New research from personal finance website WalletHub reveals how Americans are approaching credit card spending when traveling overseas in addition to revealing the best credit cards for international travel in 2024.
Among the key findings, a majority of Americans—more than four out of five—believe foreign transaction fees are a rip-off.
The study also found that nearly one in three Americans don’t know whether their credit card has a foreign transaction fee and nearly two in three don’t realize foreign transaction fees can apply without foreign travel. This occurs when a purchase is made through an international merchant and processed abroad.
According to WalletHub, more than two in five people have paid a foreign transaction fee for an online purchase.
Americans have a lot to learn about credit card spending abroad. In fact, 82 percent of Americans don’t know that using a credit card gets them the best exchange rate when traveling abroad.
A couple booking travel with a credit card. (Photo Credit: Mediteraneo/Adobe Stock)
When it comes to generational concerns, 52 percent of Baby Boomers worry about card loss or theft the most when using their credit cards overseas while one-third of Millennials (34 percent) are most worried about foreign transaction fees.
Exchange rates (26 percent) and overspending (11 percent) are other top concerns.
Best Credit Cards for International Travel
Chase Sapphire Preferred Card
WalletHub experts say the Chase Sapphire Preferred Card is the best credit card for international travel because of its great rewards, low fees and helpful secondary benefits, including trip and luggage insurance.
Chase Sapphire Reserve
The Chase Sapphire Reserve credit card is the best for travel perks as it offers valuable rewards when users redeem for travel. What's more, Chase Sapphire Reserve doesn't charge a foreign transaction fee and offers benefits such as trip cancellation insurance, lost luggage reimbursement and airport lounge access.
Choice Privileges Select Mastercard
The Choice Privileges Select Mastercard is the best hotel credit card for international travel as cardholders can earn free nights without worrying about any foreign transaction fees. Users can also earn an initial bonus of 60,000 points when they spend $3,000 in the first three months.
JetBlue Plus Card
When it comes to U.S. airline credit cards, the JetBlue Plus Card is the best for international travel, offering an initial bonus of 50,000 points after you spend $1,000 in the first 90 days and pay the annual fee. Users can also earn ongoing rewards of one to six points per $1 spent without worrying about a foreign transaction fee.
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