Foreign transaction fees are levied on credit card purchases made abroad, in a foreign currency, and for transactions involved with a foreign bank. An average rate of 2% to 3% is charged for these credit cards, which is not necessarily a high rate. However, it can become a significant burden to pay off.

There are two different types of fees levied on purchases made with foreign currency or through foreign banks.

How can you maximize your spending potential with credit cards with no foreign transaction fee?

• One of the things you should ensure is carrying sufficient cash and credit while traveling abroad. It is advisable to use your credit cards to make purchases and hire services, but keep sufficient cash with you for emergencies. Apply for a no foreign transaction fee credit card that is globally accepted among popular networks such as VISA and Mastercard , also known as an international credit card
• Among important things to consider while choosing no foreign transaction fee credit cards is understanding the rates and fees clause in your application. This clause both defines and confines your spending limits. Understanding the clause will help identify your spending habits, especially while traveling abroad as you wouldn’t want a clause to stifle you when you have heart set on buying a particular designer merchandise
• No foreign transaction fee credit cards should belong to a bank which also has a good network of ATMs globally
• Some foreign merchants also allow you to pay in dollars, which will help you save money on currency in countries where the dollar exchange rate is weak. Look for credit cards with no foreign transaction fee with merchant and retail tie-ups globally that also accept your local currency to make the rate even more favorable for spending
• In case you do not have an international credit card, a no foreign transaction fee credit card is a better option than using your debit card while abroad for one particular reason: the PIN code. It is very easy for scammers to acquire your PIN number for the debit card allowing unauthorized access. Credit cards, on the other hand, have added levels of protection and authorization to be used at retail outlets
• Credit cards issued nowadays are powered by either Chip and PIN or Chip and Signature technology. Chip and Signature credit cards are used in the country while overseas, Chip and PIN cards are used for purchases. Thus. it is a good idea to apply for no foreign transaction fee credit cards that support Chip and PIN to avoid any hassles for point of sale transactions
• Apply for credit cards that are travel location friendly, i.e., these cards should work abroad. Research is key since not every country is compatible with every credit card, leaving limited options for youYou can also take a look at different no annual fee credit cards that also offer no foreign transaction fee.

Most popular credit cards with no foreign transaction fee of 2018

• Capital One® VentureOne® Rewards Credit Card comes with an attractive miles offer with 1.25 unlimited miles on every dollar spent for purchases
• Chase Sapphire Preferred® Card offers rewards points for travel and dining with an exclusive 50000 miles bonus if you spend $4000 on purchases within three months from account opening
• Capital One® Venture® Rewards Credit Card is a good alternative for collecting travel miles with a 2X bonus miles on every dollar spent for purchases
• HSBC Cash Rewards Mastercard® credit card offers cash rewards of 1.5% on purchases
• Capital One® Quicksilver® Cash Rewards Credit Card is another alternative offering a 1.5% cash back on every purchase made, with a $150 cash bonus if you manage to spend $500 in the first three months

Other options include Discover it® Cashback Match™, Capital One® Savor℠ Cash Rewards Credit Card, Bank of America® Travel Rewards Credit Card, The Platinum Card® from American Express, and The Business Gold Rewards Card from American Express OPEN.