Holiday travel in 2025 is expected to surge, with millions of people booking international trips for Christmas and New Year’s. But there’s one hidden cost that can quickly turn your joyful journey into a financial headache: foreign transaction fees.
These fees—usually 2% to 3% of every purchase made outside your home country or in a foreign currency—may not sound like much at first. But when you’re buying flights, hotel stays, meals, and souvenirs abroad, they can easily add hundreds of dollars to your travel bill.
The good news? You don’t have to pay them. Many banks now offer credit cards with no foreign transaction fees, specifically designed for travelers who want to save money while enjoying perks like travel insurance, lounge access, and reward points.
In this guide, we’ll break down the best no-foreign-transaction-fee credit cards for holiday travel in 2025, compare their features, and help you choose the one that fits your lifestyle.
(Note: This content is for educational purposes only. Please consult your bank or financial advisor for professional advice.)
What Are Foreign Transaction Fees? (And Why You Should Avoid Them)
- Definition: A fee charged (usually 2–3%) when you make a purchase in another country or in a foreign currency online.
- Who charges it: Your credit card issuer or bank.
- Real example: If you spend $1,000 abroad, a 3% fee = $30 in unnecessary charges.
- Why it matters during holidays: Travel costs are already high. Saving even a few hundred dollars on fees means more money for gifts, experiences, and celebrations.
Benefits of No-Foreign-Transaction-Fee Credit Cards
- Save money instantly – No 3% penalty on every international purchase.
- Better exchange rates – Credit cards often provide more favorable currency conversion rates than exchange counters.
- Travel rewards – Earn points or miles on every holiday purchase.
- Extra perks – Lounge access, free checked bags, rental car insurance, trip delay coverage.
- Peace of mind – Fraud protection and easier dispute resolution than debit cards or cash.
Top 10 No-Foreign-Transaction-Fee Credit Cards for Holiday Travel 2025
Here’s our list of the best options this year, covering frequent flyers, casual travelers, students, and families.
1. Chase Sapphire Preferred® Card
- Annual Fee: $95
- Why it’s great: One of the most popular travel cards.
- Perks:
- 2x points on travel & dining
- 1:1 point transfer to major airlines and hotels
- Strong travel insurance protection
- Best for: Frequent travelers who want flexibility in using points.
2. Capital One Venture Rewards Credit Card
- Annual Fee: $95
- Why it’s great: Simple flat-rate rewards.
- Perks:
- 2x miles on every purchase
- Transfer miles to 15+ airline partners
- Global Entry or TSA PreCheck credit
- Best for: Travelers who prefer straightforward earning and redemption.
3. American Express® Gold Card
- Annual Fee: $250
- Why it’s great: Perfect for foodies who travel.
- Perks:
- 4x points on restaurants worldwide
- 3x points on flights booked directly or via AmEx Travel
- Up to $120 dining credits per year
- Best for: Students and young professionals who spend a lot on dining and travel.
4. Chase Sapphire Reserve®
- Annual Fee: $550
- Why it’s great: Premium travel perks.
- Perks:
- 3x points on travel & dining
- Priority Pass airport lounge access
- $300 annual travel credit
- Comprehensive travel insurance
- Best for: Luxury travelers who want VIP experiences.
5. Discover it® Miles
- Annual Fee: $0
- Why it’s great: Budget-friendly with no annual fee.
- Perks:
- 1.5x miles on all purchases
- Match your miles in the first year (double rewards)
- No blackout dates when redeeming miles
- Best for: Students and occasional travelers looking for no annual cost.
6. Bank of America® Travel Rewards Card
- Annual Fee: $0
- Why it’s great: Flexible redemption options.
- Perks:
- 1.5x points on all purchases
- No expiration on points
- Extra rewards for Bank of America Preferred Rewards members
- Best for: Everyday spending plus travel.
7. Citi Premier® Card
- Annual Fee: $95
- Why it’s great: Strong rewards for diverse spending.
- Perks:
- 3x points on air travel, hotels, gas, and supermarkets
- Transfer to airline partners
- Annual hotel savings benefit ($100 off)
- Best for: Families booking flights, hotels, and groceries abroad.
8. Capital One Quicksilver Cash Rewards Credit Card
- Annual Fee: $0
- Why it’s great: Simple cashback option.
- Perks:
- 1.5% cashback on every purchase
- Easy-to-understand rewards
- Fraud coverage & travel accident insurance
- Best for: Beginners and students.
9. American Express® Green Card
- Annual Fee: $150
- Why it’s great: Travel perks without being too premium.
- Perks:
- 3x points on travel, transit, and restaurants
- CLEAR Plus membership credit
- LoungeBuddy credit for occasional lounge use
- Best for: Casual travelers who want flexibility.
10. Wells Fargo Autograph℠ Card
- Annual Fee: $0
- Why it’s great: Generous rewards with no cost.
- Perks:
- 3x points on restaurants, travel, gas, and streaming
- Cell phone protection when paying with your card
- No foreign transaction fees
- Best for: Students, families, and budget-conscious travelers.
Quick Comparison Table
| Credit Card | Annual Fee | Rewards Rate | Key Travel Perks | Best For |
|---|---|---|---|---|
| Chase Sapphire Preferred | $95 | 2x travel & dining | Insurance, point transfers | Frequent travelers |
| Capital One Venture | $95 | 2x on all purchases | Airline transfer partners | Simple earners |
| AmEx Gold | $250 | 4x dining, 3x flights | Dining credits | Foodies/students |
| Chase Sapphire Reserve | $550 | 3x travel & dining | Lounge, $300 credit | Luxury travelers |
| Discover it Miles | $0 | 1.5x all | First-year double miles | Students |
| BofA Travel Rewards | $0 | 1.5x all | No expiration | Everyday spenders |
| Citi Premier | $95 | 3x on travel, gas, supermarkets | Hotel savings | Families |
| Quicksilver | $0 | 1.5% cashback | Travel accident insurance | Beginners |
| AmEx Green | $150 | 3x travel & dining | CLEAR + LoungeBuddy | Casual travelers |
| Wells Fargo Autograph | $0 | 3x travel, dining, gas | Cell phone protection | Students/families |
How to Choose the Right No-Foreign-Fee Card for Holiday Travel
- Check your credit score – Most travel cards require good to excellent credit.
- Look at your spending style – Dining? Flights? Hotels? Choose rewards accordingly.
- Compare annual fees vs benefits – A $95 fee may pay off if you travel enough.
- Consider travel perks – Lounge access, trip insurance, baggage coverage can be valuable.
- Don’t forget everyday use – Pick a card you can still benefit from after the holidays.
READ MORE: Top 10 Credit Card Offers in 2025: Which One Fits Your Lifestyle?
Pro Tips to Maximize Your Card Abroad
- Always pay in local currency (avoid “dynamic currency conversion”).
- Notify your bank about holiday travel to avoid fraud alerts.
- Carry a backup card in case one is declined.
- Use reward portals for booking flights & hotels to earn extra points.
- Redeem points for travel (not cash) to get maximum value.
Call to Action
Traveling this holiday season doesn’t have to come with surprise costs. Choosing the right no-foreign-transaction-fee credit card can save you hundreds of dollars while giving you travel perks and peace of mind.
👉 Explore more smart credit card tips on our Smart Tips Category to make your money go further in 2025!