Summer is just around the corner, and you, like most people, are either thinking of traveling abroad or shopping internationally from home. However, to do that, you not only need a credit card, but you also need one with zero foreign transaction fees. These fees, also known as international fees, overseas charges, or FX fees, are typically 1% to 3% of each transaction made in a foreign currency or through a foreign bank, and that adds up. If you use any of the cards listed in this article, though, you can save money on international purchases and even unlock valuable travel rewards.
What Are Foreign Transaction Fees and How Do They Work?
A foreign transaction fee is a surcharge imposed by your credit card issuer when you buy an item in a foreign currency or through a foreign bank. This applies not only to purchases made while traveling abroad but also to online purchases from international retailers. These fees typically consist of a 1% charge from the payment processor (like Visa or Mastercard) and an extra 1% to 2% from the card issuer, which adds up to 3% per transaction.
It’s important to note that foreign transaction fees are separate from currency conversion fees, which are the costs associated with converting one currency to another. Also, what most people don’t know is that opting for dynamic currency conversion (DCC) at the point of sale, where the transaction is converted to your home currency, can result in higher exchange rates and additional markups, costing you even more money!
Top Credit Cards with No Foreign Transaction Fees in 2025
To help you save money and enjoy better deals while traveling, here’s a list of the best credit cards that waive foreign transaction fees, each with unique benefits to suit different spending habits and travel needs:
1. Capital One Venture X Rewards Credit Card
Annual Fee: $395
Rewards: Earn 10X miles on hotels and rental cars when you book through Capital One Travel, 5X miles on flights booked through Capital One Travel, and 2X miles on all other purchases.
Perks: $300 annual travel credit, access to Capital One Lounge and Priority Pass lounges, Global Entry/TSA PreCheck credit, and zero foreign transaction fees.
Best For: Frequent travelers who want premium benefits and high rewards on travel spending.
2. Chase Sapphire Preferred® Card
Annual Fee: $95
Rewards: Earn 2X points on travel and dining and 1X points on all other purchases.
Perks: Points are worth 25% more when redeemed for travel through Chase Ultimate Rewards.
Best For: Travelers looking for flexible redemption options and valuable travel rewards.
3. Citi Strata Premier℠ Card
Annual Fee: $95
Rewards: Earn 10X points on hotels, car rentals, and attractions when you book through CitiTravel.com; 3X points on air travel, restaurants, supermarkets, gas stations, and EV charging stations; and 1X points on all other purchases.
Perks: $100 annual hotel savings benefit and no foreign transaction fees.
Ideal For: People with varying spending habits who want high rewards across different categories.
4. Discover it® Miles
Annual Fee: $0
Rewards: Earn 1.5X miles on every dollar you spend on all purchases.
Perks: Discover will match all the miles you’ve earned at the end of your first year.
Best For: Travelers who need a straightforward rewards program with no annual fee.
5. Hilton Honors American Express Card
Annual Fee: $0
Rewards: Earn 7X points on eligible purchases at Hilton hotels, 5X points at U.S. restaurants, supermarkets, and gas stations, and 3X points on all other purchases.
Perks: Complimentary Silver status in the Hilton Honors program and no foreign transaction fees.
Best For: Frequent Hilton guests looking to maximize hotel rewards without a yearly fee.
6. Bank of America® Travel Rewards Credit Card
Annual Fee: $0
Rewards: Earn unlimited 1.5 points for every $1 spent on all purchases.
Perks: 25,000 online bonus points after spending $1,000 in the first 90 days, which can be redeemed for a $250 statement credit toward travel purchases.
Best For: Occasional travelers who want a no-annual-fee card with straightforward rewards.
7. Deserve EDU Mastercard for Students
Annual Fee: $0
Rewards: Earn 1% cash back on all purchases.
Perks: One year of Amazon Prime Student after spending $500 in the first three billing cycles, cell phone protection up to $600, and zero foreign transaction fees.
Best For: International students or those new to credit seeking a student-friendly card without foreign transaction fees.
Frequently Asked Questions About Foreign Transaction Fees
Do All Credit Cards Have Foreign Transaction Fees?
No, not all credit cards charge foreign transaction fees. Many travel-focused and premium credit cards waive these fees so they can attract frequent travelers. However, it’s important to review your card’s terms and conditions or speak with your issuer to be absolutely certain.
Are Foreign Transaction Fees The Same as Currency Conversion Fees?
No, they are different. A foreign transaction fee is a surcharge imposed by your card issuer for processing a transaction in a foreign currency or through a foreign bank. A currency conversion fee is the cost tied to converting one currency to another, often determined by the card network (like Visa or Mastercard). Also, opting for dynamic currency conversion at the point of sale can result in higher costs due to unfavorable exchange rates and additional markups.
How Can I Avoid Foreign Transaction Fees?
To avoid these fees, you need to use a credit card that doesn’t charge foreign transaction fees. Before traveling or making international purchases, look over your card’s terms or consult with your issuer. Additionally, always opt to pay in the local currency rather than your home currency to avoid dynamic currency conversion markups.
Foreign transaction fees can add unnecessary costs to your international purchases and travels. By choosing a credit card that waives these fees, you can save money and enjoy more perks tailored to your spending habits. Whether you’re a frequent traveler, a student studying abroad, or someone who likes to shop internationally online, there’s a card designed to meet your needs.
Compare the cards we’ve listed above to pick which one aligns best with your lifestyle and financial goals. Apply today and start enjoying fee-free international spending and the long list of benefits these cards offer.
