The number of credit cards that charge foreign transaction fees is declining. That’s the key takeaway from a recent survey of consumer credit cards issued by the nation’s 12 largest card issuers.
The survey, conducted by CreditCards.com from March 16–27, reviewed publicly available terms and conditions and included follow-up calls to issuer representatives to confirm details about foreign transaction fees.
Key findings from the survey:
- Across the 12 issuers, 37% of the consumer credit cards examined (60 of 163) do not charge a foreign transaction fee.
- Four major issuers—Capital One, Pentagon Federal Credit Union (PenFed), HSBC and Discover—do not charge foreign transaction fees on any of their consumer credit cards.
- The remaining eight issuers offer a mix of cards: some with foreign transaction fees and some without.
The most common foreign transaction fee found in the survey is 3% of the transaction amount.
Foreign transaction fees typically apply when cardholders make purchases while abroad or when a merchant’s bank processes the purchase through an overseas financial institution. As more issuers introduce no-fee card options, travelers and international shoppers have more opportunities to avoid these extra costs.
If you travel frequently or shop with international merchants, compare card terms—especially the presence or absence of foreign transaction fees—when choosing a credit card. Many issuers now offer travel-focused or general-purpose cards that waive these fees, helping cardholders save on overseas purchases.