Best Credit Card For Overseas Spending in 2026

Other Options to Consider

‍

Chase Sapphire Reserve®

‍

[[ SINGLE_CARD * {"id": "510", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "$300 Annual Travel Credit"} ]]

‍

‍

Capital One Venture Rewards Credit Card

‍

[[ SINGLE_CARD * {"id": "438", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "High Travel Rewards" } ]]

‍

‍

How to Choose a Credit Card for Overseas Spending

‍

Choosing the right credit card for your next trip abroad can feel like a high-stakes decision, but understanding a few key features will help you pick the best option for your wallet.

‍

Be wary of cards that charge foreign transaction fees, as these can add an extra 3% to all your purchases abroad. It's also wise to confirm that your card's network is widely accepted in your destination to avoid being caught without a payment method.

‍

Key Factors

‍

• No Foreign Transaction Fees: Look for a card that explicitly waives foreign transaction fees, which can save you from paying an extra percentage on every purchase you make abroad.
• Favorable Exchange Rates: While most major card networks offer competitive currency exchange rates, it's a good idea to understand how your card handles conversions to ensure you're getting a fair deal.
• Worldwide Acceptance: Ensure your card's network, such as Visa or Mastercard, is widely accepted in your destination to avoid payment issues.
• Travel-Focused Rewards: Choose a card that rewards your spending with points or miles that can be redeemed for flights, hotel stays, or other travel perks.
• Annual Fee vs. Benefits: Weigh the card's annual fee against the value of its perks, such as travel credits or lounge access, to determine if the cost is justified for your travel habits.
• Built-in Travel Insurance: Many travel credit cards offer valuable protections like trip cancellation coverage, lost luggage reimbursement, and rental car insurance, which can provide significant peace of mind.

‍

What to Watch Out For

‍

Beyond the obvious fees, watch out for a practice called dynamic currency conversion, where a merchant offers to process your payment in your home currency—always decline and pay in the local currency to avoid a poor exchange rate. Also, resist the allure of premium travel cards with hefty annual fees unless you're certain you'll use the accompanying perks, like lounge access or travel credits, enough to make the cost worthwhile.

‍

Decision Flow

‍

• If your main goal is simplicity and avoiding fees: Focus on finding a card with no annual fee that also waives foreign transaction fees. This is the most straightforward approach to save money on international purchases without needing to track rewards or justify a yearly cost.
• If you want to earn rewards on your travel spending: Opt for a general travel rewards card. These cards typically offer bonus points or miles on broad categories like dining and travel, which are common expenses abroad. The rewards you accumulate can then be used to offset the cost of future trips.
• If you prioritize comfort and premium perks: A premium travel card is likely your best fit. Despite their high annual fees, these cards provide valuable benefits like airport lounge access, annual travel credits, and robust travel insurance that can significantly elevate your travel experience.
• If you are loyal to a specific airline or hotel chain: Look into a co-branded credit card. The perks, such as elite status, free checked bags, or complimentary hotel nights, can offer substantial value when you're traveling internationally with that brand. Just confirm it doesn’t charge foreign transaction fees.

‍

Maximize Your Return with Overseas Spending

‍

To get the most out of your credit card rewards while spending overseas, it pays to be strategic. Here are a few tips to maximize your return:

• Choose cards with no foreign transaction fees: These fees, often around 3% of each purchase, can easily wipe out any rewards you earn, so prioritize cards that waive them.
• Stack rewards with shopping portals: Before buying from international merchants online, check if you can access them through a shopping portal to earn extra points or cash back on top of your card's regular rewards.
• Always pay in the local currency: If a card reader asks whether you want to pay in your home currency or the local one, always choose local to avoid poor exchange rates associated with dynamic currency conversion.
• Redeem points for high-value travel: You can often get more value from your points by transferring them to airline and hotel partners for international flights and stays, rather than redeeming them for cash back.
• Understand your bonus categories: Be aware that how merchants are categorized abroad can differ, which might affect whether a purchase qualifies for bonus rewards in categories like dining or transit.

‍

Supercharge your Rewards with Kudos

‍

This free app automatically selects your best card at checkout across millions of stores, helping you earn up to $750 more in rewards each year. Get started for free.

‍

Other Things to Consider

‍

Beyond picking the right card, your overall financial strategy plays a huge role in managing expenses abroad. While a store-specific card might seem appealing for a favorite international retailer, its benefits are often too narrow for general travel compared to a versatile travel rewards card. Regardless of your choice, disciplined debt management is paramount; always aim to pay your balance in full to sidestep high-interest charges that can quickly inflate your travel costs. It's also wise to supplement your card with a reasonable amount of local currency for smaller vendors and to be cautious with "Buy Now, Pay Later" plans, which can complicate your budget. A balanced approach, combining the security of a good credit card with prudent cash use and debt avoidance, will ensure your finances stay on track while you're away.

‍

Our Methodology

‍

We evaluate nearly 3,000 credit cards across the U.S. market — far more than the ~150 cards commonly featured on sites that focus only on products tied to affiliate commissions. Our goal is to provide a comprehensive, unbiased view of the credit card landscape so you can make confident, data-driven decisions.

‍

Our editorial team combines deep industry experience with rigorous verification standards. While our experts surface the most relevant recommendations in our guides, you can also explore the full dataset yourself through our card explorer tool, which includes thousands of cards — more than 95% of which do not provide us with commissions.

Frequently Asked Questions

‍

What are foreign transaction fees?

‍

Foreign transaction fees are charges, typically 1% to 3% of the purchase amount, that some credit card issuers add to transactions made outside your home country. To avoid them, use a credit card that explicitly states it has no foreign transaction fees.

‍

Should I pay in the local currency or my home currency when traveling?

‍

Always choose to pay in the local currency when using your credit card abroad, as this will secure a more favorable exchange rate. Opting to pay in your home currency often results in higher costs due to a process called dynamic currency conversion.

‍

Do I need to tell my credit card company I'm traveling?

‍

Most major credit card issuers no longer require you to set up a travel notice due to their advanced fraud detection systems. However, checking your issuer's specific policy before you depart is still a wise precaution to prevent your card from being flagged for suspicious activity.

‍

‍

‍

‍