Best No Foreign Transaction Fee Credit Cards of January 2022
Discover the best credit cards for international travel.
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ALSO CONSIDER: Best credit cards of 2022 || Best travel credit cards || Best rewards credit cards || Best cash back credit cards
Most credit cards tack an extra charge onto purchases made outside the United States. If you're planning to travel abroad, you'll want to look out for these foreign transaction fees (sometimes called international transaction fees). They are assessed by your credit card issuer and are usually 1% to 3% of the purchase amount, with 3% being common. That amount might not seem like a big deal, but if you spent, say, $3,000 at a hotel, you could be looking at an additional $90 charge.
The best way to avoid foreign transaction fees is to get a travel credit card that doesn't charge them. Fortunately, any travel credit card worth its salt — including airline cards — will not charge foreign transaction fees, so you have plenty of options. Some major issuers — most notably Capital One and Discover — don't charge these fees on any of their cards.
Here are our favorite cards without the fee.
Note, some of our selections for the best no foreign transaction fee credit cards can be applied for through NerdWallet, and some cannot. Below, you'll find application links for the credit cards from our partners that are available through NerdWallet, followed by the full list of our picks.
ALSO CONSIDER: Best credit cards of 2022 || Best travel credit cards || Best rewards credit cards || Best cash back credit cards
Most credit cards tack an extra charge onto purchases made outside the United States. If you're planning to travel abroad, you'll want to look out for these foreign transaction fees (sometimes called international transaction fees). They are assessed by your credit card issuer and are usually 1% to 3% of the purchase amount, with 3% being common. That amount might not seem like a big deal, but if you spent, say, $3,000 at a hotel, you could be looking at an additional $90 charge.
The best way to avoid foreign transaction fees is to get a travel credit card that doesn't charge them. Fortunately, any travel credit card worth its salt — including airline cards — will not charge foreign transaction fees, so you have plenty of options. Some major issuers — most notably Capital One and Discover — don't charge these fees on any of their cards.
Here are our favorite cards without the fee.
Note, some of our selections for the best no foreign transaction fee credit cards can be applied for through NerdWallet, and some cannot. Below, you'll find application links for the credit cards from our partners that are available through NerdWallet, followed by the full list of our picks.
Best No Foreign Transaction Fee Credit Cards
Our pick for
No-annual-fee travel rewards
3.8
/5 NerdWallet ratingon Bank of America's website
This card gives you many of the perks of a travel card without the price tag: It has an annual fee of $0. You get 1.5 points per $1 spent on anything, and you can redeem points at a value of 1 cent apiece for credit against any travel purchase. This card also happens to have one of the broadest definitions of “travel” in the industry — not just flights, hotels and other routine expenses, but also the cost of visiting an amusement park, an aquarium or a fortuneteller. If you maintain high balances in affiliated accounts, you can earn 25% to 75% more through the Preferred Rewards program. Plus, there's a sign-up bonus: 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases..
If you don’t have a Bank of America® account, you can earn a higher rewards rate with other cards — and if you spend enough, could come out ahead even after paying an annual fee.
Our pick for
Bonus category cash back
5.0
/5 NerdWallet ratingon Capital One's website
You'll earn 3% back on dining, grocery stores, eligible streaming services and entertainment. All other purchases earn 1% back. There's also a generous sign-up bonus, not to mention an intro APR offer. That's a lot of value packed into a card with a $0 annual fee.
If your spending is more concentrated in one food category over the other — dining out or cooking at home — you might do better with a card that specializes in one of those areas.
Our pick for
Flat-rate travel rewards
4.7
/5 NerdWallet ratingon Capital One's website
This card earns 5 miles per dollar on hotels and car rentals booked through Capital One Travel and an unlimited 2 miles per dollar spent on all other purchases. Miles can be redeemed for statement credit against travel expenses at a rate of 1 cent apiece. Just book travel however you want, then use miles to pay for it. Plus, when you redeem miles, you get 5% of those miles back as a bonus. There's a fantastic sign-up offer: Enjoy a one-time bonus of 60,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $600 in travel.
You won't get the perks that often come with branded travel cards, like free checked bags and priority boarding with an airline card or a free night's stay each year with a hotel card.
Our pick for
Bonus travel rewards
5.0
/5 NerdWallet ratingon Chase's website
What really sets this card apart is its big sign-up bonus and rewards transfer options. The bonus: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®. When using the card, you’ll earn 5 points per $1 spent on all travel purchased through Chase Ultimate Rewards®; 3 points per $1 spent on dining (including eligible delivery services and takeout), select streaming services, and online grocery purchases (not including Target, Walmart and wholesale clubs); 2 points per $1 spent on travel not purchased through Chase Ultimate Rewards®; and 1 point per $1 spent on other purchases. Points are generally worth 1 cent, but they’re worth 25% more when used to book travel through Chase. They can also be transferred at 1:1 rate to several airline and hotel loyalty programs.
A big chunk of this card’s value rests in its sign-up bonus; other travel cards have better long-term rewards. Also, this card doesn’t offer the perks — free checked bags, priority boarding — of airline-specific cards.
Our pick for
Flat-rate cash back
4.6
/5 NerdWallet ratingon Capital One's website
The best cash back cards make rewards easy to earn and easy to redeem, and this card does that better than most. You earn a flat 1.5% cash back on every purchase, and there’s no minimum redemption amount. That’s music to a frugal traveler’s ears. The annual fee is $0. This card also comes with an introductory 0% APR period on new purchases (then an ongoing variable APR of 14.99% - 24.99%) and a solid sign-up bonus: One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening. Among cash back cards with no foreign transaction fees, it offers the best rewards and benefits and is widely accepted overseas.
Unlike many travel rewards cards, which let you stretch your value by redeeming points or miles selectively, this card won't give you more than 1.5 cents back per dollar spent.
Our pick for
Students
4.5
/5 NerdWallet ratingon Deserve's website
The Deserve® EDU Mastercard for Students doesn’t require applicants to have a co-signer or security deposit, and international students don't need a Social Security number. That makes it a little easier to get approved — even for students with limited credit histories. Plus, it comes with a solid 1% back on all purchases and a one-time reimbursement for Amazon Student Prime after spending $500 in the first three billing cycles. The annual fee is $0.
The ongoing APR is 18.74% Variable, so carrying a balance on it could get expensive in a hurry. You also must be currently enrolled at a U.S. college or university to get approved.
Our pick for
Average credit
4.7
/5 NerdWallet ratingon Capital One's website
This card pays 1.5% cash back on all purchases — the same as on the regular Capital One Quicksilver Cash Rewards Credit Card for excellent credit. That makes it one of the most valuable cards available for those with average credit. Plus, you can redeem cash back in any amount.
There's an annual fee of $39. To earn enough rewards to make up for the fee, you’d have to spend $2,600 a year. For some, that’s a tall order. The card also lacks a sign-up bonus. The ongoing APR is 26.99% Variable APR, so it’s not a good pick for carrying a balance.
Our pick for
Business travel
5.0
/5 NerdWallet ratingon Chase's website
The Ink Business Preferred® Credit Card delivers outstanding value from the get-go with a big sign-up bonus: Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That's $1,000 cash back or $1,250 toward travel when redeemed through Chase Ultimate Rewards® You earn 3 points per dollar spent on travel, telecommunications, shipping and advertising on social media and search engines, on up to $150,000 in combined spending each year. All other spending earns 1 point per dollar. Points are worth 1.25 cents apiece when used to book travel through Chase Ultimate Rewards®; they can also be transferred on a 1:1 basis to travel partners such as United, Southwest, Marriott and Hyatt.
As with most credit cards with generous rewards, the Ink Business Preferred® Credit Card has an annual fee: $95. There’s a limit to how much spending earns 3 points per dollar; it’s a high limit, but it’s still a limit.
FULL LIST OF EDITORIAL PICKS: BEST NO FOREIGN TRANSACTION FEE CREDIT CARDS
Click the card name to read our review. Before applying, confirm details on the issuer’s website.
Our pick for: Flat-rate travel rewards
The Capital One Venture Rewards Credit Card is probably the best-known general-purpose travel credit card, thanks to its ubiquitous advertising. You earn 5 miles per dollar on hotels and car rentals booked through Capital One Travel and 2 miles per dollar on all other purchases. Miles can be redeemed at a value of 1 cent apiece for any travel purchase, without the blackout dates and other restrictions of branded hotel and airline cards. The card offers a great sign-up bonus and other worthwhile perks. Read our review.
Our pick for: Bonus travel rewards
For a reasonable annual fee, the Chase Sapphire Preferred® Card earns bonus rewards (up to 5X) on travel, dining, select streaming services, and select online grocery purchases. Points are worth 25% more when you redeem them for travel booked through Chase, or you can transfer them to about a dozen airline and hotel partners. The sign-up bonus is stellar, too. Read our review.
Our pick for: No-annual-fee travel rewards
One of the best no-annual-fee travel cards available, the Bank of America® Travel Rewards credit card gives you a solid rewards rate on every purchase, with points that can be redeemed for any travel purchase, without the restrictions of branded airline and hotel cards. Bank of America® has an expansive definition of "travel," too, giving you additional flexibility in how you use your rewards. Read our review.
Our pick for: Business travel
The Ink Business Preferred® Credit Card starts you off with one of the biggest sign-up bonuses of any credit card anywhere (assuming you spend enough to earn it), then gives you bonus rewards in common business spending categories. Points are worth 25% more when redeemed for travel booked through Chase, or you can transfer them to about a dozen airline and hotel partners. Read our review.
Our pick for: Flat-rate cash back
The original 1.5% flat-rate cash-back card still holds its own in a now-crowded field. The Capital One Quicksilver Cash Rewards Credit Card offers a compelling combination of a good rewards rate, redemption flexibility, sign-up bonus and introductory 0% APR period (then an ongoing variable rate of 14.99% - 24.99%). Read our review.
Our pick for: Bonus category cash back
Love the night life but dead-set against paying an annual fee? Consider the Capital One SavorOne Cash Rewards Credit Card. It pays a lower cash-back rate on dining and entertainment than the regular Savor card, but the rewards are nevertheless quite good. The sign-up bonus is smaller than on the annual-fee version, too, but it's still solid. Read our review.
Our pick for: Average credit
This card for people with fair or "average" credit pays the same cash-back rate as the regular Quicksilver card, which targets people with excellent credit. The key difference is that this version charges an annual fee while the regular one does not. Read our review.
Our pick for: College students
The Deserve® EDU Mastercard for Students doesn’t require applicants to have a co-signer or security deposit, and international students don't need a Social Security number. That makes it a little easier to get approved — even for students with limited credit histories. Plus, it comes with a solid 1% back on all purchases. Read our review.
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OTHER RESOURCES
By Erica Corbin, NerdWallet
Top credit card issuers’ foreign transaction fees
Here’s a look at the standard foreign transaction fees charged by major U.S. credit card issuers. It’s important to note that many of these issuers waive the foreign transaction fee (also called an international transaction fee) on certain cards. Further, some major issuers don’t charge foreign transaction fees on any of their cards.
Using credit cards internationally
Which credit cards work worldwide?
Whether you're in the U.S. or a foreign country, your ability to use a credit card at a merchant depends on whether the merchant accepts that card's payment network. The four major U.S. networks — Visa, Mastercard, American Express or Discover — all have an international presence, although to varying degrees.
In the U.S., Visa and Mastercard are ubiquitous. If a merchant accepts credit cards, it almost always accepts Visa and Mastercard, although there are a few exceptions, such as Visa-only Costco. Discover is a close third, just a hair behind the leaders. American Express is widely accepted, just not as widely as the other three. Smaller merchants, in particular, are less likely to take AmEx. Even so, when traveling in the U.S., you should be able to get by with a card on any of the four networks.
Outside the U.S., Visa and Mastercard are also dominant worldwide networks. And while American Express has a strong presence overseas — it has more cardholders outside the U.S. than in — it doesn't match the extent of Visa and Mastercard. Discover is a smaller player outside the U.S. If you're planning to travel internationally and your primary card is American Express or Discover, it's best to bring along a Visa or Mastercard as a backup.
Should I use dynamic currency conversion?
When you buy something with a credit card in a foreign country, your receipt will show the cost in the local currency. When you get your statement, however, you'll see that the charge has been converted to dollars. Your payment network takes care of the conversion, and you can usually be confident that you're getting a fair exchange rate. (A 2016 NerdWallet study found that Visa and Mastercard tended to convert currency at near-market rates, which is about the best you can get.)
Sometimes when you're shopping overseas, merchants will ask if you want your purchases to be denominated in dollars rather than the local currency. This is known as "dynamic currency conversion." It seems attractive, as it allows you to see how much you're spending in terms you understand — say, $50 rather than 5,000 Japanese yen or 45 euros. But dynamic conversion is usually a bad deal. That's because the exchange rates are considerably worse than what you'd get if you made your purchase in the local currency and then let your credit card network handle the conversion.
One other thing about dynamic conversion: It won't get you out of paying foreign transaction fees. If your card charges a fee on overseas purchases, it doesn't matter if those purchases are in dollars, yen, euros, rubles or whatever. You'll still pay the fee.
Do I need a chip-and-PIN card?
Most credit cards issued in the U.S. are "chip-and-signature" cards. When you make a purchase at a store, the chip embedded in the card passes information to the merchant's computer system. Further, the chip protects that information with a one-time code so that if the data is stolen, it can't be used to make a counterfeit card. It's all very high-tech. But then you complete the transaction by verifying your identity in a decidedly low-tech way: You sign your name — and you might not even do that.
Cards issued in other countries have "chip-and-PIN" technology. You use the card the same way, but instead of signing your name to complete the transaction, you have to enter a four-digit code, or PIN. This adds a layer of security by making it harder for someone to use a stolen card.
When traveling abroad, you'll usually be able to use a U.S.-issued chip-and-signature card for in-person transactions. Among the places where you can't use one is at self-service kiosks and vending machines. These typically require chip-and-PIN.
Among major issuers in the U.S., Barclays offers chip-and-PIN on its cards. Some credit unions oriented toward military servicemembers who may be deployed overseas also offer chip-and-PIN functionality. If you don't have a chip-and-PIN card, it's not a crisis situation. You'll just have to plan ahead and keep in mind that if you need to buy something like train tickets, you'll have to go up to the window and buy from a live person rather than from a ticket machine.
Finally, be aware that simply having a PIN for your credit card does not make it a chip-and-PIN card. Many cards allow you to get cash advances for an ATM using a PIN. A PIN for accessing cash advances is not the same as one for verifying transactions though chip-and-PIN technology. If in doubt, ask your issuer.
Credit cards or travelers checks?
Travelers checks have been mostly replaced in travelers' wallets by credit and debit cards, which also solve many of the security problems that travelers checks were created to address. So while you can still get travelers checks, most travelers would find them more trouble than they're worth.
Back before credit cards were as widely used and accepted as they are today, people who didn't want to risk carrying a lot of cash on a trip would rely on travelers checks. A traveler might go to a bank or travel agency in their hometown and buy, say, six $100 checks, which they would sign at the bank. At their destination, they'd use the checks at stores or restaurants that accepted them, or exchange them for cash at a hotel or bank. When they redeemed the check, they'd sign it again, and the recipient would compare the signatures to verify the check.
Among the advantage of travelers checks:
If they were lost or stolen, the issuer would replace them, so you didn't lose money. Nowadays, credit card issuers can cancel a lost or stolen card and expedite a replacement just as quickly.
You could exchange them for cash far from home. The wide acceptance of credit cards makes cash less critical to carry, and credit cards can provide cash in a pinch. And, of course, debit cards can get you cash, too.
You could use them in places that didn't accept out-of-town personal checks. Today, credit cards are accepted at millions more locations than travelers checks ever were.
Travelers checks still have their uses. But when you combine the dwindling number of places that accept travelers checks with the fees you have to pay to get them, most leisure travelers will be better off with the cards they already carry.
Last updated on January 25, 2022
Methodology
NerdWallet's Credit Cards team selects the best credit cards with no foreign transaction fee based on overall consumer value, as evidenced by star ratings, as well as their suitability for specific kinds of consumers. Factors in our evaluation include annual fees, rewards rates and redemption options, introductory and ongoing interest rates, bonus offers for new cardholders, international acceptance of the card's payment network, and other noteworthy features such as travel perks. Learn how NerdWallet rates credit cards.
Frequently asked questions
Most credit cards issued by U.S. banks impose a surcharge when you use your card outside the United States. Foreign transaction fees are charged on purchases you make while traveling in other countries, but they can also be applied when you buy something from a foreign merchant. If you're at home in the U.S. and you use your card to order online from a company in, say, London, you might get hit with the fee, since the transaction was processed outside the U.S.
Some issuers, including Capital One, Discover and USAA, do not charge foreign transaction fees on any of their cards, and many issuers do not charge them on specific cards. Credit cards marketed to frequent travelers usually do not charge foreign transaction fees, even if the issuer has them on other cards.
The typical foreign transaction fee is 3% of the purchase price. Charge a $1,000 hotel stay on a card that imposes such a fee, for example, and you'll pay an extra $30. However:
• Some issuers charge a lower rate. American Express has long charged 2.7%, for example.
• Some issuers have no foreign transaction fees on any of their cards. They include Capital One, Discover and USAA.
• Most credit cards specifically designed for frequent travelers do not charge foreign transaction fees, even when the issuing bank charges such fees on its other cards.
When a foreign transaction fee applies to a purchase, you won't see it until you receive your credit card statement. That's because the fee is charged by the credit card company, not by the merchant. If you charge a $1,000 hotel stay in another country, your receipt from the hotel will just say $1,000 (or the equivalent amount in the foreign currency); when your statement arrives, the charge for the purchase will total $1,030.
When you buy something in a foreign country, the merchant may give you the option of having the purchase converted to U.S. dollars so you can see how much it costs in a way you're more likely to understand. (See the question about dynamic currency conversion below.) But for the purpose of the foreign transaction fee, it usually doesn't matter whether a purchase is submitted to your credit card company in U.S. dollars or in the local currency. The fee applies based on where the transaction takes place, not how it is denominated.
The one exception among major issuers is U.S. Bank, which charges a 3% foreign transaction fee but knocks that down to 2% if the purchase is denominated in U.S. dollars.
Foreign transaction fees are independent of exchange rates. Currency exchange rates tell you how much a unit of foreign currency is worth in dollars. If you buy something in France for 100 euros, for example, the cost in dollars might be $105 or $110 or $112.37 or something else, based on the current exchange rate. Your credit card's payment network — Visa, Mastercard, Discover or American Express — converts foreign purchases to dollar amounts according to the current exchange rate. The foreign transaction fee is then applied to the converted dollar amount.
Dynamic currency conversion is a service offered by some merchants overseas, in which they convert your purchase to dollars so that you can better get a sense of what it costs. It might be easier for you to understand a price of, say, $35 compared with 500 South African rand. Using dynamic currency conversion will not affect your foreign transaction fee in most cases. (An exception is U.S. Bank, which reduces the fee to 2% when purchases are processed in U.S. dollars.)
In general, dynamic currency conversion is a costly convenience for U.S. travelers. A NerdWallet study of credit card currency conversion rates found that when you let your credit card company convert your purchase to dollars, it usually does so at the current market rate. But when you choose dynamic currency conversion, it typically costs you an extra 1% to 3% because the merchant uses a less favorable exchange rate and pockets the difference. In other words, rather than save you money, dynamic currency conversion could as much as double the surcharge on a foreign transaction.
