Avoiding Foreign Transaction Fees on Points and Miles Earning Credit Cards

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Update: Some offers mentioned below are no longer available. View the current offers here: Platinum Card from American ExpressCapital One Venture Rewards Card

If you aren’t already aware, many credit card issuers charge ridiculous foreign transaction fees on every purchase you make on your credit card outside of the USA. In fact, you may even be charged this fee from within the US if the merchant processing the charge is based outside of the States. These fees – which generally range from 1-3% of your total purchases, can cost you dearly and completely negate the value of any miles or points you earn.

For example, if you go to Paris and spend $3,000 on your US Airways Mastercard, you will have to pay an additional $90 (3%), just for allowing Barclays bank the pleasure of processing your transactions. Even though you’d earn 3,000 miles, you can actually buy them cheaper directly from usairways.com for 2.75 cents each (and US Airways runs a lot of promotions, like their current 100% bonus, that makes buying miles as cheap as  1.38 cents each).

Before you travel abroad, make sure you know if your card currently has a foreign transaction fee. You can simply call your card company (the best bet since card issuers have been changing these fees lately), or check out this chart from creditcards.com. Tip: if you are applying for a new credit card, always click the Terms & Conditions link before you submit your application. Foreign transaction fees will be listed under  Fees -> Transaction fees table (usually the last fee listed).

Barclays US Airways Mastercard Foreign Transaction Fee

While foreign transaction fees are a rip-off, the good news is that there are points and mileage earning cards that don’t have these fees. If you travel abroad extensively, it’s critical you get one of those cards. Here are some of the top miles/point earning credit cards that don’t have foreign transaction fees. FYI: I’ve also added “No foreign transaction fees” on the Top Deals page to highlight this particular perk. I’m hoping there comes a day when these fees are history!

Top fee-free cards and sign-up bonuses:

25,000 points for Capital One Venture card. $59 annual fee. Waived for the first year.
50,000 points for Amex Platinum. $450 annual fee.
100,000 miles for Chase British Airways Visa. $95 annual fee. Update: The current sign-up bonus offer for the British Airways Visa is 50,000 Avios. 25,000 upon first use, and another 25,000 when you spend $2,500 within 90 days.
30,000 miles for Chase United Mileage Plus Club Visa. $375 annual fee.
2 Free nights for Chase Hyatt Visa. $75 annual fee.
60,000 points for Chase Priority Club Visa. $49 annual fee, waived for the first year.
40,000 points for Chase Sapphire Preferred. $95 annual fee, waived for the first year.
30,000 points for Citi Thank You Premier. $125, waived for the first year.
$95 Statement credit for Chase Continental Presidential Plus card. $395 annual fee.

If you know of any other fee-free points/miles cards, let me know and I’ll add them to the list.

Chase Sapphire Preferred® Card

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  • Earn 50,000 bonus points when you spend $4,000 on purchases in the first 3 months from account opening. That's $625 in travel when you redeem through Chase Ultimate Rewards®
  • Named a 'Best Credit Card' for Travel Rewards by MONEY Magazine
  • 2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases
  • Sleek metal card design
  • Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening
  • $0 foreign transaction fees, plus chip-enabled for enhanced security and wider acceptance when used at a chip card reader
  • 1:1 point transfer to leading frequent travel programs at full value — that means 1,000 Chase Ultimate Rewards points equal 1,000 partner miles/points
  • Travel confidently with premium Travel Protection Benefits, including Trip Cancellation/Trip Interruption Insurance, Auto Rental Collision Damage Waiver, Trip Delay Reimbursement and more
Intro APR Regular APR Annual Fee Balance Transfer Credit Rating
N/A 16.24%-23.24% Variable Introductory Annual Fee of $0 the first year, then $95 See Terms Excellent Credit