Which cards charge no foreign transaction fee

Most major credit card issuers offer at least one card with no foreign transaction fee. The cards that carry no fee typically fall into two groups: premium travel cards (which charge an annual fee but waive foreign transaction costs) and some no-annual-fee cards from issuers like Capital One, Discover, and Charles Schwab. The specific cards available to you depend on your credit history and which issuer you bank with.

Foreign transaction fees usually run 1% to 3% of each purchase made outside the United States. A card with no foreign transaction fee saves that percentage on every transaction — groceries, hotels, restaurants, ATM withdrawals — when you travel or make purchases from foreign merchants online. The savings compound quickly on a longer trip or if you make regular international purchases.

The trade-off is straightforward: premium travel cards charge $95 to $550 per year but waive the foreign fee, while no-annual-fee cards with no foreign transaction fee exist but are less common and may offer fewer travel perks. Your choice depends on how often you travel internationally and whether the annual fee pays for itself through other card benefits.

Key Takeaways

  • Premium travel cards from American Express, Chase, and Visa charge annual fees ($95 to $550) but waive foreign transaction fees entirely.
  • Capital One, Discover, and Charles Schwab offer no-annual-fee cards with no foreign transaction fee, though availability depends on your credit profile.
  • Foreign transaction fees typically cost 1% to 3% per purchase, so a card without them saves money on every international transaction.
  • Some cards waive the foreign fee for the cardholder but not for authorized users, so check the terms if you plan to share the card.
  • Online purchases from foreign merchants may trigger a foreign transaction fee even if you are in the United States, so the fee applies to where the merchant is based, not where you are.

Premium travel cards with no foreign transaction fee

Premium travel cards charge an annual fee but eliminate foreign transaction fees as a core benefit. Chase Sapphire Preferred ($95 annual fee), Chase Sapphire Reserve ($550 annual fee), American Express Platinum ($695 annual fee), and American Express Gold ($250 annual fee) all waive the foreign transaction fee. Visa Infinite and Mastercard World Elite cards from various issuers also typically include this benefit.

These cards often bundle the no-foreign-fee benefit with other travel perks: trip cancellation insurance, airport lounge access, travel credits, or points that earn faster on travel purchases. The annual fee makes sense only if you travel internationally at least once or twice per year, or if you use the other benefits enough to offset the cost.

To open one of these cards, you generally need a credit score of 670 or higher, though premium cards often require 700 or above. The issuer will review your credit history, income, and existing accounts before approval.

No-annual-fee cards without foreign transaction fees

Capital One Venture X One (no annual fee), Discover It (no annual fee), and Charles Schwab Investor Checking (linked debit card, no annual fee) are among the few cards that charge neither an annual fee nor a foreign transaction fee. These cards are harder to find because issuers typically reserve the no-foreign-fee benefit for premium products that generate annual revenue.

Capital One Venture X One requires a credit score around 670 or higher. Discover It cards are available to people with fair credit (typically 580 and up), though the specific version without foreign transaction fees may have higher requirements. Charles Schwab's option is a debit card tied to a brokerage account, so it works differently from a credit card but carries no foreign transaction fee on ATM withdrawals worldwide.

Availability of these cards changes as issuers adjust their product lines. If you do not see a no-annual-fee, no-foreign-fee card listed on an issuer's website, it may not currently be offered, or it may be available only to existing customers or those with higher credit scores.

How to check whether a card has a foreign transaction fee

The foreign transaction fee appears in the card's fee schedule, usually labeled "Foreign Transaction Fee" or "International Transaction Fee." This document is available on the issuer's website, often under the card's terms and conditions or pricing information section. Read the exact language: some cards state "no foreign transaction fee" while others say "1.5% foreign transaction fee" or similar.

Call the issuer's customer service line if the fee schedule is unclear. Ask directly: "Does this card charge a foreign transaction fee?" The answer should be a simple yes or no. If the representative says the fee applies only to certain types of transactions, ask for specifics — for example, some cards waive the fee for credit purchases but charge it for ATM withdrawals, or vice versa.

Check whether the no-foreign-fee benefit applies to authorized users as well as the primary cardholder. Some premium cards waive the fee only for the account owner, meaning an authorized user would still pay 1% to 3% on their transactions.

Foreign transaction fees on debit cards and ATM withdrawals

Debit cards and credit cards are treated differently. A debit card may charge a foreign transaction fee even if the issuer's credit card does not. Similarly, ATM withdrawals often carry a separate fee structure: your bank may charge a foreign ATM fee (typically $2 to $5 per withdrawal) in addition to the foreign transaction fee charged by the ATM operator's network.

If you plan to withdraw cash abroad, ask your bank whether it charges a foreign transaction fee on ATM withdrawals specifically. Some banks, including Charles Schwab and Fidelity, reimburse foreign ATM fees, which can save significant money over a long trip. Credit cards do not dispense cash, so this fee applies only to debit cards and ATM transactions.

What happens if you use a card with a foreign transaction fee

When you make a purchase in a foreign currency or from a foreign merchant, the card issuer converts the amount to US dollars and charges the foreign transaction fee as a percentage of that converted amount. A $100 purchase with a 2% foreign transaction fee costs you $102. The fee appears on your statement as a separate line item or rolled into the total charge.

The conversion rate used is set by the card issuer, not by you. Visa, Mastercard, and American Express each publish their own exchange rates daily. The issuer may add a markup to that rate, which is separate from the foreign transaction fee. This means you pay both a conversion markup and a foreign transaction fee on the same purchase — two separate costs.

Over a two-week trip with $3,000 in purchases, a 2% foreign transaction fee costs $60. A card with no foreign transaction fee saves that amount, though you still pay the conversion markup. For frequent international travelers or people who make regular purchases from foreign online merchants, the savings add up quickly.

Frequently Asked Questions

Do I pay a foreign transaction fee if I buy something online from a foreign website while in the US?

Yes. The fee is based on where the merchant is located, not where you are. If you buy from a UK retailer's website while sitting in New York, the transaction is treated as foreign and the fee applies if your card charges one. The card issuer knows the merchant's location from the transaction data.

Can I avoid the foreign transaction fee by using a different payment method?

Some alternatives exist but carry their own costs. Transferring money to a foreign bank account before travel often involves wire fees ($15 to $50). Prepaid travel cards may charge foreign transaction fees themselves. Using local currency ATMs and paying cash avoids card fees but exposes you to ATM operator fees and the risk of carrying large amounts of cash. A credit card with no foreign transaction fee is usually the cheapest option.

If I have a card with a foreign transaction fee, can I call the issuer and ask them to waive it?

Issuers do not waive foreign transaction fees on individual transactions. The fee is a standard charge built into the card's pricing structure. Your only option is to use a different card that does not charge the fee, or to pay the fee as part of the transaction cost.

Do foreign transaction fees apply to currency exchange at a bank or ATM?

No. A foreign transaction fee applies only to purchases and ATM withdrawals made with a card. If you exchange currency at a bank counter or currency exchange service, you pay their exchange rate and any service fee they charge, but not a card-based foreign transaction fee.

What if my card issuer charges a foreign transaction fee but I travel internationally once a year?

Calculate whether switching to a no-foreign-fee card makes sense. If you spend $2,000 per trip and your current card charges 2%, you pay $40 per trip, or $40 per year. A premium card with a $95 annual fee does not pay for itself at that spending level. A no-annual-fee card with no foreign transaction fee would save you the $40 without the annual cost.