Cards that charge no foreign transaction fees

Most travel rewards cards and premium cards have no foreign transaction fees. The most common ones are the Chase Sapphire Preferred, Chase Sapphire Reserve, American Express Platinum, Capital One Venture X, and Citi Prestige. However, the list changes as card issuers update their offerings, and some cards waive the fee only for cardholders who meet spending thresholds or annual spending requirements.

Foreign transaction fees are the percentage charge a card issuer adds when you use your card outside the United States or in a foreign currency. Most standard cards charge 1% to 3% on top of the purchase price. Cards without this fee save you that percentage on every transaction abroad — groceries, hotels, restaurants, taxis, and ATM withdrawals.

The catch is that cards without foreign transaction fees usually have an annual fee of $95 to $550. Whether that trade-off makes sense depends on how much you spend abroad and whether you use the card's other benefits — cash back, travel credits, lounge access — enough to offset the cost.

Key Takeaways

  • Travel rewards cards and premium cards typically have no foreign transaction fees, but they charge annual fees ranging from $95 to $550.
  • A card without foreign transaction fees saves you 1% to 3% on every purchase made outside the United States or in a foreign currency.
  • Some cards waive the fee only if you meet annual spending targets or maintain a certain account balance, so read the terms before applying.
  • If you travel infrequently or spend less than $2,000 abroad per year, the annual fee may cost more than the foreign transaction fees you would pay with a standard card.

How foreign transaction fees work

When you use a credit card outside the United States, the card issuer charges a percentage of the purchase amount as a foreign transaction fee. This fee covers the cost of currency conversion and international payment processing. The fee is added to your bill automatically and appears on your statement as a separate line item or rolled into the total charge.

The fee applies whether you use the card in a foreign country or make a purchase from a foreign merchant while in the United States — for example, buying from a UK-based online retailer. It also applies to ATM withdrawals abroad, though some cards charge an additional flat fee on top of the percentage.

Standard cards issued by major banks typically charge 1% to 3% per transaction. A $100 meal in Paris might cost you $101 to $103 depending on your card's rate. Over a two-week trip with multiple purchases, these fees add up quickly.

Cards with no foreign transaction fees and no annual fee

A small number of cards charge neither a foreign transaction fee nor an annual fee. These are uncommon and usually have lower rewards rates or limited benefits compared to premium cards. Examples include some versions of the Capital One Quicksilver card (which offers 1.5% cash back on all purchases) and certain American Express Blue cards, though availability and terms vary by issuer and change over time.

The trade-off for no annual fee is typically a lower rewards rate or fewer perks. These cards work well if you travel occasionally and want to avoid both annual fees and foreign transaction charges, but you will not get the premium benefits like travel credits or lounge access that come with paid cards.

Before opening any card, check the issuer's website directly, because card terms change frequently and what applies today may not apply next year. Some cards that once had no foreign transaction fee have added one, and vice versa.

Premium cards that waive foreign transaction fees

Premium travel cards typically charge $95 to $550 per year but waive foreign transaction fees for all cardholders. The Chase Sapphire Preferred ($95 annual fee) and Chase Sapphire Reserve ($550 annual fee) are among the most widely held. American Express Platinum ($695 annual fee) and Citi Prestige ($495 annual fee) also waive the fee. Capital One Venture X ($395 annual fee) does the same.

These cards offset their annual fees through travel credits, cash back on certain categories, lounge access, concierge services, and other perks. A $550 annual fee sounds high until you factor in a $300 annual travel credit (which some cards offer), which brings the net cost to $250. If you travel frequently and use those benefits, the card can pay for itself.

The cards differ in what they cover. Some waive the fee on all purchases anywhere in the world. Others waive it only on certain categories — for example, only on airfare or hotels booked through the card's travel portal. Read the terms carefully to understand exactly what is and is not covered.

When a no-fee card makes financial sense

A card with an annual fee makes sense if you spend enough abroad to save more in foreign transaction fees than you pay in the annual cost. If you spend $5,000 per year in foreign currency at a standard card's 2% fee, you would pay $100 in foreign transaction fees. A card with a $95 annual fee would save you $5. If you spend $10,000 abroad, you save $100 in fees against a $95 annual fee — a net gain of $5 plus any rewards or credits the card offers.

Most people who benefit from premium travel cards spend at least $3,000 to $5,000 abroad per year, or they use the card's other benefits — cash back, travel credits, lounge access — frequently enough that the annual fee is justified regardless of foreign transaction fees.

If you travel once every few years and spend less than $2,000 abroad total, a standard card with a 2% foreign transaction fee will cost you less than paying an annual fee on a premium card. In that case, accept the foreign transaction fee and keep your money.

How to find the current list of no-fee cards

Card issuers update their offerings regularly, so the list of cards without foreign transaction fees changes. The most reliable way to check is to visit the official website of the card issuer — Chase, American Express, Capital One, Citi, or others — and search for the card's terms and conditions. Look for the section on "foreign transaction fees" or "international purchases."

Credit card comparison websites also list this information, but they may not update immediately when a card's terms change. If you are considering a specific card, verify the foreign transaction fee policy on the issuer's own site before applying.

Some cards waive the fee only for primary cardholders, not for authorized users, so check whether everyone on your account gets the benefit. A few cards waive the fee only if you meet an annual spending target — for example, $25,000 in purchases per year — so read the full terms before committing.

Frequently Asked Questions

Do I pay foreign transaction fees if I use my card at an ATM abroad?

Yes, most cards charge a foreign transaction fee on ATM withdrawals. Some cards that waive the fee on purchases still charge it on cash withdrawals. A few premium cards waive it on both. Check your card's terms to see whether ATM withdrawals are covered. Many cards also charge a flat fee per withdrawal on top of the percentage, so you may pay 2% to 3% plus $2 to $5 per transaction.

Does a card without foreign transaction fees protect me from currency conversion markup?

No. A card without foreign transaction fees still charges you the exchange rate set by the card network (Visa, Mastercard, or American Express) on the day of the transaction. That rate is usually close to the real market rate but not identical. The foreign transaction fee is separate from the exchange rate markup. Waiving the fee does not change how the currency is converted.

Can I use a no-fee card to avoid fees on online purchases from foreign retailers?

Yes. If you buy from a UK-based website or any merchant outside the United States, the foreign transaction fee applies even though you are in the US. A card without the fee will save you that percentage on those purchases too. This applies to any transaction processed in a foreign currency, regardless of where you are physically located.

What if my card issuer adds a foreign transaction fee after I open the card?

Card issuers can change terms, including adding or raising foreign transaction fees. If your card's terms change, you will usually receive notice by mail or email. You can close the card without penalty if you disagree with the new terms. If you have a balance, you can keep the card open to pay it off under the old terms, but new purchases may be subject to the new fee structure.

Are there cards with no foreign transaction fees and no annual fee that offer good rewards?

Very few. Most cards without annual fees charge a foreign transaction fee. The cards that waive both typically offer lower rewards rates — 1% to 1.5% cash back — compared to premium cards that offer 2% to 5% on certain categories. If you want both no annual fee and no foreign transaction fee, you will likely accept a lower rewards rate in exchange.