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Canada's best no foreign transaction fee credit cards for 2024

Barry Choi, Personal Finance Contributor

February 22, 2024 | Fact checked by: Natasha Macmillan, Business Unit Director - Everyday Banking

Many credit cards charge foreign transaction fees on non-Canadian currency purchases. Compare our lineup of the best no foreign transaction fee credit cards in Canada specifically designed to save you those extra charges.

Canada's best no foreign exchange credit cards at a glance

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Our methodology: how we choose the best credit cards

How to choose the best no foreign exchange credit card - frequently asked questions

What are foreign transaction fees?


Is it worth it to get a credit card with no foreign transaction fees?


Are foreign transaction fees refunded?


Can I use a no foreign transaction fee credit card in any country?


When I’m offered to pay in local currency or to pay a converted CAD/USD amount with my no foreign transaction fee credit card, what should I choose?


Which credit cards offer the lowest foreign transaction fees?


Best no foreign exchange credit cards in Canada by category

Most people don’t realize it, but just about every credit card out there charges foreign transaction fees. Whenever you buy something in a non-Canadian currency, you end up paying an additional 2.5% on top of the exchange rate.

Fortunately, there are a few credit cards that let you save on those pesky fees. Learn more about the benefits of using credit cards without foreign transaction fees.

Best travel card with no foreign transaction fees

featured

4.0 Ratehub rated

Best for Travel perks

First year reward
$715/yr

based on spending $2,200/mo after $150 annual fee

Earn rewards

1pt – 3pts / dollar earn rate

Welcome bonus

30,000 bonus points (a $300 value)

Annual fee

$150 $0 first year waived

Best cash back card with no foreign transaction fees

featured

4.5 Ratehub rated

Best for No FX fees

First year reward
$264/yr

based on spending $2,200/mo after $0 annual fee

Earn rewards

1% earn rate

Annual fee

$0

Best premium travel card with no foreign transaction fees

featured

4.5 Ratehub rated

Best for Groceries & dining

First year reward
$980/yr

based on spending $2,200/mo after $120 annual fee

Earn rewards

1pt – 5pts / dollar earn rate

Welcome bonus

40,000 bonus points (a $400 value)

Annual fee

$120

Best no foreign transaction fee card for the U.S.

featured

First year reward
$280/yr

based on spending $2,200/mo after $0 annual fee

Earn rewards

1.5% – 3% earn rate

Welcome bonus

$25

Annual fee

$0

What to look for in a no foreign transaction fee credit card

Outside of the obvious - no foreign transaction fees - there are a couple of other features that you'll want to look out for when shopping for a card of this type.

If you'll be using this card while abroad, you'll want to choose one that also offers great rewards on spending outside of Canada. It's an often-overlooked detail on rewards cards, but many of their great point values and cash back rates don't apply outside of the country. There's no point in getting a credit card with no foreign transaction fees if it won't also reward you for using it in foreign countries.

Along with that, check if your chosen card also comes with any travel perks, such as VIP airport lounge access, hotel upgrades, checked baggage, or rental car discounts. If you don't already have a credit card with travel insurance, it's also a good idea to select one with a good travel insurance package to cover things like emergency medical care, stolen/lost baggage, and flight delay or trip cancellation, among others.

What are the benefits of a no foreign transaction fee credit card?

When you're travelling abroad, every transaction you make with your credit card has to be converted from the country's currency to Canadian dollars before appearing as a charge on your statement. For the trouble of doing this, many providers charge a foreign transaction fee (usually 2.5%) in addition to the spot rate. This may look like a small amount of money, but added up over multiple transactions (let's face it - everyone spends more while on vacation) they can quickly become a problem. This is why having a no foreign transaction fee credit card can save you more money than you think. 

Not only that, but for those who like to shop online on foreign websites (U.S. included), you'll save the same 2.5% on all your transactions.

Foreign transaction fees vs exchange rates

The difference between foreign exchange rates and foreign transaction fees is that foreign exchange rates refers to the rate at which one currency is exchanged for another. Foreign transaction fees are charges imposed by credit card issuers such as Visa and Mastercard. 

Foreign exchange rates fluctuate depending on the market and cost of goods and services in different countries. 

Foreign transaction fees are fixed charges, usually at 2.5% and are charged when making purchases in foreign currency. 

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