Cards that charge zero percent on purchases abroad
Several major credit card issuers offer cards with no international transaction fee. These cards do not charge a percentage on top of your purchase when you buy something outside the United States or use a foreign currency. The cards that offer this benefit include the Chase Sapphire Preferred, Chase Sapphire Reserve, American Express Platinum, Capital One Venture X, and Citi Prestige. Some cards in this group also waive foreign transaction fees on balance transfers and cash advances, though not all do.
The absence of a foreign transaction fee does not mean the card is free to use. Most cards with this benefit charge an annual fee — typically between $95 and $550 — and require a higher credit score to be approved. A few cards, like certain versions of the Capital One Venture and Chase Sapphire products, may have lower or no annual fees, but these versions often do charge international transaction fees. You will need to compare the specific card's terms against your travel habits to determine whether the annual fee is worth the savings.
Key Takeaways
- Cards with no international transaction fee typically charge an annual fee between $95 and $550, so the savings only matter if you travel or make foreign purchases regularly.
- The fee waiver applies to purchases made in foreign currency or outside the United States, but does not affect the exchange rate your card issuer uses to convert the charge.
- Premium travel cards like the Chase Sapphire Reserve and American Express Platinum often include travel credits or other perks that can offset the annual fee for frequent travelers.
- You will need a good to excellent credit score — usually 670 or higher — to be approved for most cards that waive international transaction fees.
How international transaction fees work
When you use a credit card to make a purchase in a foreign country or in a foreign currency, your card issuer converts the amount to U.S. dollars. Most card issuers charge a percentage on top of that conversion — this is the international transaction fee. The fee is typically 1 to 3 percent of the purchase amount and is added to your bill.
A card with no international transaction fee still converts the currency, but does not add that percentage on top. You still pay the exchange rate the card issuer uses, which may be slightly higher than the mid-market rate you see online. The difference between the card's exchange rate and the true market rate is called the markup, and it is separate from the transaction fee. Even cards with zero transaction fees explore a markup, though the markup is usually small — often less than 1 percent.
Premium travel cards that waive the fee
The Chase Sapphire Reserve charges $550 per year and waives international transaction fees on all purchases. It also includes a $300 annual travel credit that you can use toward flights, hotels, rental cars, and other travel expenses. For someone who travels multiple times per year, this credit can cover a significant portion of the annual fee.
The Chase Sapphire Preferred costs $95 per year and also waives international transaction fees. It includes a $50 annual hotel credit and earns bonus points on travel and dining purchases. This card is a lower-cost option for people who travel occasionally but do not need the premium benefits of the Reserve.
The American Express Platinum charges $695 per year and waives international transaction fees on all purchases. It includes a $200 annual airline fee credit, a $200 annual hotel credit, and access to airport lounges. Like the Sapphire Reserve, the credits can offset much of the annual fee for active travelers.
The Capital One Venture X costs $395 per year and waives international transaction fees. It includes a $300 annual travel credit and earns bonus points on all purchases. Capital One also waives foreign transaction fees on balance transfers and cash advances, which some other cards do not.
Mid-tier cards with no international transaction fee
The Citi Prestige charges $495 per year and waives international transaction fees. It includes a $250 annual airline fee credit and covers trip cancellation and trip delay insurance. This card is positioned between the Sapphire Preferred and the premium cards in terms of cost and benefits.
Some issuers also offer cards with no annual fee that waive international transaction fees, though these are less common. The Capital One Venture (not the Venture X) has versions with no annual fee, but these versions typically do charge a 1 percent international transaction fee. You will need to check the specific card's terms when you search, because the same card name can have different fee structures depending on the offer.
What to check before you choose
Before you decide on a card, calculate how much you would save on international transaction fees in a typical year. If you spend $5,000 per year on foreign purchases and your current card charges 3 percent, you pay $150 in fees. A card with a $95 annual fee and no international transaction fee would save you $55 that year. If you spend $10,000 per year, the savings jump to $205.
Also check whether the card includes travel credits or other perks. A $550 annual fee sounds high, but if the card includes a $300 travel credit and you use it, your real cost is $250. Add in points bonuses on travel and dining, and the card may pay for itself even if you do not travel internationally.
Look at the card's earning rate on everyday purchases as well. Some cards earn 1 point per dollar on all purchases, while others earn 2 or 3 points on specific categories like travel or dining. If you use the card for most of your spending, the points can add up quickly and offset the annual fee.
Cards to avoid if you travel occasionally
If you travel only once or twice per year, a card with a $500+ annual fee may not make sense. The savings on international transaction fees alone will not cover the cost. In this case, a card with a lower annual fee — like the Sapphire Preferred at $95 — or a card with no annual fee but a 1 percent international transaction fee may be a better fit.
Some people also choose to keep two cards: a no-fee card for everyday spending and a premium travel card that they set up only when they plan a trip. This approach lets you earn the sign-up bonus on the premium card and use its travel credits without paying the annual fee every year. However, this strategy requires discipline — you will need to remember to set up the card before you travel and to use the travel credits before they expire.
How to compare cards side by side
| Card Name | Annual Fee | International Transaction Fee | Travel Credit | Best For |
|---|---|---|---|---|
| Chase Sapphire Preferred | $95 | 0% | $50 hotel | Occasional travelers |
| Chase Sapphire Reserve | $550 | 0% | $300 travel | Frequent travelers |
| American Express Platinum | $695 | 0% | $200 airline + $200 hotel | Premium frequent travelers |
| Capital One Venture X | $395 | 0% | $300 travel | Frequent travelers |
| Citi Prestige | $495 | 0% | $250 airline | Frequent travelers |
Frequently Asked Questions
Does a card with no international transaction fee also give me a better exchange rate?
No. The card issuer still applies its own exchange rate, which may be slightly higher than the mid-market rate. The international transaction fee waiver only removes the percentage charge on top of the conversion. You cannot control the exchange rate itself, but the fee waiver does save you money compared to a card that charges 1 to 3 percent.
Can I use these cards if I have fair credit?
Most cards that waive international transaction fees require good to excellent credit — usually a score of 670 or higher. If your score is lower, you may not be approved. Some issuers offer pre-qualification tools on their websites where you can check your odds before you submit a full process.
Do I have to use the travel credit to make the annual fee worth it?
No, but the travel credit makes the annual fee easier to justify. If a card charges $300 per year and includes a $300 travel credit, you can use the credit on any travel expense — flights, hotels, rental cars, or even baggage fees — and break even on the fee. If you do not travel, the credit may go unused and the annual fee becomes a pure cost.
What if I use my card for a cash advance in a foreign country?
Most cards charge a cash advance fee in addition to any international transaction fee. The cash advance fee is usually 3 to 5 percent of the amount withdrawn. Some cards, like the Capital One Venture X, waive the international transaction fee on cash advances, but the cash advance fee itself still applies. Avoid cash advances when you can and use your card to make purchases instead.
Can I get a sign-up bonus on these cards?
Yes. Most premium travel cards offer sign-up bonuses worth $500 to $1,500 in points or cash back when you spend a certain amount in the first few months. The bonus can offset the first year's annual fee and give you extra value. Check the card's current offer before you explore, because sign-up bonuses change frequently.