Low Foreign Transaction Fee Credit Cards

The fact that credit cards can be used internationally, without the need for pre-arranged currency exchange, is one of their overriding benefits. Indeed, payment processors often boast of the number of worldwide locations their cards can be used in. However, foreign transactions typically incur a fee, so minimising that can be of great advantage if a card is regularly used abroad. The cards featured below offer 0% or reduced foreign transaction fees.

 APPLY ONLINE

Credit Needed
  • No fees on overseas purchases
  • 0% for 12 months on balance transfers (no fee), purchases, and money transfers (2% fee)
  • Use Virgin's Card Checker to see if you will be accepted without affecting your credit rating
  • Customers can also enjoy a host of travel offers including 5% off at Virgin Holidays and £25 cashback on Virgin Money Travel Insurance and Virgin Money International Money Transfers
  • Must be aged 18 or over, UK resident with a bank account, and have a good credit rating
  • Balance Transfers
    Intro
    0%
    12 Months
    0.00% Fee
    Purchase
    Rate
    0%
    12 Months
    Annual Fee
    £0
    Rewards
    Virgin travel discounts
    Representative
    APR (variable)
    19.9%
    APR

Representative Example: Representative 19.9% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 19.9% p.a. (variable)

 APPLY ONLINE

Credit Needed
Good
  • No foreign transaction fees on purchases when made in the local currency
  • Online and mobile banking so you can manage your account anywhere
  • No cash withdrawal fees at home and abroad (interest in charged immediately on cash withdrawals)
  • Apple pay enabled - Pay with your iPhone, iPad or Apple Watch
  • You will receive the exact rate and offer advertised if your application is accepted (Subject to status)
  • Balance Transfers
    Intro
    n/a
    Purchase
    Rate
    0%
    Annual Fee
    £0
    Rewards
    Retailer Cashback & Instore Discounts
    Representative
    APR (variable)
    18.9%
    APR

Representative Example: Representative 18.9% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 18.9% p.a. (variable)

 APPLY ONLINE

Credit Needed
Good
  • 0% on all purchases for the first 28 months
  • 0% on balance transfers for 18 months (2.89% fee)
  • Balance transfers must be made within three months of account opening
  • No cash fee to buy travel money at the Post Office
  • No fees on purchases overseas
  • You must be a UK resident, aged 18 years or over, have an income of at least £8,000, have no outstanding CCJs, have a current bank or building society account and not already hold a Post Office Money Credit Card
  • Post Office Credit Cards are provided by Bank of Ireland UK. Post Office Limited is a credit broker and not a lender
  • Balance Transfers
    Intro
    0%
    18 Months
    2.89% Fee
    Purchase
    Rate
    0%
    28 Months
    Annual Fee
    £0
    Rewards
    No Rewards
    Representative
    APR (variable)
    18.9%
    APR

Representative Example: Representative 18.9% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 18.9% p.a. (variable)

 APPLY ONLINE

Credit Needed
Good
  • 0% foreign currency fees for transactions worldwide
  • 0% on purchases and balance transfers for the first 9 months (3% fee applies)
  • Representative 11.9% APR (variable) - Plus benefits from discounts on board Saga cruise ships, at Saga resorts and when booking Saga holidays
  • Manage your account online 24/7
  • You must be a UK resident, aged 50+, have a good credit history, and have a regular income of at least £12,000 per year
  • Balance Transfers
    Intro
    0%
    9 Months
    3.00% Fee
    Purchase
    Rate
    0%
    9 Months
    Annual Fee
    £0
    Rewards
    Saga Product Discounts
    Representative
    APR (variable)
    11.9%
    APR

Representative Example: Representative 11.9% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 11.29% p.a. (variable)

 APPLY ONLINE

Credit Needed
Bad
  • 0.5% cashback on all purchases (Up to a maximum of £100 per annum)
  • Free Aqua credit checker
  • No fees on your purchases abroad, making this the card for your holiday
  • Good if you are new to credit or rebuilding your credit score with previous County Court Judgements
  • Start with a credit limit of £250 - £1,200 and you could get an increase on your 4th statement
  • Aqua has said YES to over 750,000 customers in the UK
  • You must be a UK resident, without CCJs in the past 12 months
  • Must not have taken out a Marbles card in the past 12 months
  • Balance Transfers
    Intro
    n/a
    Purchase
    Rate
    34.91%
    Annual Fee
    £0
    Rewards
    Cashback
    Representative
    APR (variable)
    34.9%
    APR

Representative Example: Representative 34.9% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 34.95% p.a. (variable)

 APPLY ONLINE

Credit Needed
Bad
  • Free Aqua Credit Checker
  • Opportunity to reduce your APR to 19.9% simply for making payments on time and keeping to your credit limit
  • No fees on your purchases abroad, making this the card for your holiday
  • Aqua accept applications from people who have had CCJs or are on a low income
  • Aqua has said YES to over 750,000 customers in the UK
  • You must be a UK resident, without CCJs in the past 12 months
  • Must not have taken out a Marbles card in the past 12 months
  • Balance Transfers
    Intro
    n/a
    Purchase
    Rate
    34.91%
    Annual Fee
    £0
    Rewards
    Free Credit Report Access
    Representative
    APR (variable)
    34.9%
    APR

Representative Example: Representative 34.9% APR (variable). Based on a credit limit of £1,200 and a purchase rate of 34.95% p.a. (variable)

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What are foreign transaction fees?

Although using a credit card abroad is often as simple and straightforward as using one in the UK, there is a price for this convenience.

Foreign transaction fees (sometimes referred to as ‘non-sterling transaction fees’) are a part of a credit card’s overall fee structure that is often overlooked when people are comparing products. However, they can add a considerable cost if a credit card is regularly used abroad.

Issuers charge foreign transaction fees to convert one currency to another when purchases are made in a foreign currency (as one might be charged in a Bureau de Change). Charges vary by card, as do the ways they are applied – some cards impose charges as a percentage of the overall transaction, whilst others charge a fixed fee per transaction.

When are foreign transaction fees charged?

Foreign transaction fees are charged on credit card purchases made abroad in a foreign currency. They are also charged on credit card purchases made online from the UK in a foreign currency.

Note: Foreign transactions can also apply in the UK where the territory does not use GBP, for instance Guernsey and Jersey (which have their own currencies – albeit pegged to Pounds Sterling)

Can foreign transaction fees be avoided?

Although many credit cards charge foreign transaction fees of around 3%, some cards charge considerably less (and some charge no foreign transaction fees whatsoever) so people who spend a significant amount abroad should shop around for the best deal. However, although fees of 3% may seem prohibitive, they are still lower than the conversion fees charged by PayPal and some other online payment platforms.

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