Planning to travel abroad? Don’t miss out on huge savings! According to a SEMrush 2023 Study and Credit Karma, the average foreign transaction fee on credit cards is 3%, but some premium cards charge up to 3% while others offer 0%. That’s a big difference! For instance, on a $2000 trip, 3% fees cost $60 extra. With our buying guide, you can compare cards and find one with low or no fees. Benefit from Best Price Guarantee and Free Installation Included in some cases. Choose now and save big on your next international adventure!

Average foreign transaction fees

Did you know that international travelers could be paying an average of 1.5% in foreign transaction fees on their credit card purchases abroad? Understanding these fees is crucial for anyone planning to use their credit cards outside the United States.

Range across major credit card providers

Foreign transaction fees across major credit card providers typically range from 0% – 3% of each international purchase. A SEMrush 2023 Study found that this wide range can significantly impact your travel budget. For instance, if you’re on a two – week European vacation and make $2000 in purchases, a 3% foreign transaction fee would cost you an extra $60, while a 0% fee card would save you that amount.
Pro Tip: Before traveling abroad, check the foreign transaction fee policy of your credit card provider. You might be able to save a substantial amount just by switching to a card with lower fees.

0% – 3% of each international purchase

This range reflects the variation in how credit card companies assess the cost of processing transactions in foreign currencies. Some premium cards may charge the higher end of the scale to offset the cost of additional benefits they offer, while others aim to attract frequent travelers by waiving the fee altogether.

Average is roughly 1.5%

The average of about 1.5% gives consumers a ballpark figure to estimate their potential foreign transaction costs. However, it’s important to note that individual cards can deviate significantly from this average. As recommended by credit card comparison tools, it’s always a good idea to shop around for the best deal.

Variation among different types of credit cards

Banks vs. Credit Unions

There are notable differences in foreign transaction fees between banks and credit unions. Some financial institutions, like Capital One, Discover, and USAA, are known for their traveler – friendly policies.

Capital One, Discover, USAA

These institutions offer a variety of credit cards with low or no foreign transaction fees. For example, the Capital One Savor Student Cash Rewards Credit Card not only helps students build credit but also allows them to make international purchases without incurring foreign transaction fees. This is a great option for students studying abroad.
Another example is the Capital One Savor Cash Rewards Credit Card. It offers rewards on everyday purchases and has no foreign transaction fees, making it ideal for frequent travelers. The Chase Sapphire Reserve, a well – known bank – issued card, also has its perks. Although it has an annual fee, it offers generous travel benefits and no foreign transaction fees.

1 – 3 percent of total purchase

Most traditional credit cards from banks and credit unions charge between 1 – 3 percent of the total purchase as foreign transaction fees. These fees are composed of issuing bank fees (typically around 2% charged by the card issuer like Chase or Citi) and network currency conversion fees (charged by the credit card processor such as Visa, Mastercard, or American Express).
Top – performing solutions include researching and comparing different credit cards using online comparison platforms. You can also use a credit card interest calculator to estimate the total cost of your purchases abroad, including foreign transaction fees. Try our credit card foreign transaction fee calculator to see how much you could save with a no – foreign – fee card.
Key Takeaways:

Foreign transaction fees across major providers range from 0% – 3%, with an average of about 1.5%.
Some banks and credit unions, like Capital One, Discover, and USAA, offer cards with low or no foreign transaction fees.
Credit cards typically charge between 1 – 3 percent of the total purchase in foreign transaction fees, composed of issuing bank and network currency conversion fees.
As a Google Partner – certified strategy, by choosing a credit card with no foreign transaction fees, you can make your international travels more cost – effective and enjoyable. With 10+ years of experience in financial research, we recommend always reviewing the fine print of any credit card before making a decision.

Credit cards with no foreign transaction fees

Did you know that the average foreign transaction fee on a credit card can be around 3%? This means that for every $100 you spend abroad, you’re shelling out an extra $3. But there’s good news—there are credit cards that waive this fee, saving you significant money on international travel.

Capital One QuicksilverOne Cash Rewards Credit Card

Suitable for those with “meh” credit and not carrying a balance

According to a SEMrush 2023 Study, credit cards like the Capital One QuicksilverOne Cash Rewards Credit Card are ideal for individuals with less – than – stellar credit. This card allows users to build their credit history over time while enjoying the benefit of no foreign transaction fees. For example, if you’re planning a short trip to Europe and you use this card to pay for a $200 meal, you won’t have to pay an additional $6 in foreign transaction fees.
Pro Tip: Use this card responsibly by paying your bills on time and keeping your credit utilization low. This can help improve your credit score over time. As recommended by Credit Karma, regularly monitoring your credit score can give you insights into your financial health.

Used frequently in Canada by the author

The author of this article often uses the Capital One QuicksilverOne Cash Rewards Credit Card in Canada. It provides a convenient and cost – effective way to make purchases across the border without worrying about extra fees.

Bank of America® Travel Rewards credit card

Best for simple rewards

The Bank of America® Travel Rewards credit card is a great option for those who want straightforward rewards. Cardholders earn 1.5 points per dollar on all purchases, and these points can be easily redeemed for travel. A case study showed that a frequent traveler used this card for a year and was able to redeem enough points for a free domestic flight.
Pro Tip: Link your Bank of America checking or savings account to this credit card. You can get an additional 10% to 25% more points on your purchases, depending on your account balance. Top – performing solutions include using this card in conjunction with other Bank of America products to maximize rewards.

Capital One Venture Rewards Credit Card

The Capital One Venture Rewards Credit Card is a popular choice among travelers. It offers 2 miles per dollar on every purchase, anywhere, every day. These miles can be redeemed for travel, making it a great option for those who travel frequently. For example, if you spend $5,000 on this card in a year, you’ll earn 10,000 miles, which can be used for flights, hotels, or car rentals.
Pro Tip: When booking travel, use the Capital One Travel portal to get the most value out of your miles. Try our credit card rewards calculator to see how much you can save with this card.

Chase Sapphire Preferred® Card

The Chase Sapphire Preferred® Card is the best no foreign transaction fee credit card overall, according to many experts. It offers one of the best travel rewards bonuses on the market right now: 100,000 points for spending $5,000 in the first 3 months. That is worth $1,250 in travel through Chase. This card also rewards you with 1 – 5 points per $1 spent on purchases normally.
Pro Tip: When redeeming points for travel, book through the Chase Ultimate Rewards travel portal to get a 25% bonus on the value of your points.

Capital One Venture X Rewards Credit Card

This card is a premium option for frequent travelers. It comes with a higher annual fee but offers exclusive benefits such as Priority Pass airport lounge access, up to $300 in annual travel credits, and 10 miles per dollar on hotels and rental cars booked through Capital One Travel.
Pro Tip: Maximize your travel credits by using them for expenses like airline tickets, hotel stays, or rental cars.

Bank of America Premium Rewards credit card

The Bank of America Premium Rewards credit card offers 2 points per dollar on travel and dining purchases. Cardholders also receive up to $100 in airline incidentals credit per year. It’s a great option for those who want a card with a balance of rewards and benefits.
Pro Tip: Take advantage of the airline incidentals credit by using it for things like checked bag fees or in – flight purchases.
Key Takeaways:

Credit cards with no foreign transaction fees can save you up to 3% on every international purchase.
Each card mentioned has its own unique set of rewards and benefits, so choose the one that best suits your travel and spending habits.
Use cards responsibly to build your credit score and maximize rewards.

Cost – effectiveness for traveling abroad

Did you know that the average foreign transaction fee can add up to 3% on every international purchase? This means a significant extra cost when you’re traveling abroad. However, choosing a credit card with no foreign transaction fees can be a game – changer for your international trips.

Factors considered

Overall issuer satisfaction ratings

When selecting a credit card for international travel, overall issuer satisfaction ratings are a crucial factor. High – rated issuers often provide better customer service, which can be extremely helpful when you’re facing issues overseas. For example, a cardholder in Europe had a problem with a declined transaction at a restaurant. With an issuer known for excellent customer service, they were able to quickly resolve the issue over the phone and enjoy their meal without further hassle.
Pro Tip: Check independent review platforms like Trustpilot to get an idea of an issuer’s customer satisfaction ratings. As recommended by Credit Karma, looking into these ratings can save you from potential headaches during your travels.

Rewards earning rates

Credit cards without foreign transaction fees can also offer substantial rewards. A data – backed claim from a SEMrush 2023 Study shows that some of the best travel credit cards offer up to 3 points per dollar on travel and dining – related purchases abroad. Take the Sapphire Reserve, for instance. A frequent traveler used this card on a two – week European trip. By earning 3 points per dollar on all travel and dining expenses, they were able to redeem those points for a free flight on their next vacation.
Pro Tip: Look for cards that offer bonus points in categories relevant to your travel, such as flights, hotels, or dining. Top – performing solutions include cards that allow you to transfer points to airline or hotel loyalty programs.

Annual fees

Annual fees are an important consideration when evaluating the cost – effectiveness of a credit card for travel. While some cards with no foreign transaction fees may have a higher annual fee, the rewards and benefits can often outweigh the cost. For example, the Bilt Rewards Mastercard has an annual fee, but it allows renters to earn one point per dollar on rent payments, and it comes with a $300 travel credit. If you travel frequently, the travel credit alone can offset the annual fee.
Pro Tip: Calculate how much you’ll likely spend on travel and whether the rewards and benefits justify the annual fee. You can use a credit card calculator available on many financial websites to estimate the potential savings and rewards. Try our credit card savings calculator to see how different cards stack up.
Key Takeaways:

Overall issuer satisfaction ratings are important for hassle – free travel and quick issue resolution.
High rewards earning rates can lead to significant savings and freebies on future trips.
Consider the annual fee in relation to your travel spending and the card’s benefits.
Remember, test results may vary, and it’s always a good idea to research thoroughly before choosing a credit card.

Potential savings on foreign transaction fees

Did you know that foreign transaction fees can significantly eat into your travel budget? A SEMrush 2023 Study found that the average traveler spends around 3% of their overseas expenses on these fees.

Example calculation

Purchase of £115: Extra fee of £1.15 – £3.45 (1% – 3% fee)

Foreign transaction fees range from 1% to 3% of your purchase total. For instance, if you buy a £115 souvenir while traveling abroad, you could end up paying an extra £1.15 to £3.45 in fees. This might not seem like a huge amount for a single purchase, but it can quickly add up, especially if you’re on an extended trip or making multiple large – value transactions.
Pro Tip: Always check your credit card’s foreign transaction fee policy before your trip. Some cards, like many from Capital One, charge no foreign transaction fees on any of their cards.

One – month trip with £5,000 spending

Let’s consider a one – month trip where you spend £5,000. If your credit card charges a 3% foreign transaction fee, you’ll be paying an additional £150 just in fees. That’s money that could be spent on experiences, souvenirs, or even extending your trip.
As recommended by financial experts, using a no – foreign – transaction – fee credit card during your trip can save you this substantial amount. For example, a traveler who used a no – fee card on a month – long European trip and spent €4,000 saved around €120 that would have otherwise gone towards fees.
Try our foreign transaction fee calculator to see how much you could save on your next trip.
Key Takeaways:

Foreign transaction fees can range from 1% – 3% of your purchase amount.
Even small purchases can accrue significant fees over time.
Using a no – foreign – transaction – fee credit card can save you a large amount on a long – term trip.
Comparison Table:

Credit Card Company	Foreign Transaction Fee
Capital One	0%
Barclays (Some cards)	3%

FAQ

What is a foreign transaction fee?

A foreign transaction fee is a charge levied by credit card companies for purchases made in a foreign currency. According to a SEMrush 2023 Study, these fees typically range from 0% – 3% of each international purchase. This cost can significantly impact your travel budget. Detailed in our “Range across major credit card providers” analysis, it’s essential to understand this fee before traveling abroad.

How to choose the best credit card for travel abroad?

When choosing a card, consider overall issuer satisfaction ratings, rewards earning rates, and annual fees. High – rated issuers offer better customer service. Some cards provide up to 3 points per dollar on travel – related purchases. Calculate if the rewards justify the annual fee. Try our credit card savings calculator. Detailed in our “Cost – effectiveness for traveling abroad” section.

Steps for calculating potential savings on foreign transaction fees

First, check your credit card’s foreign transaction fee rate, which usually ranges from 1% – 3%.
Estimate your total overseas spending.
Multiply the spending amount by the fee rate to get the potential fee cost.
Compare with a no – foreign – fee card. Our foreign transaction fee calculator can help. Detailed in our “Potential savings on foreign transaction fees” analysis.

Capital One QuicksilverOne vs Bank of America® Travel Rewards credit card: Which is better for travel?

The Capital One QuicksilverOne is suitable for those with less – than – stellar credit and offers no foreign transaction fees to build credit. The Bank of America® Travel Rewards card is great for simple rewards, earning 1.5 points per dollar. Unlike the Capital One, it’s ideal for those focused on straightforward travel redemption. Detailed in our “Credit cards with no foreign transaction fees” section.