Cards that charge zero percent on purchases abroad

Several credit cards charge no foreign transaction fee when you use them outside the United States. The most common are travel rewards cards from major issuers like Chase, American Express, Capital One, and Citi. These cards typically cost between $0 and $550 per year, depending on the card, and the no-fee feature is built into the card itself — you do not need to request it or meet special conditions to use it.

The catch is that most cards with no international transaction fee also require good credit to get approved. A few cards designed for people building credit do exist, but they are rarer. If you already have a card with a fee and are traveling soon, you can also call your issuer and ask whether they offer a no-fee alternative in their product line — sometimes switching cards is faster than waiting for a new process to process.

Key Takeaways

  • Travel rewards cards from Chase, American Express, Capital One, and Citi typically charge zero percent on foreign transactions, but require good credit and often carry an annual fee.
  • A foreign transaction fee is usually 1 to 3 percent of the purchase amount and is charged by your card issuer, not the merchant or your bank.
  • Some cards waive the fee for all purchases abroad; others waive it only for certain transaction types, so read the terms before you travel.
  • If you do not have time to get a new card before your trip, using an ATM to withdraw cash in the local currency often costs less than paying a transaction fee on purchases.

How to spot a no-fee card in the terms

When you are looking at a credit card online, search the terms and conditions page for the phrase "foreign transaction fee" or "international transaction fee." If the card charges a fee, the issuer will state it as a percentage — usually 1, 2, or 3 percent. If the page says "no foreign transaction fee" or "0% foreign transaction fee," that card will not charge you extra when you use it outside the United States.

Be specific about what the card covers. Some cards waive the fee on purchases but still charge it on cash advances or balance transfers. Others waive it on all three. If you plan to withdraw cash from an ATM abroad, check whether the card charges a separate ATM fee in addition to the foreign transaction fee — these are two different charges, and a card can waive one but not the other.

Travel rewards cards with no international fee

The Chase Sapphire Preferred and Chase Sapphire Reserve both charge no foreign transaction fee. Both require good credit and carry an annual fee (the Preferred is $95; the Reserve is $550). Both earn bonus points on travel and dining purchases, which can offset the annual cost if you use the card regularly.

American Express cards like the Gold Card and Platinum Card also charge no foreign transaction fee and come with annual fees. Capital One Venture X and Citi Prestige both waive the fee as well. If you are comparing cards, check whether the annual fee is worth it based on how often you travel and how much you spend. A card with a $95 annual fee makes sense only if you will use it enough to earn back that cost in rewards or savings.

No-fee cards for people with fair or limited credit

Most cards with no foreign transaction fee require good credit, which means a credit score of 670 or higher. If your score is lower, your options narrow significantly. Capital One Quicksilver One is one of the few cards designed for people building credit that also waives the foreign transaction fee, though it does charge a $39 annual fee.

If you cannot find a no-fee card you can get approved for, your next best option is to use your current card and budget for the fee, or to withdraw cash from an ATM in the destination country instead. ATM fees vary by bank and location, but they are often lower than a 2 or 3 percent transaction fee on a large purchase.

What happens when you use a no-fee card abroad

When you swipe a no-fee card at a store or restaurant outside the United States, the transaction goes through the same way it would at home. The merchant's bank converts the amount to dollars using the exchange rate for that day. Your card issuer receives the converted amount and posts it to your account — with no additional percentage added on top. You pay only the exchange rate difference, which you would pay anyway regardless of which card you use.

If you use a card that does charge a foreign transaction fee, the issuer adds that percentage on top of the exchange rate. So a $100 purchase with a 2 percent fee becomes $102 on your bill. Over a week-long trip with multiple purchases, that fee adds up quickly.

When to use an ATM instead of a credit card

Even with a no-fee credit card, sometimes withdrawing cash is cheaper. If you are in a country where most small vendors do not accept cards, or where card fees are high, an ATM withdrawal might cost less overall. Compare the ATM fee your bank charges (usually $2 to $5 per withdrawal) against the foreign transaction fee you would pay on purchases. If you are spending $500 and your card charges 2 percent, that is $10 in fees — more than most ATM charges.

Use a no-fee credit card for large purchases and hotels, where the merchant accepts cards and the transaction is substantial enough that the fee would be noticeable. Use an ATM for cash when you are making many small purchases or when vendors do not take cards. Check your bank's website before you travel to see what ATM fees they charge abroad and whether they have partnerships with banks in your destination country that waive the fee.

Annual fees and whether they are worth it

Most cards with no foreign transaction fee charge an annual fee between $95 and $550. Whether that fee is worth paying depends on how much you travel and how much you spend. If you travel once every two years, a $95 annual fee probably does not make sense. If you travel four or more times per year or spend heavily on dining and travel at home, the rewards and savings can easily cover the cost.

Some cards offer a first-year fee waiver or a statement credit that covers part of the annual fee. Check the current offer when you explore. Also check whether the card offers other benefits that matter to you — travel insurance, lounge access, or statement credits for specific purchases — because these can add real value beyond the no-fee feature alone.

Frequently Asked Questions

Can I use a debit card instead to avoid the foreign transaction fee?

Most debit cards charge a foreign transaction fee just like credit cards do. Check your bank's terms before you travel. Some banks waive the fee for debit card purchases but charge it for ATM withdrawals, or vice versa. If your bank charges a fee on both, a no-fee credit card is usually cheaper for purchases.

Do I need to tell my credit card company I am traveling?

You do not need to, but many people do. Calling ahead can prevent your card from being flagged as fraudulent when you use it in a new country. Most issuers now use location data to detect fraud, so a call is less critical than it used to be. If you do call, have your card number and a list of countries you will visit ready.

What if I get charged a foreign transaction fee by mistake?

Call your card issuer and explain that the card should not charge the fee. If the card terms clearly state no foreign transaction fee, the issuer will usually remove the charge. Have your statement and the card terms ready when you call. If the issuer refuses, you can file a dispute, though this is rare when the card terms are clear.

Does the exchange rate change if I use a no-fee card?

No. The exchange rate is set by the card networks (Visa, Mastercard, American Express) and does not change based on whether your card charges a transaction fee. A no-fee card saves you only the percentage fee itself, not the exchange rate markup. You will always pay the market rate for currency conversion, plus any fee your issuer adds.

Can I use a no-fee card for online purchases from foreign websites?

Yes. A no-fee card waives the foreign transaction fee on any purchase made outside the United States, whether in person or online. The fee is charged by your card issuer based on where the merchant is located, not where you are when you make the purchase.