Credit Cards With No Foreign Transaction Fee – Our Pick

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Published: Apr 8, 2024, 2:15pm

Laura Howard

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If you’re travelling abroad, you could save yourself money by using a credit card that doesn’t charge foreign transaction fees. Standard credit cards typically charge foreign transaction fees of around 3% on every purchase you make abroad. If you use an ATM, further cash withdrawal fees apply (also of around 3%). And that’s on top of any fee charged by the ATM provider.

Interest is then usually charged on the amount of the withdrawal straight away, rather than after the usual grace period of 56 days. However, fees like these can be easily avoided by using the right credit card.

Find The Best Credit Card

Our top 'no foreign transaction fee' credit cards of 2024

We’ve compiled research (April 2024) into credit cards with low or no foreign transaction fees and listed the best deals we found. You can find our full methodology below.

Being accepted for any of these cards is only possible with a strong credit score. However, your application will first be processed through an eligibility checker which will tell you the likelihood of being accepted, without leaving a trace on your credit report.

Halifax Clarity

Foreign transaction fee

None

Cash withdrawal fee

None

Representative APR (variable)

23.90%

Representative Example

At an assumed credit limit of £1,200, at a purchase rate of 23.9% p.a. (variable), the representative APR is 23.9% (variable). Credit available subject to status.

Foreign transaction fee

None

Cash withdrawal fee

None

Representative APR (variable)

23.90%

Representative Example

At an assumed credit limit of £1,200, at a purchase rate of 23.9% p.a. (variable), the representative APR is 23.9% (variable). Credit available subject to status.

Why We Picked It

The Halifax Clarity card charges zero fees when you use it to make purchases or withdraw cash abroad. But it’s only truly cost-free if you pay off your balance in full. If you allow a balance to roll over from one month into the next, you’ll pay interest at a representative 23.90% APR (variable).

If you use the card to withdraw local currency whilst you’re travelling, you’ll be charged interest on that amount with immediate effect at the same 23.90% APR (variable) – or higher if you opt to take out sterling.

Pros & Cons

No foreign transaction fees
No cash withdrawal fee
£20 cashback offer
New and existing customers

Immediate interest charged on cash withdrawals

Barclaycard Rewards

Foreign transaction fee

None

Cash withdrawal fee

None

Representative APR (variable)

28.90%

Representative Example

At an assumed credit limit of £1,200, at a purchase rate of 28.9% p.a. (variable), the representative APR is 28.9% (variable). Credit available subject to status.

Foreign transaction fee

None

Cash withdrawal fee

None

Representative APR (variable)

28.90%

Representative Example

At an assumed credit limit of £1,200, at a purchase rate of 28.9% p.a. (variable), the representative APR is 28.9% (variable). Credit available subject to status.

Why We Picked It

The Barclaycard Rewards credit card is free of overseas charges for purchases and ATM withdrawals. ATM withdrawals are interest-free overseas up to £500 per day, provided you pay off the balance in full at the end of each month.

As well as being great for overseas use, the Barclaycard Rewards card actually pays you to spend (albeit at 0.25% which is one penny for every £4) in the form of cashback.

This card has no monthly or annual fee. If there is a balance remaining at the end of the month you’ll be charged a representative 28.9% APR (variable) on it.

The deal comes with some strict eligibility rules. You need to be aged at least 21 to qualify for the card, with four years’ experience handling credit under your belt and an annual income of more than £20,000.

Pros & Cons

No foreign transaction fees
No cash withdrawal fee
Earn 0.25% cashback

High representative APR
Can only hold one Barclaycard

New Day Bip Credit Card

Foreign transaction fee

None

Cash withdrawal fee

n/a

cardless credit account

Representative APR (variable)

29.9%

Representative Example

At an assumed credit limit of £1,200, at a purchase rate of 29.90% p.a. (variable), the representative APR is 29.90% (variable). Credit available subject to status.

Foreign transaction fee

None

Cash withdrawal fee

n/a

cardless credit account

Representative APR (variable)

29.9%

Representative Example

At an assumed credit limit of £1,200, at a purchase rate of 29.90% p.a. (variable), the representative APR is 29.90% (variable). Credit available subject to status.

Why We Picked It

The New Day Bip Credit Card allows you to spend overseas without incurring any fees. But as this is a cardless credit account you won’t get a physical credit card and so you can’t make cash withdrawals.

You can make purchases online or link your Bip account to your Apple Pay or Google Pay account for in-person transactions. There are no fees on the account.

The representative APR is high at 29.9% so it may not be the right credit account if you’re likely to hold a balance on it.

Pros & Cons

No foreign transaction fees
Plastic-free account
Link to Apple Pay or Google Pay

No card, so can’t withdraw cash
High APR

NatWest Credit Card

Foreign transaction fee

None

Cash withdrawal fee

(minimum £3)

Representative APR (variable)

12.9%

Representative Example

At an assumed credit limit of £1,200, at a purchase rate of 12.9% p.a. (variable), the representative APR is 12.9% (variable). Credit available subject to status.

Learn More

On NatWest's Website

Foreign transaction fee

None

Cash withdrawal fee

(minimum £3)

Representative APR (variable)

12.9%

Representative Example

At an assumed credit limit of £1,200, at a purchase rate of 12.9% p.a. (variable), the representative APR is 12.9% (variable). Credit available subject to status.

Why We Picked It

NatWest card offers no fees on non-sterling transactions, so it’s a great travelling companion if you want to use it abroad. But foreign transaction fees are charged on withdrawals from ATMs, so it’s best not to use it for cash machine withdrawals abroad. It has a low standard APR of 12.9%.

Pros & Cons

No foreign transaction fees
Low APR

Charges applied on cash machine withdrawals overseas

Methodology

To arrive at our star ratings, we considered the following factors:

fees for overseas use: cards with no foreign transaction fees, no cash withdrawal fees and no interest (if monthly balance is cleared) being given the highest rating
representative APR: the interest you might be charged if you fail to clear your balance (APRs are variable and the rate offered will depend on the credit score of the applicant)
promotional periods and perks: such as any cashback on card spend, 0% interest deals on purchases or balance transfers (a useful but secondary purpose for these specialist travel cards).

What are credit card foreign transaction fees?

A foreign transaction fee is an additional credit card fee levied on purchases or cash withdrawals made in a foreign currency or in a country overseas.

These fees are usually calculated as a percentage of the total purchase and typically range from about 2% to 3%, according to Moneyfacts. If you were paying a hotel bill overseas to the equivalent of around £500 in local currency, for example, the fee (levied at 3%) would be £15.

Cardholders will still be charged a foreign transaction fee even if they use dynamic currency conversion when abroad (this is when a merchant offers you the option to pay in pounds Sterling on your card instead of the local currency).

Dynamic currency conversion isn’t usually recommended (it is usually better to pay in local currency) as it often leads to a less favourable exchange rate, which makes the transaction more expensive.

How do foreign transaction fees work?

Card issuers charge foreign transaction fees when a cardholder makes a purchase or transaction outside of their home country. Charges are considered foreign transactions if they are made within a foreign country or if you make an online purchase from a foreign website. These charges typically show as charges on your credit card statement.

Why have I paid a foreign transaction fee?

If you were charged a foreign transaction fee, it’s likely you made a credit card purchase or other transaction while in a foreign country, or you may have shopped online with a foreign retailer that charges in foreign currency. Most debit cards, as well as credit cards, also have foreign usage fees.

To avoid foreign transaction fees in the future, use a card that doesn’t charge these fees when spending abroad.

How can I avoid credit card fees abroad?

Seek out credit cards with no foreign translation or loading fees. They tend to be marketed as travel credit cards.

A travel credit card is designed to help you spend cost-efficiently when you are abroad. That’s because, unlike a standard credit card (or even debit card), you won’t be hit by fees every time you use it.

Other advantages of credit cards with no foreign usage fees

There are other benefits to using a travel credit card as well as low or no foreign transaction fees on spending. These include:

purchase protection: Purchases made on a credit card, providing they cost over £100 and up to £30,000, are protected by Section 75 of the Consumer Credit Act even when made abroad. This means if what you purchased is faulty, or the company goes bust, the card provider is equally responsible alongside the retailer to provide a refund
competitive exchange rates: Travel credit cards tend to offer competitive exchange rates when spending overseas compared to standard credit cards and debit cards
cashback and rewards: Some travel credit cards also offer cashback or shopper reward points.

Pitfalls to watch out for

There are some pitfalls associated with credit cards with no foreign transaction fees, including:

high standard APR: As a rule, travel credit cards don’t offer 0% interest introductory deals, which means you’ll usually have to pay interest, and at a relatively high rate, if you are unable to clear your balance in full each month. The APRs advertised are only representative too. This means you could be offered a much higher APR depending on your credit score and personal circumstances
annual or monthly fee: Although travel credit cards are cheaper than standard credit cards for overseas spending, watch out for any annual or monthly fees that might apply on the card. You’re also likely to be charged if you are late with a monthly payment. The cards listed in our top picks above do not have monthly fees.

Frequently Asked Questions (FAQs)

How can I find the best travel credit card?

When searching for a new credit card it is important to shop around comparing representative APRs (interest rates) and the features of different cards. If you want a card specifically to use overseas you’ll want to compare cards with low or no foreign transaction fees (such as the ones listed in our table above).

Bear in mind you’ll usually need a strong credit score to be eligible for these cards. You can use an eligibility checker tool first (they are typically offered on the card providers’ websites) to see if you might qualify, and what APR (interest rate) you could be offered, all without having an impact on your credit score.

If you apply for a credit card and you’re declined this can have a negative affect on your credit score.

Can I use my existing credit card abroad?

There’s no reason your current credit card won’t work overseas, but it’s very likely to be more expensive than a specialist travel credit card that doesn’t charge fees on non-sterling transactions. Typical fees for foreign transactions on a standard credit card will be about 3%.

What are the alternatives to using a credit card overseas?

If you don’t want to use a credit card for spending while you’re abroad, or you’ve left it too late to apply for a specialist travel credit card before you go away, the alternatives might include:

bank debit card: Mastercard and Visa debit cards tend to be accepted all over the world for payments and cash withdrawals. This is a convenient way to pay while abroad. But there will usually be foreign transaction fees to pay, which could be high
prepaid currency card: this type of card enables you to load up your card with foreign currency in advance. If you spend what’s on the card, you simply top up again. Many of these cards are cheaper than standard credit cards and offer competitive exchange rates
cash: taking some currency in cash can be useful, particularly for smaller transactions while abroad. But avoid converting currency at the airport where exchange rates are likely to be poor and charges could be high. Compare rates and order your currency online to be delivered to your home in time for your trip.

Can I keep my travel credit card just to use on holiday?

Yes, usually you can. And contrary to what many may believe, keeping your credit card account open even if you don’t use it regularly can actually benefit your credit rating.

Having access to funds but not actually drawing on them can suggest you are solvent and in control of your finances, which can help improve your credit score. It can also keep your credit utilisation low. Just make sure you regularly check your statements for fraudulent activity.

Find The Best Credit Card

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Jo Thornhill Editor

I am passionate about personal finance issues and helping consumers navigate the world of insurance, credit, savings and pensions. I have been a money journalist for almost two decades, including ten years on the award-winning personal finance desk at the Mail on Sunday.