When applying for a credit card before traveling overseas, finding one without foreign transaction fees should be top of your priority list. Travel cards usually offer this benefit so as to maximize rewards.
Foreign transaction fees (FTFs) are surcharges on purchases made outside the U.S. that reduce rewards rates of many cards; however, certain major issuers don’t charge FTFs on any U.S.-based cards issued by them.
1. Convenience
Credit cards make traveling abroad much simpler, since cash is cumbersome and conversion rates can be complicated; it also increases theft risk. Unfortunately, foreign transaction fees can become costly over the course of your trip – typically 3% of each purchase or transaction can cut into any rewards earned.
Many travel cards now waive foreign transaction fees, with additional benefits like lounge access and application reimbursement for TSA PreCheck or Global Entry applications. These cards are ideal for frequent travelers looking to earn rewards while getting protection without incurring costly annual fees.
Everybody who makes purchases outside the U.S. can benefit from having access to a card without foreign transaction fees, but those who travel frequently or spend large sums while abroad may find them especially advantageous. Many cards without these fees also provide other perks like travel rewards or superior customer service – an added perk for frequent travelers!
2. Savings
An international credit card without foreign transaction fees can save travelers money when making purchases abroad, especially larger items like hotels, meals and attractions. Foreign transaction fees usually range between 1%-3% per purchase made abroad; they add up quickly over time when making multiple purchases abroad.
Many cards do not charge foreign transaction fees, and may include attractive rewards and travel-friendly perks like rideshare partner benefits, free checked bags and trip cancellation insurance. With NerdWallet’s card search tool you can quickly identify travel credit cards without foreign transaction fees.
Utilizing a no-foreign-transaction-fee card and informing the card issuer of your travel plans is one way to significantly cut back your trip budget. And, if you plan ahead enough to qualify for a welcome offer, your savings could increase even further – leaving more room in your budget for activities that matter without worrying about currency conversion rates or credit card fees.
3. Security
An international traveler’s ultimate travel companion should be a credit card that doesn’t charge foreign transaction fees – such as Visa or MasterCard’s network fee for international transactions (1-3 percent), plus currency conversion fees charged by card issuers. NerdWallet assesses credit cards without foreign transaction fees in terms of overall consumer value such as rewards rates, redemption options and premium perks.
Most travel credit cards don’t impose foreign transaction fees, while business cards may levy them, typically from 1% to 3% for purchases made outside of the United States. If you and your employees often travel or shop online through foreign merchants, finding a business credit card without foreign transaction fees could save money and provide better security against fraud, as these cards allow users to report lost or stolen card information promptly and avoid ATM withdrawal fees abroad.
4. Flexibility
An international traveler looking for a credit card without foreign transaction fees would do well to consider one that provides additional perks such as earning rewards or building credit. Many such cards also have other appealing features that make them desirable.
Foreign transaction fees are surcharges levied by 90% of credit cards for purchases made outside the U.S. These charges typically range from 1% to 3% of total purchase amount and may be assessed either by card issuers such as Visa and MasterCard or by third-party networks such as Discover.
Some cards offer no foreign transaction fees at all, while others charge lower rates but provide premium perks such as airport lounge access or dining and shopping credits to compensate. Everyone would benefit from getting a no foreign fee credit card; but frequent travelers or those seeking to avoid extra costs would find these cards particularly valuable. Major issuers such as Capital One and Discover offer these cards.
