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Here’s a useful tip: As varied as they may be, most credit cards come with a foreign transaction fee. Most, but not all.
If you’re adamant about not paying extra fees when spending overseas, then you’ll want to exclude all those credit cards that come with a foreign transaction fee (there’re exceptions – we’ll get to those later).
That said, foreign transaction fees shouldn't be the only thing you consider before getting a credit card. You need to consider what's the annual fee, what rewards can you earn each month as well.
Clearly, there’s quite a bit to think about. Let’s zoom in for a closer look.
But first, let's discuss what exactly is a foreign transaction fee.
This makes it difficult to see how much more you’re paying, which means you may be unaware of the impact on your overseas spending.
For the avoidance of doubt, credit card overseas transaction fees are typically made up of two parts:
(1) A fee paid to the payment network such as Mastercard or VISA (typically 1%), and;
(2) A currency conversion fee charged by the processing bank, which ranges from 2% to 2.25%.
Whether it's for a last-minute getaway, or just shopping leisurely behind your computer, you can get away with this fee. And honestly, this gives anyone a peace of mind knowing that you will not be charged at all, except for your actual spends.
| Card issuer | Foreign transaction fee (FCY) | Rewards on overseas spending | Annual fee |
|---|---|---|---|
Mari Credit Card | 0 FX fees | ||
1.5% unlimited cashback | none | ||
Trust Credit Card | 0 FX fees | 0.5% unlimited cashback | none |
GXS FlexiCard | 0 FX fees | Up to S$3 cashback with minimum spend of S$10 | S$54.50 |
UOB EVOL Card | 0 FX fees | Up to 1% cashback
(valid till 30 Jun 2026) | none with min. 3 monthly transactions |
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• You travel several times a year
• You actively redeem air miles
• You’re comfortable tracking credit card rewards
Frequent travellers should focus less on foreign currency fees. Instead, pay attention to reward rates and perks – the value they provide can sometimes outweigh the foreign currency transaction fee. If that’s the case, it may be worth accepting the extra fee.
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• You travel one to two times a year
• Your overseas spend is mainly on dining and shopping
• You prefer simplicity in your credit card rewards
For casual travellers, it’s best to avoid paying the foreign currency transaction fee. There’s no point paying extra for your annual holiday after all. Look out for a card that gives you straightforward cashback with no hoops to jump through, and avoid complex rewards systems that require fulfilling several conditions.
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• You shop on overseas sites often
• Spend in foreign currencies without travelling
For online overseas shoppers who don’t travel much, travel perks don't matter. Prioritise credit cards that provide rewards that apply to online transactions made in foreign currencies – this way you can enjoy more value from your online shopping.
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• Larger overseas expenses
• Multiple transactions per trip
Family travellers are likely to spend larger amounts during overseas holidays, as they have to pay for multiple hotel rooms, plane tickets, meals, and other essential expenses. It’s important to avoid FX fees, which can add up to a significant amount during family trips. As you'll likely be spending on several different transactions, choosing a credit card that rewards a wide range of spending categories will be advantageous. Additionally, having easy spend tracking will allow convenient budget tracking throughout the trip.
The information provided here is intended for general circulation and/or discussion purposes only, and shall not be regarded as an offer, recommendation, solicitation or advice to buy or sell any product and shall not be transmitted, disclosed, copied or relied upon by any person for whatever purpose. Any description of products is qualified in its entirety by the terms and conditions of the product and if applicable, the prospectus or constituting document of the product. Nothing on this webpage constitutes accounting, legal, regulatory, tax, financial or other advice, and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. If in doubt, you should consult your own professional advisers about issues discussed herein. In the event that you choose not to seek advice from a financial adviser, you should consider whether the product in question is suitable for you.
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