Everything You Need to Know About Avoiding Credit Card Foreign Transaction Fees

Foreign transaction fees can be one of the sneakiest ways to overspend abroad, with the banks tacking on up to 4% extra to every purchase you make outside the U.S. Whether you’re paying for dinner in Paris or buying souvenirs in Tokyo, those fees can add up fast.

The good news? It’s easier than ever to dodge theme altogether. Most top travel rewards cards – and even a growing number of no-annual-fee cards – now waive foreign transaction fees entirely. But that doesn’t mean every card is created equal. Some still shine brighter for international travelers, thanks to added travel protections, better acceptance abroad, and valuable perks that make your whole trip smoother.

Here’s a look at some of our favorite credit cards that don’t charge foreign transaction fees, starting with one of the newest and most travel-friendly additions.
 

Bank of America® Atmos Rewards Summit™ Visa Infinite® Card

Alaska Airlines’ new Atmos Rewards Summit Card might just be the best card yet for international travelers. Launched alongside the airline’s brand-new Atmos Rewards program, this premium Visa Infinite card doesn’t just skip foreign transaction fees … it actually rewards you (handsomely) for spending abroad.

Cardholders earn an unlimited 3x points per dollar on all foreign purchases, from hotels and dining to tours and everything in between. That’s a first for any major U.S. travel card. And since it’s a Visa, you won’t run into the acceptance issues that often plague American Express cardholders overseas.

Read More: A Full Review of the Atmos Rewards Summit Visa Infinite Card

Here is everything the card offers:

• Welcome Bonus: Earn 100,000 Atmos Rewards points, plus a 25,000-point Global Companion Award, after spending $6,000 in the first 90 days
• 3x points per dollar spent on dining, foreign purchases, and Alaska or Hawaiian Airlines purchases
• 1x point per dollar spent on all other eligible purchases
• 10% Rewards Bonus: Earn a 10% boost on all points if you have an eligible Bank of America® account
• Annual Global Companion Award: Save 25,000 points on a companion’s ticket when booking award travel for two
• Alaska Lounge Access: Eight Alaska Lounge passes per year (two per quarter)
• Elite Status Boost: Receive 10,000 status points each year, plus one status point for every $2 spent
• Travel Protections: Trip delay, cancellation, and lost luggage coverage, plus primary rental car insurance
• Foreign Transaction Fees: None
• Annual Fee: $395

Learn More about the Atmos™ Rewards Summit Visa Infinite® Card (for full disclosure, this is not an affiliate link). 

Chase Sapphire Preferred® Card

The *chase sapphire preferred* is one of our favorite options for avoiding foreign transaction fees. It's also one of our favorite beginner travel rewards credit cards.

The Sapphire Preferred is another Visa card, so it'll be accepted more broadly by merchants across the globe, no matter where you travel. And while the card does charge an annual fee of annual_fees, it's a small price to pay when you factor in the benefits it provides.

From the points to money-saving credits, you can easily come out way ahead.

• Welcome Bonus: bonus_miles_full
  
• 3x points per dollar spent on dining, including eligible delivery services
• 3x points per dollar spent on online grocery purchases (excluding Target, Walmart, and wholesale clubs)
• 3x points per dollar spent on select streaming services
• 2x points per dollar spent on travel purchases
• Earn up to $50 in statement credits each account anniversary year for hotel stays purchased through Chase Travel℠
• Earn 5x total points on travel purchased through Chase Travel℠, excluding hotel purchases that qualify for the $50 Anniversary Hotel Credit.
• Foreign Transaction Fees: None
• Annual Fee: annual_fees

Read More: A Full Review of the Chase Sapphire Preferred® Card

Learn more about the *csp*.

Capital One Venture X Rewards Credit Card

Like all Capital One credit cards, the *venture x* doesn't charge foreign transaction fees. But that just scratches the surface of the amazing benefits the card provides.

With an annual fee of $395, it doesn't come cheap. But you can easily get your money's worth out of that annual fee from just a few benefits … and then some. First and foremost, you'll get a $300 Capital One Travel credit each and every year you hold the card to use for flights, hotels, vacation rentals, or rental cars booked through Capital One. Use that up, and the annual fee looks more like $95.

It's also issued through the Visa payment network – making it broadly accepted all around the globe.

Here's a look at the full benefits the card provides:

• Welcome Bonus: bonus_miles_full
• Receive a $300 annual credit for bookings through Capital One Travel
• Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary.
• Earn 10x miles on hotels and rental cars and 5x miles on flights and vacation rentals booked through Capital One Travel, plus unlimited 2x miles on all other purchases
• Lounge access: Priority Pass™ and Capital One Lounge access
• Receive up to a $120 fee credit for Global Entry or TSA PreCheck®
• Hertz® President’s Circle Status: Skip the rental counter and enjoy the widest selection of cars with a complimentary upgrade
• Foreign Transaction Fees: None
• Annual Fee: annual_fees

Read More: A Full Review of the Capital One Venture X Card

Learn more about the *venture x*.

Capital One Venture Rewards Credit Card

The *capital one venture card* is another great option that doesn't charge foreign transaction fees. It doesn't offer as many benefits as the Capital One Venture X, but it also costs less, with an annual fee of only annual_fees.

Here is a look at the full list of benefits the Venture Card provides:

• Welcome Bonus: bonus_miles_full.
• Earn 2X miles per dollar on every purchase. There is no cap to the number of miles you can earn each year
• Earn 5X miles on hotels, vacation rentals, and rental cars booked through Capital One Travel
• Receive up to a $120 credit for Global Entry or TSA PreCheck®
• Hertz® Five Star status: Skip the rental counter and choose from a wider selection of cars
• Foreign Transaction Fees: None
• Annual Fee: annual_fees

Read more: A Full Review of the Capital One Venture Card

Learn more about the *capital one venture card* 

Capital One VentureOne Rewards Credit Card

The *capital one ventureone* is a great no-annual-fee travel rewards credit card that doesn't charge foreign transaction fees. It won't offer much in terms of benefits, but again, there is no cost to have the card in your wallet.

Here is a full look at the benefits of the VentureOne card:

• Welcome Bonus: bonus_miles_full
• Earn 1.25X miles per dollar on every purchase. There is no cap to the number of miles you can earn each year
• Earn 5X miles on hotels, vacation rentals, and rental cars booked through Capital One Travel
• Fly on any airline or stay in any hotel with no blackout dates
• Foreign Transaction Fees: None
• Annual Fee: annual_fees

Learn more about the *Cap One VentureOne*.

3 Tips for Making Payments Abroad

Having a credit card that waives foreign transaction fees is a great first step if you plan to travel internationally. But there are a few other things that you'll want to be aware of before heading abroad …

Always Pay in the Local Currency

This is an important one.

When you use your credit card abroad, you may be faced with a decision to pay in U.S. dollars or in the local currency. Always pick the local currency.

The reason? Something called dynamic currency conversion. While payment platforms might allow you to pay in U.S. dollars, the conversion rate is poor – you'll always wind up paying more. And since you're not paying foreign transaction fees anyway, you might as well pay in the local currency.

While paying in U.S. dollars when using your credit card may seem convenient, it will cost you more in the long run. Pay in the local currency and save yourself some money.

Get a Debit Card With No Foreign Transaction Fees, Too

Having a credit card that doesn't charge foreign transaction fees is essential for traveling abroad. It is also a good idea to have a debit card that doesn't charge ATM fees when you need some cash.

If you plan to travel abroad even semi-regularly, you need the Charles Schwab debit card. This free international checking account is a must in any traveler’s wallet because it means you’ll never pay ATM fees in the U.S. or internationally, and you won't pay foreign transaction fees for any purchases you might make with the card.

The Schwab debit card allows you to take out cash from any ATM anywhere in the world and refunds 100% of any withdrawal or ATM fees you pay at the end of each month. This is a foolproof way to avoid international ATM fees and get the best currency exchange rate possible.

And to be perfectly clear: We don’t get paid to promote this card. It’s just the debit card we personally use and think it's a great solution for travelers looking to access money while on the road.

Read more: No International ATM Fees: Get the Charles Schwab Debit Card

Don't Rely Solely on American Express

While American Express has some great travel rewards credit cards that don't charge foreign transaction fees, it is still a good idea to make sure you have a Visa or Mastercard in your wallet before you head abroad.

That's because you may still find that many merchants abroad still don't accept American Express.

The reason? American Express has historically charged much higher merchant fees – the fees stores have to pay to card payment networks like American Express when they accept their cards for a transaction. 

Due to those higher fees, fewer merchants in the U.S. – and especially abroad – accept American Express compared to Visa or Mastercard. But that is changing. In 2018, American Express lowered merchant fees, bringing them on par (or closer to it) with other payment networks. But it will take time: Even seven years later, many merchants still don't accept Amex cards.

In another seven years, we may see Amex as broadly accepted as the others. But for now, make sure you have a Visa or Mastercard that doesn't charge foreign transaction fees at your disposal.

Read More: Is Amex Still a Bad Option When Traveling Abroad?

Bottom Line

Having a credit card that waives foreign transaction fees is an essential part of traveling internationally if you want to save some money. Make sure to follow these tips to make paying for things cheaper and easier on your next trip abroad.