Cards that charge zero percent on purchases abroad

Many credit cards charge 1% to 3% on every purchase you make outside the United States — a foreign transaction fee added to your bill automatically. Some cards do not. The most common zero-fee cards come from major issuers like Chase, American Express, Capital One, and Discover, though the specific cards change and new ones appear regularly.

The catch is that cards with no foreign transaction fee often come with an annual fee, a higher interest rate, or rewards that only work well if you spend heavily. A card that costs you $95 per year saves money on a two-week trip to Europe only if you charge enough to offset that fee. The math changes based on how much you spend abroad and how often you travel.

This guide walks through which cards currently offer this feature, what else they cost, and how to decide whether a no-fee card is worth switching to.

Key Takeaways

  • Foreign transaction fees are typically 1% to 3% of every purchase made outside the United States, and many cards charge them automatically.
  • Cards with no foreign transaction fee exist from Chase, American Express, Capital One, and Discover, but most come with annual fees or other trade-offs.
  • A card with a $95 annual fee only saves money if you spend enough abroad to exceed that cost in foreign transaction fees.
  • The best no-fee card for you depends on where you travel, how much you spend, and whether you value rewards or low interest rates more.
  • Some cards waive foreign transaction fees only on certain types of purchases, so read the terms before assuming all transactions are covered.

How foreign transaction fees work

When you swipe a credit card in another country or make an online purchase from a foreign merchant, the card issuer charges a fee on top of the purchase price. This fee covers the cost of currency conversion and the risk the issuer takes on the exchange rate. The fee is usually 1% to 3% and appears as a separate line item on your statement.

The fee applies whether you pay in the local currency or in US dollars. Even if a merchant offers to charge you in dollars instead of the local currency, a foreign transaction fee still applies — and the exchange rate they offer is often worse than what your card would give you anyway. The fee is unavoidable unless your card specifically waives it.

Some cards waive the fee on purchases but still charge it on cash withdrawals from ATMs abroad. Others waive it on all transactions. Always check the card's terms to see which transactions are covered.

Cards with no foreign transaction fee and no annual fee

The rarest cards are those that charge neither a foreign transaction fee nor an annual fee. Capital One Venture X and some versions of the Chase Sapphire line have offered this combination, but availability changes and new cards appear regularly. These cards typically make their money through higher interest rates or by paying less in rewards than premium cards do.

Capital One's no-fee cards, such as the Capital One Quicksilver, have historically waived foreign transaction fees and charged no annual fee, though they offer lower cash-back rates (usually 1.5%) than premium cards. Chase Freedom cards have also offered this structure in the past. Check the current terms on each card's website, because card features change without notice.

If you find a card with both features, it is usually because the card targets people who travel occasionally but do not spend enough to justify a premium card's annual fee. These cards are the simplest choice for casual international travelers.

Premium cards that waive foreign transaction fees

Most cards that waive foreign transaction fees charge an annual fee between $95 and $550. The idea is that frequent travelers or high spenders will earn enough in rewards or other benefits to offset the fee. Chase Sapphire Preferred ($95 annual fee) and Chase Sapphire Reserve ($550 annual fee) both waive foreign transaction fees. American Express Platinum ($695 annual fee) does as well. Capital One Venture X ($395 annual fee) also waives the fee.

These cards typically offer higher rewards rates on travel and dining purchases — often 2% to 5% back — and include travel protections like trip cancellation insurance or emergency medical coverage abroad. If you travel frequently or spend heavily on travel and dining, the rewards can cover the annual fee within a few months. If you travel once a year, the math usually does not work.

To decide whether a premium card makes sense, calculate how much you spent on foreign transactions in the past year, multiply that by the foreign transaction fee percentage (usually 2% to 3%), and compare that total to the annual fee. If the fee you would have paid is less than the annual fee, the card does not save you money unless the rewards make up the difference.

Business cards and specialty cards with no foreign transaction fee

Business credit cards often waive foreign transaction fees because business travelers are a key market. Chase Ink Business Preferred and American Express Business Platinum both waive the fee. These cards require a business tax ID or sole proprietor status to open, but a freelancer or small business owner can usually may have access to.

Some specialty cards also waive foreign transaction fees. Discover cards, for example, have historically waived the fee on all purchases, though Discover is not accepted everywhere outside the United States — particularly in Europe and Asia. Before opening a Discover card for international travel, check whether merchants in your destination country accept it.

If you have a business or are self-employed, a business card might be worth exploring. If you do not, a business card is not an option.

What to check before switching cards

Before opening a new card to avoid foreign transaction fees, verify three things. First, confirm that the card actually waives the fee on the types of transactions you make — some cards waive it on purchases but not ATM withdrawals, or on in-person transactions but not online ones. Second, check the current annual fee and any sign-up bonuses, because card terms change. Third, look at the interest rate and rewards structure to make sure the card works for your spending patterns, not just for travel.

If you travel rarely, a card with no annual fee and no foreign transaction fee is the best choice, even if the rewards rate is lower. If you travel frequently and spend heavily, a premium card's rewards might offset the annual fee. If you travel once a year and spend modestly, you might be better off keeping your current card and accepting the foreign transaction fee — it may cost less than switching.

Also check whether your current card already waives foreign transaction fees. Some cards do and do not advertise it prominently. Call the issuer or check your cardholder agreement to confirm.

Alternatives to opening a new card

If you do not want to open a new card, you have other options. Some banks offer checking accounts with debit cards that waive foreign transaction fees — Schwab Bank and Charles Schwab are known for this. Using a debit card abroad means you are not building credit, but you also avoid interest charges if you carry a balance.

You can also use a prepaid travel card, which you load with dollars before you leave and which converts to local currency at the point of sale. These cards often waive foreign transaction fees, though they may charge other fees for loading or withdrawals. Compare the total cost of a prepaid card to the cost of a credit card's foreign transaction fee before deciding.

If you travel frequently to the same country, opening a local bank account or using a local credit card may be cheaper than paying foreign transaction fees on a US card. This is most practical if you stay abroad for months at a time.

Frequently Asked Questions

Do I have to pay a foreign transaction fee if I use my debit card instead of a credit card?

Most debit cards charge a foreign transaction fee just like credit cards do, usually 1% to 3%. Some banks, like Schwab Bank and Ally Bank, waive the fee on their debit cards. Check your bank's terms before traveling. ATM withdrawals abroad often carry a separate fee on top of the foreign transaction fee, so using a debit card to withdraw cash is usually more expensive than using a credit card to make purchases.

What if I use a credit card that charges a foreign transaction fee but the merchant offers to charge me in US dollars instead?

Decline the offer. When a merchant offers to charge you in US dollars, they set the exchange rate themselves, and it is almost always worse than the rate your credit card company would use. You will pay the foreign transaction fee anyway, so you lose on both the exchange rate and the fee. Always choose to be charged in the local currency.

Can I avoid foreign transaction fees by using a currency exchange service before I travel?

You can, but it is usually more expensive than using a credit card. Currency exchange services charge a markup on the exchange rate, and you have to carry cash, which is less safe. A credit card with no foreign transaction fee is almost always cheaper. If you must use cash, exchange money at a bank rather than at an airport or tourist area, where markups are highest.

Does Discover work everywhere outside the United States?

No. Discover is accepted in many countries, but it is far less common than Visa or Mastercard, particularly in Europe and Asia. Before opening a Discover card for international travel, check whether it is accepted in your destination. Visa and Mastercard are accepted almost everywhere, so a card from Chase, American Express, or Capital One is a safer choice for international travel.

If I open a card with no foreign transaction fee, how long does it take to receive it?

Most credit cards arrive within 7 to 10 business days. Some issuers offer when ready digital card numbers that you can use when ready for online purchases while you wait for the physical card. If you are traveling soon, explore as early as possible or ask the issuer whether you can use a digital card number right away.