Credit Cards That Don't Charge You for Spending Abroad

Cards that waive foreign transaction fees

Several major credit card issuers offer cards with no foreign transaction fee — meaning you pay the same price whether you swipe in New York or New Zealand. The catch is that these cards almost always require good credit to get approved, and many charge an annual fee that you need to weigh against how often you travel.

The most common no-foreign-fee cards come from Chase, American Express, Capital One, and Citi. Some are travel-focused rewards cards (meaning they give you points or cash back on travel purchases), while others are general-purpose cards that simply don't charge the fee on any purchase, anywhere. The difference matters: a travel card might give you 3% cash back on flights but only 1% on groceries, while a flat-fee card gives you the same rate everywhere.

Before you apply, check whether the card's annual fee (if it has one) makes sense for your spending. A card that costs $95 per year but saves you $150 in foreign fees on a two-week trip is worth it. A card that costs $450 per year is only worth it if you travel frequently enough to save that much or more.

Key Takeaways

• Chase Sapphire Preferred, American Express Platinum, and Capital One Venture X all waive foreign transaction fees, but each charges an annual fee ranging from $95 to $695.
• Some cards with no foreign transaction fee also offer no annual fee, though these are less common and typically require very good credit.
• Foreign transaction fees are usually 2% to 3% of the purchase amount, so the fee savings add up quickly on international trips.
• The card's rewards rate and annual fee matter more than the foreign transaction fee alone — compare the total value, not just the fee waiver.

Travel rewards cards with no foreign transaction fee

Travel rewards cards are designed for people who fly, book hotels, or rent cars regularly. They waive foreign transaction fees and also give you extra points or cash back on travel purchases. The tradeoff is that they charge annual fees, usually $95 to $550.

Chase Sapphire Preferred charges $95 per year and gives you 3 points per dollar on travel and dining purchases, 1 point per dollar on everything else. It waives foreign transaction fees on all purchases. American Express Platinum charges $695 per year but includes travel credits (like $200 toward airline fees annually) that offset some of the cost if you travel regularly. Capital One Venture X charges $395 per year and gives you 10x points on hotels and rental cars booked through their portal, plus 5x points on flights and 2x points on everything else.

These cards make sense if you take at least one international trip per year or spend heavily on travel domestically. If you travel once every few years, the annual fee may not pay for itself.

No-annual-fee cards without foreign transaction fees

A small number of cards waive both the annual fee and the foreign transaction fee. These are rare because issuers use annual fees to offset the cost of rewards and perks. The cards that offer both usually have lower rewards rates or stricter credit requirements.

Capital One Venture (no "X") has no annual fee and no foreign transaction fee, though it gives you 2x points on all purchases instead of the higher rates you'd get from a premium card. Citi Prestige used to offer this combination, but as of 2024 it charges $495 annually. Some regional banks and credit unions offer no-fee cards without foreign transaction fees, but availability varies by location and membership status.

The trade-off with no-annual-fee cards is usually a lower rewards rate or fewer travel perks. If you travel occasionally and don't want to pay an annual fee, these cards are worth considering, but you'll earn fewer points per dollar spent than you would with a premium travel card.

How foreign transaction fees work and what you actually pay

A foreign transaction fee is a percentage of the purchase amount that the card issuer charges when you use your card outside the United States. Most cards charge between 2% and 3%. If you spend $1,000 on a trip and your card charges 3%, you pay an extra $30 on top of the purchase price.

The fee applies whether you're buying in a foreign currency or in US dollars. If a hotel in London charges you in US dollars, you still pay the foreign transaction fee. The fee is separate from any currency conversion markup the card issuer applies — that's a different charge that even no-fee cards may include, though it's usually small.

Over a two-week international trip with $3,000 in spending, a 3% foreign transaction fee costs you $90. Over multiple trips per year, the savings from a no-fee card can easily exceed the annual fee of a travel rewards card.

Comparing annual fees to foreign transaction savings

To decide whether a card with an annual fee makes sense for you, calculate how much you'd save on foreign transaction fees and compare it to the annual cost. If you travel internationally once per year and spend $2,000 per trip, a card with a 3% foreign transaction fee costs you $60 per trip. A card with a $95 annual fee saves you that $60 but costs $95, so you'd need to travel twice per year or spend more per trip to break even.

Many premium travel cards also include travel credits, lounge access, or other perks that reduce the effective annual cost. American Express Platinum, for example, includes a $200 airline fee credit annually, which means the true cost to you is $495 per year, not $695. If you use that credit, the card only needs to save you $495 in foreign transaction fees to be worth it — which happens on a single $16,500 trip.

Write down your actual travel spending from the past two years, calculate what you would have paid in foreign transaction fees, and compare that to the annual fee. That number tells you whether the card pays for itself.

Cards to avoid if you travel internationally

Standard cash-back cards from most issuers charge foreign transaction fees. Bank of America, Wells Fargo, and Discover all charge 3% on most of their general-purpose cards. If you travel internationally even occasionally, these cards will cost you more than a no-fee alternative, even if the no-fee card charges an annual fee.

Some cards marketed as "travel cards" still charge foreign transaction fees — always check the fine print. A card might offer travel rewards but still hit you with a 2% or 3% fee on every purchase abroad. Read the card's terms and conditions or call the issuer before you apply.

What happens when you use a no-foreign-fee card abroad

When you use a card with no foreign transaction fee, the transaction goes through the same way as any other purchase. You swipe or insert the card, the merchant processes it, and the issuer converts the amount to US dollars (if needed) and charges your account. The only difference is that you don't see a separate foreign transaction fee line item on your statement.

The card issuer still applies an exchange rate to convert foreign currency to dollars, but this is not the same as a foreign transaction fee. The exchange rate is usually close to the mid-market rate (the rate banks use with each other), though the issuer may mark it up slightly. This markup is typically less than 1% and is much smaller than the 2% to 3% foreign transaction fee.

You'll see the US dollar amount on your statement a day or two after the transaction, once the issuer has processed the currency conversion. If you want to know the exact exchange rate used, you can check your statement or call the card issuer.

Frequently Asked Questions

Do I need to tell my card issuer I'm traveling internationally?

You don't have to, but many issuers recommend it. Calling ahead lets the issuer know you're traveling and prevents them from blocking your card as a fraud precaution. Most cards work fine abroad without a call, but if your card is declined, a quick call to the issuer can get it reactivated immediately.

Will a no-foreign-fee card work at ATMs abroad?

Yes, but ATM withdrawals may have a separate fee. Many no-foreign-fee cards still charge an ATM fee (usually $2 to $5 per withdrawal) when you use an out-of-network ATM abroad. Check your card's terms to see if ATM fees are waived. Some premium cards like American Express Platinum waive ATM fees worldwide.

What if I use a debit card instead of a credit card abroad?

Debit cards often charge foreign transaction fees too, usually 1% to 3%. If you're traveling, a credit card with no foreign transaction fee is typically cheaper than a debit card, even if the credit card charges an annual fee. You also get fraud protection with a credit card that you don't always get with a debit card.

Can I use a no-foreign-fee card if I have fair or poor credit?

Most no-foreign-fee cards require good credit (usually a score of 670 or higher). If your credit is fair or poor, you may not be approved. In that case, look for a secured credit card or a card from your bank or credit union that might have more flexible approval. Some regional banks offer no-fee cards to members with lower credit scores.

Do I earn rewards on foreign purchases with a no-foreign-fee card?

Yes. The foreign transaction fee waiver is separate from the rewards rate. If your card gives you 2x points on all purchases, you earn 2x points on a purchase in London the same way you would on a purchase in Los Angeles. You just don't pay the extra 2% or 3% fee on top of it.