Cash Back Credit Cards With No Annual Fee and No Foreign Transaction Fees

If you’re searching for a cash back credit card with no annual fee and no foreign transaction fees, you’re really looking for a combination of three things:

• Simple rewards on everyday spending
• No yearly cost to keep the card open
• No extra charges when used outside the U.S.

That combination does exist—but it’s more limited than most people expect.

The Reality: Very Few Cards Meet All Three Conditions Cleanly

Most cash back credit cards fall into one of two groups:

• They have no annual fee but charge foreign transaction fees
• They remove foreign transaction fees but are tied to specific memberships or ecosystems

So when you find a card that appears to meet all three requirements, there is usually a catch somewhere in the structure.

The Main Example: Costco Anywhere Visa^® Card by Citi

One of the clearest examples of a cash back card with no annual fee and no foreign transaction fees is the Costco Anywhere Visa^® Card by Citi.

On paper, it checks all the boxes:

• No traditional annual fee for the card itself
• No foreign transaction fees
• Strong cash back structure across multiple categories

But there is an important condition:

You must have a paid Costco membership to use the card.

How the Cash Back Structure Works

The card is designed around everyday spending categories rather than a flat-rate system:

• Higher rewards on gas purchases
• Cash back on restaurants and travel
• Lower baseline rewards on general purchases

Instead of focusing on one simple rate, the card adjusts rewards based on where you spend the most.

The Hidden Trade-Off Most People Miss

While the card removes foreign transaction fees and avoids a traditional annual fee, the Costco membership effectively becomes the cost of entry.

This creates an important distinction:

You’re not paying for the credit card directly—you’re paying to access the system it belongs to.

Who This Type of Setup Actually Works For

This kind of cash back setup makes the most sense if:

• You already shop at Costco regularly
• You want strong gas and travel rewards
• You travel occasionally and want no foreign transaction fees
• You prefer using one primary card for multiple categories

When It Doesn’t Make Sense

This type of card is less useful if:

• You don’t already have a Costco membership
• You want a simple flat-rate cash back structure
• You don’t spend heavily in its bonus categories

Final Thought

A cash back credit card with no annual fee and no foreign transaction fees sounds simple—but in practice, it often comes down to trade-offs in structure rather than true “zero-cost” value.

In practice, most of the closest real-world examples of this type of setup come from membership-based ecosystems rather than traditional standalone credit cards.

The Costco Anywhere Visa^® Card by Citi is one of the clearest examples, where rewards structure and access are tied to a broader ecosystem rather than a standalone credit card decision.

➤ See how Costco’s credit card system works in practice

In the end, the best card is not the one that removes every fee—it’s the one where the remaining cost structure matches how you already spend.