Fidelity recently announced a significant update to its Fidelity Rewards Visa Signature Credit Card.
The main highlight of this update is the elimination of foreign transaction fees (FTF).
Fidelity Credit Card Foreign Transaction Fee in 2023
All new and existing Fidelity credit cardholders will now benefit from 0% foreign transaction fees for each foreign purchase transaction or foreign ATM advance transaction in U.S. Dollars or in a foreign country.
Does Fidelity 2% Cashback Cover Foreign Purchases?
Fidelity customers can continue to earn 2% cashback on every foreign purchase. However, foreign cash transactions are not eligible for Rewards Points.
Does Fidelity Credit Card Have Car Rental Coverage?
The Fidelity credit card does not offer rental car coverage or protection.
How the 0% foreign transaction fee actually works
Eliminating the foreign transaction fee doesn’t mean currency conversion is free — it means Fidelity isn’t adding its own markup on top of the exchange rate. Purchases made in a foreign currency are still converted to U.S. dollars using the Visa network’s daily exchange rate, which already includes a small built-in spread set by Visa (typically a fraction of a percent). That’s standard across virtually every card, including other no-FTF cards, so there’s no way to avoid it entirely — the Fidelity card simply doesn’t tack on an additional fee beyond that.
How it compares to other no-foreign-transaction-fee cards
A 2% flat cashback rate with no annual fee and no FTF is a strong combination — most travel rewards cards that waive foreign transaction fees charge an annual fee (often $95–$695) to justify richer travel perks. The Fidelity Rewards Visa Signature trades away airport lounges, travel insurance, and transferable points for simplicity: flat cashback, no annual fee, and no foreign transaction fee, deposited directly into an eligible Fidelity account.
Tips for using the card internationally
- Always choose to be charged in the local currency, not U.S. dollars, when a foreign merchant or ATM offers “dynamic currency conversion” — that conversion typically carries a worse rate than Visa’s network rate.
- Notify Fidelity of international travel if you’re concerned about a fraud hold, though this isn’t always required.
- Keep in mind that while purchases have no FTF, foreign ATM cash advances are not eligible for the 2% cashback, as noted above.
This is general information, not personalized financial advice. UseFidelity is not affiliated with or endorsed by Fidelity Investments.