Best no foreign transaction fee credit cards of May 2025

A foreign transaction fee is a fee, generally a percentage of the purchase, charged by a bank when a credit card is used to make a purchase in a foreign currency. People usually think of these in relation to physically being in a foreign country and making a purchase from a merchant there, but these fees may also be charged if you withdraw money from an ATM in a foreign country.

And, in fact, you don’t necessarily have to physically be in another country to be charged a foreign transaction fee; purchases made online from overseas stores may be processed in another currency and can result in a fee.

Most major banks have cards that charge foreign transaction fees as well as those that don’t. Discover and Capital One, however, are different in that none of their cards charge foreign transaction fees, hence several of those cards made our list above.

Learn more in our guide to foreign transaction fees.

Foreign transaction fees typically range from 1% to 3% of the transaction amount. While they might seem small, they can add up, especially for frequent international travelers or buyers.

If you have a credit card that charges foreign transaction fees you will pay that fee any time you make a purchase from a merchant whose products or services are billed in a currency besides U.S. dollars.

That generally happens in two scenarios.

• You’re traveling in another country, and you’re using your credit card to pay for hotels, taxis, food at restaurants and so on.
• You make a purchase from a company headquartered abroad and that processes transactions in a foreign currency (or through a foreign bank).

You won’t see the fee at the checkout in either of the above scenarios; instead, it’ll be noted on your credit card statement.

Having the right credit card in your pocket can make traveling overseas all the more enjoyable and secure. Not only does it minimize the need to exchange currency, but many cards also come with extra perks like trip interruption insurance and baggage insurance.

If you plan to travel outside the country, selecting a card that doesn’t charge foreign transaction fees is essential. Otherwise, go ahead and assume that every souvenir your buy, every meal you eat, every hotel bill you pay with your credit card will cost you 3% more once those fees are figured in. This can add up quickly.

Beyond that, choosing the best credit cards for international travel comes down to the following factors:

• Credit score: You’ll need to find a card that matches your credit profile. We’ve included credit guidelines for all the cards listed above. Note that you don’t have to have perfect credit in order to qualify for a no-foreign-transaction fee card. Don’t settle for paying a fee just because your credit isn’t in the excellent range.
• Destination: Make sure your card will be accepted in the locations you plan to visit. Visa and Mastercard are often more widely accepted than Discover and American Express, though both of those issuers are growing their networks all the time.
• Features: Depending on the credit card, you may get access to airport lounges, car rental insurance, trip interruption insurance or baggage insurance among other benefits. Look for a card that has the features you’re most likely to use.
• Rewards: If a card offers rewards, be sure they are applicable to your travel plans. Consider signing up for a card that earns points that can be used across multiple airline and hotel brands.
• Fees: While a card may not have foreign transaction fees, it may charge an annual fee, cash advance fees and balance transfer fees among others. Make sure to consider this as you select a card.
• Chip-and-PIN technology: While almost every new credit card issued today comes with chip technology, not all are Chip and PIN cards. A PIN is often necessary to complete transactions in many countries so be sure your new card is PIN enabled for overseas travel. All of the cards that made our list above are Chip and PIN ready cards, but you may need to contact your issuer to request the PIN. If you don’t know your PIN already, be sure to contact your bank far in advance of your trip (many take 7-10 days to send you a new PIN via mail).

There are many reasons to use one of the credit cards listed above on your next vacation or business trip – or if you’re shopping with foreign merchants from the comfort of your own sofa. The benefits of the best no foreign transaction fee credit cards include excellent rewards, wide acceptance overseas and plenty of customer support no matter where you travel. There’s also the added security of using a credit card instead of cash or a debit card while traveling (or shopping online). Think about it; if you lose cash, or if it’s stolen while you’re traveling, you’re out of luck. If you lose your credit card, or if it’s stolen, your situation won’t be quite as dire. You might be without your card for a bit, but at least you aren’t out that money.

What’s more, many of these cards have additional features such as travel insurance. Look for a rewards card with great benefits and you could save money now while racking up points for your next getaway.

Even if you pick one of these no foreign transaction fee credit cards for your next international adventure, you could still get socked by fees from local banks or retailers. Here’s how to keep your trip surcharge-free:

• Merchants don’t always welcome every American credit card equally. It used to be that American credit cards lacked some of the safety features required to use a card overseas (this is pre-chip-and-PIN technology becoming more common in the U.S.); these days, American credit cards generally have the technology needed to travel abroad. The only real thing you’ll likely need to consider is whether your issuer is widely accepted. Visa and Mastercard have the highest acceptance rates around the world, but, Discover and American Express have been busy expanding their networks in the past few years as well, so don’t be so quick to rule out these issuers. With that said, some stores might request or require that you use a card that transacts on their preferred network, so it might be wise to carry a backup card from a different issuer just in case.
• Watch for “dynamic currency conversion” offers. Point-of-sale systems in tourist havens often use an unfavorable exchange rate while tacking on processing fees. Ask to do business in local currency and let your bank save you money.
• Keep your receipts. You never know if you’re going to need them for clearing customs or discussing a charge with your credit card company after you get home. It’s always better to be safe than sorry. If you don’t want to hold on to the paper copies, at least snap a quick photo with your phone before discarding the receipt.
• Use ATM cash advances for emergencies only. Even credit cards with no foreign transaction fees can charge hefty cash advance processing fees. Plus, you’ll usually have to pay a surcharge to a local ATM operator that can run as high as $20 in tourist districts. Instead, drop cash into an online checking account with a no-fee debit card. Even if there is a fee to withdraw money using your debit card, you’ll likely still save money this way. Especially because many U.S. banks have partner banks abroad who reduce or waive the fee for partner users.
• Finally, protect yourself against pickpockets by writing down your credit card companies’ emergency phone numbers and key account details before you leave. Keep a copy separate from your wallet or valuables. If your card gets lost or stolen, your bank’s emergency assistance team can help replace your card or provide an emergency cash advance much more quickly than if they have to look up and verify your account information.

Most travel credit cards do not have foreign transaction fees. Some of the top credit cards with no foreign transaction fees include the Chase Sapphire Preferred® Card, Capital One Venture Rewards Credit Card, Citi Strata Premier℠ Card and the Chase Sapphire Reserve® card.

To calculate a foreign transaction fee, first determine the percentage charged by your credit card company. This is typically a small percentage, often between 1% and 3%. Next, convert the foreign currency amount of your purchase into U.S. dollars using the exchange rate on the transaction date. Multiply the dollar amount by the fee percentage to find the fee amount. Finally, add the fee to the original dollar amount to get the total cost of the purchase.

For instance, if you spend €100 in Paris and the exchange rate is 1 EUR = 1.10 USD, the purchase converts to $110 USD. With a 3% foreign transaction fee, you’d pay an additional $3.30, bringing the total cost to $113.30.