How to get a credit card without the foreign transaction fee
The foreign transaction fee is one of the most common charges on your credit card when you make purchases outside of the country, whether you do it through online channels or directly in that country when you travel. The foreign transaction fee is most often confused as a currency exchange commission, which it is not. This fee is charged automatically on ay transactions that occur outside the country with dollars, and some of this fee is just paid for the simple fact that it is a foreign transaction. Whatever be the case, you can get these fees waived off by filing a complaint with the bank. If you are a regular traveler, then you can opt for a credit card with no additional foreign transaction fee.
How do you find a credit card without foreign transaction fee?
In order to start looking for the appropriate card, you must first be aware of how these fees are calculated by the banks. The credit card issuer is imposed a 1% charge by the Visa and MasterCard payment networks, and this is then carried forward as a foreign transaction fee to the credit card holder with an additional fee ranging between 1% and 3% on all purchases. While each bank has a lot of varied fee structures, American Express has a nominal fee of just 2.7%. The drawback of having a credit card is that any rewards that you receive in the form of cashbacks, etc, can be easily offset by the fee. However, more customers are waking up to the serious dollars that are charged as a foreign transaction fee and trying to pick up cards that do not bear such fees. This has led the credit card issuers to bring credit cards that specifically cater to travelers so that they are not subject to these fees and the 1% from the payment networks is absorbed by the issuers themselves. In order to pick a card that aligns with your interests, you have to read the fine print and understand the way the fee is charged or absorbed.
Here is a list of major credit cards that do not charge a foreign transaction fee:
Capital One
This credit card issuer has been a leader in giving out the best deals for its cardholders without the addition of foreign transaction fees. All their cards ranging from their MTX credit cards to their travel credit card, Venture Rewards, they do not charge any form of hidden costs or the explicit foreign transaction fee. The perks offered on these cards are very befitting as well.
Pentagon Federal Credit Union
These PenFed credit cards were primarily organized to aid with financial services for the armed forces’ members and their families. Most of these members are usually stated overseas, PenFed provides all of their credit cards without the foreign transaction fee.
Chase Cards
This credit card issuer does not have a direct policy that offers all of its credit cards the immunity against a foreign transaction fee, but they do limit the waiving off these fee on their select products centered around travel and international banking. Some of the specific cards that do not have this foreign transaction fee are Hyatt Card, Chase Sapphire Preferred® credit card, British Airways Visa Signature® Credit Card, Continental Airlines Presidential Plus Card, Chase Priority Club Select Visa Card, United MileagePlus Club Visa Card, Marriott Rewards® Premier Credit Card, and the J.P. Morgan Palladium card.
American Express
While most cards are looking to eliminate the foreign transaction fee by bearing the payment network fee within their organizations, American Express went out on the level of increasing their foreign transaction fee from 2% to 2.7%, this definitely shocked the customers. However, they made an exception to particular credit cards, which do not charge a foreign transaction fee which includes, the American Express® Platinum Travel Credit Card and the American Express Centurion cards. These cards were in the premium card category and acquiring the card was not easy. The first card has an annual membership fee of around $450, and the American Express Centurion credit card cannot be acquired without an invite directly from American Express, and this invite is only for those whose income is six figures per annum and above.
Citi
Citi has recently dropped their foreign transaction fees in a move to win over travelers to know their two products which include Citi ThankYou® Premier Credit Card and ThankYou Prestige Cards.
Credit Unions and small banks:
These smaller financial charter firms are focused on giving the best for their customers, and given their prevalence in the local communities they may at the most pass on the payment network fee to their customers but include no additional fee in the name of the foreign transaction fee.