How to Avoid Foreign Fees with the Right Card

Don’t let foreign fees ruin your trip—find a card that works for you!

Traveling abroad is exciting—new sights, new cultures, new foods—but there’s nothing exciting about coming home to a credit card bill full of extra fees. Foreign transaction fees, which are usually around 3%, can sneak onto your bill every time you make a purchase in another country.

The good news? You don’t have to put up with them. With the right credit card, you can avoid these charges and keep more money in your pocket for your adventures.

What are foreign transaction fees?

Let’s keep it simple. Foreign transaction fees are extra charges your credit card issuer adds to purchases made outside your home country or in a foreign currency.

Think of them as a “thanks for using your card abroad” fee—except they’re not much of a thank you.

For example, if you spend $1,000 on meals, souvenirs, or excursions during a trip, a 3% fee means you’re paying an extra $30 just for using your card.

Over a week or two of travel, those fees can add up quickly.

But here’s the thing: plenty of credit cards out there don’t charge these fees at all.

What to look for in a travel-friendly credit card

Not all credit cards are created equal when it comes to travel. If you’re shopping for one that saves you from foreign fees, here’s what to focus on:

1. No foreign transaction fees: This is non-negotiable. Look for cards that proudly advertise no foreign fees.
2. Worldwide acceptance: Visa and Mastercard are accepted almost everywhere, making them great options for international travel.
3. Chip-and-PIN capability: Many countries use chip-and-PIN systems for card payments. Having a card with this feature can save you some awkward moments at the register.
4. Extra travel perks: Look for cards with bonuses like travel insurance, airport lounge access, or rewards for travel purchases.
5. Reasonable annual fees: Some no-foreign-fee cards have annual fees. That’s fine if the perks are worth it—but make sure you’re getting value for what you’re paying.

Great cards for skipping foreign fees

So, what kind of card should you get? Travel rewards cards are a solid choice if you’re a frequent flyer. They not only waive foreign fees but also help you earn points or miles for future trips. Some even offer perks like free checked bags, priority boarding, or hotel upgrades.

If you’re more of an occasional traveler, don’t worry—there are no-annual-fee cards that also skip foreign transaction fees.

These might not come with all the bells and whistles, but they’re perfect for keeping things simple while saving money.

Why the right card makes a difference

Choosing the right card isn’t just about saving on fees—it can actually make your travel experience better.

Imagine you’re browsing markets in Marrakech or grabbing dinner in Paris. With a no-foreign-fee card, you can swipe away without worrying about those pesky extra charges. Plus, credit cards often offer better currency conversion rates than cash exchanges or ATMs, so you’ll save there too.

And let’s not forget about the added protections. Many travel-friendly cards come with features like fraud monitoring, extended warranties, and emergency assistance, giving you extra peace of mind while you’re exploring the world.

Tips for using your card abroad

Even with the right card in your wallet, a little strategy goes a long way. Here are some tips to make the most of it:

• Always pay in the local currency: If a merchant offers to charge you in your home currency, decline. It’s usually more expensive than paying in the local currency.
• Notify your issuer: Let your credit card company know your travel plans to avoid unexpected declines.
• Bring a backup: It’s smart to have a second credit card or some cash on hand in case your primary card doesn’t work.
• Keep an eye on your statements: Regularly check your transactions to catch any errors or unauthorized charges.

Conclusion

Foreign transaction fees can quickly eat into your travel budget, but they’re totally avoidable. By choosing a card that eliminates these fees, you’ll save money and enjoy a smoother travel experience.

Whether you’re a frequent flyer or an occasional vacationer, finding the right card can make a big difference.

So, plan your next trip, pack your bags, and enjoy your adventures without worrying about extra charges. With the right card in your pocket, you’ll be ready to spend smart and travel even smarter.

Written by

Everaldo Santiago