Cards that charge zero percent on purchases abroad
Most credit cards charge between 1% and 3% on every purchase you make outside the United States — a fee called a foreign transaction fee. Some cards charge nothing. The cards with no international transaction fees fall into two groups: premium travel cards that waive the fee as a cardholder benefit, and everyday cards from certain issuers that straightforward don't charge one at all.
The catch is that "no international transaction fees" does not mean your card costs nothing to use abroad. Your bank still converts the purchase price from the local currency to dollars, and that conversion happens at their exchange rate, which includes a small markup. What you avoid is the separate percentage fee on top of that conversion. For most people who travel occasionally, this saves $20 to $100 per trip.
Whether a no-fee card makes sense depends on how often you travel and whether you can meet the annual fee (if there is one) through other card benefits. A card with a $95 annual fee saves money only if you spend enough abroad to recoup it.
Key Takeaways
- Cards with no international transaction fees include both premium travel cards and basic cards from issuers like Charles Schwab and some regional banks.
- No international transaction fee means you avoid the 1% to 3% charge per purchase, but you still pay the bank's exchange rate markup on currency conversion.
- Premium travel cards often charge an annual fee but offset it with travel credits, lounge access, and other benefits that frequent travelers use.
- The best card for you depends on whether you travel enough to justify an annual fee or whether a no-fee card meets your spending pattern.
Premium travel cards with no international transaction fees
Premium travel cards typically charge $95 to $550 per year but waive international transaction fees as a standard benefit. These cards are designed for people who travel multiple times per year and can use the other benefits — airline credits, lounge access, travel insurance — to offset the annual cost.
The Chase Sapphire Preferred charges $95 annually and has no international transaction fees. It also offers a travel credit that reimburses certain travel purchases, primary rental car insurance, and trip cancellation insurance. The American Express Platinum charges $695 annually and includes airline fee credits, hotel elite status, and airport lounge access, along with no international transaction fees.
Capital One Venture X charges $395 annually and includes $300 in annual travel credits, airport lounge access, and no international transaction fees. The Citi Prestige charges $495 annually and includes a $250 annual airline fee credit, fourth night free on hotels, and no international transaction fees.
These cards make financial sense if you travel at least twice a year and use the credits and insurance they offer. If you travel once a year or less, the annual fee often outweighs the savings from avoiding international transaction fees.
No-fee cards with no international transaction fees
A smaller group of cards charge no annual fee and still waive international transaction fees. These are the best option for occasional travelers or people who want to avoid annual costs entirely.
The Charles Schwab Bank Investor Card has no annual fee and no international transaction fees. It also reimburses ATM fees worldwide, which makes it useful for withdrawing cash abroad. The card has no rewards rate, so it is best used as a travel card rather than an everyday card.
Some regional banks and credit unions offer no-fee cards with no international transaction fees, but availability varies by location and membership. The best way to find them is to contact your current bank or credit union and ask whether they offer a card with no international transaction fees and no annual fee.
No-fee cards typically offer no rewards, no travel credits, and no insurance benefits. They are straightforward: you pay nothing to own the card, and you pay nothing when you use it abroad. This simplicity appeals to people who travel infrequently and do not want to track annual fees or redemption options.
How international transaction fees work
When you use a credit card abroad, two separate costs happen. First, the card network (Visa, Mastercard, American Express) converts the local currency to dollars using their exchange rate. This conversion includes a markup of roughly 1%, which you cannot avoid.
Second, your card issuer (Chase, American Express, Capital One, your bank) may charge an additional fee on top of that conversion. This is the international transaction fee, and it ranges from 1% to 3% depending on the card. A card with no international transaction fees eliminates this second charge but not the network markup.
Example: You spend 100 euros in France. The Visa exchange rate that day is 1 euro = $1.10, but Visa's markup brings it to $1.1110 per euro. Your purchase converts to $111.10. If your card charges a 3% international transaction fee, you pay an additional $3.33, for a total of $114.43. If your card has no international transaction fees, you pay $111.10 — you save the $3.33 but still pay the network markup.
Travel cards versus everyday cards
Premium travel cards are built for people who travel frequently and want comprehensive travel protections and credits. They justify their annual fee through airline credits, hotel discounts, lounge access, and insurance that covers trip cancellations, lost luggage, and rental car damage.
No-fee cards are built for simplicity. You own the card, you use it abroad, you pay nothing extra. They offer no rewards, no credits, and no insurance, but they also have no annual fee to justify.
A third option is to use a rewards card that charges international transaction fees but earns enough points on travel spending to offset the fee. For example, a card that earns 2 points per dollar on travel and charges a 2% international transaction fee might still be worth using if you redeem points at a high value. This requires tracking redemption rates and doing the math yourself.
What to check before choosing a card
Before opening a card for international travel, confirm three things: whether it truly has no international transaction fees (some cards waive them only for certain purchase types), whether it works on the payment networks you need (Visa and Mastercard are accepted almost everywhere; American Express is less common outside major cities), and whether the annual fee (if any) is worth the other benefits you will actually use.
Call the card issuer directly and ask whether international transaction fees explore to all purchases or only certain ones. Some cards waive fees for hotel and airline purchases but charge them on restaurants and retail. Read the cardholder agreement, which lists the exact fee structure.
If you travel to countries where American Express is rarely accepted, a Visa or Mastercard is safer even if it charges a small fee. If you travel frequently to the same country, ask whether any local banks offer cards with no international transaction fees for residents or frequent visitors.
Frequently Asked Questions
Does a card with no international transaction fees save money compared to using cash?
Usually yes, but it depends on where you exchange currency. If you exchange cash at an airport or hotel, you pay a much higher markup than a credit card charges. If you use an ATM in the destination country, the fee is often similar to a credit card's network markup. A no-fee credit card typically beats both options because you avoid the separate international transaction fee.
Can I use a no-fee card to withdraw cash from ATMs abroad?
Yes, but most cards charge a separate ATM fee (usually $2 to $5 per withdrawal) even if they have no international transaction fees. The Charles Schwab Bank Investor Card is unusual because it reimburses ATM fees worldwide. Check your card's terms before relying on ATM withdrawals abroad.
What if my card has no international transaction fees but the merchant charges a currency conversion fee?
Some merchants, especially in tourist areas, offer to convert the purchase to dollars at their own rate instead of letting your card do it. This is called dynamic currency conversion, and the merchant's rate is almost always worse than your card's rate. Always choose to be charged in the local currency and let your card handle the conversion.
Do I need a different card for each country I visit?
No. A single card with no international transaction fees works in any country where that card network (Visa, Mastercard, or American Express) is accepted. You do not need multiple cards unless you want backup in case one is lost or declined.
Is the exchange rate on a credit card purchase the same as the rate I see online?
The rate is close but not identical. Your card uses the exchange rate from the day the transaction is processed, which may be one to three days after you made the purchase. The rate you see online is the real-time rate at that moment. The difference is usually less than 1%, but it can vary depending on market conditions.