Globe-Trotters Take Note: The Best Cash Back and Travel Cards With Zero Foreign Fees
Globe-Trotters Take Note: The Best Cash Back and Travel Cards With Zero Foreign Fees
How a 1% to 3% surcharge erodes your rewards abroad and online, and how to avoid it.
Written by
Holly Johnson
Holly Johnson is a money and insurance expert who has covered personal finance, credit cards and insurance for over a decade. She is passionate about explaining the ins and outs of financial products to consumers, and is the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love." She lives in Indiana with her husband and children.
According to aConsumer Financial Protection Bureau (CFPB) report to Congress, consumers paid $31.3 billion in credit card fees the previous year. This amount includes foreign transaction fees on purchases charged abroad.
Anytime you swipe a credit card at a cafe in Barcelona, a shop in Tokyo, or a beachside restaurant in Mexico, your card issuer may quietly add a 1% to 3% surcharge to the bill. It's called a foreign transaction fee, and most cardholders don't notice it until they comb through their credit card statement after the trip.
The fee isn't limited to travel, either. Buying a subscription from a European software company, ordering from a Japanese retailer, or booking a vacation rental through a foreign platform can all trigger the same charge — even if you're in your home country when you pay.
Unfortunately, not enough travelers worry about this fee. According toBestMoney's travel credit card survey, only about 6 in 100 travel cardholders (5.68%) rank "no foreign transaction fees" as the benefit they value most. Nearly half (47%) focus on earning points and miles instead. That gap means many consumers lose real money on a fee they rarely think about.
This guide breaks down how foreign transaction fees work, which types of cards waive them, and how to pick the right option for your spending patterns — whether you're a frequent flyer, an occasional vacationer, or someone who frequently buys from foreign vendors. If you're ready to start comparing credit cards, you can explore your options anytime.
Key Insights
Foreign transaction fees can add 1% to 3% to purchases abroad and from foreign merchants online.
On $5,000 in international spending, a 3% fee costs $150 — often more than a night in a lower-tier hotel.
Dynamic currency conversion can cost 3% or more extra, even if your card has no foreign transaction fees.
The right no foreign transaction fee card depends on whether you travel often, shop online, or are building credit.
Why Do Foreign Transaction Fees Matter?
Foreign transaction fees matter because they're one of the most overlooked costs of spending internationally — and they add up faster than most people expect.
Most U.S. card issuers charge a foreign transaction fee of 3% on each international purchase. You can confirm your card's rate in the "Fees" section of its cardholder agreement (the Schumer Box). That percentage applies to every purchase made in a foreign currency or processed through a foreign bank.
Say you spend $5,000 abroad during a two-week trip throughout Europe. At 3%, that's $150 in fees — enough to cover several meals or a night in a budget hotel. Take two international trips a year, and you could be losing $300 or more annually to a charge buried in your statement. If you spend considerable sums on souvenirs or overseas excursions each year, you could be losing thousands to foreign transaction fees.
What many consumers miss is that this fee isn't just for travelers. Buying from a retailer based in the United Kingdom, subscribing to a service headquartered in the Netherlands, or purchasing from a Japanese marketplace all trigger the same surcharge. You don't need to leave your living room to pay foreign transaction fees.
Our survey found that most travel card holders prioritize rewards and annual fees when choosing a card. That makes sense — earning points feels tangible. But for anyone who spends internationally, a 3% fee quietly erodes the value of those very rewards. If you're still trying to understand credit card rewards, this is an important detail to note. A card that earns 2% cash back on every purchase effectively earns negative 1% on international spending if it also charges a 3% foreign transaction fee.
Due to this set-up, travel expert Jen Ahana of theExplore This series says foreign transaction fees are a "hidden trip tax" most travelers don't notice until they're home looking at their statement.
Small Fees Compound Fast
When you're spending weeks in the Dolomites or Iceland — paying for mountain huts, local guides, small family restaurants — those 2-3% fees compound across every single transaction. For frequent international travelers, they can easily cost hundreds of dollars a trip without ever appearing as a line item.
The takeaway: Foreign transaction fees may not grab headlines, but they represent a real, recurring cost that compounds over time. Understanding these fees is crucial if you want to avoid them.
Fees Can Erase Your Rewards
It's surprising that a great deal of customers focus on getting an additional one or two percent in rewards but disregard the fact that a three percent fee is taking away all the rewards received.
Foreign transaction fees work through a two-part structure that most cardholders don't see broken down on their statement.
The first layer is the network assessment fee. Card networks like Visa and Mastercard charge a cross-border assessment fee on international transactions. Visa's international service assessment runs 1.00-1.40% depending on currency, and Mastercard's cross-border fee ranges from 0.60-1.00% — rates published in each network's fee schedule for acquirers. This fee is baked into every foreign purchase, regardless of which bank issued your card.
The second layer is the issuer markup. Your card-issuing bank — Chase, Citi, Bank of America, or whoever is behind the card — typically adds another 1-2% on top of the network fee. Combined, the total foreign transaction fee lands between 1% and 3%, with 3% being the most common across major issuer cardholder agreements.
This fee is disclosed in your card's terms (the Schumer Box), but most consumers skip past it when signing up. If you're unclear on how credit card interest works, foreign transaction fees can be especially confusing. After all, the charge only becomes visible when you review a statement that includes purchases made overseas or with international companies.
What Is Dynamic Currency Conversion?
Dynamic currency conversion (DCC) is a separate cost that catches even savvy cardholders off guard. When you pay at a foreign merchant or use a foreign ATM, the terminal may offer to convert the charge to US dollars for you. It sounds convenient, but the merchant's conversion rate includes a markup — often 3% or more above the wholesale exchange rate.
Unfortunately, costs related to DCC can be difficult to avoid. Even if your card waives foreign transaction fees, you can still lose money to DCC.
Say you're buying a EUR 200 item in Paris. With DCC, the merchant might charge you $235. If you decline DCC and let your card network handle the conversion, the same EUR 200 might come to roughly $222. That's $13 lost on a single purchase — not from your card issuer, but from the merchant's markup.
The fix is simple. Whenever a foreign merchant or ATM asks whether you want to pay in USD or local currency, choose the local currency. This lets the card network convert the charge at its rate, which is typically close to the interbank wholesale rate. You can check your network's rate in advance using Visa's exchange rate calculator or Mastercard's currency converter.
Always Pay in Local Currency
If you have the option of being charged in U.S. dollars or the local currency in a shop or at an ATM, select the latter. While it might feel more comfortable to pay in dollars, the exchange rate is usually worse.
Which Types of Credit Cards Waive Foreign Transaction Fees?
Credit cards that waive foreign transaction fees generally fall into a few categories. The right one depends on how you spend, how often you travel, and the tradeoffs you're willing to accept.
Which Cards Are Suited for Frequent International Travelers?
Premium travel rewards cards — typically carrying annual fees between $95 and $895 — almost universally waive foreign transaction fees. These cards are designed for people who travel internationally at least twice a year and want to maximize the value of every dollar spent abroad.
Beyond waiving foreign transaction fees, these cards often include travel protections like trip cancellation and interruption insurance, lost luggage reimbursement, lounge access, and accelerated rewards rates on travel and dining purchases. Cards in this tier from Chase, American Express, and Citi tend to waive foreign fees as a standard feature, though their non-travel and entry-level cards from the same issuers often do not.
For frequent travelers, the annual fee often pays for itself through savings on foreign transactions, travel credits, and rewards earnings combined.
Which Cards Work for Online International Shoppers?
If you regularly buy from foreign retailers online but don't necessarily travel abroad, two issuers stand out:Capital One and Discover.
The Capital One Quicksilver Cash Rewards Credit Card carries a $0 annual fee and no foreign transaction fees, earns an unlimited 1.5% cash back on every purchase, and currently offers a $200 cash bonus after spending $500 in the first three months — plus a 0% intro APR on purchases and balance transfers for 15 months (18.74% - 28.74% variable after that). For someone who shops internationally more than they travel, that combination delivers real value with nothing extra to track or pay for.
With Discover credit cards, however, you need to be more careful. While this card issuer waives foreign transaction fees on all of its cards, its international merchant acceptance network is smaller than Visa's or Mastercard's. That limits its practical use for in-person travel purchases in some regions, though it works fine for online transactions processed through its network.
Which No-FTF Cards Are Available for Credit Builders?
Consumers who are building or rebuilding credit still have options. Some secured and student cards waive foreign transaction fees. For younger consumers studying abroad or travelers with limited credit history, a no-annual-fee card that also skips foreign transaction fees removes one more barrier to using credit responsibly while overseas.
How Do Budget-Conscious Consumers Weigh the Tradeoffs?
No-annual-fee cards that also waive foreign fees exist — you can browse no-annual-fee credit cards to see the current options — but they may come with lower rewards rates compared to premium travel cards. The tradeoff is straightforward — you save on the annual fee and the foreign transaction fee, but you may earn less back on every purchase.
Here's a quick break-even framework to decide if a premium card is worth it. Divide the card's annual fee by 0.03 (the standard FTF rate). That gives you the amount you'd need to spend each year internationally for savings on foreign transaction fees alone to cover the annual fee.
Say you're considering a card with a $95 annual fee. Divide $95 by 0.03, and you get roughly $3,167. If you spend more than that abroad annually, the premium card pays for itself in FTF savings alone — before counting any travel perks or higher rewards rates.
It Is Rarely One Big Charge
When you travel a lot, foreign transaction fees can really start to sting. It is rarely one massive charge. It is normally lots of small fees added to meals, train tickets, coffees, hotels, and everything else you pay for while you’re away.
The right credit card with no foreign transaction fees depends on your spending patterns and travel habits. Here's a quick guide by profile.
If you travel internationally two or more times per year: A premium travel card with no FTF is likely worth the annual fee. You'll save on foreign transaction fees and earn accelerated rewards on travel and dining. The combination of fee savings and travel protections makes the annual cost easier to justify.
If you shop online from foreign retailers: A no-annual-fee card like the Capital One Quicksilver Cash Rewards Credit Card eliminates foreign transaction fees without costing you anything upfront, while still earning 1.5% cash back on every purchase. If you use Discover, confirm its acceptance with the merchants and countries you buy from most often.
If you're planning one big international trip: Calculate whether the FTF savings justify opening a new card. Say you plan to spend $3,000 abroad. At a 3% FTF, that's $90 in fees — a meaningful amount, but weigh it against any annual fee on the new card and how long you'll continue using it afterward.
If you already have a travel rewards card: Check whether it waives foreign transaction fees already. Most premium travel cards do, but don't assume — look in the "Fees" section of your card's terms or call the number on the back of your card. If your current card charges FTF, you may be quietly losing a portion of your rewards to fees every time you spend abroad.
If you're building credit: Look for a no-annual-fee card that waives FTF from day one. Starting without this fee means one less cost to worry about as you establish your credit history.
What Should You Do Next?
Start by checking your current card's foreign transaction fee policy. Look in the "Fees" section of your card agreement, or call the number on the back of your card and ask directly. Figuring out where you stand should take less than five minutes.
If your card charges foreign transaction fees and you spend internationally — even online — it may be time to explore alternatives. You can compare travel credit cards side by side to find the right fit for your spending and travel patterns.
Before your next trip, also consider a few related costs beyond foreign transaction fees:
International ATM fees: Some cards charge $2 to $5 per withdrawal or more, plus the ATM operator's surcharge. A handful of premium travel cards reimburse these fees.
Travel insurance coverage: Check whether your card includes trip cancellation and trip interruption insurance, lost luggage reimbursement, or medical coverage abroad. Note that very few cards offer any protection for emergency medical expenses overseas, and those that do have insufficient coverage limits.
Emergency card replacement: Confirm your issuer can replace a lost or stolen card internationally, and find out how long it takes.
Foreign transaction fees are a small percentage that creates a real cost — especially for consumers who travel internationally on a regular basis. A 3% fee can turn a $5,000 trip into $5,150, and this added cost compounds across multiple trips and years of bucket-list vacations abroad.
Fortunately, avoiding this fee can be possible. Premium travel credit cards almost always waive it, and Capital One doesn’t charge foreign transaction fees on any of its U.S.-issued credit cards, including no-annual-fee options. Even consumers building credit have paths to no-FTF cards.
Beyond choosing the right card, remember to decline dynamic currency conversion whenever a foreign merchant or ATM offers it. That one habit can save you 3% or more on individual purchases — a cost that hits even no-FTF cardholders.
Whether you travel twice a year internationally or regularly shop with foreign retailers online, checking your card's FTF policy is one of the simplest ways to keep more of your money where it belongs.
Your Questions, Answered (FAQs)
What is a foreign transaction fee?
A foreign transaction fee is a surcharge — typically 1% to 3% — that a credit card issuer charges when you make a purchase in a foreign currency or through a foreign bank. The fee is separate from the exchange rate conversion and appears as a line item on your credit card statement after the fact.
Do I pay foreign transaction fees on online purchases?
Yes. If the merchant is based outside the US or processes the transaction in a foreign currency, your card issuer may charge a foreign transaction fee — even if you're making the purchase from home. This applies to international retailers, foreign subscription services, and overseas marketplace sellers.
Which credit card companies don't charge foreign transaction fees?
Capital One doesn't charge foreign transaction fees on any of its consumer credit cards, including the Capital One Venture X Rewards Credit Card, Capital One Venture Rewards Credit Card and Capital One Quicksilver Cash Rewards Credit Card. Most premium travel cards from Chase, American Express and Citi also waive the fee, but their entry-level and cash back cards often do charge it. Check the specific card's terms before assuming.
Are no-foreign-transaction-fee cards worth a higher annual fee?
It depends on how much you spend internationally. A quick way to check involves dividing the card's annual fee by 0.03. If you spend more than that amount abroad each year, the FTF savings alone cover the annual fee — and you'll likely get additional travel perks on top.
What is dynamic currency conversion, and how do I avoid it?
Dynamic currency conversion (DCC) is when a foreign merchant or ATM offers to charge you in U.S. dollars instead of local currency. It sounds convenient, but it typically adds a markup of 3% or more on the exchange rate. Always choose to pay in local currency to avoid the extra cost. This applies even if your card waives foreign transaction fees.
Why Trust BestMoney?
This article was produced by BestMoney's editorial team, which evaluates credit cards using our proprietary BestMoney Score — a dynamic formula combining anticipated cardholder engagement with expert editorial assessment across category-specific criteria.
Author Holly Johnson is a money expert who has covered personal finance, credit cards, and travel loyalty programs for more than 15 years. She is passionate about explaining the ins and outs of financial products to consumers, and is the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love." She lives in Indiana with her husband and children.
How Did We Research This?
BestMoney surveyed US consumers about their travel credit card preferences and spending behavior as part of BestMoney's 2026 Credit Cards Travel Survey. The survey collected responses from cardholders across demographic groups, asking which card benefits they value most, whether they hold travel rewards cards, and how they use credit cards for international spending.
We also reviewed the current terms and conditions published by major card issuers — including Capital One, Discover, Chase, American Express, and Citi — to verify which cards and card families waive foreign transaction fees. Fee structures were cross-referenced against published network fee schedules from Visa and Mastercard.
Visa and Mastercard published network fee schedules for acquirers
Capital One, Discover, Chase, American Express, and Citi — published card terms and conditions
Expert quotes: Travel expert Jen Ahana of theExplore This series, John Taylor Garner ofOdynn (an AI-based travel rewards and loyalty company) and Ryan Kyle ofIrish Travel Addict
DisclaimersBestMoney may receive compensation from card issuers whose products are referenced or recommended on this page. This does not affect our editorial recommendations.All credit card products referenced in this article are subject to credit approval. Not all applicants will qualify. Terms are determined based on individual creditworthiness.Credit card terms, APRs, annual fees, rewards rates, earn rates, welcome bonuses, and benefits referenced in this article are based on publicly available information as of November 2026 and are subject to change at any time without notice. Some offers listed may no longer be available or may have expired. Please refer to each issuer's official website or card agreement for the most current terms and conditions before applying.
Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone, and may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.
Written byHolly Johnson
Holly Johnson is a money and insurance expert who has covered personal finance, credit cards and insurance for over a decade. She is passionate about explaining the ins and outs of financial products to consumers, and is the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love." She lives in Indiana with her husband and children.
