The best U.S. dollar credit cards in Canada

Let's shed some light on U.S. dollar credit cards issued by some of Canada’s biggest banks and credit unions.

Best overall U.S. dollar credit card: RBC U.S. Dollar Visa Gold

This travel rewards credit card lets you earn 1 Avion Rewards point for every dollar you spend, to be redeemed for flights, hotels, event tickets, and merchandise. There is a $65 USD annual fee for this credit card, and supplementary cards are $30 USD each. When you make purchases with the RBC U.S. dollar credit card, you’re covered by an extensive insurance package, including purchase assurance. You’ll also get trip cancellation insurance and travel assistance for peace of mind - but you’ll have to pay out of pocket for travel medical, rental car insurance or accident coverage as those options are not offered with this card.

Best U.S. dollar credit card for shopping: BMO U.S. Dollar Mastercard

The BMO U.S. Dollar Mastercard has an annual fee of $49 USD, but when you spend $3,000 USD in the first year, the following year’s fee is rebated back to your credit card. The interest rate is 20.99% for purchases and 22.99% for cash advances. This credit card comes with extended warranty coverage, purchase protection, and is accepted at over 30 million locations in the U.S. and worldwide. Other than that, this card doesn’t have much in terms of perks, and doesn’t offer travel insurance.

Best U.S. dollar credit card for travel protection: Meridian Visa U.S. Dollar Card

The Meridian Visa U.S. Dollar Card lets you earn rewards for your U.S. dollar spending. This credit card lets you earn 1 point per dollar spent, with no restrictions on the purchases you make. The annual fee is $65 USD, but it’s waived in the first year. Additional cards cost $30 USD per user, and your travel is covered by a suite of insurance products - excluding travel medical coverage.

Best USD credit card for travel rewards: CIBC U.S. Dollar Aventura Gold Visa Card

With this credit card, you’ll pay an annual fee of $35 USD, but that fee will be rebated in the first year if you also have a CIBC USD bank account. The CIBC U.S. Dollar Aventura Gold Visa Card is a rewards card that lets you earn 1 point per dollar spent at the CIBC Rewards Center, and 1 point per $2 spent on all other purchases. This is a decent earn rate, but most regular travel and rewards credit cards have higher points earnings than this card. You can also earn an extra 2,500 bonus points (a $25 travel value) by completing a series of activities with CIBC, like setting up your email address and signing up for eStatements.

Best low-fee USD credit card: TD U.S. Dollar Visa Card

The TD U.S. Dollar Visa Card has a $39 USD annual fee and free cards for additional card users (maximum three users). The interest rate on this credit card is 19.99% for purchases and 22.99% for cash advances. This TD U.S. Dollar credit card is contactless payment-enabled for a seamless shopping experience. Purchases made with the TD U.S. Dollar Visa Card are covered by trip interruption insurance, baggage insurance, and emergency travel assistance - but travel medical coverage is not offered with the card.

Also consider: Scotiabank U.S. Dollar Visa Card

The Scotiabank U.S. Dollar Visa Card boasts no US currency conversion fees and free supplementary cards for extra users. There is a $35 annual fee, however. This credit card offers purchase security and extended warranty protection, and secure online shopping via Visa Checkout. You’ll also get discounts of up to 25% on rental cars at Avis and Budget when you book with this Scotiabank USD credit card.

Also consider: Scotiabank Passport™ Visa Infinite* Card

This credit card has no foreign transaction fees, saving you 2.5% on all non-Canadian currency purchases, including USD. Designed for Canadians who travel abroad, the Scotiabank Passport Visa Infinite card offers valuable travel advantages, including comprehensive travel insurance, six complimentary airport lounge visits per year and opportunities to earn 4X Scene+ points for every dollar spent on hotels, car rentals and things to do with Scene+ Travel. 

Honourable mention: Scotiabank®* Gold American Express® Card

The Scotiabank Gold American Express card is a travel credit card with no foreign transaction fees, making it a desirable option for U.S. purchases. In the first year, you can earn up to $1,050 in welcome offers, including a waived annual fee of $120 and up to 50,000 bonus Scene+ points. The credit card comes with comprehensive travel insurance coverage and opportunities to earn 4X Scene+ points for every dollar spent on hotels, car rentals, and activities with Scene+ travel.

Why get a U.S. dollar credit card?

A U.S. dollar credit card is useful if you: 

• Frequently travel to the U.S. or live there for part of the year. A USD card helps you avoid foreign transaction fees charged on every purchase you make in US dollars — this can save you a lot of money over time. 
• Often shop online in USD. In addition to foreign transaction fees, credit card issuers may use a higher exchange rate when converting your purchase into CAD on your bill.
• Are concerned about tariffs weakening the Canadian dollar. The trade war with the U.S. is putting pressure on the Canadian dollar, which can result in higher conversion costs for your purchases. Using a U.S. dollar credit card allows you to eliminate currency conversion fees by paying directly in USD.

A U.S. dollar credit card is the most sensible option if you have access to U.S. dollars for paying off your credit card. For example, if you’re a freelancer and some of your clients pay you in USD, you could use that money to pay off your credit card without converting currency and incurring fees.

Doing the math

Let’s say you spend $300 USD per month on purchases in U.S. dollars. Here’s how your purchase might appear on your credit card bill with an official exchange rate of $1 USD: $1.38 CAD.

The table below shows potential cost savings when you use a no FX fee card and a U.S. dollar card in comparison to a regular credit card that charges foreign transaction fees. With a no FX fee card, you’ll save about $11 CAD. In contrast, a U.S. dollar credit card can save you about $19 CAD.

Note: The table uses a sample 2% exchange rate, which can fluctuate.

How to get the most out of your U.S. dollar credit card

The benefit of a USD card is that you avoid paying foreign transaction fees and the cost of the currency exchange rate on USD purchases, so if you don’t have a source of U.S. dollars to pay off your credit card bills, this might not be the best choice for you.

It’s important to monitor your credit card statements for accuracy to avoid any credit card fraud. If you’re not regularly using the card, it is also important to ensure that you check payment deadlines to avoid interest charges on your unpaid balance.

What is the difference between U.S. dollar credit cards and no foreign transaction fee credit cards?

U.S. dollar credit cards charge you for purchases in U.S. dollars, and you pay off the balance in USD. This is great for individuals who frequently shop or travel in the United States, have a U.S. dollar bank account, or want to avoid currency conversion fees and exchange rate fluctuations when making purchases in USD. It helps you manage expenses directly in U.S. dollars without additional currency conversion costs and simplifies budgeting for cross-border spending.

No foreign transaction fee credit cards, on the other hand, charge your U.S. purchases (and any other foreign purchases) in Canadian dollars, and they don’t charge a foreign transaction fee to make the conversion. With most Canadian credit cards, converting purchases made in U.S. dollars to Canadian dollars will typically cost a few percentage points (2.5% of the purchase) on top of the currency exchange rate, but with a no foreign transaction fee credit card, you won’t be charged that extra fee.