When you use your credit card internationally, two things affect your cost: the exchange rate and the foreign transaction fee. Here is everything you need to know for 2026.
Foreign Transaction Fees by Issuer
| Issuer | Foreign Transaction Fee | Cards with No Fee |
|---|---|---|
| Chase | 3% (most cards) | Sapphire Preferred, Sapphire Reserve, all co-brand travel cards |
| American Express | 2.7% (most cards) | Platinum, Gold, Green, Hilton, Delta, Marriott cards |
| Capital One | 0% (all cards) | All Capital One cards |
| Discover | 0% (all cards) | All Discover cards |
| Citi | 3% (most cards) | Premier, AAdvantage Platinum, selected travel cards |
| Bank of America | 3% (most cards) | Travel Rewards, Premium Rewards |
| Wells Fargo | 3% (most cards) | Autograph (no fee) |
How Foreign Transaction Fees Are Calculated
Example: You spend €100 at a restaurant in Paris.
| Step | Amount |
|---|---|
| Exchange rate: 1 EUR = 1.10 USD | $110.00 |
| Foreign transaction fee (3%) | $3.30 |
| Total charged to your card | $113.30 |
The fee compounds on top of the converted amount, not the original foreign currency amount.
Dynamic Currency Conversion: Always Avoid It
When a merchant offers to charge you in USD instead of the local currency, this is called Dynamic Currency Conversion (DCC). Always say no and pay in local currency:
- DCC exchange rates are significantly worse than your card network’s rates
- You will still pay the foreign transaction fee (3%) on the DCC amount
- The merchant pockets the conversion margin (~3–7%)
Always select local currency when given the option at a terminal.
Are There Dollar Limits on Foreign Transactions?
Most issuers do not impose a separate foreign transaction cap. However:
- Your regular credit limit governs total spending
- Some issuers flag transactions in high-risk countries and may temporarily hold the card
- Some issuers have daily purchase limits that apply everywhere, including internationally
If Your Card Is Blocked Internationally
- Call the number on the back of your card (use international collect if needed)
- Confirm the transactions are legitimate
- Ask to have the hold released for the duration of your trip
Best Credit Cards for International Travel (No Foreign Transaction Fee)
| Card | Annual Fee | Rewards | Best For |
|---|---|---|---|
| Chase Sapphire Reserve | $550 | 3x travel/dining | Frequent travelers |
| Chase Sapphire Preferred | $95 | 3x travel/dining | Value travelers |
| Capital One Venture X | $395 | 2x all purchases | Simple rewards |
| Amex Platinum | $695 | 5x flights | Airport lounge access |
| Capital One Quicksilver | $0 | 1.5% cashback | No-annual-fee travel |
| Discover it Miles | $0 | 1.5x miles | Entry-level travel |
Notify Your Card Issuer Before Traveling
Call or notify your card issuer before international travel to prevent automatic fraud blocks:
- Log in to your card’s app
- Go to Travel Notifications or Set Travel Plan
- Enter your destination and travel dates
Most issuers now detect foreign activity automatically, but setting a travel notice prevents disruptions.