Foreign exchange fees on transactions made outside the U.S. are 3% on most credit cards. Needless to say, that adds up fast when traveling in foreign countries. So a commonly asked question is “Which credit card can I use when I’m traveling abroad to minimize the foreign exchange fees?”

Capital One cards are almost always the best choice because Capital One entirely eliminates the foreign exchange fee, their Visa and MasterCard cards are accepted around the globe, and some Capital One reward cards will earn you from 1% to 3% rewards in various categories. One compelling Capital One card is the Capital One® No Hassle Miles(SM) Rewards - MasterCard Excellent 1x - 2x Miles Rewards, which pays 2% rewards on all spending over $1000 in any month.

Discover also eliminates the foreign exchange fee for their cards and does pay up to 1% cash back on most transactions. However, Discover is not widely accepted in most foreign countries. The one noteworthy exception is China. Discover is accepted by China UnionPay, which is the largest payment system there. If Discover works for your travel plans, then you'll want to check out the Discover® Open Road(SM) Credit Card.

You can also use the Credit Card Tune-Up rewards calculator to find the Capital One or Discover card that will pay you the most for your expected spending profile while traveling abroad.