Travel Credit Cards: Travelling abroad can be an exciting adventure, but unnecessary fees on your credit card can quickly add up and dampen your experience.
One of the most common travel-related charges is the foreign transaction fee, which is typically 1-3% of every purchase made outside your home country.
Luckily, many travel credit cards eliminate this fee entirely, helping you save money while enjoying your trips.
We will go over all you need to know about travel credit cards that do not charge foreign transaction fees in this guide, including their advantages, our top picks, and advice on how to pick the best one for you.
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What Are Foreign Transaction Fees?
Foreign transaction fees (FTFs) are charges imposed by credit card companies whenever you make a purchase in a foreign currency or through a foreign-based merchant. These fees are typically broken into two parts:
- Network Fee: Charged by card networks like Visa, Mastercard, or American Express (usually around 1%).
- Issuer Fee: Charged by your credit card issuer, which can add another 1-2%.
For example, if you spend $1,000 abroad and your card charges a 3% foreign transaction fee, you’ll pay an extra $30 in fees. Over time, this can significantly increase your travel expenses.
Fortunately, many travel-focused credit cards waive these fees, making them ideal for frequent travellers.
Benefits of Travel Credit Cards with No Foreign Transaction Fees
Choosing a travel credit card with no foreign transaction fees provides several benefits:
1. Save Money on Every Purchase
Eliminating foreign transaction fees ensures you’re not penalised for using your card abroad. This can save you hundreds of dollars on extended trips.
2. Earn Travel Rewards
Most no-transaction-fee travel credit cards offer points, miles, or cashback for your purchases. You can redeem these rewards for flights, hotel stays, or other travel perks.
3. Better Currency Exchange Rates
Credit card networks like Visa and Mastercard often offer better exchange rates than currency exchange services or banks.
4. Convenience and Security
Using a credit card abroad is safer and more convenient than carrying cash. Many travel credit cards also include fraud protection and travel insurance benefits.
Top Travel Credit Cards with No Foreign Transaction Fees
1. Chase Sapphire Preferred® Card
- Annual Fee: $95
- Rewards: Earn 5x points on travel through Chase Ultimate Rewards, 3x on dining, and 2x on other travel purchases.
- Sign-Up Bonus: Earn 60,000 points after spending $4,000 within the first 3 months.
- Perks: trip cancellation insurance, no foreign transaction fees, and access to Chase’s travel portal.
2. Capital One Venture Rewards Credit Card
- Annual Fee: $95
- Rewards: Earn 2x miles on every purchase.
- Sign-Up Bonus: Earn 75,000 miles after spending $4,000 in the first 3 months.
- Perks: TSA PreCheck/Global Entry credit, no foreign transaction fees, and flexible redemption options.
3. American Express® Gold Card
- Annual Fee: $250
- Rewards: Earn 4x points on dining, 3x on flights, and 1x on other purchases.
- Sign-Up Bonus: Earn 60,000 Membership Rewards points after spending $4,000 in the first 6 months.
- Perks: travel insurance, no foreign transaction fees, and premium dining benefits.
4. Citi Premier® Card
- Annual Fee: $95
- Rewards: Earn 3x points on travel, dining, and groceries.
- Sign-Up Bonus: Earn 80,000 points after spending $4,000 in the first 3 months.
- Perks: No foreign transaction fees, transfer points to airline partners, and access to Citi ThankYou® Rewards.
5. Bank of America® Travel Rewards Card
- Annual Fee: $0
- Rewards: Earn 1.5x points on all purchases.
- Sign-Up Bonus: Earn 25,000 points after spending $1,000 in the first 90 days.
- Perks: No annual fee, no foreign transaction fees, and flexible rewards redemption.
How to Choose the Best Travel Credit Card for You
When selecting a travel credit card with no foreign transaction fees, consider the following factors:
1. Annual Fee
Some cards have no annual fee, while others charge $95 or more. Make sure the rewards and perks outweigh the cost of the fee.
2. Rewards Structure
Look for cards that align with your spending habits. For example, if you dine out frequently, choose a card that offers higher rewards on dining.
3. Sign-Up Bonus
Many travel cards offer substantial sign-up bonuses. Compare offers to maximise your rewards.
4. Additional Perks
Consider additional benefits like travel insurance, airport lounge access, and TSA PreCheck/Global Entry credits.
5. Accepted Worldwide
Ensure your card is widely accepted at your destination. Visa and Mastercard are generally more widely accepted than American Express or Discover.
Tips for Using Your Travel Credit Card Abroad
To make the most of your no-foreign-transaction-fee travel credit card, follow these tips:
- Notify Your Bank: Inform your credit card issuer about your travel plans to avoid declined transactions.
- Use Credit Over Debit: Credit cards often offer better fraud protection and rewards.
- Pay in Local Currency: Avoid dynamic currency conversion (DCC), which can add extra fees.
- Track Your Spending: Keep an eye on your purchases to stay within budget and earn rewards efficiently.
FAQs
1. What is a foreign transaction fee?
A foreign transaction fee is a charge (typically 1-3%) by credit card issuers for purchases made in a foreign currency or through international merchants. Travel credit cards with no foreign transaction fees eliminate this cost entirely.
2. Why should I get a travel credit card with no foreign transaction fees?
These cards help you save money while travelling abroad by avoiding extra fees on every purchase. They also often come with travel perks like rewards points, travel insurance, and better currency exchange rates.
3. Do travel credit cards with no foreign transaction fees charge annual fees?
Some do and some don’t. For example, the Bank of America® Travel Rewards Card has no annual fee, while cards like the Chase Sapphire Preferred® Card charge $95 annually. Choose one that fits your budget and reward preferences.
4. Are no-foreign-transaction-fee credit cards widely accepted internationally?
Yes, especially cards from major networks like Visa and Mastercard, which are accepted at most international merchants. However, American Express and Discover may not be as widely accepted in certain countries.
5. What other travel perks do these cards offer?
In addition to waiving foreign transaction fees, many travel credit cards provide perks like travel insurance, airport lounge access, TSA PreCheck/Global Entry fee credits, and rewards points for travel and dining.
6. How do I choose the best travel credit card for my needs?
Consider factors like the card’s annual fee, rewards structure, acceptance rate in your destination country, and additional perks like sign-up bonuses or travel insurance. Align your choice with your spending habits and travel goals.
7. Can I use a no-foreign-transaction-fee card for online purchases?
Yes! These cards also waive foreign transaction fees for online purchases made in foreign currencies or through international merchants, making them great for shopping on global e-commerce sites.
8. Will I earn rewards on purchases made abroad?
Yes, most travel credit cards with no foreign transaction fees allow you to earn rewards (points, miles, or cashback) on purchases made abroad, just as you would on domestic transactions.
9. Do I need to notify my credit card issuer before travelling abroad?
It’s a good idea to let your credit card issuer know about your travel plans. While many issuers have fraud detection systems that automatically adjust for travel, notifying them can prevent declined transactions.
10. Can I avoid foreign transaction fees with a debit card?
Some debit cards may waive foreign transaction fees, but they often lack the rewards, travel perks, and fraud protection offered by credit cards. Travel credit cards are generally a better option for international purchases.
Final Thoughts
Travel credit cards with no foreign transaction fees are a must-have for globetrotters looking to save money and earn rewards while exploring the world.
By choosing the right card, you can avoid unnecessary fees, enjoy premium travel perks, and maximise your spending power.
Whether you’re a frequent traveller or an occasional vacationer, there’s a no-foreign-transaction-fee credit card that suits your needs. Compare the options above, evaluate your spending habits, and take the first step toward stress-free international travel.