Top 5 Travel-Friendly Debit and Credit Cards with No Foreign Fees

Understanding Foreign Transaction Fees

Foreign transaction fees can sneak up on travelers and add extra costs to purchases made abroad. You can save hundreds of dollars on your next international trip by learning about these fees beforehand.

What are foreign transaction fees?

Your credit or debit card company charges extra fees when you make purchases outside your home country. These fees kick in every time you use your card internationally, whatever you're doing - traveling abroad or shopping online from overseas retailers.

The fee structure has two main parts:

• Payment networks like Visa or Mastercard charge a network fee (also called currency conversion fee) of about 1%

• Your bank might add another 0-2%, based on their policies

These charges show up as one item on your statement. Many people don't notice these fees until they check their statements after their vacation.

You'll see foreign transaction fees in these cases:

1. Using your card at places outside the United States

2. Buying things in a foreign currency

3. Shopping online from stores that use foreign banks to process payments

The charges apply no matter which currency you use. Your card issuer might still add foreign transaction fees if you pay in U.S. dollars through dynamic currency conversion because the payment comes from another country.

How much do these fees typically cost?

Banks charge different amounts for foreign transaction fees, but they usually range from 1% to 3% of what you spend. Some cards might charge up to 5%, but that's rare and should make you think twice.

Here's what these fees look like in real life:

• A $100 restaurant bill costs you an extra $3 with a 3% fee

• Your $5,000 European vacation could cost another $150 in fees

• Business travelers might waste thousands of dollars yearly on these fees

The fees look small on each purchase. Notwithstanding that, they add up fast when you make lots of transactions. A normal vacation with hotel stays, meals, transport, and shopping can see these fees affect your budget by a lot.

People often mix up foreign transaction fees with currency conversion fees. Currency conversion fees happen when you choose U.S. dollars instead of local currency at stores abroad. These hidden charges usually add 1% to your purchase and give you worse exchange rates than your card network.

ATM withdrawals abroad also come with foreign transaction fees. Getting cash overseas might cost you:

• Your bank's foreign transaction fee (1-3%)

• Extra fees for using other banks' ATMs

• ATM operator charges

• Maybe some currency conversion fees

Why avoiding these fees matters for travelers

Foreign transaction fees are pure cost with no benefits. Premium cards might charge annual fees but give you travel perks or rewards. These international charges just take your money. They punish you for using your card abroad when you need it most.

Longer trips make these fees really hurt. Budget travelers exploring several countries might pay enough in fees to cover another night's stay or a special activity. Luxury travelers lose even more money because they spend more.

These fees also mess up your budget planning. The charges show up later on your statement instead of right away. This delay makes it harder to track your real spending while traveling and might lead to overspending.

Business travelers face both direct costs and extra paperwork. The fees count as business expenses for taxes, but they still cut into profits and create more accounting work.

Digital nomads and frequent travelers might feel the biggest pinch. Regular international purchases can waste hundreds or thousands of dollars yearly - money better spent on experiences or saved for future trips.

The best part? These fees are easy to avoid. Many travel credit cards don't charge foreign transaction fees at all. These cards often throw in extras like travel insurance, airport lounge access, and bonus rewards on travel spending.

Some cards with no annual fee also skip foreign transaction fees. This helps occasional travelers who don't want premium cards but still want to avoid extra charges on international trips.

The fees can really bug you because they apply even to U.S. dollar purchases. Just using a foreign payment processor can trigger these charges, so online shoppers might pay extra without leaving home.

Regular international travelers can easily cut travel costs by using cards without these fees. Unlike carrying lots of cash - which isn't safe - the right cards protect you from theft and unnecessary charges.

Top Credit Cards with No Foreign Transaction Fees

You need to think over several factors when picking a credit card for international travel - fees, rewards, and travel perks. The right card will save you 1-3% on every purchase abroad by getting rid of foreign transaction fees. Let me break down the best cards to help you find your perfect travel buddy.

Best overall: Chase Sapphire Preferred

The Chase Sapphire Preferred stands out as the top pick for international travelers who want both value and flexibility. This rewards powerhouse comes with a $95 annual fee but eliminates foreign transaction fees on international purchases. Frequent travelers can save about $150 in fees for every $5,000 they spend abroad.

The card's complete travel protection package is a great way to get peace of mind during your trips. You'll get:

• Trip cancelation insurance up to $10,000 per person and $20,000 per occurrence (maximum $40,000 per 12-month period)

• Baggage delay reimbursement up to $100 per day for five days when luggage is delayed six+ hours

• Lost luggage reimbursement up to $3,000 per person per trip

• Auto rental collision damage waiver that lets you skip rental company coverage

The Chase Sapphire Preferred runs on the Visa network, so you can use it almost anywhere in the world. You don't even need to tell Chase about your travel plans before you leave.

The rewards get even better when you dine internationally. Your Chase Ultimate Rewards points transfer to several airline and hotel partners, or you can book through Chase's travel portal for 25% more value.

Best for luxury travel: American Express Platinum

The Platinum Card® from American Express is perfect for travelers who want premium experiences without foreign transaction fees. The annual fee is steep, but frequent international travelers can quickly make up for it through the card's benefits.

You'll get access to over 1,400 airport lounges in 140 countries through the American Express Global Lounge Collection. If you use airport lounges often, this perk alone is worth more than $500 a year.

International travelers love the rewards structure - you get 5X points on flights booked directly with airlines or through American Express Travel (up to $500,000 per calendar year) and 5X points on prepaid hotels booked through AmexTravel.com.

The card also comes loaded with travel credits:

• $200 yearly airline fee credit for extras like checked bags on your chosen qualifying airline

• $200 hotel credit for Fine Hotels + Resorts or The Hotel Collection bookings through American Express Travel

• $189 CLEAR Plus credit to speed through security at 50+ airports

• Global Entry or TSA PreCheck application fee credit

You'll also get elite status with Hilton Honors and Marriott Bonvoy hotel programs. This means room upgrades, late checkout, and bonus points at thousands of hotels worldwide.

Best with no annual fee: Capital One Quicksilver

The Capital One Quicksilver Cash Rewards Credit Card is great for budget-conscious travelers or those who only head abroad now and then. There's no annual fee and no foreign transaction fees, making it super affordable for international use.

Even without fees, the rewards are solid:

• Unlimited 1.5% cash back on everything you buy

• 5% cash back on hotels and rental cars booked through Capital One Travel

• $200 cash bonus after spending $500 in your first three months

The rewards work the same way at home and abroad. You won't have to keep track of bonus categories or spending limits while traveling.

This card is perfect for occasional international travelers who don't want to pay high annual fees but still want to avoid foreign transaction fees and earn rewards.

Best for dining and entertainment: Capital One Savor

The Capital One Savor Cash Rewards Credit Card shines for travelers who love food and fun during their international trips. You won't pay foreign transaction fees or an annual fee, so you can enjoy meals worldwide without extra costs.

The rewards are a food lover's dream:

• 3% unlimited cash back on dining, even at international restaurants

• 3% cash back on entertainment activities abroad

• 3% cash back at grocery stores

• 3% cash back on popular streaming services

• 5% cash back on hotels and rental cars booked through Capital One Travel

• 1% cash back on everything else

The dining rewards work internationally as long as the place is listed as a restaurant. That's great news for travelers who love trying local food.

New cardholders can grab a $200 cash bonus after spending $500 in the first three months. This bonus helps cover some travel costs right away.

The Capital One Savor offers some of the highest cash back rates without foreign transaction fees. It's an excellent choice if you spend a lot on food and fun both at home and abroad.

These four cards each shine in their own way. If you travel often, the Chase Sapphire Preferred or American Express Platinum might be your best bet. Occasional travelers might prefer Capital One's no-fee options. The right card really depends on how you travel and what matters most to you.

Best Debit Cards for International Travel

Credit cards work great for purchases abroad, but you still need cash in many countries. Several banks now offer debit cards that work well for global travelers. These cards help you avoid high fees and make it easy to get local currency.

Charles Schwab High Yield Investor Checking

The Charles Schwab High Yield Investor Checking account stands out as the top choice for international travel-friendly debit cards. We picked this card because of its amazing ATM fee policy. Charles Schwab gives you unlimited ATM fee rebates worldwide, which means you can get cash anywhere without paying extra fees.

You'll get the Schwab Bank Visa® Platinum Debit Card with your account. This card doesn't charge any foreign transaction fees. These perks make it perfect if you need cash often during your travels. You can withdraw money in Tokyo, Paris, or Bangkok without worrying about extra charges eating into your travel money.

The account comes with several great features:

• No monthly fees or minimum balance rules

• You earn interest on your checking balance (though rates are modest)

• FDIC insurance up to $250,000 per depositor

• Strong security features like fraud alerts, travel notifications, and the option to lock/unlock your card

Here's something to know: opening this checking account automatically creates a linked Schwab One® brokerage account. The good news is this brokerage account also has no fees or minimum balance requirements. Many travelers use their Schwab checking just for travel and move money into it before going abroad.

Schwab Bank's reputation speaks for itself. It ranked #1 in Banks in the 2024 Investor's Business Daily Most Trusted Financial Companies list for two years straight. The bank also gives you 24/7 customer support if you run into problems while traveling.

Capital One 360 Checking

Capital One 360 Checking gives you another great debit card choice for international trips. The best part? No foreign transaction fees on debit purchases and ATM withdrawals. This saves you the usual 1-3% that most banks charge.

Capital One 360's account includes these travel-friendly features:

• No monthly fees or minimum balance rules

• Capital One doesn't charge for using other banks' ATMs

• Your balance earns interest

• Phone support available 24/7

Your Capital One debit card works at any ATM showing the Mastercard® logo worldwide. This means you'll find compatible ATMs almost everywhere you go.

The main difference from Charles Schwab's card is that Capital One won't pay back ATM operator fees. You won't pay Capital One for using another bank's ATM, but you'll still pay what the ATM itself charges. You can skip these fees by finding Capital One, Allpoint®, or MoneyPass® ATMs where you're going.

CNBC named Capital One 360 Checking the "Best for domestic travel". This makes it great for people who travel both in the U.S. and abroad since the benefits work everywhere.

SoFi Checking and Savings

SoFi Checking and Savings completes our list of top international debit cards with its traveler-friendly fees. The SoFi® Bank Debit Mastercard® works anywhere that takes Mastercard, giving you worldwide coverage.

SoFi handles foreign transaction fees differently. They charge a 0.9% foreign convenience fee but pay it themselves instead of billing you. You'll only pay a tiny 0.2% foreign conversion fee, which beats the usual 1-3% most banks charge.

SoFi Checking and Savings gives international travelers these benefits:

• Use your card at any ATM with the Mastercard logo

• Much lower foreign transaction costs than regular banks

• FDIC insurance through SoFi Bank, N.A.

• Mobile banking features to track your money while traveling

Let SoFi know before you travel internationally with your debit card. This helps prevent your card from getting blocked when foreign charges start showing up.

Getting local currency? SoFi suggests using in-network ATMs to get better exchange rates. ATM withdrawals usually give you better rates than currency exchange places.

A quick tip for anyone using international debit cards: call your bank right away if your card stops working abroad. If you can't access your money, the nearest U.S. Embassy or Consulate can help.

These debit cards each shine in their own way. Charles Schwab gives you the best ATM fee rebates but needs a brokerage account too. Capital One keeps things simple with no foreign fees but won't pay back ATM charges. SoFi sits in the middle with minimal foreign transaction costs.

Smart travelers often pair one of these debit cards with a no-foreign-fee credit card. This setup lets you switch between cash and card payments without paying extra fees. Pick your cards carefully before your trip, and you'll save money that would otherwise go to bank fees.

How to Choose the Right Card for Your Travel Style

Your credit card should match your travel style. This helps you avoid foreign transaction fees and get the most value from perks and benefits. Different travelers want different things - some want to save money, while others prefer luxury experiences. Let's get into how you can pick the right card based on how you travel.

For budget travelers

Budget travelers need cards that cut costs without losing basic protections. If you watch every dollar while traveling, look for cards with no foreign transaction fees or annual fees. These cards give you value without making you spend a lot to justify keeping them.

The Capital One Quicksilver is perfect for money-conscious travelers because it has no annual fee and zero foreign transaction fees. You'll save money right away on international purchases compared to regular cards that charge 1-3% per transaction.

Budget travelers who need cash abroad should pair a no-fee credit card with the Capital One 360 Checking account. You can make card purchases and ATM withdrawals without paying foreign transaction fees on either type.

Budget travelers should look for these features:

• Simple rewards programs with flat rates

• Basic travel protections for rental cars

• Cards that work worldwide (Visa/Mastercard networks work best)

• No spending minimums

Pick cards that fit how you actually spend. Budget travelers usually spend less, so cards with smaller welcome bonuses and reasonable spending limits (like $500 in three months) work better than premium cards with high bonus requirements.

For luxury travelers

Luxury travelers should pick premium cards that make their high annual fees worthwhile. These cards offer statement credits and perks worth thousands each year for people who enjoy high-end travel.

The American Express Platinum Card leads the pack for luxury travelers. It gives you full airport lounge access through the American Express Global Lounge Collection. This benefit alone brings great value if you use airport lounges often during international trips.

High-end travelers should look for:

• Wide airport lounge networks

• Free elite status with hotels

• Annual travel credits

• Better rewards on premium travel

• Concierge help for booking experiences

Luxury travelers need to check if they can use enough benefits to make up for the annual fee. Many premium cards give statement credits that can lower the yearly cost by a lot.

The Capital One Venture X gives luxury travelers premium benefits with a lower annual fee. You get Priority Pass lounge access, yearly travel credits, and better rewards on travel bookings - all for less than what competitors charge.

For business travelers

Business travelers need cards that keep personal and business costs separate and provide good travel protection. The best business travel cards combine expense tracking with strong international benefits.

The Ink Business Preferred works great for this. It gives primary rental car insurance for rentals under 31 days - perfect for most business trips. The card also covers trip delays and cancelations without requiring round-trip bookings, which helps business travelers with complex schedules.

Business travelers should want these features:

• Strong travel insurance with trip coverage

• Primary rental car insurance

• Employee cards with spending limits

• Accounting software connection

• No fees on international purchases

Your travel patterns affect which card works best. Co-branded business cards work well if you fly one airline often, giving perks like free bags and early boarding. Cards with flexible points work better if your travel varies.

Cards that give unlimited 2% rewards on everything can work great for businesses that spend a lot each month. This makes things easier when traveling internationally since you won't worry about bonus categories.

For digital nomads

Digital nomads need special cards because they travel internationally for long periods. They need cards that work naturally in many countries without limits.

Charles Schwab's debit card is vital for digital nomads because it gives unlimited ATM fee rebates worldwide. This helps a lot when you live abroad and need local cash often.

The Chase Sapphire Reserve works well for digital nomads because of its detailed travel protections. You get emergency medical and dental coverage, baggage delay money back, and trip delay protection - everything you need when travel is your lifestyle.

Digital nomads should check these features:

• Travel insurance that works without round-trip tickets

• Extended warranty for electronics

• High acceptance where you'll stay

• Backup payment options

Yes, it is smart for digital nomads to carry multiple cards from different networks. Keep some cards with you and others in your room as backup if your wallet gets lost or stolen.

Pick cards based on where you'll spend most of your time. Some benefits only work in the United States, which doesn't help if you're abroad for long periods. Look for cards with benefits that work anywhere in the world.

Smart Tips for Using Cards Abroad

The right travel cards in your wallet are great, but knowing how to use them abroad will save you from extra fees and headaches. These tips will help you get the most from your cards while avoiding problems during your international trips.

Always pay in local currency

Your payment terminal might ask if you want to pay in your home currency or local currency. The smart choice is to always choose local currency. This service, called Dynamic Currency Conversion (DCC), looks helpful but costs you way more. The average fee for DCC is a whopping 7.6%, while paying in local currency only costs 1.5-3%.

Many merchants will assume you want to pay in dollars unless you tell them otherwise. You need to check the currency on the terminal before you complete any payment. Your card provider will give you better exchange rates than what merchants offer through DCC.

Notify your bank before traveling

You should check if you need to tell your bank about your travel plans. Many credit card companies like Chase don't need travel notices anymore - whatever your destination. The best thing to do is check your bank's rules on their website or mobile app.

Instead of formal travel notices, make sure your contact details are up to date before you leave. This way your bank can reach you if they need to check any transactions. Keep your bank's international customer service numbers written down somewhere separate from your cards.

Carry multiple payment options

Along with your main card, take at least two permanent cards that won't expire during your international trip. Keep these cards in different places - one in your wallet and another locked in your hotel safe makes sense.

The safest approach is to carry cards from different payment networks (Visa, Mastercard, American Express, Discover). Visa and Mastercard are accepted most widely around the world. Double-check that your cards won't expire while you're away.

Using ATMs safely overseas

Bank-operated ATMs outside actual bank buildings are your best bet for withdrawing cash abroad. These ATMs are more secure and charge lower fees than independent ones run by companies like Travelex or Euronet.

Watch out for those independent ATMs advertising "Free Cash Withdrawals" - they usually hit you with higher fees and worse exchange rates. Take a good look at any ATM before you use it. Look for loose card readers, weird keypad thickness, or damaged parts that might be skimming devices.

The safest time to use ATMs is during bank hours so you can get help if the machine keeps your card. Take out larger amounts in one go instead of making multiple small withdrawals. This cuts down on transaction fees.

Conclusion

The right travel cards can cut down unnecessary fees by a lot and offer valuable benefits during your international adventures. You can redirect the 1-3% savings on every foreign purchase toward experiences that truly matter.

Your travel budget benefits greatly when you pick and use your cards wisely. Travel cards come in all shapes and sizes - from the premium perks of the American Express Platinum to the simple savings of the Capital One Quicksilver. Each card suits different travel styles and budgets.

Take a moment to review your current cards' foreign transaction fees before your next international trip. Look for a no-fee alternative that fits your travel habits. Note that you should pay in local currency, keep multiple payment methods handy, and stick to bank-operated ATMs for the best exchange rates.

Simple changes to your money management abroad can save you hundreds or thousands of dollars each year. Best of all, these changes give you peace of mind. You can focus on creating memorable experiences instead of stressing about hidden fees eating into your budget.

FAQs

Q1. What are foreign transaction fees and how much do they typically cost? Foreign transaction fees are charges applied to credit or debit card purchases made outside your home country. They typically range from 1% to 3% of the purchase amount, with some cards charging up to 5%. These fees can add up quickly, especially on longer trips or for frequent international travelers.

Q2. Which credit card is considered the best overall for international travel? The Chase Sapphire Preferred is often regarded as the best overall credit card for international travel. It offers no foreign transaction fees, comprehensive travel protections, and valuable rewards points that can be transferred to multiple airline and hotel partners or redeemed through Chase's travel portal with a 25% boost in value.

Q3. Are there any good debit card options for international travelers? Yes, several banks offer debit cards designed for international travel. The Charles Schwab High Yield Investor Checking account is particularly popular, offering unlimited ATM fee rebates worldwide and no foreign transaction fees. Capital One 360 Checking and SoFi Checking and Savings also provide traveler-friendly features with minimal or no foreign transaction fees.

Q4. How can I avoid unnecessary fees when using my card abroad? To avoid unnecessary fees when using your card abroad, always choose to pay in the local currency rather than your home currency when given the option. Use bank-operated ATMs for cash withdrawals, and consider carrying multiple payment options from different networks for backup. Also, check if your bank requires travel notifications before your trip.

Q5. What should digital nomads look for in a travel credit card? Digital nomads should look for credit cards that offer comprehensive travel insurance benefits that don't require round-trip bookings, extended warranty protection for electronics, high acceptance rates in various regions, and multiple backup payment options. The Chase Sapphire Reserve is often recommended for its extensive travel protections, while the Charles Schwab debit card is valuable for its worldwide ATM fee rebates.