Twenty-seven percent of the cards in our study have neither. The best of both worlds?įor the fee-allergic, there still are some cards that don’t assess a foreign transaction fee nor an annual fee. To see rates & fees for the Blue Cash Everyday ® Card from American Express please click here. And despite American Express’ reputation for being a global card, several of its cards, like the Blue Cash Everyday ® Card from American Express, assess a foreign transaction fee of 2.7% of each transaction after conversion to US dollars. For example, while Citibank’s Costco Anywhere Visa ® Card by Citi doesn’t assess a foreign transaction fee, the Citi ® Double Cash Card – 18 month BT offer does at 3%. Although some banks like TDBank and Capital One don’t offer any cards with foreign transaction fees (and all cards from Wells Fargo assess them), most issuers fall somewhere in the middle. Compare the cards, not the banksĭon’t rely exclusively on a card issuer’s reputation to determine which card will or won’t assess foreign transaction fees. However, Capital One doesn’t partner with an airline for rewards miles (like many of the cards with annual fees do), and Discover cards aren’t widely accepted in many countries, especially in Europe. For instance, most Capital One and all Discover credit cards impose neither. There are some cards that have neither annual fees nor foreign transaction fees. While many popular airline and travel rewards cards have no foreign transaction fees, they often charge an annual fee, which entitles cardholders to various rewards and other perks. Among the banks, the foreign transaction fee average 2.97% per transaction, and cards issued by credit unions have an average foreign transaction fee of 1.15%. Of the 165 cards in our study, 75 assess a foreign transaction fee, as of April 2018. That can lead to a double hit of paying a merchant’s inflated dynamic currency conversion (DCC) rate in addition to a card’s foreign transaction fee. Some cards will charge a foreign transaction fee, even if you pay in U.S. Not only does the amount of the foreign transaction fee vary by card issuer, the ways issuers assess these fees vary, as well.A few dozen cards offer no foreign transaction fees and no annual fee, though some have trade-offs, like payment networks that are more limited.According to our study, spending $3,500 in Europe last summer using a card with foreign transaction fees would have cost $100, rivaling the median annual fee of $95 for cards with no foreign transaction fees. Cards with foreign transaction fees can cost users more than the annual fee of many credit cards with no foreign transaction fees.On average, the cards in our study with no foreign transaction fee charged an annual fee of $86.76, versus an average of $14.99 annual fee among cards that assess foreign transaction fees. To avoid foreign transaction fees, you’ll likely incur an annual fee.On average, credit unions assess a fee of 1.15%, while bank-issued credit cards charge 2.97%. Although roughly the same percentage of credit unions and bank credit card assess foreign transaction fees, cards issued by credit unions carry much lower fees.Nearly half of all credit cards assess a foreign transaction fee, with an average fee of 2.61% per foreign transaction. ![]() LendingTree looked at 165 credit cards from the 10 largest bank issuers, as well as those from the 10 largest credit unions, to see which of their credit cards assess foreign transaction fees, and if so, how. ![]() Spending $3,000 or more abroad on a credit card with a foreign transaction fee can sometimes cost you as much as an annual fee on a card that has no foreign transaction fees.
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