The best US Dollar Credit Cards in Canada

If you frequently make purchases in US dollars on your credit card, you might have noticed that on every transaction, your credit card charges you a fee to convert the currency from US dollars to Canadian dollars. The fee is about 2.5% in addition to the foreign exchange rate. 

Any thrifty Canadian who makes frequent purchases in US dollars should want to minimize these fees. One strategy to minimize foreign transaction fees is to apply for a US dollar credit card.

Why get a US dollar credit card?

• A US dollar credit card is useful if you frequently travel to the US or make purchases in US dollars. If you live in the US for part of the year, frequently travel there for work, or buy things from the US for work or personal reasons, a USD credit card might make sense. You’ll have to weigh the benefits of using a USD credit card against simply using a credit card that doesn’t charge foreign transaction fees, though. 
• Instead of withdrawing cash for spending or making purchases on your Canadian credit card (and paying foreign transaction fees) you can make purchases with a US dollar credit card and avoid those fees - if you have access to US dollars and have the funds to pay off your credit card without converting currency. For example, if you’re a freelancer and some of your clients pay you in US dollars, you could use that money to pay off your credit card without converting currency and incurring fees.

What are some tips for managing a US currency credit card?

In order to get the most out of your USD card, you’ll want to make sure you avoid paying extra fees or interest. The benefit of a USD card is 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. cash 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 US dollar credit cards and no foreign transaction fee credit cards?

US dollar credit cards and no foreign transaction fee credit cards are not the same, but it’s easy to get confused about the difference.

US dollar credit cards charge you for purchases in US dollars, and you pay off the balance in US dollars.

No foreign transaction fee credit cards, on the other hand, charge your US 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 US 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.

US dollar credit cards in Canada

Below, we shed some light on US dollar credit cards issued by some of Canada’s biggest banks and credit unions.

BMO U.S. Dollar Mastercard

This BMO US dollar credit card has an annual fee of $49, but when you spend $3,000 US 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 US and worldwide. Other than that, this card doesn’t have much in terms of perks, and doesn’t offer travel insurance.

Scotiabank US Dollar Visa Card

The Scotiabank US 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.

Meridian VISA US Dollar Card

The Meridian VISA US Dollar Card lets you earn rewards for your US 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 fairly high at $65 US, but it’s waived in the first year. Additional cards cost $30 US per user, and your travel is covered by a suite of insurance products - excluding travel medical coverage.

CIBC U.S. Dollar Aventura Gold Visa Card

With this credit card, you’ll pay an annual fee of $35 US, 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.

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 US annual fee for this credit card, and supplementary cards are $30 US each. When you make purchases with this RBC US 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.

TD U.S. Dollar Visa Card

Finally, the TD U.S. Dollar Visa Card has a $39 US 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 Apple Pay, and 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.

No foreign transaction fee credit cards in Canada

If you don’t have access to US dollars to pay off your US dollar credit card, a no foreign transaction fee credit card is a simple and straight forward way to save money on purchases made in US dollars. You can pay off your balance with Canadian dollars, and you don’t have to worry about converting currency. Plus, in many cases, your rewards points or cash back earnings can be higher with these cards. With that in mind, here are some of the best no foreign transaction fee credit cards in Canada.