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. The first charge is levied by the payment network and an additional percentage is levied on the same transaction amount as that by the card issuer.

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.

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.