Foreign transaction fees (usually 2.7-3%) are pure profit for banks. A $5,000 trip using the wrong card costs you $150 in fees. The right card costs you nothing — and earns you points on every purchase.
The No-FTF Cards Worth Having
Chase Sapphire Preferred ($95/yr): No FTF, 2x travel, 3x dining, UR points transferable to 14 airlines. The starter pick. Capital One Venture X ($395/yr): No FTF, 2x on everything, Priority Pass lounge access, $300 travel credit. Amex Gold ($250/yr): No FTF outside the US, 4x dining worldwide, MR points. Acceptance can be spotty in Asia. Schwab Investor Card (free): 1.5% cash back, no FTF, unlimited ATM fee rebates worldwide. Best non-rewards travel card.
The ATM Problem
Credit cards handle purchase FTF. But cash withdrawals abroad involve ATM fees (bank's and the ATM operator's), plus most credit cards charge cash advance fees and interest. Use a Schwab checking account or Wise card for ATM withdrawals abroad — both reimburse or eliminate ATM fees.
What to Avoid
Any card marketed as "for everyday use" from a major retail bank likely has FTF. Bank of America Customized Cash, Discover It, and most store cards charge 2-3%. Check your card's terms before your next trip.
