Tips for selecting a credit card without foreign transaction fees

As a regular traveler, you likely realize how quickly foreign transaction fees can accumulate, making them one of the most frustrating aspects of international purchases.

Foreign transaction fees apply when your credit card issuer handles a transaction made in a different country, costing as much as 3% of the total purchase amount.

Fortunately, numerous credit cards waive foreign transaction fees. For example, both Discover and Capital One offer cards that do not impose these fees at all.

Here’s our guide to discovering a credit card without foreign transaction fees that suits your needs.

Selecting a credit card with no foreign transaction fees

Think about your travel destinations

First and foremost, verify that the credit card you’re considering is accepted in the country (or countries) you intend to visit. All your prior research will be pointless if you arrive and find your card isn’t usable.

For instance, Visa cards are accepted globally, whereas issuers like Discover and American Express tend to have more restrictions outside North America.

Identify your main objectives

You must decide if your primary focus is to earn travel rewards, accumulate cash back, or settle a card balance.

As noted, there are many cards that waive foreign transaction fees. You should refine your choices by determining what type of card suits your needs; it could be a premium travel rewards card, a no-annual-fee cash-back card, or something in between.

For example, a premium rewards card is ideal for an extravagant 10-day journey across a continent. Conversely, if you’re an occasional traveler heading to another country for a few days, seek a more budget-friendly, no-foreign-transaction-fee card.

Evaluate introductory offers

After gaining a clearer understanding of the type of card you’re interested in, you can refine your options by comparing various perks, including the current introductory offers on the cards you’re exploring.

A substantial introductory offer can significantly increase the value of a card. Alternatively, you might choose to prioritize a card with a rewarding travel rewards program over a more generous welcome offer. The choice is yours.

To assist you, TPG provides a guide that monitors the history of welcome offers for some of the most sought-after travel cards available. This can help you identify the optimal time to apply for a particular card.

In conclusion

Numerous credit cards without foreign transaction fees are available in the market. By considering a few key factors, you can discover a card that offers significant value, whether you're traveling abroad or staying local.