No Foreign Transaction Fee Credit Cards: The Money-Saving Truth for 2025

Traveling with a no foreign transaction fee credit card might be the money-saving decision you don't realize you need. I've watched travelers happily swipe their cards abroad, unaware they're paying an extra 1% to 3% on every purchase. These seemingly small fees add up surprisingly fast. If you charge $5,000 during a month-long European vacation, you could end up paying an additional $150 in completely avoidable fees.

While most standard credit cards silently tack on these charges, the best credit cards with no foreign transaction fees eliminate this hidden cost entirely. In fact, many popular travel cards like the Chase Sapphire Preferred Card and Capital One Venture Rewards Credit Card have dropped these fees altogether. This isn't just important for international travelers - these fees can also apply when shopping online from foreign retailers. I've learned that understanding how to avoid foreign transaction fees can save you hundreds of dollars annually, especially if you frequently purchase items from international websites or travel abroad for business or pleasure.

What are foreign transaction fees and why they matter in 2025

Foreign transaction fees silently drain money from your wallet every time you make purchases outside your home country. These surcharges appear as separate line items on your statement and can significantly impact your overall spending during international travel or when shopping online from foreign retailers.

How foreign transaction fees are triggered

Foreign transaction fees kick in whenever your credit card processes a transaction through a non-U.S. bank or in a foreign currency. These charges apply to various scenarios beyond just physical travel. You might face these fees when:

• Making purchases at restaurants, hotels, or shops during international travel

• Shopping online from websites based overseas, even if you're sitting at home

• Withdrawing cash from ATMs in foreign countries

• Buying airline tickets directly from international carriers

Interestingly, these fees can apply even when transactions are conducted in U.S. dollars if the payment processor is based abroad. This means ordering products from international websites can trigger these fees regardless of the currency used for payment.

Typical fee percentages and who charges them

Most credit card issuers set foreign transaction fees between 1% and 3% of the purchase amount. The fee structure typically combines two separate charges:

1. A fee from the payment network (Visa, Mastercard) - usually around 1%

2. An additional fee from the card issuer (Chase, Bank of America) - typically 1-2%

For example, a $1,000 purchase with a 3% foreign transaction fee would cost you an extra $30. Over the course of a vacation or business trip, these charges accumulate quickly. Some premier accounts and travel-focused credit cards like the Chase Sapphire Preferred Card have eliminated these fees entirely.

The difference between FX fees and currency conversion fees

Although frequently confused, foreign transaction fees and currency conversion fees are distinctly different charges:

Foreign transaction fees are assessed by your credit card issuer for processing payments outside your home country, regardless of currency. These appear on your statement after the transaction.

Conversely, currency conversion fees (also called Dynamic Currency Conversion or DCC) occur when merchants offer to convert your purchase into your home currency at the point of sale. These conversion rates often include hidden markups of 3-12%.

When traveling internationally, always decline DCC offers and pay in local currency instead. This allows your card's payment network to handle the conversion at more favorable rates. Even with a card that charges foreign transaction fees, you'll typically save money by avoiding merchant currency conversion.

How foreign transaction fees affect your spending

Those small percentage charges can quickly snowball into substantial costs when you're not paying attention. Understanding their real impact might change how you approach international spending completely.

Real-world examples of added costs

The math appears simple—most cards charge between 1% and 3% on foreign transactions. However, these seemingly minor fees accumulate rapidly. If you spend $1,000 during your trip, you'll pay an extra $30 in fees at the 3% rate. For a family vacation costing $5,000, that's $150 gone without providing any actual value.

Consider this scenario: You travel to France and buy souvenirs totaling 150 euros using a Chase Freedom Unlimited card with a 3% foreign transaction fee. That single purchase costs you an additional 4.50 euros (about $4.90). Furthermore, if your total vacation spending reaches 4,000 euros, you'll end up paying approximately $130 in unnecessary fees.

Online shopping and hidden FX charges

Surprisingly, you don't need to leave home to encounter these fees. Many consumers don't realize that purchasing from international websites or merchants can trigger foreign transaction fees. As a result, ordering products from a German retailer or booking tickets directly from a foreign airline might incur these charges even when you're sitting on your couch.

One editor at Bankrate learned this lesson the hard way: "My husband ordered an electronic notebook online, costing us an unexpected $19 in foreign transaction fees because the merchant was based overseas".

Business travel and international purchases

For businesses, these costs can be particularly damaging. Every international vendor payment, employee travel expense, or customer refund processed in foreign currency adds up:

• Monthly supplier payments: $50,000 × 3% = $1,500

• International customer refunds: $20,000 × 3% = $600

• Employee travel expenses: $10,000 × 3% = $300

Business travelers typically receive $1,000 on company cards for trips. At 3%, that's an additional $30 per employee per trip—a significant expense for companies with frequent international operations.

Thankfully, cards like the Delta SkyMiles Blue American Express Card offer solutions by eliminating these fees entirely.

How to avoid foreign transaction fees smartly

Fortunately, several proven strategies can help you completely avoid paying foreign transaction fees. By making smart choices before and during your trip, you can keep more of your money where it belongs—in your pocket.

Use a no foreign transaction fee credit card

The simplest solution is applying for a credit card that doesn't charge foreign transaction fees. Many travel-focused cards like the Chase Sapphire Preferred Card and Capital One Venture X Rewards Credit Card have eliminated these fees entirely. These cards offer greater protection than cash when traveling, as they provide fraud protection and safety features like the option to freeze them if misplaced.

Avoid dynamic currency conversion (DCC)

When using your card abroad, merchants may offer to convert your purchase to dollars—a service called dynamic currency conversion. Always decline this option! DCC typically includes a hidden markup of 5% on average, with some cases reaching as high as 13.7%. British travelers alone lose approximately £500 million annually to these fees. Whenever prompted, always choose to pay in the local currency rather than your home currency.

Exchange cash before your trip

For necessary cash, exchange currency through your bank 3-5 days before departure. Banks typically offer more favorable rates and lower fees than airport kiosks or hotel exchange services. Order only enough cash to cover your first few days, as carrying excessive amounts creates unnecessary risk.

Use bank accounts that reimburse ATM fees

Consider opening accounts with banks that refund international ATM fees:

• Charles Schwab Bank offers unlimited ATM fee rebates worldwide with no foreign transaction fees

• E*TRADE provides ATM refunds and foreign transaction refunds globally

• LendingClub offers unlimited reimbursements for ATM fees

Shop with merchants that accept USD

Occasionally, international merchants accept payments in USD without conversion. Nevertheless, this approach has limitations—primarily the risk of unfavorable exchange rates. To maximize savings, combine multiple strategies: use a no-foreign-transaction-fee card for major purchases, carry some local currency for small expenses, and withdraw from ATMs affiliated with your bank's network when necessary.

Best no foreign transaction fee credit cards for 2025

Finding the perfect card can save you money and enhance your travel experience. Here are my top picks for 2025 that eliminate those pesky foreign transaction fees.

Chase Sapphire Preferred Card

The Chase Sapphire Preferred Card stands out with a robust rewards structure. For a $95 annual fee, you'll earn 5x points on travel purchased through Chase Travel, 3x points on dining, and 2x on other travel purchases. You'll pay absolutely no foreign transaction fees—saving you approximately $150 on $5000 of international spending. The welcome bonus is impressive: 60,000 bonus points after spending $5000 in the first 3 months.

Capital One Venture X Rewards Credit Card

The Capital One Venture X offers zero foreign exchange fees, which is consistent across all Capital One cards. This premium travel card allows you to earn double miles on every purchase and additional rewards on travel purchases without paying extra when using it internationally.

Citi Strata Premier Card

For just $95 annually, the Citi Strata Premier Card charges no foreign transaction fees. Additionally, it offers a $100 annual hotel benefit on stays of $500+ when booked through CitiTravel.com. The rewards structure is generous—earn 10 points per $1 on hotels and car rentals booked on CitiTravel.com, plus 3 points per $1 in several categories including restaurants and supermarkets.

Discover it Miles

The Discover it Miles has no annual fee and no foreign transaction fees. It offers 1.5 miles per $1 spent on all purchases with straightforward redemption options. Moreover, Discover automatically matches all miles earned at the end of your first year—effectively doubling your rewards. Just be aware that Discover isn't as widely accepted internationally as Visa or Mastercard.

Bank of America Travel Rewards Credit Card

The Bank of America Travel Rewards Credit Card gives you the freedom to travel internationally without foreign transaction fees. This no-annual-fee card is perfect for travelers on a budget who still want to earn travel rewards.

Delta SkyMiles Blue American Express Card

The Delta SkyMiles Blue American Express Card offers no foreign transaction fees and no annual fee. You'll earn 2X miles per dollar at restaurants worldwide and when booking Delta flights. It's an excellent entry-level card for Delta loyalists who want to earn SkyMiles without paying annual fees.

Conclusion

Choosing the right credit card for international travel clearly makes a significant financial difference. Throughout this article, we've seen how those seemingly small 1-3% foreign transaction fees can quickly add up to hundreds of dollars during a typical vacation or business trip. These unnecessary charges affect not just physical travel but also online shopping from international merchants.

Fortunately, eliminating these fees is remarkably straightforward. Many excellent travel credit cards now offer zero foreign transaction fees as a standard feature. Cards like the Chase Sapphire Preferred Card and Capital One Venture X Rewards Credit Card stand out as particularly valuable options for international travelers.

Additionally, remember the importance of declining dynamic currency conversion offers when abroad. Always choose to pay in local currency rather than letting merchants convert to dollars at unfavorable rates. This simple habit, combined with a no-foreign-transaction-fee card, can save you substantial money on every international trip.

Before your next overseas adventure or international purchase, take time to understand how credit cards work during foreign transactions. The right card choice means keeping more money for experiences rather than fees. After all, those savings could fund an extra night's stay, a special dinner, or unique souvenirs that make travel memorable.

Ultimately, the best travel companion might be in your wallet already. If not, now you know exactly what to look for in your next credit card application. Those few minutes spent applying for a no-foreign-transaction-fee card will reward you with years of savings and hassle-free international spending.

FAQs

Q1. What are foreign transaction fees and how can I avoid them? Foreign transaction fees are charges (typically 1-3%) added to purchases made abroad or with foreign merchants. To avoid these fees, use a credit card that doesn't charge them, such as the Chase Sapphire Preferred or Capital One Venture X. Always decline dynamic currency conversion offers and pay in local currency when traveling.

Q2. Do all credit cards charge foreign transaction fees? No, not all credit cards charge foreign transaction fees. Many travel-focused cards and some everyday spending cards have eliminated these fees. Examples include the Chase Sapphire Preferred, Capital One Venture X, and Discover it Miles. It's important to check the terms of your specific card before traveling or making international purchases.

Q3. Can I incur foreign transaction fees while shopping online from home? Yes, you can incur foreign transaction fees when shopping online from international websites, even if you're at home. These fees may apply if the payment is processed through a non-U.S. bank or in a foreign currency. To avoid this, use a card with no foreign transaction fees for all international purchases, whether in-person or online.

Q4. What's the difference between foreign transaction fees and currency conversion fees? Foreign transaction fees are charged by your credit card issuer for processing payments outside your home country, regardless of the currency used. Currency conversion fees, also known as Dynamic Currency Conversion (DCC), are charged by merchants when they offer to convert your purchase to your home currency at the point of sale. It's generally best to avoid DCC and pay in local currency.

Q5. Are there any credit cards that offer both no foreign transaction fees and travel rewards? Yes, several credit cards offer both no foreign transaction fees and travel rewards. The Chase Sapphire Preferred Card, for example, has no foreign transaction fees and offers bonus points on travel purchases. The Capital One Venture X Rewards Credit Card also has no foreign transaction fees and allows you to earn miles on every purchase, with additional rewards for travel spending.