No. A no-foreign-transaction-fee credit card waives the network fee on point-of-sale purchases abroad, nothing more. Pull cash from a foreign ATM with that same card and you’re making a cash advance, which carries its own fee and starts charging interest immediately, regardless of what the card’s foreign transaction fee policy says.
The short answer
Foreign transaction fee and cash advance fee are two completely different charges that happen to both show up on a credit card statement. A card can waive one and still charge the other in full:
- Foreign transaction fee: a network fee (usually 1% to 3%) charged on purchases made outside the US. Cards like the Chase Sapphire Preferred, Chase Sapphire Reserve, and Capital One Venture X waive this entirely.
- Cash advance fee: a separate charge for withdrawing cash against your credit line, whether you’re at a foreign ATM or a domestic one. It applies no matter what the card’s foreign transaction fee policy is.
Swiping the Chase Sapphire Preferred at a restaurant in Lisbon: no foreign transaction fee, full stop. Sticking that same card into an ATM down the street to get euros: cash advance fee, plus interest that starts accruing the moment the cash comes out, plus whatever the ATM operator charges on top.
What it actually costs
The Chase Sapphire Preferred’s cash advance fee is 5% of the amount withdrawn or $10, whichever is greater, with a 25.74% variable APR on cash advances specifically (verified against Chase’s published terms, 2026-08-11). There’s no grace period on a cash advance the way there is on a purchase. Interest starts the day the cash leaves the machine, even if you pay your statement in full that month.
Layer on the ATM operator’s own surcharge, commonly $3 to $8 at a foreign machine, and a $200 cash withdrawal on a no-FTF credit card runs something like this:
| Cost | Credit card cash advance | Fee-free debit card |
|---|---|---|
| Cash advance fee | $10 (5% of $200, $10 minimum) | $0 |
| Foreign ATM operator surcharge | $3 to $8 (not reimbursed) | $3 to $8 (reimbursed by some debit accounts) |
| Interest (10 days outstanding, no grace period) | ~$1.40 (25.74% APR on $200) | $0 (not a loan) |
| Total on $200 | ~$14 to $19 | $0 to $8 |
That gap compounds every time you visit an ATM on a trip. Pull cash three or four times over a two-week vacation and the credit card route costs $50 to $75 more than a debit card built for travel, on top of whatever interest keeps accruing if the statement doesn’t get paid off immediately.
Which cards waive the foreign transaction fee (and why that doesn’t help at the ATM)
| Card | Annual fee | Foreign transaction fee | ATM cash withdrawal |
|---|---|---|---|
| Chase Sapphire Preferred | $95 | $0 | Cash advance: 5% or $10 minimum, 25.74% variable APR, no grace period |
| Chase Sapphire Reserve | $795 | $0 | Cash advance fee and APR: check current terms at chase.com |
| Capital One Venture X | $395 | $0 | Cash advance fee and APR: check current terms at capitalone.com |
| Chase Freedom Flex | $0 | $0 starting Sep 20, 2026 (was 3%) | Cash advance fee and APR: check current terms at chase.com |
All three are genuinely good cards to carry abroad, for purchases. That’s the whole point: the $0 foreign transaction fee is real and valuable at restaurants, hotels, and shops. It just doesn’t extend to the ATM, on any of them, because a cash withdrawal isn’t a purchase in the card issuer’s eyes. It’s a loan against your credit line, priced and treated completely differently from the day you take it out.
The Chase Freedom Flex is the newest entry and the only $0-annual-fee card in this table. Its foreign transaction fee waiver does not take effect until September 20, 2026; before that date it still charges the standard 3%. Once it kicks in, it closes the gap between premium travel cards and no-fee cash back cards on this specific benefit, though the ATM cash-advance trap applies to it exactly the same as the other three.
What to actually use for cash abroad
A debit card built for travel, not a credit card. Several checking accounts refund ATM operator fees worldwide and charge no foreign transaction fee on withdrawals, which is the closest thing to free foreign cash access that exists:
- Charles Schwab Investor Checking: unlimited, automatic monthly reimbursement of ATM fees worldwide, no foreign transaction fee. No minimum balance.
- Any debit card at your primary bank still works, it just may carry its own foreign transaction fee (commonly 1% to 3%) and won’t reimburse the ATM operator’s surcharge, so check the account’s disclosure before a trip.
The split that actually saves money: swipe the no-FTF credit card for every purchase you can (restaurants, hotels, shops, transit), and pull cash only from a fee-free or fee-reimbursing debit account, only when a merchant genuinely requires cash. That combination captures the real 0% foreign transaction fee benefit on the spending side while avoiding the cash advance trap entirely.
The DCC trap compounds this
While you’re at the ATM, most machines abroad will prompt “withdraw in US dollars instead?” This is dynamic currency conversion, and it applies a worse exchange rate than your card network’s rate. Always decline it and withdraw in the local currency; your card issuer’s own conversion beats the ATM’s markup every time. The same rule applies at point-of-sale terminals abroad, covered in TheRewardsCoach’s dynamic currency conversion guide.
Bottom Line
A no-foreign-transaction-fee credit card is genuinely fee-free for purchases abroad, but it never covers ATM withdrawals, because a cash withdrawal is a cash advance regardless of the card’s FTF policy. Carry the no-FTF card for spending and a fee-reimbursing debit card like Schwab Investor Checking for cash, and decline every DCC prompt along the way.
FAQ
Q: Does a no-foreign-transaction-fee credit card waive ATM fees abroad?
A: No. The foreign transaction fee waiver applies only to purchases. Any ATM cash withdrawal on a credit card is treated as a cash advance and carries its own fee plus immediate interest, regardless of the card’s foreign transaction fee policy.
Q: How much does a credit card cash advance cost?
A: Typically 3% to 5% of the amount withdrawn (or a flat minimum, whichever is greater), plus interest starting the day of the withdrawal since cash advances have no grace period. The Chase Sapphire Preferred charges 5% or $10, whichever is greater, at a 25.74% variable APR (verified 2026-08-11). Add the foreign ATM operator’s own surcharge, commonly $3 to $8, on top.
Q: What should I use to get cash when traveling internationally?
A: A debit card from an account built for travel, such as Charles Schwab Investor Checking, which reimburses ATM fees worldwide and charges no foreign transaction fee. Reserve your no-FTF credit card for purchases, not cash.
Q: Does paying off the cash advance immediately avoid the interest charge?
A: No. Unlike regular purchases, cash advances have no grace period. Interest accrues from the moment the cash is dispensed, even if you pay your statement balance in full before the due date.
Q: Should I decline the “pay in US dollars” prompt at a foreign ATM?
A: Yes, always. That prompt is dynamic currency conversion, and it applies a worse exchange rate than your card network’s own conversion. Choose to withdraw in the local currency instead.