A credit card by physical construction is just a piece of plastic, which is why it is also known as "plastic money". This piece of plastic or metal becomes a medium of exchange when it is issued by a bank or financial services company, that allows the cardholders to borrow funds for payments.
The cardholders pay back the borrowed money plus any applicable interest to the issuer at the end of the billing cycle or over a period of time. For people who use credit cards regularly, one of the advantages among others is earning rewards. A rewards credit card as the name implies rewards the cardholder for making purchases. Generally, the rewards are three types: cashback, points, or miles. The value of the rewards earned and the types of purchases that earn rewards differs depending on the issuer and the credit card type.
One caveat with credit cards is the foreign transaction fee. Most credit cards charge an average of 3% for purchases outside the United States, which can cancel out any potential rewards you could earn. You could also be charged with the foreign transaction fee when you make online purchases from a foreign merchant. Make sure you go through the terms and conditions.
In this blog, we will go through some of the best credit cards that do not charge foreign transaction fees. Such credit cards will prevent you from spending extra money while you are traveling abroad or shopping online from an international e-commerce website.
5 Best Credit Card Reward Programs With No Foreign Transaction Fees
Sign Up Bonus: Earn up to 100,000 bonus miles after you spend $20,000 on purchases in the first 12 months of account opening or still earn 50,000 miles when you spend $3,000 on purchases in the first 3 months.
Rewards Rate & Benefits
Annual fee: $95
Intro Annual Percentage Rate (APR): None
Regular APR: 17.24%-24.49% variable apr
Balance Transfer Fee: None
Foreign transaction fees: $0
2. Chase Sapphire Reserve: Best for Luxury Travel
Sign Up Bonus: Earn 50,000 points after spending $4,000 on purchases in the first 3 months of account opening. This is worth up to $750 toward travel if redeem through Chase Ultimate Rewards points.
Rewards Rate & Benefits
Annual fee: $550
Intro APR: None
Regular APR: 16.99%-23.99% variable apr
Balance Transfer Fee: 5%, $5 minimum
Foreign transaction fees: $0
3. Capital One Quicksilver Cash Rewards Credit Card: Best for Cashback
Sign Up Bonus: One-time $150 cash bonus after spending $500 on purchases in the first 3 months of account opening
Rewards Rate & Benefits
Annual Fee: $0
Intro APR: 0% on purchases for 15 months
Regular APR: 15.49%-25.49% Variable apr
Balance Transfer Fee: None
Foreign transaction fees: $0
4. Wells Fargo Propel American Express Card: Best for Zero Annual Fee
Sign Up Bonus: Earn 20,000 points after you spend $1,000 on purchases in the first 3 months (worth $200 in travel)
Rewards Rate & Benefits
Annual Fee: $0
Intro APR: 0% on purchases for 12 months
Regular APR: 14.49%-24.99% Variable apr
Balance Transfer fee: Introductory fee 3% (first 120 days), then 5% ($5 minimum)
Foreign transaction fees: $0
Sign Up Bonus: Earn 35,000 points after you spend $4,000 on purchases in the first 3 months (worth up to $700)
Rewards Rate & Benefits
Annual fee: $250
Intro APR: None
Regular APR: 15.99%-22.99% variable apr
Balance Transfer Fee: None
Foreign transaction fees: $0
Using a credit card with no foreign transaction fees is a must if you are a frequent flyer to overseas destinations. You don't want your rewards to get wiped out by the fee charged by the credit card issuer.
Do keep the following things in mind if you are using credit cards abroad:
Choosing the right rewards program enables you to earn travel perks, cashback, or points on your various credit card spending categories. Choose a credit card reward program that is in alignment with your goals. Using credit cards responsibly can be very rewarding besides the convenience they offer. That said, always be mindful of your purchases.