Edited by Michelle TipswordHow to Avoid Foreign Transaction Fees
Edited by Michelle Tipsword
Quick Answer
You can avoid foreign transaction fees by using cash or a credit or debit card that doesn’t charge this fee when traveling outside of the U.S. or making a purchase from a foreign company.
The simplest way to avoid foreign transaction fees is to use a credit or debit card that doesn't charge them when you make purchases abroad or from a non-U.S. company. Foreign transaction fees generally range from 1% to 3% of the purchase price, which may not seem like a lot but can add up quickly.
If you're planning a trip outside of the country or frequently buy goods and services from foreign companies, it's worth taking the time to learn how foreign transaction fees work and how you can avoid them. Here's what you need to know.
What Are Foreign Transaction Fees?
Credit card issuers and financial institutions charge foreign transaction fees for purchases you make in a foreign currency. You may incur these fees when using a debit or credit card to buy goods and services abroad, make an online purchase from a non-U.S. retailer or withdraw money from a foreign ATM.
Opting to pay in U.S. dollars instead of foreign currency can increase the amount you owe because the foreign payment provider or bank handles the conversion. This is known as dynamic currency conversion (DCC). While it's helpful to know how much you're paying in U.S. dollars, the DCC fee is typically higher than what your card issuer would charge if you paid in local currency and let them handle the conversion.
How to Avoid Foreign Transaction Fees
Foreign transaction fees are easy to avoid with these four simple strategies.
1. Open a Credit Card That Doesn't Have a Foreign Transaction Fee
Not all credit cards charge foreign transaction fees. Many popular travel credit cards don't have them, for example.
If you travel abroad frequently, getting a credit card with no foreign transaction fee can reduce your costs. Plus, many travel cards provide rewards and other benefits that can be helpful when traveling.
Learn more: Best No Foreign Transaction Fee Credit Cards
2. Exchange Currency Before You Travel
If you don't mind traveling with cash, consider visiting your bank or credit union before setting off on your trip to get cash in your destination's local currency. You'll have to pay a fee, but it'll probably be lower than what you'd pay if you wait until you arrive at your destination or exchange your currency in an airport.
Even if you plan to use a credit card for most of your purchases, having some cash is a good idea because certain merchants may not accept credit cards and others may charge a fee for using one.
Tip: Because you can't replace cash that's lost or stolen, it's a good idea to only carry small amounts with you.
3. Open a Bank Account That Doesn't Charge Foreign Fees
Some banks charge fees for using your debit card to make purchases or ATM withdrawals abroad, but you can avoid them by opening an account at an institution that doesn't.
If you currently bank with an institution that charges foreign transaction fees and don't want to open a new account, ask your bank if it has branch locations, in-network ATMs or partnerships with banks where you plan to travel. You may be able to make fee-free withdrawals in local currency from these locations.
4. Pay With Local Currency
It may seem counterintuitive, but paying in local currency instead of U.S. dollars will usually save you money. When you make a purchase abroad or buy something online from a foreign company (even if you haven't left the country), the transaction has to be converted to the local currency. Either the merchant's payment network or your card issuer can handle the conversion.
When you pay in U.S. dollars, the merchant's payment network handles the conversion and charges a built-in markup that's often higher than what your credit card company would charge. If you pay in local currency, your card network handles the conversion, which typically costs less.
To find out for sure which option is cheaper, check your credit card company's conversion rate and compare it to what the merchant's payment network charges. Visa and Mastercard have online currency conversion calculators that can help.
Best travel cards of 2026
Compare cards from our partners that earn valuable points or miles and unlock travel perks on flights and hotel stays.
Offers from our partners
American Express Platinum Card®
Intro bonus:
As High As 175,000 points. Find Out Your Offer.
You may be eligible for as high as 175,000 Membership Rewards® Points after spending $12,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.
Ongoing APR:See Pay Over Time APR
Rewards:
1x - 5x (Points per dollar)
Get more for your travels with 5X Membership Rewards® points on all flights and prepaid hotel bookings through American Express Travel®, including Fine Hotels + Resorts® and The Hotel Collection bookings. You earn 5X points on flights purchased directly from airlines or through American Express Travel® on up to $500,000 on these purchases per calendar year.
Annual Fee:$895
American Airlines AAdvantage® MileUp® Card
Intro APR:0% for 15 months on Balance Transfers
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:
2x (Miles per dollar)
Earn 2 AAdvantage® miles for each $1 spent at grocery stores, including grocery delivery services. Earn 2 AAdvantage® miles for every $1 spent on eligible American Airlines purchases. Save 25% on inflight food and beverage purchases when you use your card on American Airlines flights
Annual Fee:$0
Citi Strata Premier® Card
Intro bonus:
60,000 Points
Earn 60,000 bonus ThankYou® Points after spending $4,000 in the first 3 months of account opening, redeemable for $600 in gift cards or travel rewards at thankyou.com.
Ongoing APR:19.49% - 27.49% (Variable)
Rewards:
1x - 10x (Points per dollar)
Earn 10 Points per $1 spent on Hotels, Car Rentals, and Attractions booked on CitiTravel.com. Earn 3 Points per $1 on Air Travel and Other Hotel Purchases, at Restaurants, Supermarkets, Gas and EV Charging Stations. Earn 1 Point per $1 spent on all other purchases.
Annual Fee:$95
American Express® Gold Card
Intro bonus:
As High As 100,000 points. Find Out Your Offer.
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $8,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.
Ongoing APR:See Pay Over Time APR
Rewards:
1x - 5x (Points per dollar)
Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App™. Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App™, or purchased directly from airlines. Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App™ and cruises booked and paid through AmexTravel.com. Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
Annual Fee:$325
Hilton Honors American Express Card
Intro bonus:
70,000 Points
Earn 70,000 Bonus Points plus a Free Night Reward after you spend $2,000 in purchases on the card in the first 6 months of Card Membership. Offer ends 01/13/2027.
Ongoing APR:19.49%-28.49% Variable
Rewards:
3x - 7x (Points per dollar)
Earn 7X Hilton Honors Bonus Points for each dollar of eligible purchases charged on your Card directly with a hotel or resort within the Hilton portfolio. Earn 5X Hilton Honors Bonus Points for each dollar of eligible purchases on your Card: at U.S. restaurants, at U.S. supermarkets, at U.S. gas stations. Earn 3X Hilton Honors Bonus Points for all other eligible purchases on your Card.
Annual Fee:$0
Delta SkyMiles® Platinum American Express Card
Intro bonus:
As High As 90K Miles + $300 Statement Credit
You may be eligible for as high as 90,000 Bonus Miles and a $300 Statement Credit after you spend $4,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Apply to find out your offer. Terms Apply. Offer ends 11/04/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:
1x - 3x (Miles per dollar)
Earn 3X Miles on Delta purchases and purchases made directly with hotels. Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets. Earn 1X Miles on all other eligible purchases.
Annual Fee:$350
Delta SkyMiles® Blue American Express Card
Intro bonus:
10,000 Miles
Earn 10,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 6 months.
Ongoing APR:19.49%-28.49% Variable
Rewards:
1x - 2x (Miles per dollar)
Earn 2X Miles per dollar at restaurants worldwide, plus takeout and delivery in the U.S. Earn 2X Miles per dollar spent on Delta purchases, and 1X Mile on all other eligible purchases.
Annual Fee:$0
Hilton Honors American Express Aspire Card
Intro bonus:
200,000 Points
Best Points Offer Yet! Earn 200,000 Hilton Honors Bonus Points with the Hilton Honors American Express Aspire Card after you spend $6,000 in purchases on the Card within your first 6 months of Card Membership. Offer ends 01/13/2027.
Ongoing APR:19.49%-28.49% Variable
Rewards:
3x - 14x (Points per dollar)
Earn 14X Hilton Honors Bonus Points when you make eligible purchases on your Card directly with hotels and resorts within the Hilton portfolio. Card Members can earn 7X Points on purchases of Flights booked directly with airlines or flights booked through American Express Travel, Car rentals purchased directly from select car rental companies, and purchases at U.S. Restaurants. Card Members can earn 3X Points on all other eligible purchases.
Annual Fee:$550
See all our best travel credit cards for 2026.
How to Choose a Credit Card With No Foreign Transaction Fee
Many cards offer fee-free foreign transactions. Here are some tips to find one that fits your needs.
- Prioritize network acceptance. Not all credit cards are accepted everywhere. Choose one that's widely accepted to reduce the risk of not being able to use your card while traveling.
- Think about your spending and travel habits. Travel rewards cards typically come in a few varieties: cash back, general travel rewards and brand-specific rewards. Some have generous welcome offers or offer bonus points on certain purchases. Choosing a structure that aligns with your everyday spending as well as your travel habits will help you maximize rewards.
- Review annual fees. Many travel credit cards charge an annual fee. The rewards, cash back and perks of carrying the card should outweigh the charge. If not, it's probably not your best bet.
- Don't forget about perks. Rewards aren't the only benefit travel credit cards offer. Many have additional perks that enhance their value, such as travel insurance, free checked bags and priority boarding, reimbursement for global entry and TSA PreCheck, access to airport lounges and more.
Frequently Asked Questions
The Bottom Line
Avoiding foreign transaction fees is easy when you use a fee-free debit or credit card to make purchases abroad. But finding the card that's right for you depends on more than the fees the issuer charges.
You can compare credit cards matched to your credit with Experian to help you sort through credit card offers based on card type, fees and issuer to find one that meets your needs and aligns with your spending and travel habits.
Get the travel rewards you deserve
Earn miles and find offers with bonuses and perks for your travel needs. Start with your FICO® Score and get matched with personalized rewards card offers.
See your offers
About the author
Jennifer Brozic
Jennifer Brozic is a freelance content marketing writer specializing in personal finance topics, including building credit, personal loans, auto loans, credit cards, mortgages, budgeting, insurance, retirement planning and more.
Read more from Jennifer