When it comes to deciding which card to use for your spending, there are all kinds of things to consider. Maybe you want the best card for everyday spending, maybe you want the best card for a specific bonus category (dining, groceries, gas, etc.), maybe you want the best card with no annual fee, or maybe you want the best card with a reasonable annual fee.
In this post I wanted to take a look at the best cards with no foreign transaction fees, as this can make a huge difference in terms of how you’ll be rewarded for your spending abroad.
In this post:
What makes a good no foreign transaction fee credit card?
If you’re traveling abroad, you absolutely should get a card with no foreign transaction fees. Don’t worry, this leaves you with lots of options, as there’s everything from no annual fee to uber-premium cards that don’t have foreign transaction fees.
Foreign transaction fees on some cards are roughly 3% of the purchase price, which can quickly negate any rewards you earn. Getting a card with 0% foreign transaction fees can obviously make a significant difference.
What should you be looking for in a card with no foreign transaction fees?
- Find a card that has bonus categories that match your spending profile abroad; many of us largely spend money in the dining and travel category when abroad, so being able to earn bonus rewards in those categories is awesome
- Find a card that has good global acceptance; in general you’ll find that Mastercard and Visa have the best acceptance abroad
- Find a card with an annual fee that you’re willing to pay; don’t worry, there are even several options without annual fees
- Find a card that offers travel perks that could be valuable when traveling abroad, like a Priority Pass membership, travel protection, etc.
Regardless of which card with no foreign transaction fees you choose to use, make sure you always avoid dynamic currency conversion (by paying in the local currency), and generally convert money as efficiently as possible.
The best no foreign transaction fee personal credit cards
Let me share what I consider to be the best personal credit cards with no foreign transaction fees, ranked from highest annual fee to lowest annual fee. These hopefully cover a bit of everything, depending on what categories you spend the most in, and how you’re looking to be rewarded.
Chase Sapphire Reserve Card
The $550 annual fee Chase Sapphire Reserve® Card (review) is the gold standard when it comes to no foreign transaction fee cards, as the card offers 3x Ultimate Rewards points on dining and travel, which I value at a 5.1% return. For many travelers, this covers a vast majority of expenses abroad, as the travel category includes everything from hotels, to rental cars, to flights, to train tickets, to taxis.
While the card might seem like it has a high annual fee, it’s pretty easy to justify thanks to the $300 annual travel credit, Priority Pass membership, great travel protection, and more.
Capital One Venture X Card
The $395 annual fee Capital One Venture X Rewards Credit Card (review) (Rates & Fees) is the best card for non-bonused spending abroad, as the card offers 2x Capital One miles per dollar spent, which I value at a 3.4% return. So while there aren’t any exciting bonus categories here, just earning that return on all spending is tough to beat.
The card’s annual fee is also easy to justify, thanks to the $300 annual travel credit, 10,000 anniversary bonus miles, Priority Pass membership, Capital One Lounge access, and more.
Note that if you’re looking for a lower annual fee option that also offers 2x Capital One miles, consider the $95 annual fee Capital One Venture Rewards Credit Card (review) (Rates & Fees).
Citi Premier Card
The $95 annual fee Citi Premier® Card (review) has some incredible bonus categories for travel, as the card offers 3x ThankYou points on dining, gas stations, groceries, airfare, and hotels. I value ThankYou points at 1.7 cents each, so to me that’s a 5.1% return on that spending. There aren’t many cards offering bonus points on groceries and gas outside the United States, so that’s a pretty remarkable aspect of the card.
Bilt Mastercard
The Bilt Mastercard® (review) has no annual fee, and offers 3x points on dining and 2x points on travel, all with no foreign transaction fees. These points are also extremely valuable, and can be transfered to programs like American AAdvantage and World of Hyatt. Earning this many transferable points with a no annual fee card and “no strings attached” is tough to beat.
Capital One SavorOne Card
The Capital One SavorOne Cash Rewards Credit Card (review) (Rates & Fees) is one of the best no annual fee card for dining abroad, as the card offers unlimited 3% back on dining, grocery stores (excluding superstores like Walmart and Target), popular streaming services, and entertainment. Finding a no annual fee card with no foreign transaction fees is rare to begin with, let alone to earn such bonus rewards on categories like dining.
The best no foreign transaction fee business credit cards
As you can see, there are quite a few great personal credit cards with no foreign transaction fees, but what about business cards? Fortunately there are also some solid options, so below are my top picks, ranked from highest annual fee to lowest annual fee.
Capital One Venture X Business
The $395 annual fee Capital One Venture X Business (review) (Rates & Fees) is the best business card for non-bonused spending abroad, as the card offers 2x Capital One miles per dollar spent, which I value at a 3.4% return. So while there aren’t any exciting bonus categories here, just earning that return on all spending is tough to beat.
The card’s annual fee is also easy to justify, thanks to the $300 annual travel credit, 10,000 anniversary bonus miles, Priority Pass membership, Capital One Lounge access, and more.
Capital One Spark Cash Plus Card
The $150 annual fee Capital One Spark Cash Plus (review) (Rates & Fees) offers unlimited 2% cash back with no foreign transaction fees, making it the best straight cash back card for spending abroad. The card even offers further spending thresholds for big spenders, and rewards can potentially be converted into Capital One miles, to get even more value.
I know many businesses may make large purchases with suppliers abroad, so this is an unbeatable card in that regard.
Chase Ink Business Preferred Card
The $95 annual fee Ink Business Preferred® Credit Card (review) is one of the all-around best business credit cards, and it’s also rewarding for international spending. The card offers 3x Ultimate Rewards points per dollar spent on travel, shipping purchases, internet, cable, phone services, and advertising purchases made with social media sites and search engines. This applies for the first $150,000 in combined purchases per cardmember year. I value 3x points at a 5.1% return.
Earning that rate of return all with great travel protection is tough to beat.
Capital One Spark Cash Select for Excellent Credit
The Capital One Spark Cash Select for Excellent Credit (review) (Rates & Fees) has no annual fee and offers a flat 1.5% cash back on all purchases, all with no foreign transaction fees. While a 1.5% rate of return might not sound that great, it’s pretty good for a card with no foreign transaction fees. Furthermore, in conjunction with select other cards, rewards can be converted into Capital One miles.
Bottom line
If you travel internationally with any frequency, getting a card with no foreign transaction fees is a must, as it can save you around 3% on transactions. Don’t just settle for any card with no foreign transaction fees, though — get a card that has a rewards structure that matches your spending profile. From premium cards to no annual fee cards, there really are lots of excellent options.
What’s your go-to card for purchases abroad?
Ben, it's your blog and you can do whatever you want regarding "presented by." The fact is the vast majority of travel content is "sponsored." The hotel reviews on Conde Nast are sponsored. The destination reviews in AAA's travel magazine are sponsored. Even Michelin restaurant reviews are sponsored. In your situation, it's probably best you keep "presented by" in your logo so readers understand the "sponsored by" relationship.
Biased based on the companies paying you to promote. There are many other great cards with no foreign exchange for their return and benefits versus the low annual fee....
I'd argue the Amazon Prime Visa actually wins here. $0 AF and 0% FTF.
No because it does not give a good return on non-Amazon or whole foods purchases unless some certain temporary bonus categories. True no foreign exchange, but you can get a much better return on other cards without a foreign exchange.
Lots of Cap1 cards on those lists…
And a lot about the LH group.
I've posted this elsewhere, but one thing to keep in mind overseas is (in Japan from my personal experience) the categories may not charge as expected and I'm not sure if there's anything the merchant or the CC company can do about it. Seems to be common for CC charges to appear as the landlord's name rather than the tenant's name.
I was in Haneda Airport and ate at a restaurant inside the airport. Used...
I've posted this elsewhere, but one thing to keep in mind overseas is (in Japan from my personal experience) the categories may not charge as expected and I'm not sure if there's anything the merchant or the CC company can do about it. Seems to be common for CC charges to appear as the landlord's name rather than the tenant's name.
I was in Haneda Airport and ate at a restaurant inside the airport. Used my Amex Gold expecting x4 points, but it ended up being 1x due to the CC fee being listed as Haneda Airport Tenant and not the Restaurant Tenant itself, netting me 1x. The next time I used my CSP and got x2 for being in the Travel category.
Similarly, I was at Diver City Tokyo and ate at the foodcourt inside, paid with Amex Gold and only got x1 due to being charged as Diver City tenant rather than the restaurant.
This is one reason why I personally prefer an across-the-board flat rate points or cashback card. Without categories, I know I'll get the points or cashback I've been promised without risk of mis-categorization. Granted, category cards can sometimes be more lucrative; my personal preference is something that "just works" vs. something that might be great but might be fragile. Know what your preferences are, I guess.
I'd use a cashback card, but the BBP, CFU, and Ink Cash I currently have charges Forex fees so don't think it's worth using overseas.
That's different. Your example is in an airport and this is very common in an airport where an airport authority is accepting the money rather than the brand itself. Most restaurants for example overseas do charge as a a restaurant but it does depend on the setup (cafe in a department store may not charge as a restaurant for example). You can also prove yourself to the credit card company to get the correct return.
I'll pay more attention to how it's charged now, but unless I just ended up running into airports in the US where the brand shows up on the statement and not the airport authority, being charged by the landlord/authority was a different experience than what I was used to in the US.
Sounds like I should also save receipts for the appeal to the CC company.
Do you earn 3* on the Citi Premier card for restaurant n groceries outside of the US?
Yes.
Amex Green?
Yes, but limited acceptance outside the US.
Check your facts.
It is correct. Amex is less widely accepted outside the US than Visa and MasterCard.
95%. But, to say "limited acceptance" paints an inaccurate picture.