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 spread. What that means is you pay an extra 2.5% on top of the exchange rate when you make your purchases.
If you travel often or if you make regular purchases online in foreign currencies using your card, these fees can add up to a small fortune over time. I don’t know about you, but I much prefer to spend that money on myself.
Fortunately, there are a few credit cards that let you save on foreign transaction fees. Each has its pros and cons, so we listed out the features of every no foreign transaction fee credit card available in Canada to help you decide which card to pick up.
Best no foreign transaction fee credit cards in Canada for 2021
Home Trust Preferred Visa
Aside from being a no foreign transaction fee credit card, the Home Trust Preferred Visa also has no annual fee and comes with the additional benefit of 1% cash back on all your spending in Canada with no limits or caps.
A true no foreign transaction fee card, Home Trust uses the exchange rate set by Visa without any additional surcharges.
Home Trust Preferred Visa cardholders can also take advantage of a number of other perks including car rental insurance and Visa Zero Liability coverage to help ensure cardholders are protected against potential fraudulent activities. The downside is that this card is not available to residents of Quebec. It’s also worth noting that the card is limited to 10 authorized transactions per day – which is something we point out in our full review of the Home Trust Preferred Visa.
Finally, while the Home Trust Preferred Visa doesn’t charge an annual fee, it does have what’s called 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. It’s an inconvenience for sure, but it’s easily avoidable. Just make sure to charge a purchase to the card at least once per year – even if it’s just a few dollars.
Scotiabank Passport Visa Infinite
The Scotiabank Passport Visa Infinite was the first credit card from one of Canada’s big banks with no foreign transaction fees. Combined with its welcome offer of 20,000 bonus points (for new Scotiabank cardholders) and six free visits per year to Priority Pass airport lounges, this card is a great choice for an all-in-one travel card.
It also offers robust travel insurance benefits and a competitive rewards structure of 2 Scotia points per dollar on groceries, restaurants, entertainment, and daily transit (including taxis), and 1 point per dollar on everything else.
Scotia Rewards are flexible and can be redeemed for flight purchases on any airline with no blackout dates. For context, 1 Scotia point = $0.01, or 1% in travel rewards. You’re also eligible to receive 25% off car rentals at participating Avis locations – a perk that is offered to all Scotiabank credit card holders.
Scotiabank Gold American Express
Scotiabank added a second no foreign transaction fee card in its roster of travel credit cards in 2019, as the Scotiabank Gold American Express now no longer charges a 2.5% fee for purchases made in non-Canadian currencies.
The Scotiabank Gold AMEX also gives you 5 Scotia Rewards points for every $1 spent on groceries, restaurants, and entertainment in Canada – which is one of the highest earn rates for everyday spending.
Additionally, this card comes with top-notch travel insurance benefits, which means it would also make a great choice for an all-in-one travel card. You can also earn a welcome bonus of up to 25,000 points ($250 value) as a new Scotiabank cardholder. The one drawback of this card is since it’s issued by American Express, it may not be as widely accepted in some countries. All purchases made in a foreign currency will earn 1 point per dollar – regardless of the category.
Brim Financial Cards
A new player in the market, Brim Financial has three Mastercard credit cards that don’t charge foreign transaction fees: the basic Brim Card ($0 annual fee), Brim World ($99 annual fee), and the Brim World Elite ($199 annual fee). Depending on which of the three cards you choose, you can earn anywhere from 1 to 2 rewards points for every dollar you spend.
While Brim’s launch did face a few hiccups and delays, their cards are now in people’s hands, and as promised, they don’t charge foreign transaction fees. Interestingly, however, Brim’s website says they use their own exchange rate when converting currencies as opposed to the rate set by Mastercard. The cards also include a free Boingo Wi-Fi membership and mobile device insurance.
Meridian Visa Infinite Travel Rewards Card
The Meridian Visa Infinite Travel Rewards Card isn’t a no foreign transaction fee credit card per se, but it does offer 3% in rewards points on foreign purchases. After accounting for foreign transaction fees, that works out to about a 0.5% return on purchases made in a non-Canadian currency – so you’ll still come out ahead. The card also offers a flat 1.5% on all other purchases along with great travel insurance coverage (including $5,000,000 in emergency health coverage), mobile device insurance, and a welcome offer that waives the $99 annual fee for the first year.
HSBC World Elite and Premier World Elite Mastercards
HSBC has two no foreign transaction fee credit cards: the HSBC World Elite Mastercard and the HSBC Premier World Elite Mastercard. Both are premium cards – each with a $149 annual fee, individual annual income requirements of $80,000, and welcome bonuses valued at over $300 for new cardholders. In terms of rewards, you can pocket up to 3% in points for every dollar you spend on eligible travel purchases. The cards also include great travel insurance benefits. A drawback of the cards, however, is their redemption structure as you’ll need to rack up 25,000 points before you can start redeeming for travel rewards.
Rogers Platinum and Fido Mastercards
While the Rogers Platinum Mastercard and Fido Mastercard don’t technically waive their foreign transaction fees, both offer savings on US dollar purchases, which is particularly beneficial for snowbirds or anyone who frequently travels south of the border.
These two cards offer 3% cash back on eligible purchases made in US dollars. Since foreign transaction fees typically hover around 2.5%, your net rewards on USD purchases on either card would come out to 0.5% cash back.
The obvious drawback is you’ll only reap savings on USD transactions and still owe FX fees on purchases in any other international currency. That’s a major limiting factor compared to the other no FX fee cards on this list. The one silver lining is many international websites and merchants do offer the ability to pay in USD – even if they’re not based in the United States.
When it comes to all other everyday purchases, these two no annual fee cards earn 1% cash back.
Rogers World Elite Mastercard
In the same vein as the aforementioned Rogers Platinum and Fido Mastercards, the premium Rogers World Elite isn’t a true no foreign transaction fee card and only offers savings on select foreign purchases. Specifically, it earns 3% on purchases made in US dollars, which means you’ll come out ahead by 0.5%.
Purchases made in any foreign currency other than USD will result in the typical foreign transaction fees.
It’s a major drawback for sure, but considering many international websites and merchants do accept USD as a payment option, you could still technically save on some foreign purchases outside of the US.
The bigger downside of the Rogers World Elite is the fact you must spend at least $15,000 on the card annually just to be considered eligible to keep it. If you don’t hit that $15,000 minimum, you may be forcibly downgraded to the entry-level Rogers Platinum Card covered above. It’s an odd stipulation and essentially forces you to default to using the Rogers World Elite for the majority of your everyday purchases.
The Rogers World Elite does offer an impressive 1.5% cash back on all other everyday purchases and charges no annual fee. The card does have a steep income requirement though and you’ll need to earn at least $80,000 annually in order to be approved.
Amazon.ca Rewards Mastercard
The Amazon.ca Rewards Mastercard is a co-branded credit card offered by MBNA, and well, obviously, Amazon. The no fee card doesn’t waive its foreign transaction fees per se but offers an accelerated earn rate of 2.5% on all international purchases, which effectively means you’ll break even on any purchases made in a non-Canadian currency since FX fees are usually 2.5%.
This card will earn you Amazon.ca Rewards points, which act as cash back with one distinct limitation: points can only be redeemed for purchases from Amazon. For example, 250 Amazon Rewards points is worth $2.5 in Amazon gift cards.
It goes without saying this card is catered to loyal Amazon shoppers, offering either 1.5% or 2.5% on Amazon purchases depending on whether or not you’re a paying Amazon Prime Member. You’ll earn a standard 1% on everything else.
If you travel often, then applying for one of these cards is a must. The Home Trust Preferred Visa is great for those who want a card with no foreign transaction fees and no annual fee. If you travel often, the Scotiabank Passport Visa Infinite is a good choice as it comes with no foreign transaction fees as well as the six free visits to PriorityPass lounges.
If you’re looking for a card that suits your day-to-day needs and offers the most savings on foreign purchases, the Scotiabank Gold American Express is a great choice. For more credit cards, check out the credit card comparison tool to find out which card is best for you.
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