Foreign transaction fees are one of the most avoidable costs travelers face when using credit cards abroad. Many regular credit cards add a 2 to 3 percent fee on every international purchase, including hotel bookings, shopping, dining, and even online payments made to foreign merchants. Over the course of a trip, these charges can quietly drain your travel budget.
No foreign transaction fee credit cards remove these extra costs completely. In addition to saving money, they often provide travel rewards, insurance coverage, fraud protection, and strong worldwide acceptance. This guide explains what foreign transaction fees are, why avoiding them matters, and which credit cards are best for international travel in 2025.
What Is a Foreign Transaction Fee
A foreign transaction fee is an extra charge applied when you make a purchase in a foreign currency or when a transaction is processed by an international merchant. Most banks apply a fee of 2 to 3 percent per transaction, even if the purchase is made online from your home country.
For example, spending the equivalent of five thousand dollars during an international trip can result in up to one hundred fifty dollars in extra fees. With a no foreign transaction fee credit card, that cost is reduced to zero.
Why Choose a No Foreign Transaction Fee Credit Card
Using a credit card without foreign transaction fees helps travelers avoid unnecessary expenses while gaining additional benefits. These cards usually offer better exchange rates, built-in fraud protection, and travel insurance. Many also earn rewards such as airline miles or flexible travel points.
Even travelers who go abroad once a year can benefit significantly from a no FX fee card, as the savings quickly outweigh any annual fee.
Best No Foreign Transaction Fee Credit Cards for International Travel
The following credit cards are selected based on global acceptance, rewards value, fees, and usefulness for international travelers.
Chase Sapphire Preferred® – Best Overall No FX Fee Card (USA)
Annual fee is moderate
Foreign transaction fee is none
Network is Visa
Chase Sapphire Preferred is one of the most well-rounded travel credit cards available. It combines flexible rewards, strong travel insurance, and excellent worldwide acceptance through the Visa network.
Cardholders earn bonus points on travel and dining purchases, and those points can be redeemed for flights, hotels, or transferred to airline and hotel partners. It offers high value for frequent travelers but is available only to residents of the United States.
Capital One Venture Rewards – Best Flat-Rate No FX Fee Card
Annual fee is moderate
Foreign transaction fee is none
Network is Visa or Mastercard
This card is ideal for travelers who want simplicity. It earns a flat rate of miles on every purchase, no matter where the spending occurs.
Miles can be used to cover travel purchases, making redemptions easy and flexible. It is beginner-friendly, widely accepted internationally, and does not require tracking spending categories, though it offers fewer premium perks.
American Express Platinum Card® – Best for Luxury International Travel
Annual fee is high
Foreign transaction fee is none
Network is American Express
The American Express Platinum Card is designed for travelers who value comfort, convenience, and premium benefits. It offers access to airport lounges worldwide, elite hotel benefits, travel credits, and comprehensive insurance coverage.
While the perks are among the best available, the card carries a high annual fee and is not accepted as widely as Visa or Mastercard in some regions. It works best as a primary or secondary card for frequent international flyers.
Barclaycard Rewards – Best No Annual Fee Option for UK Travelers
Annual fee is zero
Foreign transaction fee is none
Network is Mastercard
Barclaycard Rewards is a strong option for UK residents looking to avoid foreign transaction fees without paying an annual fee. It earns rewards on all purchases and is accepted widely due to the Mastercard network.
This card is best suited for occasional travelers or those who want to save on overseas spending without focusing heavily on rewards.
Scotiabank Passport Visa Infinite – Best for Canadian Travelers
Annual fee is moderate
Foreign transaction fee is none
Network is Visa
This card is designed specifically for Canadians who travel internationally. It includes complimentary airport lounge passes, comprehensive travel insurance, and no foreign transaction fees.
While its rewards structure is more modest compared to some US cards, it provides strong overall value and reliable global usability.
ANZ Rewards Travel Adventures Card – Best for Australian Travelers
Annual fee is moderate
Foreign transaction fee is none
Network is Visa
This card is a solid choice for Australians traveling overseas. It earns reward points on travel spending and includes international travel insurance with no FX fees.
Although the rewards program is less flexible than some global alternatives, it offers dependable benefits and protection for Australian cardholders.
Comparison of No Foreign Transaction Fee Credit Cards
Chase Sapphire Preferred offers the best overall value for US travelers
Capital One Venture is ideal for flat-rate rewards
American Express Platinum is best for luxury travel
Barclaycard Rewards is the top no-fee option in the UK
Scotiabank Passport Visa Infinite suits Canadian travelers
ANZ Rewards Travel Adventures Card is best for Australians
How to Choose the Best No Foreign Transaction Fee Credit Card
Start by checking the card network. Visa and Mastercard provide the strongest global acceptance, while American Express is best used as a backup.
Next, consider the reward structure. Frequent travelers often benefit from transferable points, while occasional travelers may prefer flat-rate rewards. It is also important to compare the annual fee with the value of perks such as travel credits, insurance, and lounge access.
Travel insurance coverage is another key factor, especially for international trips where medical emergencies or trip cancellations can be costly.
Common Myths About No Foreign Transaction Fee Cards
Many people believe that cards with no FX fees offer worse exchange rates, but this is not true. In most cases, they provide better rates than debit cards. Another misconception is that only premium cards offer no foreign transaction fees, when many mid-range and no-fee cards also include this benefit.
Debit cards are often assumed to be cheaper abroad, but they usually provide weaker fraud protection and may include hidden fees.
Frequently Asked Questions
No foreign transaction fee credit cards do save money by eliminating up to three percent in extra charges on international purchases.
These cards can also be used for online purchases from foreign merchants without additional fees.
Even occasional travelers benefit from having one, as a single international trip can justify its value.
Final Verdict
If you travel internationally or frequently shop online with foreign merchants, a no foreign transaction fee credit card is essential. The best options combine zero FX fees, global acceptance, travel rewards, and protection against fraud and unexpected expenses.