Citi notes the change will be effective on purchases made after Jan. 25, 2018.
For world travelers, especially those on a budget, foreign transaction fees can add a tidy sum to the cost of a trip. For example, if you were to spend $1,000 on the Costco Anywhere Visa® Card by Citi for airfare to London, you’d earn 3% cash back. But if you then spend $1,000 on that card while you’re in England, the current 3% foreign transaction fee would wipe out any cash-back benefit you got when you paid for your airfare.
Removing the foreign transaction fee should make the Costco Anywhere Visa® Card by Citi more appealing as a travel card.
“Citi and Costco are committed to consistently delivering value to customers and ensuring that the Costco Anywhere Visa® Card by Citi remains a highly competitive card,” a Citi spokesperson wrote in an email.
The Costco Anywhere Visa® Card by Citi pays 4% cash back on up to $7,000 in gas purchases per year (then 1%), 3% cash back on eligible restaurant and travel purchases, 2% at Costco and Costco.com, and 1% on all other spending. It has an annual fee of $0, but you have to be a Costco member. A basic membership costs $60 a year.
Citi already offers a number of cards without a foreign transaction fee, including the Citi ThankYou® Premier Card. And nearly all issuers offer cards that have no foreign transaction fees.