Canada’s best no foreign transaction fee credit cards for 2024
October 17, 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.
Find Canada’s best cards suited for you in 60 seconds! View cards and offers you’re likely to qualify for without affecting your credit or needing a SIN.
Canada’s best no foreign exchange credit cards at a glance
Featured
Scotiabank Passport Visa Infinite
Earn up to $1,100 in value in the first 12 months, including up to 35,000 bonus Scene+ points. To qualify, apply by October 31, 2024.
Featured
Home Trust Preferred Visa
Earn 1% cashback on eligible purchases in Canada, with no caps on cashback earn.
Featured
Scotiabank®* Gold American Express® Card
Earn up to $950 in value in the first 12 months, including up to 45,000 bonus Scene+ points. To qualify, apply by October 31, 2024.
Our methodology: how we choose the best credit cards
Ratehub.ca evaluates the best credit card rewards credit cards by considering overall consumer value and suitability for various types of consumers. Our evaluation methodology incorporates factors such as the card’s annual fee, rewards earning rates, ease-of-use, welcome or promotional offers, approval rates, eligibility criteria, and redemption choices. We have also considered the pros and cons of each card to help you determine which case best suits your financial needs and spending habits.
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.
| No FX fee credit cards | Best for | Annual fee |
| Scotiabank Passport Visa Infinite | Overall travel | $150 |
|---|---|---|
| Scotiabank Gold American Express | Premium travel | $120 |
| KOHO Extra | Cash back | $84 |
| Home Trust Preferred Visa | No annual fee | $0 |
| Scotiabank Platinum American Express | Low interest | $399 |
Best travel card with no foreign transaction fees
Best for Travel perks
based on spending $2,200/mo after $150 annual fee
- Earn rewards
1pt – 3pts / dollar spent
- Welcome bonus
25,000 bonus points (a $250 value)
- Annual fee
$150
Perks of the Scotiabank Passport™ Visa Infinite* Card
| Perks | Details | |
|---|---|---|
| Lounge access | Includes 6 visits per year | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | $500,000 per person ($1 million total) | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | $2,000,000 for 25 days (under 65) | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | MSRP of up to $65,000, for 48 days | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Up to $1,500 per person | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Up to $2,500 per person | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Up to $500 coverage per person | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Combined maximum $1,000 | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Up to $1,000; delays over 4 hours | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | $60,000 lifetime limit | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Up to one additional year | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
Ratehub.ca’s 2024 Credit Card Award Winner
Earn up to $1,100* in value in the first 12 months, including up to 35,000 bonus Scene+ points. To qualify for these offers, make sure to open a new Scotiabank Passport Visa Infinite credit card account by October 31, 2024.
- Earn 3x Scene+ points¹ on every $1 you spend at Sobeys, Safeway, IGA, Foodland and participating
Co-ops and more - Earn 2x Scene+ points¹ for every $1 you spend on other eligible grocery stores, dining, eligible entertainment purchases and eligible daily transit options (including rideshares, buses, subways taxis and more)
- Plus earn 1 Scene+ point for every $1 spent on all other eligible everyday purchases
- No Foreign Transaction Fee
- 6 Complimentary Airport Lounge Access
- Comprehensive Travel Insurance coverage
- Visa Infinite* Concierge Services
- Visa Infinite* Hotel Collection
- Visa Infinite* Dining and Wine Country program
-
Rates, fees and other information are effective as of July 02, 2024. Subject to change
Ratehub’s take
The Scotiabank Passport Visa Infinite card makes a great vacation companion, designed for Canadians who travel abroad and explore the world. It is one of the few cards that covers foreign transaction fees, and also includes valuable travel benefits like airport lounge access.
Pros
- No foreign transaction fee: Save 2.5% on all non-Canadian currency purchases
- Scene+ points: Earn three Scene+ points per $1 spent at participating grocery stores (e.g., Sobey’s, IGA, and FreshCo) and two Scene+ points per $1 spent on eligible grocery, dining, entertainment, and daily transit purchases
- Flexible redemption: Enjoy flexible point redemption options including for travel, groceries, statement credits, gift cards, and movie tickets
- Airport lounge access: Access airport lounges with six free visits per year to over 1,200 lounges worldwide
- Visa Infinite benefits: Benefit from the Visa Infinite Luxury Hotel Collection, Visa Infinite Dining series, and complimentary Avis Preferred Plus membership
- Comprehensive travel insurance: Enjoy coverage for emergency medical, trip cancellation/interruption, flight delays, and more
Cons
- Annual fee: The annual fee of $150 is higher than some comparable cards
- Low point return: The earn rate for certain spending categories like dining and entertainment is lower compared to other cards
- Consistent point values: Travel points are always worth one cent per point and you can’t transfer your points to other airline rewards programs like you can with some Amex cards
Eligibility requirements
Minimum credit score: 725
Minimum income: $60,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Balance transfer: 22.99%
Best premium travel card with no foreign transaction fees
Best for Groceries & dining
based on spending $2,200/mo after $120 annual fee
- Earn rewards
1pt – 6pts / dollar spent
- Welcome bonus
45,000 bonus points (a $450 value)
- Annual fee
$120 $0 first year waived
Perks of the Scotiabank®* Gold American Express® Card
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | $500,000 per person | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | $1,000,000 for 25 days (under 65) | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | MSRP of up to $65,000, for 48 days | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Up to $1,500 per person | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Up to $1,500 per person | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Up to $500 coverage per person | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Up to $1,000; delays over 4 hours | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Up to $1,000; delays over 4 hours | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Up to $1,000 per occurence | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Covered for 90 days | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Up to one additional year | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Earn up to $950* in value in the first 12 months, including up to 45,000 bonus Scene+ points¹. To qualify for these offers make sure to open a new Scotiabank Gold American Express credit card account(“Account”) by October 31, 2024.
- Earn 6x Scene+ points¹ on every $1 you spend at Sobeys, Safeway, Freshco, Foodland and more.
- Earn 5x Scene+ points¹ for every $1 you spend on dining, food delivery and other eligible grocery stores. Includes popular food delivery and food subscriptions.
- Earn 5x Scene+ points¹ for every $1 you spend in Canada eligible entertainment purposes. Includes movies, theatre and ticket agencies stores.
- Earn 3x Scene+ points¹ for every $1 CAD you spend in Canada on eligible gas and daily transit options. Includes rideshares, buses, subway, taxis and more.
- Earn 3x Scene+ points¹ for every $1 CAD you spend in Canada on eligible select streaming services.
- Plus earn 1 Scene+ point for every $1 spent on all other eligible everyday purchases.
- No Foreign Transaction Fee
- Comprehensive Travel Insurance coverage
- AMEX Offers®
- AMEX Front of the Line®
- American Express Invites®
- Complimentary Concierge Services
- Rates, fees and other information are effective as of July 02,2024. Subject to change.
Ratehub’s take
The Scotiabank Gold American Express Card earns an honourable mention as one of the best overall travel credit cards for the outstanding benefits it offers to cardholders. This card stands out as a top choice, thanks to its exceptional return on spending and a variety of travel-related perks. This card is particularly useful for those who dine out often, travel, and enjoy entertainment.
Pros
- No foreign exchange fee: Save on foreign currency purchases while travelling abroad or shopping online, as this card doesn’t charge the typical 2.5% foreign transaction fee
- Extensive insurance coverage: Enjoy comprehensive travel insurance, including the $1 million travel medical insurance, which lasts for 25 days and is one of the longer coverage periods available on the market
- High return on spending: Earn five points per $1 spent on groceries, restaurants, food delivery, and entertainment – one of the best in class multipliers in the market. Earn three points per $1 spent on gas and transit expenses
Cons
- Limited acceptance: American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
- Annual Fee: This card carries an annual fee of $120
- Fixed point values: Although earn rates are high, travel points are always worth one cent per point and you can’t transfer your points to other airline rewards programs like you can with other cards
- Airport lounge access is not free: Although you’ll get a discount on a Priority Pass membership for airport lounge access, lounge visits aren’t included with the card
Eligibility requirements
Minimum credit score: 725
Minimum income: $12,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Balance transfer: 22.99%
Best cash back card with no foreign transaction fees
based on spending $2,200/mo after $84 annual fee
- Earn rewards
0.25% – 1% / dollar spent
- Annual fee
$84
Perks of the KOHO Extra
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Not included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Not included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Not included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Not included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Not included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Not included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Not included | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Not included | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Not included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Earn an extra 1% cashback on eating & drinking, billing & services, and groceries on top of minimum 0.25% cash back on all purchases. Plus, up to 50% extra cashback from select merchants.
- Earn 5% interest on both your spending and savings account. Your funds will also be eligible for CDIC insurance. Interest rates are per year, calculated daily, paid monthly, and can change at any time without notice.
- $9/month or $84 annual/year to unlock the following KOHO Extra account features.
- No minimum account balance.
- Credit Building for $7 / month instead of $10
- No Foreign Exchange fees on any purchases. Also get access to 1 free international ATM withdrawal per month.
- Choose from one of five exciting card colours including the exclusive KOHO Extra card design. Receive both a physical and virtual card.
- Access all the features of a KOHO account such as Card Security, Goals, and RoundUps.
Ratehub’s take
The KOHO Extra card is a reloadable prepaid Mastercard that offers cash back on the most common types of everyday spending, as well as the added benefit of an interest-earning account.
Pros
- Easy cash back earning: Earn 1.5% cash back per dollar on bonus categories, plus your rewards are unlimited and don’t have monthly or annual maximums
- No FX fees: With no foreign transaction fee, this card is ideal for overseas purchases
- Flexible cash back redemptions: You can redeem cash back directly to your KOHO account with a few taps
Cons
- Annual fees: The $9 monthly fee ($108 annually) is comparable to other credit cards that offer competitive rewards and benefits
- Limited travel insurance and perks: No travel medical insurance or any substantial side perks
Eligibility requirements
Minimum credit score: 300
Minimum income: N/A
Interest rates
Purchase interest: N/A
Cash advance: N/A
Balance transfer: N/A
Best no annual fee card with no foreign transaction fees
Best for No FX fees
based on spending $2,200/mo after $0 annual fee
- Earn rewards
1% / dollar spent
- Annual fee
$0
Perks of the Home Trust Preferred Visa
| Perks | Details | |
|---|---|---|
| Lounge access | Not included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Not included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Not included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Not included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Not included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Not included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Not included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Not included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Not included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Not included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Not included | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Not included | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Earn 1% cashback on eligible purchases1 in Canada, with no caps on cashback earn
- No annual fee
- 0% foreign currency conversion charge on purchases abroad
- This product is currently not available to residents of Quebec
- For a more in-depth look at this credit card, read our full Home Trust Preferred Visa Review
- 1Cash advances, balance transfers, interest, fees and foreign transactions (including online purchases in foreign currencies) are not eligible for CashBack Rewards
- This offer is not available for residents of Quebec
Ratehub’s take
The Home Trust Preferred Visa not only saves you from foreign transaction fees, but also offers several additional benefits – like no annual fee and the added perk of earning 1% cash back on all your spending in Canada without any limits or caps.
Pros
- No foreign transaction fees: Save 2.5% on all non-Canadian currency purchases
- No annual fee: Enjoy the card’s travel benefits without an annual fee; however, it is important to note that the card has an inactivity fee (if you don’t use the card to make at least one purchase during a consecutive 12-month period, you’ll be charged $12)
- Cash back earnings: Earn 1% cash back on all Canadian purchases, providing consistent rewards
- Additional perks: Take advantage of a number of other perks, including car rental insurance and Visa Zero Liability coverage to help ensure you are protected against potential fraudulent activities
Cons
- Not available to Quebec residents
- Transaction limitation: It’s worth noting that the card is limited to 10 authorized transactions per day
- No rewards on foreign exchange purchases: While this card charges no foreign exchange fees, it does not offer any rewards for those purchases
- Limited insurance coverage: Insurance coverage isn’t as comprehensive as other similar rewards cards (if insurance is a priority for you, consider the cards featured on our list of best credit cards for travel insurance)
- Lacking in bonus rewards: Other than the 1% cash back rate, there is not much else offered in the way of rewards, bonus offers or perks with this card
Eligibility requirements
Minimum credit score: 660
Minimum income: N/A
Interest rates
Purchase interest: 21.99%
Cash advance: 21.99%
Balance transfer: N/A
Best low interest card with no foreign transaction fees
based on spending $2,200/mo after $399 annual fee
- Earn rewards
2pts / dollar spent
- Welcome bonus
60,000 bonus points (a $600 value)
- Annual fee
$399
Perks of the Scotiabank®* Platinum American Express® Card
| Perks | Details | |
|---|---|---|
| Lounge access | Included | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | Included | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | Included | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | Included | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Included | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Included | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Included | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Included | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Included | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | Included | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Included | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
- Earn up to $2,100* in value in your first 14 months, including up to 60,000* bonus Scene+ points. Offer ends October 31, 2024
- You will not pay 2.5% foreign transaction fees on any foreign currency purchases, including online shopping and when travelling abroad. Only the exchange rate applies
- Earn 2X Scene+ points for every $1 CAD spent on eligible grocery stores, restaurants, fast food, and drinking establishments. Includes popular food delivery and food subscriptions
- Earn 2X Scene+ points for every $1 CAD spent on eligible gas and daily transit. Includes rideshare, buses, taxis, subway, and more
- Earn 2X Scene+ point for every $1 spent on every other purchase
Ratehub’s take
The Scotiabank Platinum American Express card offers a unique combination of benefits: rewards, travel perks like airport lounge access and a low purchase interest rate – but you pay for those benefits with the higher annual fee.
Pros:
- Low interest rates with added perks: Not only do you get a below-average interest rate but you also get Scene points, airport lounge access, travel insurance and other perks
- Save on foreign transaction fees: You won’t be charged 2.5% in forex fees with this card on top of the exchange rate
Cons:
- Very high annual fee: The annual fee is very high compared to other low-interest cards, some of which have a $0 annual fee
- Lower rewards earn rate: You’ll get a lower return on your spending with this card than with some other rewards credit cards, although for a low-interest card, earning rewards at all is rare
Eligibility requirements
Minimum credit score: 760
Minimum income: $12,000/yr
Interest rates
Purchase interest: 9.99%
Cash advance: 9.99%
Balance transfer: 9.99%
Foreign transactions on credit cards: What you need to know
Foreign transaction fee
When you're travelling abroad or shopping on foreign websites, 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. Because of this, many card issuers charge a foreign transaction fee (usually 2.5%) in addition to the spot rate.
Credit card exchange rate markups
On top of the foreign transaction fee, credit card networks also mark up the exchange rate between Canadian dollars and the foreign currency. This means that you’ll always pay more than the official exchange rate listed by the Bank of Canada. For example, if $1 USD is worth $1.35 CAD, you may be charged a higher rate of $1.37 by the credit card network (e.g. Visa, Mastercard, or American Express).
Dynamic Currency Conversion (DCC)
When you’re making payments in foreign currency, the merchant’s credit card terminal or e-commerce checkout page may offer the option to make payments in the foreign currency or in CAD. This is known as Dynamic Currency Conversion (DCC) and uses a far higher exchange rate — as much as 3-7% higher than the market rate.
While DCC allows you to avoid the foreign transaction fee and credit card exchange rate markups mentioned above, you’ll often end up paying more. In most cases, it’s better to pay in the foreign currency instead.
FX credit adjustment
Sometimes, a foreign currency purchase may show up as multiple debits and credits on your credit card and marked as a “foreign exchange (FX) credit adjustment”. This happens when the credit card issuer authorizes your purchase immediately, but the merchant posts the transaction later, typically after 2-3 days. The final amount charged may be different due to fluctuations in foreign exchange rates, so you’ll be charged again while the original charge is refunded to you.
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.
Doing the math
Let’s say you’re visiting the United States and you spend $50 USD while shopping. Here’s how your purchase might appear on your credit card bill with an official exchange rate of $1 USD : $1.35 CAD.
| Credit card with FX fees | Credit card without FX fees | Credit card with Dynamic Currency Conversion | |
| Exchange rate markup | 2% | 2% | 5% |
|---|---|---|---|
| Currency conversion | $50 * 1.377 = $68.85 | $50 * 1.377 = $68.85 | $50 * 1.417 = $70.85 |
| 2.5% FX fee | $68.85 * 0.025 = $1.725 | - | - |
| Total | $70.57 | $68.85 | $70.85 |
With a no foreign transaction fee card, you’ll save a significant amount over time.
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, flight delays, or trip cancellation, among others.
Should you get a U.S. dollar credit card?
If you frequently make purchases in US dollars, it may be worth getting a US dollar credit card in Canada to avoid foreign transaction fees and inflated exchange rates. However, this option works best when you have a source of USD income, as a US dollar credit card may require you to pay your credit card bill in USD. Otherwise, you’ll still have to pay some fees and go through the hassle of converting CAD into USD.
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.
Frequently asked questions
What are foreign transaction fees?
Foreign transaction fees are charges placed by financial institutions on credit card transactions that involve foreign currency. While they typically occur when a customer is using their credit card to make purchases in a foreign country, they can also apply to online transactions where the vendor is processing payments in a foreign currency. Foreign transaction fees are around 2.5% typically, and they are charged on top of the currency exchange rate.
While they were originally established by banks to offset the expense of processing international payments, these concerns have been largely solved by the more modern global banking system of today. Regardless, many credit cards will still charge users a foreign transaction fee, so it's important to know if your chosen card carries this charge before signing up for it (especially if you're a frequent traveller).
Is it worth it to get a credit card with no foreign transaction fees?
If you travel outside your home country regularly, or you frequently shop on foreign websites, it's in your best interest to choose a rewards card without any foreign transaction fees. While the fees themselves might not seem that scary on their own (usually around 2-3% total per transaction), those costs can quickly add up if you're using your credit card as a primary payment method while abroad or online shopping, so try to avoid them if at all possible.
Are foreign transaction fees refunded?
If your credit card comes with foreign transaction fees, they typically won't be refunded if you've used the card abroad or to make online purchases in a foreign currency. If your card has no foreign transaction fees, you may be able to get a refund on any extra charges from foreign ATMs, but it's best to ask your provider for the clearest answer.
Can I use a no foreign transaction fee credit card in any country?
You can use a no foreign transaction fee credit card anywhere that your card type is accepted, whether that’s Visa, Mastercard or American Express. If you’re worried about card acceptance, you could try using a prepaid travel card or get foreign cash before you leave. Keep in mind that ATMs charge currency exchange fees and foreign transaction fees (unless you are withdrawing money from a no-forex fee card.)
When I’m offered to pay in local currency or to pay a converted CAD/USD amount with my credit card, what should I choose?
You’ll usually save money by paying using the local currency, because there may be a built-in cost when you choose to pay in your home currency at the point of purchase. Credit card issuers like Visa or Mastercard often get better exchange rates. Just keep the currency conversion rate in mind when you are making purchases abroad - you could use an app or web browser to know the true cost.
Which credit cards offer the lowest foreign transaction fees?
Some credit cards offset foreign transaction fees with cash back, while others, like the Scotiabank Passport Visa Infinite, waive the fees in general. If you’re wanting to use your card frequently while abroad, Scotiabank’s travel credit cards might be a good choice for you. Another option for no foreign transaction fees is the Home Trust Preferred Visa.