost by avoiding the annual fee, too. Some rewards no foreign transaction fee credit cards may charge an annual fee. Before you choose a card with an annual fee, make sure the benefits are worth paying an additional fee.
  • APR. The annual percentage rate, or APR, on the credit card influences how much interest you pay whenever you do not pay your balance in full during the grace period. It’s best to pay your balance in full to avoid interest and debt. But if you carry a balance, a lower annual percentage rate will minimize the amount of interest you pay on balances you carry.
  • Promotional rates. Some no foreign transaction fee credit cards offer 0% introductory promotional interest rates on balance transfers or purchases, or both. You’ll pay no interest during the promotional period as long as you make your payments on time. With a low promotional rate, you can use your credit card to book a trip and make purchases while you’re traveling at no interest and with no foreign transaction fee. Consider also the length of the promotional rate and the interest rate after the promotion ends.
  • Rewards. No foreign transaction fee credit cards commonly pay rewards that you can use toward future travel. With a credit card that pays rewards, pay close attention to the rewards you earn for each dollar you spend. Look for a credit card that pays the most rewards on the categories where you typically spend the most money. Be sure also that the rewards you earn are rewards you can use.
  • Signup bonus. Many rewards credit cards offer a sign p bonus, which is a lump sum of rewards that you can earn by spending a certain amount of money within the first few months of having the credit card. Compare signup bonuses based on the amount of the bonus you can earn and the amount you have to spend to earn the bonus. Keep in mind that your spending habits and credit limit will influence your ability to meet the spending requirement.
  • Security features. Many credit cards now feature safer EMV chip technology, which makes it more difficult to copy or duplicate the credit card. Fortunately, many foreign countries already accept EMV chip credit cards. Look for a no foreign transaction fee credit card with EMV chip technology for safer transactions when you’re traveling abroad.
  • International credit card acceptance. Don’t take for granted that your card will be accepted while you’re traveling to other countries. Visa and Mastercards are widely accepted worldwide. However, Discover and American Express are not as widely accepted in other countries. Consider where you’re likely to travel and research to learn whether the credit card network is widely accepted in that country.
  • Other credit card perks. Many no foreign transaction fee credit cards include other travel perks. These perks can make the credit card even more worth using. Benefits like travel insurance, waived baggage fees, and priority boarding are things that you should consider when you’re choosing a no foreign transaction fee credit card. Read the fine print of these perks to be sure they continue to apply when you travel internationally.
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No foreign transaction fee credit card vs. using cash

You might wonder if it’s easier to carry cash as a way to avoid paying foreign transaction fees. Cash is universal, and many countries accept U.S. dollars, so you may consider opting for cash; however, a credit card is often a better choice. While you may carry some cash for smaller purchases, like restaurants, a credit card is a better option for the majority of your purchases.

First, carrying cash is riskier in many countries because of the increased presence of pickpocketers. This is especially common in tourist-heavy areas of the world. If your cash is stolen, you can’t recoup your funds. On the other hand, your credit card issuer likely has a zero fraud liability policy that will eliminate your responsibility for charges made on a stolen credit card.

Carrying cash can make traveling more cumbersome, depending on the amount you’re carrying. Some countries will require you to make a declaration if you carry cash through customs over a certain amount. Failing to declare your cash can result in stiff penalties. You don’t face the same requirements if you carry a credit card.

Using your credit card to get cash from an ATM can get expensive. You’ll have to pay an ATM fee, a cash advance fee, and you will start accruing interest on the cash advance balance right away.

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Drawbacks of no foreign transaction fee credit cards

While the ability to avoid paying a foreign transaction fee is attractive to many credit card users, there are some drawbacks.

  • There’s a limited number of credit cards to choose from. There are hundreds of credit cards on the market, but only a small number of them are no foreign transaction fee credit cards. This means that you only have a select number of credit cards to choose from.
  • They may not offer the best rewards. If you’re looking for a no foreign transaction fee credit card to double as your main rewards credit card, you may not be happy about your options. Many credit cards that fit this category require lots of spending to provide noticeable benefits.
  • You may still pay fees. While a no foreign transaction fee credit card let’s you avoid paying foreign transaction fees, that doesn’t mean that you are exempt from other fees. You can end up paying an annual fee, late fee or transactional fees like a cash advance fee on the credit card. Make sure you’re aware of the fees your credit card charges and what you need to do to avoid paying these fees if you want to keep your credit card as close to free as possible.
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Frequently asked questions

Getting answers to some common questions will help you better understand how no foreign transaction fee credit cards work. Once you’ve chosen a credit card, this knowledge will help you manage your credit card well.

If a credit card doesn’t charge a foreign transaction fee, you can be sure that the credit card issuer markets this benefit prominently in its credit card offers. You can also check the credit card pricing disclosure to find out whether a card issuer charges a foreign transaction fee. If you have trouble locating the foreign transaction fee for a credit card, call the credit card issuer to find out whether the card charges a foreign transaction fee or not.

Before you travel internationally, give your credit card issuer a call to let them know that you’re going to be making purchases in other countries. This way your credit card issuer won’t flag your international purchases as fraud.

Your credit card issuer is allowed to change the terms of your credit card. This includes adding a foreign transaction fee. Fortunately, the credit card issuer isn’t allowed to change the terms of the credit card without letting you know first.

If the credit card issuer decides to add a foreign transaction fee, you should receive a notification from the credit card issuer 45 days before the change is effective. You should also be given a chance to opt out of the change in terms, meaning that you reject the addition of a foreign transaction fee to your credit card. In response, your credit card issuer may decide to cancel your credit card account. You’ll be allowed to pay off your balance under the current terms, but you won’t be allowed to make additional purchases. If this happens to you, start looking for another no foreign transaction fee credit card.

There is no limit to the number of no foreign transaction fee credit cards you can have. You may choose to have multiple no foreign transaction fee credit cards to increase your spending ability or to take advantage of different rewards programs. As long as you meet the credit requirements, you can have as many no foreign transaction fee credit cards as you can be approved for. Be careful when you have multiple credit cards that you don’t get into more debt than you can handle.

There are several different no foreign transaction fee credit cards that you can apply for. You will typically need to have good to excellent credit to qualify for one of these credit cards. The better your credit score, the more likely it is that you can qualify for a no foreign transaction fee credit card that has great perks and rewards.

With a no foreign transaction fee credit card, you may be subject to other fees that are typical with a credit card. You may pay an annual fee, particularly if this card is a top tier rewards credit card. You are also subject to a late fee if you make your monthly payment after the due date, a balance transfer fee if you transfer a balance to the credit card, and a cash advance fee if you use your credit card to get cash or as overdraft protection for your checking account. Besides the annual fee, most other credit card fees can be avoided depending on how you use your credit card.

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