Best Credit Card With No Foreign Transaction Fee and Cash Back: A Complete Guide for Smart Travelers

When traveling abroad or shopping from international websites, many people are surprised to see extra charges on their credit card bills. These are foreign transaction fees — typically around 3% of every purchase made in a foreign currency or processed overseas.

Over time, these fees can add up and cost you hundreds of dollars. But there’s good news: you can avoid them completely by using a credit card with no foreign transaction fee. And even better, some of these cards also offer cash back rewards, allowing you to save money and earn rewards while spending internationally.

In this article, we’ll explain what these cards are, how they work, their benefits, and how to choose the best credit card with no foreign transaction fee and cash back for your needs.

What Is a Foreign Transaction Fee?

A foreign transaction fee is an additional charge applied when you use your credit card abroad or make a purchase in a non-U.S. currency. Most banks charge this fee to cover the cost of converting foreign currency into U.S. dollars.

For example, if you buy something worth $500 in Europe, and your card charges a 3% foreign transaction fee, you’ll pay $15 extra — just for the conversion.

That might not sound like much, but if you travel frequently or make regular international purchases, these small fees can add up to hundreds per year.

Why Choose a Credit Card With No Foreign Transaction Fee?

Using a credit card that doesn’t charge foreign transaction fees helps you save money and makes international spending more convenient.

Here are the main benefits:

No Hidden Costs Abroad
Every purchase you make overseas will be charged at the real exchange rate — without the extra 2–3% surcharge.
Easier International Shopping
Perfect for travelers or people who shop online from global retailers like Amazon UK, AliExpress, or foreign subscription services.
Better Security
Credit cards are safer than carrying cash when traveling. You can easily dispute unauthorized charges or lost card issues.
Potential for Rewards
Some of the best travel and cash back cards combine no foreign transaction fees with reward programs that give you cash back or points on every purchase.

Understanding Cash Back Credit Cards

A cash back credit card gives you a percentage of your purchases back in the form of rewards.

For example, if your card offers 2% cash back, you’ll earn $2 for every $100 you spend. You can redeem these rewards as:

A statement credit (reducing your balance),
Direct deposit to your bank account,
Gift cards, or
Travel credits.

Now, when a card offers both cash back and no foreign transaction fees, it’s the perfect combination — especially for travelers and international shoppers who want to save money while earning rewards.

Key Features to Look For

When choosing a credit card with no foreign transaction fee and cash back, pay attention to these factors:

1. Cash Back Rate

Look for cards offering at least 1.5%–2% cash back on all purchases, or higher rates in specific categories like travel, dining, or groceries.

2. No Foreign Transaction Fees

This is essential for international use. Always confirm this feature in the card’s terms — some cards still charge fees despite offering “travel perks.”

3. Annual Fee

Many excellent cards charge no annual fee, while others may charge between $50 and $95 but offer higher rewards or extra travel benefits.

4. Redemption Options

Check how you can redeem your cash back — some cards allow flexible redemptions, while others limit you to statement credits or travel redemptions.

5. Introductory Bonuses

Some cards offer welcome bonuses (like $200 cash back after spending $1,000 in the first 3 months). These can provide a quick value boost.

Best Credit Cards With No Foreign Transaction Fee and Cash Back (2025)

While offers vary by country and time, here are some popular credit cards known for having no foreign transaction fees and cash back rewards:

1. Capital One Quicksilver Cash Rewards Credit Card

Cash Back: Unlimited 1.5% on all purchases.
Foreign Transaction Fees: None.
Annual Fee: $0.
Bonus Offer: $200 cash bonus after spending $500 in the first 3 months.
Why It’s Great: Simple rewards structure, no hidden fees, and excellent for everyday purchases both domestic and abroad.

2. Citi Double Cash® Card

Cash Back: 2% total (1% when you buy + 1% when you pay).
Foreign Transaction Fees: None (on the newer Mastercard version).
Annual Fee: $0.
Why It’s Great: High flat-rate rewards on everything and easy redemption options. Perfect for travelers who want straightforward earning.

3. Chase Freedom Unlimited®

Cash Back:
- 3% on dining and drugstores,
- 1.5% on all other purchases.
Foreign Transaction Fees: None (on eligible cards).
Annual Fee: $0.
Bonus Offer: $200 after spending $500 in the first 3 months.
Why It’s Great: Great for both everyday spending and travel, especially with no extra fees abroad.

4. Discover it® Chrome

Cash Back: 2% on gas stations and restaurants (up to $1,000 quarterly), 1% on everything else.
Foreign Transaction Fees: None.
Annual Fee: $0.
Why It’s Great: Discover matches all cash back earned in the first year, effectively doubling your rewards.

5. Wells Fargo Autograph® Card

Cash Back: 3X points on travel, dining, gas, transit, and streaming services.
Foreign Transaction Fees: None.
Annual Fee: $0.
Bonus Offer: 20,000 points after spending $1,000 in 3 months (worth about $200).
Why It’s Great: Ideal for travelers who want strong rewards in multiple categories without paying extra fees abroad.

Tips for Maximizing Cash Back Abroad

Even if you have the right card, how you use it can make a big difference. Here’s how to get the most out of your no-foreign-fee, cash back credit card:

Always Pay in Local Currency.
When asked whether to pay in USD or local currency, choose the local currency — it gives you a better exchange rate.
Use Cards for Larger Purchases.
Save your cash for small expenses. Use your card for hotels, restaurants, and attractions to maximize rewards.
Avoid Cash Advances.
Cash advances often incur high interest immediately — and they don’t earn cash back.
Set Up Travel Alerts.
Inform your bank before traveling to avoid fraud alerts or temporary card freezes.
Redeem Rewards Regularly.
Don’t let your rewards expire — cash them in for statement credits or travel savings.

Common Mistakes to Avoid

While these cards can save you money, avoid the following pitfalls:

Carrying a Balance: Cash back won’t offset high interest charges. Always pay in full each month.
Ignoring Annual Fees: Some cards with “premium” perks may not be worth it if you don’t travel often.
Not Checking Merchant Acceptance: Some cards (like Discover or American Express) may not be widely accepted in certain countries. Always carry a backup.

Final Thoughts

If you travel frequently or love shopping from international websites, a credit card with no foreign transaction fee and cash back is one of the smartest financial tools you can have.

You’ll save money on every purchase, avoid currency conversion fees, and earn cash back rewards that can be redeemed for future travel or expenses.

When choosing your card, look for one that combines 0% foreign fees, strong cash back rewards, and no annual fee. Top picks like Capital One Quicksilver, Citi Double Cash, or Wells Fargo Autograph offer excellent value for most users.

In short: with the right card, you can spend confidently anywhere in the world — and get rewarded for it. 🌍💳