Cards That Charge Zero Percent on Foreign Purchases

Most credit cards charge between 1 and 3 percent on purchases made outside the United States, but a growing number of cards waive this fee entirely. These cards do not pass the foreign exchange markup to you — the bank absorbs it or does not apply one. The catch is that these cards typically require good to excellent credit (usually 670 or higher), and many charge an annual fee that you need to weigh against the savings.

The cards that eliminate international transaction fees fall into three groups: premium travel cards (which charge $95 to $550 annually), no-annual-fee cards from smaller issuers, and business cards. Within each group, the specific terms vary — some waive the fee on all purchases, others only on certain categories, and some apply it only to transactions posted in foreign currency, not to online purchases from foreign merchants.

Key Takeaways

  • Premium travel cards like the Chase Sapphire Reserve and American Express Platinum waive international transaction fees but charge annual fees ranging from $95 to $550.
  • A handful of no-annual-fee cards, including the Charles Schwab Bank Investor Cash Card and some cards from regional banks, waive the fee at no cost, though they may have stricter credit requirements.
  • The international transaction fee applies only to purchases made in foreign currency or at merchants physically located outside the U.S., not to online purchases from U.S.-based websites.
  • Some cards waive the fee on all purchases while others limit it to specific categories like travel or dining, so check the card's terms before applying.
  • Even with no international fee, you still pay the exchange rate the card network sets, which may differ slightly from the mid-market rate.

Premium Travel Cards with No International Fees

The most widely available cards that waive international transaction fees are premium travel cards. Chase Sapphire Reserve charges $550 annually and waives the fee on all purchases worldwide. American Express Platinum charges $695 annually and does the same. Capital One Venture X charges $395 annually. Citi Prestige charges $495 annually. Each of these cards also offers travel credits, lounge access, or other perks meant to offset the annual cost.

These cards are designed for people who travel frequently or spend enough on dining and entertainment to justify the annual fee. If you travel once or twice a year and spend less than $5,000 annually on the card, the fee often outweighs the benefit. If you travel four or more times per year or spend heavily on bonus categories, the math usually works in your favor.

The annual fee is charged on your statement every year on the anniversary of account opening, not just when you use the card. You pay it whether you travel that year or not, so factor that into your decision before you open the account.

No-Annual-Fee Cards That Waive International Fees

A smaller number of cards charge no annual fee and still waive international transaction fees. The Charles Schwab Bank Investor Cash Card, issued by Schwab Bank, waives the fee on all purchases and charges no annual fee. However, it requires a Charles Schwab brokerage or bank account to open, and Schwab typically requires a minimum deposit. The card also offers 2 percent cash back on all purchases, which compounds the value for frequent international travelers.

Some regional banks and credit unions offer no-annual-fee cards with no international fees, but availability is limited to their members or to people in their service area. USAA, for example, offers cards with no international fees to military members and their families. Connexus Credit Union offers similar cards to its members. These cards are worth checking if you have membership or may be able to access, but they are not available to the general public.

No-annual-fee cards that waive international fees are rare because the issuer absorbs the cost of the foreign exchange markup. Most issuers recoup this cost through annual fees, rewards that cost them money, or by targeting high-spending customers who generate enough interchange revenue to offset the loss.

What "No International Transaction Fee" Actually Means

The international transaction fee is a separate charge from the exchange rate. When you make a purchase in a foreign currency, two things happen: the card network converts the amount to dollars using its exchange rate, and the issuer adds a fee (usually 1 to 3 percent) on top. A card with no international transaction fee skips the second step but does not change the first.

The exchange rate itself is set by Visa, Mastercard, or American Express and is not something any card issuer can waive. It is typically close to the mid-market rate (the rate you see on financial news sites), but it is not identical. The difference is usually less than 0.5 percent, so it is small but real. No card eliminates this spread entirely.

The fee applies only to transactions posted in foreign currency or at merchants physically located outside the U.S. If you buy something online from a U.S.-based website (even if the company ships internationally), the transaction is posted in dollars and no international fee applies. If you book a hotel through a U.S. travel site, the same rule holds — the merchant, not the location of the purchase, determines whether the fee applies.

Business Cards with No International Fees

Several business credit cards waive international transaction fees, often with no annual fee or a lower annual fee than consumer cards. The American Express Business Gold Card charges $295 annually and waives the fee. The Chase Ink Business Preferred charges $95 annually and waives the fee. The Capital One Spark Business card charges no annual fee and waives the fee on all purchases.

These cards are issued to business owners and require an Employer Identification Number (EIN) or Social Security Number (SSN) to open. Some issuers will open a business card for a sole proprietor using only an SSN, while others require an EIN. The credit requirements are typically the same as for premium consumer cards — good to excellent credit.

Business cards often come with higher spending limits and more generous rewards than consumer cards, which can make the value proposition stronger if you have business expenses that justify the card. However, if you are using the card for personal travel, the card issuer may dispute rewards or close the account, so use business cards only for actual business expenses.

How to Compare Cards Beyond the Fee

Eliminating the international transaction fee is valuable, but it should not be your only criterion. Compare the annual fee, the rewards rate, any travel credits the card offers, and whether you will actually use the card's other benefits. A $550 annual fee card that offers a $300 travel credit effectively costs you $250 per year, which changes the math significantly.

Look at the rewards structure as well. Some cards offer 2 to 5 percent cash back or points on travel and dining purchases, which can add up quickly if you travel frequently. Others offer a flat 1 to 2 percent on all purchases. If you spend $10,000 per year on a card with 2 percent cash back, you earn $200 in rewards — enough to cover a $95 annual fee and then some.

Check whether the card offers other travel perks like trip cancellation insurance, baggage delay reimbursement, or emergency medical coverage abroad. These benefits are often included with premium travel cards and can save you money if you need them. However, do not pay for a card solely for insurance you hope never to use.

Cards to Avoid for International Travel

Cards that charge international transaction fees but offer no offsetting benefit are poor choices for travel. Most standard cash back cards and rewards cards charge 2 to 3 percent on foreign purchases, which adds up quickly. If you travel internationally more than once per year, the cost of these fees often exceeds the cost of a premium card's annual fee.

Store cards and co-branded cards (like airline or hotel cards) frequently charge international fees unless they are premium versions. Check the card's terms before you use it abroad. Many people discover the fee only after the charge appears on their statement.

Debit cards and prepaid cards often charge international fees as well, and they may also charge ATM fees when you withdraw cash abroad. If you plan to use a debit card internationally, confirm the fee structure with your bank before you travel.

Frequently Asked Questions

Do I still pay the exchange rate if the card has no international transaction fee?

Yes. The card waives only the issuer's markup fee (usually 1 to 3 percent), not the exchange rate set by Visa, Mastercard, or American Express. The exchange rate is typically within 0.5 percent of the mid-market rate, so the difference is small but present on every transaction.

Does the international fee apply to online purchases from foreign websites?

It depends on how the merchant processes the transaction. If the merchant bills you in U.S. dollars, no fee applies. If the merchant bills you in their local currency, the fee applies. You can usually see which currency will be charged before you complete the purchase.

Can I get a premium travel card if my credit score is below 670?

Most premium cards require a score of 670 or higher, though some issuers are more flexible. If your score is lower, you may be denied, or you may be offered a lower-tier card with an annual fee but without the premium benefits. Check the issuer's website for the minimum credit requirement before you apply.

Is the annual fee worth it if I travel only once per year?

Usually not, unless the card offers a travel credit that covers most of the fee. If you travel once per year and spend less than $5,000 on the card, a no-annual-fee card with no international fees (if you can access one) is a better choice. If you cannot access a no-fee option, you may be better off accepting the international fee on a standard card.

What happens if I close a premium travel card after one year?

You can close the card whenever you want, but you will have paid the full annual fee for that year. Some issuers offer a grace period (usually 30 days after the annual fee posts) during which you can close the card and receive a refund, but this is not may provide. Check the card's terms before you open it.