Best Credit Cards for International Travel: No Foreign Transaction Fees

If you're using a standard credit card while traveling abroad, you're likely paying an extra 3% on every purchase without even realizing it. That's the typical foreign transaction fee most credit cards charge when you use them outside your home country or for purchases in foreign currencies.

On a $3,000 international trip, that's $90 in unnecessary fees. Over a decade of travel, those fees can exceed $1,000—money that could have gone toward actual travel experiences.

The good news? Many excellent credit cards charge no foreign transaction fees and offer additional travel benefits that can save you even more money. In this guide, we'll explore the best options and help you choose the right card for your travel needs.

What Are Foreign Transaction Fees?

Foreign transaction fees are charges that credit card companies add to purchases made in a foreign currency or processed through a foreign bank. These fees typically range from 1-3% of each transaction, with 3% being the most common.

For example, if you buy a €100 meal in Paris using a card with a 3% foreign transaction fee, you'll actually be charged $109 (assuming a 1:1 exchange rate for simplicity), with $3 being the foreign transaction fee.

These fees apply to:

• In-person purchases in foreign countries
• Online purchases from foreign websites
• Any transaction processed in a foreign currency
• Sometimes even purchases from international companies operating in your home country

Top Credit Cards with No Foreign Transaction Fees

Premium Travel Cards

Mid-Tier Travel Cards

No Annual Fee Options

Additional Benefits to Look For

Travel Protections

Beyond avoiding foreign transaction fees, the best travel cards offer protections that can save you thousands:

• Trip Cancellation/Interruption Insurance: Reimburses non-refundable trip costs if you need to cancel due to covered reasons
• Baggage Delay Insurance: Covers essential purchases if your luggage is delayed
• Lost Luggage Reimbursement: Compensates for permanently lost bags
• Travel Accident Insurance: Coverage for accidents during travel
• Emergency Medical/Dental: Important for international travel where your regular insurance might not cover you
• Rental Car Coverage: Primary or secondary collision damage waiver

Airport Lounge Access

Premium cards often include Priority Pass or other lounge access programs. Benefits include:

• Free food and beverages
• Comfortable seating and workspaces
• Showers at some locations
• Quieter environment than airport terminals

For frequent travelers, lounge access alone can justify a higher annual fee, especially on long layovers or during delays.

Travel Credits

Many premium cards offer annual travel credits that effectively reduce the annual fee:

• Chase Sapphire Reserve: $300 annual travel credit
• Capital One Venture X: $300 annual travel credit
• American Express Platinum: $200 hotel credit + $200 airline credit

These credits typically apply automatically to eligible purchases, making them easy to use if you travel regularly.

How to Choose the Right Card

Calculate Your Travel Spending

Consider how much you spend annually on:

• International flights
• Hotels and accommodations
• Dining abroad
• Other travel expenses

If you spend $5,000+ annually on travel, premium cards with higher annual fees but better rewards usually pay for themselves. For less than $3,000 in travel spending, stick with mid-tier or no-fee options.

Frequency of International Travel

• 5+ trips per year: Premium cards with lounge access and extensive benefits
• 2-4 trips per year: Mid-tier cards like Chase Sapphire Preferred
• 1 trip per year: No annual fee cards like Capital One Quicksilver
• Occasional traveler: Keep a no-fee option for when you need it

Common Mistakes to Avoid

1. Keeping Cards with Foreign Transaction Fees

If you have an old credit card with foreign transaction fees, consider product-changing it to a no-fee version or getting a new card. Continuing to use cards with these fees costs you 3% on every international purchase.

2. Not Notifying Your Card Company

Always notify your credit card company of international travel plans. Otherwise, legitimate purchases might be flagged as fraud and your card could be declined abroad.

3. Accepting Dynamic Currency Conversion

When using cards abroad, merchants sometimes offer to charge you in your home currency. Always decline this option and choose to be charged in the local currency. Your card's exchange rate will be better than the merchant's DCC rate.

4. Only Bringing One Card

Always bring at least two cards from different networks (Visa and Mastercard, for example). If one is lost, stolen, or doesn't work, you'll have a backup.

5. Ignoring Card Benefits

Many cardholders pay annual fees but never use included benefits like travel credits, lounge access, or insurance. Review your card's benefits regularly and ensure you're maximizing their value.

Real-World Savings Example

Let's compare costs for someone spending $5,000 on a European trip:

Scenario 1: Standard Card (3% Foreign Transaction Fee)

• Cost: $5,000 + $150 (3% fee) = $5,150
• Rewards: Maybe 1% cash back = $50
• Net cost: $5,100

Scenario 2: Chase Sapphire Preferred (No Foreign Fee)

• Cost: $5,000
• Annual fee: $95
• Rewards: 3X points on travel ($150 value when redeemed)
• Net benefit: $55 ahead of standard card

Total Savings: $155 on one trip alone.

The Bottom Line

If you travel internationally even once per year, using a credit card with no foreign transaction fees should be non-negotiable. The 3% savings alone pays for most annual fees, and additional benefits like rewards points, travel protections, and lounge access make these cards even more valuable.

For occasional travelers, no-fee options like Capital One Quicksilver provide the essential foreign transaction fee waiver without any annual cost. For frequent travelers, premium cards like Chase Sapphire Reserve or Capital One Venture X offer enough benefits to justify their higher fees many times over.