Foreign transaction fees are levied on credit card purchases made abroad, in a foreign currency, and for transactions involved with a foreign bank. An average rate of 2% to 3% is charged for these credit cards, which is not necessarily a high rate. However, it can become a significant burden to pay off. There are two different types of fees levied on purchases made with foreign currency or through foreign banks. The first charge is levied by the payment network and an additional percentage is levied on the same transaction amount as that by the card issuer. How can you maximize your spending potential with credit cards with no foreign transaction fee? One of the things you should ensure is carrying sufficient cash and credit while traveling abroad. It is advisable to use your credit cards to make purchases and hire services, but keep sufficient cash with you for emergencies. Apply for a no foreign transaction fee credit card that is globally accepted among popular networks such as VISA and Mastercard , also known as an international credit card Among important things to consider while choosing no foreign transaction fee credit cards is understanding the rates and fees clause in your application.