Erika's Picks for Best Credit Cards With No Forex Fees
- Best overall:
Chase Sapphire Preferred® Card - Best for cashback:
Capital One Savor Cash Rewards Credit Card - Best for building credit:
Capital One Quicksilver Secured Cash Rewards Credit Card - Best for small businesses:
Capital One Venture Business - Best for students:
Capital One Savor Student Cash Rewards Credit Card
Next time you return from an overseas vacation, what are the chances you’ll call your credit card issuer and ask them to tack an extra 3% onto the bill for everything you bought while you were away?
Probably nil.
But voluntarily adding a surcharge to your purchases is basically what happens if you travel internationally and pay for stuff with a credit card that charges foreign transaction (forex) fees.
Fortunately, there are loads of no-foreign-transaction-fee credit cards out there that can help you avoid these surcharge shenanigans and keep your travel expenses low.
Best Overall
Chase Sapphire Preferred® Card
Rewards Rate
- 5x on travel purchased through Chase Travel℠
- 3x on dining, vacation homes, gas & EV charging, top streaming services, and online groceries (excluding Walmart, Target, and wholesale clubs)
- 2x on all other travel purchases
- 1x on all other purchases
Welcome Offer
Earn 100,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
Annual Fee
$95
Aside from not charging foreign transaction fees, the Chase Sapphire Preferred® Card checks off other essential boxes for international travelers, making it one of the best travel credit cards on the market.
The card comes with key travel insurance coverages, a statement credit every four years for Global Entry, TSA Precheck®, or NEXUS, appealing transfer partners for its points, and high rewards rates in purchase categories where you likely spend a lot of money.
The annual fee is also relatively modest, so even the thriftiest international traveler should earn enough back in rewards points to make up for it each year.
However, keep in mind there’s no airport lounge access and the rewards rate is relatively low for flights or hotels booked outside of Chase Travel℠.
We love that Chase Ultimate Rewards® points earned by the Chase Sapphire Preferred® Card transfer to popular international airlines and hotel networks, like United Airlines, Air Canada, and Marriott.
Also, when you redeem through Chase Travel℠, your points are worth up to 1.5x for hotels and flights with select airlines and up to 1.75x on premium cabin tickets on select airlines. So you can really maximize your rewards if you frequently book trips with Chase.
Finally, the card includes three of the most important types of travel insurance: flight delay, baggage delay, and trip cancellation coverage.
Best for Cashback
Capital One Savor Cash Rewards Credit Card
Rewards Rate
- 8% cashback on Capital One Entertainment purchases
- 5% on hotels and rental cars booked through Capital One Travel
- 3% on dining, entertainment, select streaming subscriptions, and grocery store purchases (excluding superstores like Walmart® and Target®)
- 1% on all other purchases
Welcome Offer
Earn $250 cashback after you spend $500 on purchases within 3 months from account opening.
Annual Fee
$0
Enhanced cashback rates in six distinct purchase categories make the Capital One Savor Cash Rewards Credit Card one of the best cashback cards out there.
And its combination of cashback with no foreign transaction fees is unusual, making it useful for anyone who loves to travel but prefers the ease of cashback instead of rewards points.
One downside, however, is that since it’s not a travel card, its travel insurance is very limited, with only travel accident insurance available.
The strong cashback rates for both dining and groceries make the Capital One Savor Cash Rewards Credit Card a smart pick for international travelers of all stripes: casual travelers, digital nomads, expats, etc.
And unlike some competitors, its elevated cashback rate for grocery stores applies all over the world, not just stateside. (However, note that the high cashback rate on groceries doesn’t apply to “superstores” like Walmart or Target, and predicting what counts as a superstore overseas can be tricky.)
While not charging foreign transaction fees has become the norm among travel rewards cards, it’s less common among cashback cards, making the Savor really stand out.
Best for Building Credit
Capital One Quicksilver Secured Cash Rewards Credit Card
Rewards Rate
- 5% cashback on hotel and rental car bookings through Capital One Travel
- 1.5% cashback on every purchase
Welcome Offer
None
Annual Fee
$0
Minimum security deposit
$200
Secured credit cards usually aren’t thought of as being particularly lucrative or travel-oriented.
But the Capital One Quicksilver Secured Cash Rewards Credit Card lets people with imperfect credit build their credit score, earn rewards, and make foreign currency purchases with no surcharge.
And surprisingly enough, the Quicksilver Secured Card’s flat cashback rate is even competitive with many unsecured credit cards (cards that don’t require you to make a security deposit).
The flat cashback rate on the Capital One Quicksilver Secured Cash Rewards Credit Card is exceptional for a secured card.
Plus, the preapproval process lets you see if you’ll likely be approved for the card without a hard credit check and your credit limit can increase after six months of responsible card use.
While there are other secured cards with a lower minimum security deposit (like the Capital One Platinum Secured Credit Card), you typically won’t earn rewards.
Best for Small Businesses
Capital One Venture Business
Rewards Rate
- 5x miles on hotels, vacation rentals, and rental cars booked through Capital One Business Travel
- 2x miles per $1 on every purchase, everywhere
Welcome Offer
Earn 100,000 Miles once you spend $10,000 on purchases within the first 3 months from account opening.
Annual Fee
$95
Flexible miles and a strong flat rewards rate make the Capital One Venture Business a great pick for small businesses that require a moderate amount of international travel.
The card earns Capital One miles, which can be retroactively redeemed against a travel purchase for a value of one cent per mile or transferred to other travel loyalty programs for potentially greater value.
However, note that the airline transfer partners are mostly based overseas, so they may not be ideal for businesses that require more domestic than international travel.
The rewards structure of the Capital One Venture Business benefits businesses with varied budgets, since it earns a flat rate on all purchases. (Unfortunately, this also means it doesn’t earn miles at an elevated rate for common business purchases like gas, office supplies, or advertising.)
Your rewards are also flexible since Capital One miles transfer to 15+ airline and hotel loyalty programs, including for popular brands like British Airways, Turkish Airlines, and Wyndham Hotels & Resorts.
Finally, there are several other travel perks that come with the card. For example, when you book a stay at a hotel within Capital One Travel’s Lifestyle Collection, you’ll get a $50 credit toward dining, drinks, or other qualifying hotel expenses.
Best for Students
Capital One Savor Student Cash Rewards Credit Card
Rewards Rate
- 8% cashback on entertainment purchases when you book through the Capital One Entertainment portal
- 5% cashback on hotels, vacation rentals, and rental cars booked through Capital One Travel
- 3% cashback on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart® and Target®)
- 1% cashback on all other purchases
Welcome Offer
Earn $100 when you spend $300 in the first three months.
Annual Fee
$0
In addition to having no foreign transaction fees, the Capital One Savor Student Cash Rewards Credit Card offers no annual fee and simple cashback rewards. Plus, the cashback you can earn is on purchases students are often making, like groceries, dining out, and streaming services.
Here are a few other perks that make the Savor Rewards for Students stand out:
- Access to Capital One Travel, with high cashback rates on hotels and rental cars booked through the portal
- Access to Capital One Entertainment, with a massive cashback boost on purchases there
- Extended warranty on purchases made with the card
- Travel accident insurance and 24-hour travel assistance services
The Capital One Savor Student Cash Rewards Credit Card doesn’t charge any annual fees or other hidden fees like forex fees. So, whether you're studying abroad or taking a spring break trip, you can use this card anywhere in the world.
And despite its lack of fees, it still comes with a ton of value, including decent cashback rates, travel accident insurance, and extended warranty protection.
How Do Foreign Transaction Fees Work?
When you use your credit card to make purchases outside the U.S. (either in-person or online), the issuer may add on a surcharge — typically around 2.7% to 3% of the purchase amount. You might also see the fee referred to as a “foreign purchase transaction fee,” “foreign currency conversion fee,” or “FX fee.”
Many people don't even realize their card charges this fee, and so don't think twice about swiping it repeatedly while on a vacation or shopping online.
And the amount you lose to foreign transaction fees can easily exceed what you earn in rewards from your spending.
For example, maybe you use your cashback card to cover dinner at a swanky bistro in Paris with an Eiffel Tower view. The bill comes to $200 in USD, but since you get 2% cashback on dining, you get $4 back. However, if your card also has a 3% foreign transaction fee, you're now paying $6 on top of your bill — so in all, it's a net loss of $2.
While $2 might not seem like much, when you pay that again and again over the span of a multi-day or multi-week vacation, it can add up to a lot of money.
Thankfully, lots of travel credit cards and even some cashback cards (like the ones all listed above) don't charge foreign transaction fees, making them a better option for trips abroad.
Bottom Line: Which No-Forex Fee Card Is Right for You?
When it comes to “musts,” a no-foreign-transaction-fee credit card is right up there with a universal power adapter and an inflatable neck pillow on any international traveler’s packing list.
Your optimal card choice will depend on your credit score, whether you travel for business or pleasure, and how frequently you go abroad. But any option you choose will help you save money on foreign currency purchases, provided you use the card responsibly.
Frequently Asked Questions
What are foreign transaction fees?
Foreign transaction fees are charges incurred when you use certain credit or debit cards to make purchases in a currency other than your own (i.e., U.S. dollars if you’re American).
A typical foreign transaction fee is 3% of a foreign currency purchase amount, and it can apply to both purchases made overseas and online purchases from foreign merchants.
What does “no foreign transaction fee” mean?
If a credit or debit card issuer says its card has “no foreign transaction fee,” that means you can use that card to make purchases in a foreign currency without the issuer adding a surcharge.
Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
