International card guide
Best card to use outside the U.S.
Find the best card abroad by subtracting foreign transaction fees and comparing merchant category rewards, credits, acceptance, and insurance.
Last reviewed August 30, 2026 · Issuer terms can change · How rankings work
The short answer
Use the no-foreign-fee card with the highest net value for the merchant category. A 3% foreign transaction fee usually wipes out ordinary rewards, and there is no magic purchase-size threshold because both the fee and rewards scale with the charge.
Compare the cards I haveWhat to use—and when
Strong travel and dining options
Sapphire Preferred or Reserve
Both avoid foreign transaction fees; the winner depends on the category, merchant, unused credits, and insurance needs.
Strong international dining option
Amex Gold
Earns 4× at restaurants worldwide with no foreign transaction fee, where American Express is accepted.
Usually leave it home abroad
Freedom Unlimited
Its 3% foreign fee must be subtracted from rewards. Even when points are pooled into a Sapphire account, the net edge is often tiny or negative.
Decision rules
- Net value = reward value + usable credit − foreign transaction fee.
- For rental cars, insurance can be worth more than a modest rewards difference.
- Carry a Visa or Mastercard backup even when an Amex produces the highest modeled reward.
Common traps
- Always reject dynamic currency conversion and pay in the merchant’s local currency.
- Being charged in U.S. dollars does not guarantee U.S. processing and can include a poor merchant conversion rate.
- Foreign transaction fees are usually percentage-based, so a larger purchase does not create a special break-even threshold.
$500 foreign purchase example
A 3% foreign fee costs $15. A 1.5× card earning points worth 1¢ each produces only $7.50 of rewards, for a net loss of $7.50 versus cash value. A 2% no-fee card produces $10 instead.
Questions people actually ask
If I choose U.S. dollars abroad, does that avoid a foreign transaction fee?
Not necessarily. The merchant can still be foreign, and choosing dollars may add an unfavorable merchant conversion. Pay in local currency and let your no-foreign-fee card network convert it.
Is Freedom Unlimited worth using abroad for a small purchase?
Purchase size does not change the percentage math. Use it only if its reward value after the 3% fee still exceeds every no-fee card you carry.
Primary sources
SwipeCue is independent and does not use affiliate links on this page. Verify material purchases against current issuer terms. See the methodology or report a correction.
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