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Traveling abroad is exciting and something that most people save up for and budget extensively. Now imagine taking a trip abroad and finding out that everything costs 3-5% more than you had anticipated – way to put a damper on your post-vacation bliss. Many credit cards impose foreign transaction fees on purchases originating abroad – usually around 3%. This may not sound like much, but it adds up. On a $5,000 trip, you’re looking at an extra $150 – now imagine the ways you could’ve spent that money during your vacation rather than handing it over to your bank for allowing you to spend your own money.
Foreign transaction fees are easily avoidable if you use the right travel rewards credit card. Whether you’re booking flights, paying for meals, or shopping abroad, the right credit card can help you stretch your travel budget further by avoiding unnecessary fees.
In this guide, we’ll cover the best personal and business cards that earn points and waive foreign transaction fees. Here’s everything you need to know about these cards:
Personal cards
Chase Sapphire Preferred® Card
Best for: Travel rewards beginners
Welcome bonus: 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening
Annual fee: $95
Earning rates: 5x points on travel booked through Chase Travel; 3x points on dining, select streaming, and online groceries; 2x points on all other travel purchases; 1x on everything else
Other benefits: $50 annual Chase Travel hotel credit, annual 10% point bonus on points earned, valuable travel protections.
The Sapphire Preferred is a popular starter card, thanks to its affordable annual fee, valuable perks, and versatile Chase Ultimate Rewards. It offers all the valuable travel perks you might want from a travel rewards card (i.e., travel insurance, generous earning potential, and an annual travel credit) without the steep annual fee that similar cards typically carry.
Capital One Venture Rewards Credit Card
Best for: Simple rewards structure
Welcome bonus: 75,000 points after $4,000 spent within the first 3 months
Annual fee: $95
Earning rates: 2X miles on all purchases; 5X miles on hotels, vacation rentals, and rental cars booked through Capital One Travel
Other benefits: $50 experience credit on Lifestyle Collection stays, $120 credit towards Global Entry or TSA PreCheck application fees, Hertz Five Star status, and travel insurance.
The Capital One Venture card is ideal for anyone seeking straightforward rewards with no foreign transaction fees. The card earns a flat 2X rewards on virtually all purchases, and miles can be redeemed towards travel transactions or over 20 transfer partners. In addition to no foreign transaction fees, cardholders get a host of travel protections, including travel accident insurance and secondary rental car coverage.
American Express® Gold Card
Best for: Foodies and frequent travelers.
Welcome bonus: 100,000 points after $6,000 spent within the first 6 months of card membership.
Annual fee: $325 (see rates and fees; terms apply)
Earning rates: 4X points at restaurants worldwide and at U.S. supermarkets (up to $25,000/year); 3X points on flights booked directly or via Amex Travel; 2X points on prepaid hotels; 1X on all other purchases.
Other benefits: Over $500 in dining and travel credits, The Hotel Collection booking perks, and baggage insurance plan.
The Amex Gold Card is a great option for travelers who spend big on dining and groceries. When dining abroad, you’ll not only save on foreign transaction fees, but you’ll also earn 4X points on restaurants worldwide. It’s a great card for earning valuable Membership Rewards without the $895 annual fee that accompanies The Platinum Card.
Citi Strata Premier Card
Best for: Everyday spending
Welcome bonus: 60,000 points after $4,000 spent within the first 3 months of account opening.
Annual fee: $95
Earning rates: 10X points spent on hotels, car rentals, and attractions on Citi Travel; 3X points on airfare, hotels, restaurants, supermarkets, gas, and EV charging; 1X points on all other purchases.
Other benefits: $100 off on a Citi Travel hotel booking of $500 or more.
The Citi Strata Premier Card is great if you want to accrue points on everyday spending and travel. The card offers elevated rewards on common spending categories but also includes a generous annual hotel booking discount. The best part about this card is its 17 transfer partners, which include the American AAdvantage program. The only downside to the Citi Strata Premier is that it doesn’t offer the same level of travel protection as competing cards.
Business cards
Ink Business Preferred® Credit Card
Best for: Small business owners who want to earn elevated rewards on business spending
Welcome bonus: 90,000 bonus points after you spend $8,000 in the first 3 months after account opening
Annual fee: $95
Earning rates: Earn 3X points on the first $150,000 spent in combined purchases on shipping, advertising with social media sites, Internet, cable, and phone services; 1X points on all other purchases
Other benefits: Travel protections, cell phone insurance, and access to Chase transfer partners
The Ink Business Preferred is one of the best ways for business owners to rack up points without worrying about foreign transaction fees. The card also offers useful travel protections and access to Chase’s valuable Ultimate Rewards program.
Capital One Spark 2X Miles
Best for: Business owners who want flat-rate travel rewards with no foreign transaction fees
Welcome bonus: 50,000 miles once you spend $4,500 on purchases within the first 3 months of account opening
Annual fee: $0 intro annual fee for the first year, then $95 after.
Earning rates: 2X miles on every purchase for your business, plus 5X on hotels and rental cars booked through our travel booking site.Other benefits: Up to $120 credit for Global Entry or TSA PreCheck
The Capital One Spark card is ideal for small business owners who want flat-rate rewards on business expenses and no foreign transaction fees. The card earns 2X miles on everything, so there are no categories to track or earning limits to worry about. Plus, the card’s $95 annual fee is waived the first year, and you get access to Capital One’s vast transfer partner network.
The Business Platinum Card® from American Express
Best for: Business owners seeking a luxury travel card
Welcome bonus: 300,000 Membership Rewards points after spending $20,000 within the first 3 months of card membership
Annual fee: $895 (see rates and fees; terms apply)
Earning rates: 5X points on flights and prepaid hotels booked through Amex Travel; 2X points on key business categories or purchases over $5,000; 1X points on all other spending
Other benefits: Over $3,500 in annual travel and business credits, best-in-class travel protections and lounge network, 35% points back when you book a qualifying airline using Pay with Points
The Business Platinum Card is ideal for business owners who value luxury travel perks, like lounge access and top-of-the-line travel protections. Cardholders enjoy waived foreign transaction fees and access to the Membership Rewards program, allowing them to maximize their points.
Frequently asked questions about foreign transaction fees
What is a foreign transaction fee?
A foreign transaction fee is a charge imposed by credit card issuers when you make a purchase originating abroad.
How much do foreign transaction fees cost?
Foreign transaction fees typically range from 3-5%. For example, a $100 purchase typically incurs a $2-3 foreign transaction fee. However, the exact amount will depend on your card.
How are foreign transaction fees calculated?
Foreign transaction fees are calculated as a percentage of the total purchase amount – usually 3%.
Are foreign transaction fees refundable?
Foreign transaction fees are generally not refundable unless the purchase is also refunded. The best way to avoid these fees is by using a card that waives them.
Do debit cards charge foreign transaction fees?
Most debit cards charge foreign transaction fees, though a few do not. Charles Schwab waives foreign transaction fees on debit card purchases, while Capital One waives them on debit cards tied to 360 accounts.
Is a foreign transaction fee the same as a currency conversion fee?
A foreign transaction fee is not the same as a currency conversion fee. Foreign transaction fees are charged by card issuers, while conversion fees are charged by payment processors. You can avoid foreign transaction fees by using a credit card that waives them, and you can avoid conversion fees by paying in the local currency.
What is a dynamic currency conversion?
Dynamic currency conversion is when a credit card transaction is converted to the cardholder's currency (i.e., U.S. Dollars) at the point of sale. Dynamic currency conversion may seem convenient because you know exactly what you’re paying, but it typically involves conversion fees.
How can I avoid foreign transaction fees?
You can avoid foreign transaction fees by using a credit card that waives these fees, and by ensuring you pay in the local currency when using a card abroad. Often, vendors will give you the option to choose between U.S. dollars or local currency – always choose the latter to avoid conversion fees.
Advertiser Disclosure: Some links to credit cards and other products on this website will earn an affiliate commission. Compensation may affect how and where the cards appear on the site, and we do not include all card companies and all available card offers. Opinions, reviews, analyses, and recommendations have not been reviewed, endorsed, or approved by any of these affiliate entities point.me has partnered with CardRatings for our coverage of credit card products. point.me and CardRatings may receive a commission from card issuers.
The Business Platinum Card® from American Express see rates and fees; terms apply The Amex Gold Card see rates and fees; terms apply
