Best credit cards without foreign transaction fees for January 2022

The Chase Sapphire Preferred Card is our overall top pick for the best credit card with no foreign transaction fee. It beats all the other cards reviewed for sign-up bonuses (60,000 points after spending $4,000 in the first three months, which is valued at $750 for travel booked through Chase) and travel booking flexibility. It tops the list as an excellent travel rewards credit card thanks to points that can be transferred to partner airline or hotel loyalty sites at a 1:1 ratio. Plus, booking travel through the Chase Ultimate Rewards website gets you the most mileage from your points — up to 25% more.

Earn 5x points on travel booked through Chase Ultimate Rewards, 3x points on dining, online groceries, food delivery and select streaming services, 2x on all other travel purchases and 1x on other purchases. It’s a great way to rack up points — without worrying about foreign transaction fees — if you travel and dine out frequently.

The Discover it® Cash Back* is a low-fee credit card that offers a high potential for cash-back earnings. There is no annual or foreign transaction fee to worry about. All purchases earn you at least 1% cash back. However, you could earn higher rewards when you take advantage of the rotating quarterly category bonuses upon activation — like restaurant and grocery store purchases — of 5% cash back (on up to $1,500 in quarterly purchases, then 1%). Best of all, Discover will match your cash back earnings at the end of the first year through its Cashback Match offer, essentially doubling your first year’s worth of rewards.

Capital One loads the Venture Rewards Credit Card* with plenty of travel perks to offset the $95 annual fee. Travel anywhere without any foreign transaction fees and earn 2x unlimited miles on all purchases. In addition, Capital One awards you up to a $100 statement credit for Global Entry or TSA PreCheck to help you speed through the airport lines. Venture Miles earned can be redeemed on flights and hotels or used to pay for Amazon.com and PayPal purchases. You can also transfer miles to over 15 hotel and airline programs.

Bank of America’s Travel Rewards card doesn’t come with foreign transaction fees or an annual fee. Most low-fee cards are typically no-frills, but the Bank of America Travel Rewards credit card* provides cardholders with plenty of value. You’ll earn 1.5 points for every dollar you spend, with no limit. When it’s time to redeem points, there are no blackout dates or website limitations. Book travel from anywhere and apply the points as a statement credit to cover the charge. In addition, the introductory no-interest offer for purchases made in the first 15 billing cycles (13.99% to 23.99% variable APR thereafter) can provide you with some wiggle room to spread out your card payments without incurring fees.

The Citi / AAdvantage Executive World Elite Mastercard has the highest annual fee of the cards in this guide, but it’s also the best travel rewards card for luxury perks. Frequent travelers will appreciate complimentary Admirals Club membership for lounge access, valued at up to $650 per year. Priority boarding and a free checked bag on domestic flights are also included.

Foodies who enjoy fine dining and gourmet-oriented travel should consider keeping the American Express Gold Card with their passports. There are no foreign transaction fees, and you’ll earn four points for every dollar you spend at restaurants, as well as three points per dollar for flights booked directly with airlines or with amextravel.com. Although the annual fee is a bit steep at $250, the annual benefits you’ll receive make up for the fee. Some of the exclusive perks include up to $120 in Uber Cash annually ($10 per month) for U.S. rides and eats, up to $120 in annual dining credits (at Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed, and participating Shake Shack locations) and up to a $100 onsite credit for qualifying activities such as spa treatments or dining at The Hotel Collection properties for stays of two or more nights.

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

Most cards with low fees and perks are reserved for individuals with stellar credit. The Capital One QuicksilverOne Cash Rewards Credit Card* fills an important gap by giving people with limited or fair credit a chance to get started or rebuild with responsible use. Use this card wisely — you’ll automatically get considered for a credit limit increase as soon as six months from approval, potentially boosting your credit score. Spend wisely, enjoy the cash back, make your payments on time and take advantage of unlimited access to your credit report through CreditWise. You’ll start to see over time how good financial decisions can impact your credit.

What are foreign transaction fees and when are they charged?

Card issuers or banks charge foreign transaction fees to cover the cost of exchanging a purchase from the foreign currency to US dollars. If you make a purchase in foreign currency, it’s likely you will be charged for the conversion unless you have a no-transaction-fee credit card. 

One way to avoid having to pay a foreign transaction fee when you’re traveling abroad is to choose to pay in US dollars. Many store credit card terminals will recognize your foreign card and prompt you to choose whether you’d like to pay in the local currency or US dollars. If you choose local currency, you may have to pay your bank or card issuer the transaction fee to exchange it. However, if you choose to pay in US dollars, there is no conversion to be performed. 

Keep in mind that if you choose to pay in US dollars, you may save on the transaction fee but the foreign merchant bank may still tack on a commission for the exchange. The best way to avoid unnecessary fees is to pay with a credit card with no transaction fees.

Which credit cards work worldwide?

Mastercard, Visa, American Express and Discover are the four major credit card processors. Visa and Mastercard are the two most widely accepted credit cards across the world and your best bet if you intend on traveling overseas and paying for goods with a credit card. 

American Express may be popular in the US, but it’s not as widely accepted abroad. Discover is even less accepted than American Express outside of the US. To be safe, it’s a good idea to carry a Mastercard or Visa as a backup if your primary card is an American Express or Discover.

Do I need a chip-and-pin credit card when traveling?

Most of Europe has adopted the chip-and-pin credit card system, which eliminates swiping of magnetic strips and signatures. Instead, card readers will prompt you to insert the card (or tap it for touch-free transactions) to read the chip and prompt you for a PIN as a form of verification. Before you travel overseas, ask your card issuer for a chip card. Otherwise, you may have trouble using a mag-stripe credit card for purchases abroad.