Best Banks for Travelers with Cashback Rewards in 2025
Maximize your travel rewards while minimizing fees and expenses abroad.
Introduction
Traveling internationally or domestically in 2025 can be challenging. Foreign transaction fees, low cashback rewards, and limited travel perks can eat into your budget quickly. Choosing the right bank with travel-focused cashback rewards can save hundreds of dollars and simplify your finances. This guide highlights the top banks for travelers, with detailed analysis, real-world insights, and comparisons to help you make informed decisions.
1. Chase Sapphire Preferred® Card (Chase Bank)
Best For: Frequent travelers looking for high cashback and flexible rewards.
Chase Sapphire Preferred® offers 2x points on travel and dining worldwide, 1x points on all other purchases, no foreign transaction fees, and robust travel insurance coverage. The annual fee is $95, sometimes waived during promotions.
- 2x points on travel & dining
- 1x points on other purchases
- No foreign transaction fees
- Travel insurance & purchase protection
- Multi-device account access
Case Study
A frequent traveler to Europe saved over $400 annually by redeeming points for hotels and dining through Chase Ultimate Rewards.
2. Capital One Venture Rewards Credit Card
Best For: Travelers who want simple flat-rate rewards on all purchases.
Capital One Venture offers 2x miles on all purchases, no foreign transaction fees, and allows miles transfer to 15+ travel loyalty programs. The annual fee is $95.
- 2x miles on every purchase
- Transfer miles to travel loyalty programs
- Global acceptance
- Mobile app management
Case Study
A traveler to Asia accumulated $300+ in cashback over six months while paying no foreign transaction fees.
Comparison Table (Chase vs Capital One)
| Bank/Card | Best For | Annual Fee | Rewards Rate | Travel Perks | Foreign Transaction Fee |
|---|---|---|---|---|---|
| Chase Sapphire Preferred® | Frequent travelers | $95 | 2x travel/dining, 1x others | Travel insurance, points redemption | $0 |
| Capital One Venture | Flat-rate travelers | $95 | 2x miles all purchases | Transfer miles, global acceptance | $0 |
Rewards Potential Chart
3. Discover it® Miles
Best For: Casual travelers seeking no annual fee with simple cashback rewards.
The Discover it® Miles card offers 1.5 miles on all purchases, no annual fee, and no foreign transaction fees (on most versions). Miles can be redeemed as a statement credit for travel purchases or as cash.
- 1.5 miles on all purchases
- No annual fee
- No foreign transaction fees (selected versions)
- Unlimited rewards
- First-year miles match for new cardholders
Case Study
A family traveling domestically used Discover it® Miles to save over $500 in travel expenses within a year, all without paying annual fees.
4. Bank of America® Travel Rewards Credit Card
Best For: Travelers who want simple flat-rate rewards and minimal fees.
This card offers 1.5 points per dollar spent, a welcome bonus of 25,000 points after spending $1,000 in the first 90 days, no annual fee, and no foreign transaction fees.
- 1.5 points on all purchases
- Welcome bonus: 25,000 points
- No annual fee
- No foreign transaction fees
- Unlimited rewards
Case Study: European Getaway
Mark and Linda, a couple traveling to Europe for their anniversary, used this card for all their expenses. They earned enough points from the welcome bonus and their everyday spending to cover a significant portion of their flights. The simplicity of the flat-rate rewards and the absence of foreign transaction fees made their trip financially worry-free.
5. Citi® Double Cash Card
Best For: Travelers seeking high flat-rate cashback on all purchases.
The Citi Double Cash card gives 2% cashback—1% on purchases and 1% when paying off balances. No annual fee applies. Rewards can be redeemed as statement credit, direct deposit, or toward travel.
- 2% flat-rate cashback (1% purchase + 1% payment)
- No annual fee
- Wide global acceptance
- Rewards can be redeemed for travel or cash
Case Study: International Business Traveler
An international business traveler earned over $600 in cashback over a year by using this card for all business-related expenses, including hotels, flights, and client dinners. He redeemed the cashback directly to his bank account, using the funds to pay off personal expenses and save for a future vacation.
Beyond Credit Cards: Digital Banks for Modern Travelers
In addition to traditional banks, a new wave of digital-first financial institutions is revolutionizing travel banking. These banks offer features tailored for global use, often with lower fees and more transparent exchange rates.
Wise (formerly TransferWise)
What It Is: A multi-currency account that lets you hold and convert money in over 50 currencies with minimal fees. It’s perfect for travelers who need to manage multiple currencies without paying hefty foreign exchange rates.
- Low Fees: Transparent, low fees for currency conversion.
- Multi-Currency Card: Spend in local currencies without foreign transaction fees.
- Global Transfers: Send money internationally at the mid-market rate.
Revolut
What It Is: A mobile banking app that offers a multi-currency account, fee-free spending in over 150 currencies, and other travel-focused features like travel insurance and airport lounge access (on premium plans).
- No Foreign Exchange Fees: Spend abroad at the real exchange rate.
- Budgeting Tools: Track spending and set budgets for your trip.
- Secure Payments: Instant notifications and virtual cards for added security.
Breaking Down the Fees: A Traveler's Guide
Understanding the different types of fees is crucial to maximizing your savings. While some cards boast "no foreign transaction fees," other charges can still apply.
- Foreign Transaction Fees: A fee (typically 1-3%) charged by your bank for purchases made in a foreign currency. Cards with $0 foreign transaction fees are essential for international travel.
- ATM Withdrawal Fees: Charges for withdrawing cash from an ATM. These can be charged by your bank, the ATM operator, or both. Some cards offer ATM fee rebates, which can save you a lot of money.
- Annual Fees: The yearly cost to own a credit card. While a card with a high annual fee might offer more rewards, a no-annual-fee card could be better for casual travelers.
Choosing the Right Card for Your Travel Style
The best card depends on your personal travel habits and financial goals. Here are some profiles to help you decide:
- The Frequent Flyer: You travel for business or leisure several times a year. You should prioritize cards with high reward rates on travel and dining, comprehensive travel insurance, and valuable perks like airport lounge access.
Recommended Card: Chase Sapphire Preferred®
- The Casual Vacationer: You take one or two trips a year. Your priority is avoiding fees and keeping things simple. A no-annual-fee card with a flat-rate rewards system is a great choice.
Recommended Card: Bank of America Travel Rewards
- The Budget Backpacker: You are always on the move and want to minimize all costs. Digital banks like Wise and Revolut are perfect for their low-cost currency conversion and multi-currency features.
Recommended Account: Wise Multi-Currency Account
Comprehensive Comparison Table
| Card | Rewards Rate | Annual Fee | Foreign Transaction Fee | Travel Perks | Best For |
|---|---|---|---|---|---|
| Chase Sapphire Preferred® | 2x travel/dining, 1x other | $95 | $0 | Travel insurance, points redemption | Frequent travelers |
| Capital One Venture | 2x miles all purchases | $95 | $0 | Transfer miles, global acceptance | Flat-rate travelers |
| Discover it® Miles | 1.5 miles all purchases | $0 | $0 (selected) | Simple cashback redemption | Casual travelers |
| Bank of America Travel Rewards | 1.5 points all purchases | $0 | $0 | Welcome bonus, app integration | Low-fee travelers |
| Citi Double Cash | 2% flat cashback | $0 | $3 (selected) | Wide acceptance | Simple cashback seekers |
Estimated Annual Rewards Comparison
Cards like Discover it® Miles and Bank of America Travel Rewards are ideal due to no foreign transaction fees and straightforward rewards.
Yes, Discover it® Miles, Bank of America Travel Rewards, and Citi Double Cash all have no annual fee.
Rewards can typically be redeemed as cash back, statement credits, or toward travel purchases depending on the card.
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