Which cards have no foreign transaction fees?

Credit Cards Without Foreign Transaction Fees: A Traveler’s Best Friend

Traveling abroad can be an exhilarating experience, but unexpected expenses like foreign transaction fees can quickly add up. Typically, these fees amount to about 3% per purchase, which might not seem substantial but can significantly impact your travel budget💡 Definition:A spending plan that tracks income and expenses to ensure you're living within your means and working toward financial goals. over time. Fortunately, many credit cards waive these fees, allowing you to save money while enjoying your international adventures. Let’s explore which cards offer this benefit and how to choose the best one for your needs.

Credit Cards Offering No Foreign Transaction Fees

When considering a credit card for your travels, the absence of foreign transaction fees is a crucial factor. Here are some of the top issuers and their offerings:

Capital One

Capital One stands out as a leader in offering cards without foreign transaction fees across its entire portfolio. Whether you’re looking for a travel rewards card, a cash back💡 Definition:A credit card reward that returns a percentage of your spending as cash, typically 1-5% depending on the category. card, or a card to build credit, you can find a no-fee option. For instance, the Capital One VentureOne Rewards Credit Card features no annual fee💡 Definition:Yearly charge for having a credit card—$0 to $550+. Premium cards charge fees but offer rewards that can exceed cost for high spenders. and no foreign transaction fees, and it earns 1.25X miles on every purchase.

Chase

Chase provides several attractive options💡 Definition:Options are contracts that grant the right to buy or sell an asset at a set price, offering potential profit with limited risk. for frequent travelers. The Chase Sapphire Preferred® Card, for example, is popular among travelers for its robust rewards program and absence of foreign transaction fees. Chase also partners with airlines to offer cards like the Southwest Airlines Rapid Rewards Premier Business Credit Card, which also waives these fees.

Bank of America

While the standard Bank of America cards typically come with a 3% foreign transaction fee💡 Definition:A fee charged by credit card companies for transactions in foreign currencies, typically 1-3% of the purchase amount., the Bank of America® Travel Rewards credit card and the Bank of America® Premium Rewards® credit card do not. These cards are designed to provide travelers with more spending flexibility abroad.

Citi and American Express

Citi and American Express also offer cards that waive foreign transaction fees. The Citi Premier® Card is a good choice for earning points on travel and dining. For those who prefer American Express, both The Platinum Card® and the American Express® Gold Card come without foreign transaction fees, making them excellent options for travelers.

Discover

Although less commonly accepted internationally, Discover offers cards with no foreign transaction fees in most markets, providing another option for international travelers.

Real-World Savings💡 Definition:Frugality is the practice of mindful spending to save money and achieve financial goals. Example

Consider a scenario where you spend $5,000 on an international trip. With a card that charges a 3% foreign transaction fee, you’d pay💡 Definition:Income is the money you earn, essential for budgeting and financial planning. an additional $150 in fees. By using a card with no foreign transaction fees, you save that $150, which could go towards a nice dinner or an extra night's stay at a hotel.

Key Considerations When Choosing a Card

When selecting a no foreign transaction fee card, it’s important to weigh several factors:

• Rewards Structure: Look for a card that offers rewards that match your spending habits, whether it’s travel points, cash back, or miles.
• Annual Fees: Some cards with no foreign transaction fees charge annual fees. Determine if the benefits justify this cost.
• Introductory Offers: Many cards offer introductory bonuses, such as bonus miles or cash back, which can enhance the value of the card.
• Additional Travel Perks: Premium cards might offer extras like travel insurance, airport lounge access, or rental car insurance.
• APR Terms: Check if the card offers a 0% introductory APR on purchases or balance transfers, which could be beneficial if you plan to carry a balance.

Common Mistakes to Avoid

• Ignoring the Fine Print: Always read the terms and conditions to ensure you understand all fees and benefits.
• Overlooking Acceptance: Some cards, like Discover and American Express, may not be as widely accepted in certain countries.
• Focusing Solely on Foreign Fees: While important, consider the overall benefits and costs of the card.

Bottom Line

Choosing a credit card with no foreign transaction fees can lead to significant savings, especially for frequent travelers. By evaluating your options and considering factors such as rewards, annual fees, and additional perks, you can find a card that enhances your travel experience and keeps more money in your pocket. Remember to always check the specific terms of your card to ensure it suits your travel and spending habits.