Are you looking for credit cards with no foreign transaction fees and cash back?

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There are a number of American credit cards that will not charge you additional fees and give good cash back. Here is a complete guide to what you need to know about using your credit card outside the US.

What is a Foreign Transaction Fee?

Banks are businesses to make money. Their job is to take care of your financial ins and outs. They keep your money, sometimes lend you some, and sometimes help you invest in your future – and for all this, they charge you a fee.

To be honest, there’s nothing objectionable in paying a reasonable fee or service charge for the services you are availing. But there are still some absurd and unnecessary charges that no one wants to pay especially when you get to know you can avoid them.

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Out of all the charges, credit card charges are the most outrageous, especially foreign transaction fees. Many credit card companies charge up to 3% of a foreign transaction fee with nothing for the customers in return.

The amount that is charged when you carry out an international transaction or online payment is called the foreign transaction fee. It must be noted that this is a different fee than a foreign exchange fee. With that said, a foreign transaction fee will be charged on any foreign purchase, even if you are buying it in US dollars.

Contrary to popular belief, you don’t have to be on foreign lands to pay a “foreign” transaction fee. You may even have to pay this fee when you’re buying something from a foreign company online. An example could be an international online brand from which you purchase something using your credit card.

The worst part is that you don’t get anything in return of that foreign transaction fee. All the reason it becomes so painful. With the increasing research on this issue, many credit card users are now aware that the foreign transaction fee is just an unnecessary charge. Many banks and credit card companies have stopped charging this fee now. So the best way to avoid it is to go for a credit card that does not have foreign transaction fees and good cash back.

Cash back is a reward that you get back for spending through your credit card

What is Cash Back?

Credit card companies are not all about charging you unnecessary fees, they also reward you. Cash back is a reward that you get back for spending through your credit card. The reward is offered as a percentage of the money you spend, which means the more money you spend on your credit card, the more chances you have to earn more cash.

This is one reason why many people prefer good cash back credit cards for their everyday shopping. Most people now prefer using credit cards over cash or debit cards that have no returns at all. At least, you can get cash back when using a credit card!

There are limits set on the percentage of cash you can get back by every credit card company. These are regulated through reward programs and promotion offers. Cash backs come in many forms from bank deposits and deductions from credit card balances to gift cards.

Just remember to always be careful when using credit cards if you don’t want to be indebted for life. Cash backs are a great incentive but they certainly do not mean that you can overspend on credit cards and end up drowning in debt.

Credit cards with no foreign transaction fees and cash back are highly beneficial as you can earn more rewards on your international purchases without even giving foreign transaction fees. These solid credit cards are wiser and better.          

Top 11 Credit Cards With No Foreign Transaction Fees and Cash Back

1. HSBC Cash Rewards Mastercard®  

This credit card has no foreign transaction fees and offers solid cash back. The credit card also follows a very simple rewards structure and no annual fee charged for the card.

There’s also a signup bonus of 3% cash back. The card offers cash back rewards to new customers on spending of up to $10,000 in the first year.

The HSBC credit card is a good option to earn cash rewards

If you’re intending to use this card for a long time, then we have great news for you. This card offers cash back of 1.5% on all spending second year and on.

The annual percentage rate (APR) for the first year is 0% on all spending and transfers. From the second year onward, based on the creditworthiness, the APR rises to 15.24%, 19.24%, or 25.24%.

You also get an anniversary bonus of 10% on cash rewards which means that you can travel and shop around the world without any hassle.

2. Chase Sapphire Preferred® Card 

Not only does this card have no foreign transaction fee but there’s also the added benefit of 0% APR for the first year. From the second year onward, this rate is 18.24% to 25.24% according to creditworthiness.

There’s also a sign-up bonus for first timers of 60,000 bonus points on spending $4,000 in the first three months.

Here are a few other benefits of the Chase Sapphire Preferred Card:

  • Rewards and bonus points on credit card spending
  • Two points for every dollar spent internationally
  • Points can be redeemed for more rewards

3Discover it ® Cash Back 

With the Discover it card, you can benefit from cash back at the rate of 5% on purchases–but only in certain categories. The categories are divided in quarters. The first quarter includes gas stations and wholesalers. The second quarter includes groceries, while the third quarter includes restaurants. The last quarter includes Amazon. The purchases made in each quarter can reach up to $1,500.

This credit card takes no foreign transaction fee so you can enjoy shopping while travelling

This format is appreciated by quite a number of people since quarterly boosts can make spending systematic.

Here are some more features of the Discover it cashback card:

  • 0% APR in the first 14 months of using the credit card
  • APR will be dependent on creditworthiness ranging from 14.24% to 25.24% after the first 14 months
  • No annual fee

4. Quicksilver ® from Capital One ® 

With this card, you can not only enjoy foreign transactions without any fee, but there’s also no annual fee making things even better for users.

The Quicksilver card is a great option for anyone looking for great returns

Here’s what else is in store:

  • 0% APR for the first 15 months followed by 16.24%, 22.24%, or 26.24% depending on creditworthiness
  • Signup bonus of $150 in cash on spending $500 within first 3 months
  • Unlimited cash back of 1.5% on all spending

This card by Capital One also offers several travel services such as insurance, warranty benefits, and other assistance which helped it win its spot in our list of top credit cards with no foreign transaction fees and cash back.

5The Platinum Card® from American Express 

You don’t have to worry about any foreign transaction fee when using the Platinum Card from American Express. Additionally, you also get 5 reward points for every dollar you spend when buying tickets from American Express Travel or the websites of some airlines.

The credit card gives additional bonus on American Express Travel tickets

Another reason why this card is great for travelers is that you get 5 points for every dollar on booking hotels from amextravel.com. You also get one point for every dollar on every other purchase when using this credit card.

Here are a few more features and benefits of the card:

  • 0% intro APR with no follow ups
  • No balance transfer fee
  • Signup bonus of 60,000 reward points on spending of $5,000 in first 3 months
  • Monthly Uber credits
  • Annual fee of $550

With all these benefits, it’s really no surprise that the Platinum Card from American Express made it to our list of the top credit cards with no foreign transaction fees and cash back.

6. The Wells Fargo Propel American Express® 

With the Wells Fargo Propel American Express card, there’s not only no foreign transaction fee but you also won’t have to worry about any annual fees when you’re using this card.

The card has no annual fee or foreign transaction fee

Additionally, you also have the added benefit of a signup bonus of 30,000 points on spending $3,000 in the first three months and three points for every dollar spent from the second year onward.

Here’s what else is in store:

  • Intro APR 0% followed by 16.24% to 28.24%
  • Free balance transfers for first year
  • If your credit card is damaged or stolen, you can benefit from the cell phone protection option
  • Easy payment of cell phone bills

7Savor® Rewards from Capital One®

There’s no foreign transaction fee with the Savor Rewards card from Capital One. The annual fee of $95 is also waived off for the first year. These factors — and many more — make it one of the best options available.

The Savor card has an annual fee that is waived off in first year

Here are a few more features and benefits of using this card for your purchases:

  • Signup bonus of $300 cash on spending $3,000 in first three months
  • Unlimited cash back of 4% on restaurants and entertainment, 2% on groceries, and 1.5% on all others
  • Intro APR at 0% followed by 16.74% to 25.74%
  • Other perks on traveling

8. Southwest Rapid Rewards® Premier Credit Card 

With the Southwest Rapid Rewards Premier credit card, there’s no foreign transaction fee and an introductory APR of 0%.

The card has no foreign transaction fee but an annual fee of $99

Here are some other reasons why you should opt for the Southwest Rapid Rewards Premier card:

  • Annual fee of $99
  • Signup bonus of 60,000 points on spending $2,000 in the first 3 months
  • 6,000 anniversary bonus rewards every year
  • Companion Pass to allow a friend fly free with the cardholder
  • Two points for every dollar spent on Southwest purchase
  • One point for every dollar on all other purchases
  • APR varying from 18.24% to 25.24% from the second year and onward

9. Costco Anywhere Visa® Card by Citi 

When you’re using the Costco Anywhere Visa card, there’s no transaction fee or annual fee that you’ll have to worry about and you get Costco membership absolutely free as part of the package!

The card has no annual fee and foreign transaction fee making it feasible to use

Here’s what else you can get your hands on when you opt for the Costco Anywhere Visa Card by Citi:

  • Rewards on gas, groceries, traveling, dining, entertainment, and all Costco purchases
  • Up to 4% cash back on all spending
  • Free entry at Costco
  • Travel insurance and protection
  • Purchase warranties

10. Capital One® Secured Mastercard 

With the Capital One Secured Mastercard credit card, there aren’t any foreign transaction fees or annual fees that you’ll have to worry about. Moreover, you can apply for the Capital One Secured Mastercard even if your credit score isn’t all that great.

Here are some of the features of the Capital One Secured Mastercard credit card that can help you decide if it’s best for you:

  • Requires a security deposit against issuance of card
  • No signup bonus
  • Card limit is the security deposit amount
  • 0% intro APR followed by 26.99%
  • No balance transfer fee

11. PayPal Cashback Mastercard®

There are no foreign transaction fees or annual fees with the PayPal Cashback Mastercard. Additionally, you get relatively high cash back returns at 2% on all spending including PayPal.

Here’s what else makes the PayPal Cashback Mastercard great:

  • Easy redemption of points
  • Extended warranties
  • Price protection for 60 days. Products can be reimbursed if prices drop
  • Additional services for identity theft with free alerts and affidavit assistance

There you have it. These were the 11 best credit cards with no foreign transaction fees and cash back.

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