Credit Cards With No Foreign Transaction Fee?
Paying a 3% surcharge when using your credit card internationally? Well that sucks. Here’s how can pay no foreign transaction fees in 2012.
Credit card companies charge a 2% to 3% fee because they claim it’s necessary to help cover the costs of the currency conversion. That excuse is a crock! The currency conversion takes place within 24 hours, so it is highly unlike they would lose (or gain) 2-3% percent during the process. This fee is obviously a big money maker for them.
Fortunately, there are a few ways you can reduce – or even eliminate credit card foreign transaction fees:
Best cards with no foreign transaction fee?
#1 – Chase Sapphire Preferred
Without a doubt this is one of the best credit cards to have for traveling. You earn an unlimited 2x points on travel, 2x points on dining, and 1x on everything else. You can redeem your points for almost anything (including cash back) however the best way to use them is for air/hotel because Chase gives you 25% more value that way. For example 10,000 points = $100 cash back – or – $125 towards air/hotel. Oh and that foreign transaction fee? It’s a big zero! Go here to read the full review.
#2 – Capital One Venture Rewards
Out of all the major players in the credit card world, Capital One is the only issuer that hasn’t succumbed to charging foreign transaction fees. It seems like something too good to be true… but it’s not. This of course makes them a top choice for international usage. And without a doubt their best cards for travel are the Venture (avail in 2 versions). Go here to compare the Venture cards side by side.
#3 – Citi ThankYou Premier
The card was launched a little over a year ago and packs a lot of benefits. It does have a drawback in that it is more expensive than the others above; the ThankYou Premier is $125 per year. However this is one of my favorite no foreign transaction fee credit cards because of the “Flight Points” program – you earn 1 point per mile flown. So let’s say you flew from Los Angeles to London. By my calculations that’s around 5,400 miles one way (so let’s say 10,800 roundtrip). With this card you would earn 10,800 points for that flight. See my full review of the card here.
#4 – American Express Platinum
If you want a high-end travel credit card with no foreign transaction fees, then AmEx Platinum is in a class of its own. If you don’t travel much, it won’t be worth it because of the $450 membership fee. However you may be surprised to learn that for even the occasional traveler, the value of the benefits can trump the fee many times over. For example, you get over $450 worth of benefits every time you stay at 700+ high-end hotels across the globe (get free room upgrades, food/drink/spa credits, etc). This is why its a favorite not only for foreign travel, but also domestic. Simply put, you won’t get these perks with any other card. Here is my detailed review of the American Express Platinum.
#5 – Marriot Rewards Premier
Back in 2011 Chase and Marriott decided to improve the credit card program and now, it’s one of the best out there if you regularly or occasionally stay at Marriott properties. With it you get 5x points at Marriott, 2x points on airlines, restaurants, and car rentals, and 1x elsewhere. There are quite a few benefits including the no foreign transaction fee. To view the review and bonus offer go here.
Honorable Mention – Discover Cards
Last year Discover decided to drop the foreign transaction fee on all of their credit cards. The only reason I’m leaving their cards out of the top 5 list is because their international acceptance is poor in most regions. However they’re an excellent (actually, the best) choice for the following countries:
- China: Because they’re accepted everywhere China UnionPay is, Discover is actually the most widely accepted credit card in China.
- Japan: Can be used anywhere that takes JCB (which is the largest card network in Japan)
- South Korea: Use anywhere that takes BC card (South Korea’s largest card network)
Even though Diners Club is now a dud in the United States, they’re still quite popular in some South American and European countries. Since Discover bought their int’l payment network 4 years ago, you can now use your Discover card at any foreign merchant that accepts Diners Club.
The best travel cards from Discover are the Escape ($59 annual fee, 2% rewards) and the Miles (zero annual fee, 1-2% rewards).
Cards with lowest foreign transaction fees? (that aren’t zero)
Most credit cards charge 2-3% for this fee. But just to give you an idea of how they compare, here’s a list – ranging from the highest to lowest – of what each issuer normally charges for the majority of their cards (obviously the above 5 cards are exemptions):
3.0% fee for Bank of America Visa & MasterCards (their AmEx versions charge 1%), Citi, Chase, HSBC, US Bank, Wells Fargo, Fifth-Third Bank, Barclaycard.
2.7% fee for all American Express cards (excluding the Platinum)
2.0% fee for Comerica, PenFed Credit Union (excluding their Promise card, which charges zero)
1.0% fee for USAA, Navy Federal
I guess it’s a stretch to label the 2% and 2.7% as “low” fees, but they are lower than the vast majority of cards, so they’re at least worth mentioning in case you don’t plan on applying for a new credit card right now and want to continue using the least painful option that’s currently in your wallet.


It can be the journey of a lifetime making that special trip Down Under: getting prepared for the long-haul flight, packing clothes and reading up on Australian slang so not to confuse a ‘dag’ with a ‘dill’. It also pays to know how American credit cards fare in the land of koalas and kangaroos.





