Let’s examine why a credit card issuers charge this fee? Foreign transaction fees were previously called currency conversion fees. In theory, credit card companies charge the fee to cover the cost of exchanging currency and to mitigate the higher risk of fraud associated with international transactions. Visa and MasterCard charge each bank a foreign transaction fee, in which they turn around and charge the consumer.
Are these fees inevitable? No. While you will always have to pay the currency difference, there are quite a few credit cards on the market that no longer charge you for international purchases. American Express was the leader in putting an end to foreign transaction fees, and shortly after, many issues followed suit. Not every credit card on the market offers no foreign transaction fees, so we have put together our top list:
Barclaycard Arrival Plus® World Elite Mastercard®
If you are planning to travel soon, and looking to earn a lot of air miles in a short amount of time, the Barclaycard Arrival Plus Barclaycard Arrival Plus® ® World Elite Mastercard® World Elite Mastercard® might be exactly what you’re looking for. This card tops our list for its high point value- Earning 2 miles for every dollar you spend. In addition to 2 miles per dollar, you’ll earn 60,000 bonus miles if you spend $3,000 in the first 90 days, equivalent to $600 in travel rewards. If you use this card to book your hotel and flight, you could easily put the $500 towards that cost, all while earning 2 points for every travel related expense. There is a small price to pay for this amazing rewards rate however, there is an $89 annual fee, but that is waived the first year. We’re positive you’ll earn plenty of rewards to justify the annual fee after 2 years.
Capital One® Venture® Rewards Credit Card
Another travel card that doesn’t skimp on the reward rate is the Capital One® Venture® Rewards Card Capital One® Venture® Rewards Card – You’ll earn 2 miles per dollar spent, and an early spend bonus of 50,000 miles (after spending $3,000 in the first 3 months). That early spend bonus is equivalent to $500 in travel and is easily redeemed through your Capital One account. You can redeem your miles as a statement credit against the travel purchases you’ve already made. This makes it easy to apply the credit towards your hotel or airfare. These rewards never expire either! This card does have a $95 annual fee, but it’s waived the first year.
Citi® / AAdvantage® Platinum Select® World EliteTM Mastercard®
The last card on top of our no foreign transaction fee list is the Citi® / AAdvantage® Platinum Select® World Elite Citi® / AAdvantage® Platinum Select® World EliteTM TM Mastercard® Mastercard® from our partner Citi. Citi has a partnership with American Airlines, so you can receive great rewards by flying American Airlines. You’ll receive 50,000 bonus miles only after spending $2,500 in the first three months. You’ll enjoy priority boarding, one free checked bag on domestic flights and 25% off in-flight food and beverages. Additionally, you can earn double AAdvantage® miles on eligible American Airlines purchases. If you are a frequent flyer and love American Airlines, this card was tailor made for you.