Best Credit Cards With No Foreign Transaction Fees 2024

A foreign transaction fee is a charge that some credit cards tack on to purchases made outside of the United States (typically 1% to 3% of the purchase cost). Many credit cards charge a foreign transaction fee on any purchase made outside the country or charged in a foreign currency — for example, if you bought a product from an online merchant in another country.

A foreign transaction fee is usually reflected on your statement as a single charge added to each transaction, but this fee is actually made up of two parts:

• A currency conversion fee charged by the card network, like Visa or Mastercard (typically 1%)
• A fee charged by the issuing bank, like Citi or Chase (typically 2%)

Many travel credit cards don’t charge foreign transaction fees, which means that the bank will even cover the 1% charged by the networks — so you pay zero. If you’re planning any international trips, make sure you have a no-foreign-transaction-fee credit card in your wallet.

Of all cards we surveyed, 3% is the most common foreign transaction fee charged.

But these fees can really add up when tacked onto all of your purchases. Let’s say you go to Paris and spend $5,000 on hotel stays, restaurants, tours and incidentals like bottled water and gum during your trip. If your card charges a standard 3% foreign transaction fee on every purchase, that will add $150 to the cost of your vacation.

Here’s a chart of typical foreign transaction fees on popular credit cards:

Credit cards are one of the best payment methods to use when traveling abroad. Not only are credit cards more secure than cash, they generally offer very favorable exchange rates, as you can see in the chart below.

Credit cards vs. traveler checks

Traveler checks used to be the best way to pay safely when traveling abroad, and they still exist today. Traveler checks are paper documents that you purchase in desired amounts before you leave, then cash in for local currency at your destination.

Traveler checks are much more secure than carrying large amounts of cash. They never expire, and they can be replaced by the issuing bank if lost or stolen. However, they can be more cumbersome than paying with a no-foreign-transaction fee credit card and using a debit card to pull cash from a local ATM as needed.

The advantages of using a debit and credit card vs. traveler checks include:

Ease of use, convenience and speed
The ability to earn rewards on your trip
No need to pay a lump sum before your trip
Exchange rates on credit cards can be good
Credit cards tend to be more secure than carrying large sums of cash
Most credit cards offer $0 fraud liability

The disadvantages of using a debit and credit card vs. traveler checks include:

Some cards charge foreign transaction fees
Many banks charge ATM fees for withdrawing cash abroad
You may have less control over the exchange rate

Keep in mind that traveler checks may also come with fees at the point of purchase, and even if you need to re-deposit unused checks in the bank when you get home. But traveler checks can
make sense in some scenarios:

• If you don’t have or don’t want a credit card
• You have a card that charges foreign transaction fees and you either don’t want a new card or don’t have time to get one before your trip
• If you’re going to a remote location with few ATMs where many merchants don’t accept credit cards

Want to know how to use a credit card abroad without getting blindsided by sneaky international fees? Here are four tips for using credit cards abroad, and for saving money when you can’t use your card:

1. Shop around for the best travel cards. Browse the best credit cards without foreign transaction fees to find the right match for you based on your style of travel, spending habits and desired perks. Apply for the no-international-fees card at least a month before your trip to make sure it’s in your wallet before you leave.
2. Get a backup no-international-fees card. Consider getting a backup card that also doesn’t charge international fees. Make sure you get a different type of card: For example, if a Visa is your primary card, get a Mastercard. This could save you if a merchant doesn’t accept a certain type of card or if your main card gets lost or stolen.
3. Mind your exchange rates. Getting a bad exchange rate can be costly. Make sure merchants charge your card in the local currency so your credit card company can make the currency exchange to U.S. dollars, likely at a better rate. If you carry traveler’s checks, shop around for the best exchange rates when trading them in for local currency. Use an app or Google search to make sure you’re getting a good exchange rate before you exchange traveler’s checks or cash.
4. Plan ahead to avoid international ATM fees. You may need cash if you come across merchants that don’t accept credit cards or have minimum purchase amounts for card use. As such, consider opening a checking account with Schwab — it doesn’t charge ATM fees, and will reimburse you for the fees charged by other banks. Or, if you aren’t already a customer, consider opening a checking account with Bank of America, which has international ATM partners through the Global ATM Alliance that allow customers to avoid fees at some ATMs abroad.

Follow these tips for using a credit card for foreign travel, and you should be able to avoid getting hit with surprise international fees after your next trip abroad.