Most Canadian credit cards charge a 2.5% foreign transaction fee on all purchases made in other currencies. Here are the best credit cards in Canada with no foreign transaction fees.
Best Credit Cards with No Foreign Transaction Fees
Best Travel Credit Card with No Foreign Transaction Fees
- Earn 30,000 Scene+ points upon spending $1,000 in the first three months
- Earn an additional 10,000 Scene+ points upon spending $40,000 in the first year
- Earn
1x2x Scene+ points on groceries, dining, entertainment, and transit - Plus, earn 3x Scene+ points on grocery purchases at Sobeys, IGA, Safeway, and FreshCo
- Visa Airport Companion membership with six free lounge visits per year
- Redeem points for statement credit for any travel expense
- Minimum income: $60,000 personal or $100,000 household
- Annual fee: $150 (waived in the first year)
The Scotiabank Passport Visa Infinite Card sets itself apart as a true traveller’s card, offering strong welcome bonus, no foreign exchange fees, and the flexible Scene+ points for all purchases.
Travellers can take comfort in earning points abroad without having to pay FX fees on all their expenses, including hotel stays, eats, drinks, entertainment, public transportation, and more when journeying abroad. You’ll also have no trouble using this card along your travels, thanks to the wide acceptance of Visa cards around the world.
Also, this card comes with a complimentary DragonPass membership and six annual visits to participating airport lounges and restaurants.
You’ll be backed by the card’s suite of insurance coverage, including emergency travel coverage for up to 25 days out-of-province, flight delay insurance, delayed and lost baggage insurance, and more.
It’s always nice when you can extract multiple travel benefits from a single card (and a single annual fee).
If you’re looking to save money abroad, look no further than the Scotiabank Passport Visa Infinite Card.
Best American Express Card with No Foreign Transaction Fees
- Earn 20,000 Scene+ points upon spending $1,000 in the first three months
- Earn an additional 20,000 Scene+ points upon spending $7,500 in the first year
- Earn 6x Scene+ points at Sobeys, IGA, Safeway, FreshCo, and more
- Plus, earn
1x5x Scene+ points on groceries, dining, and entertainment - Also, earn
1x3x Scene+ points on gas, transit, and select streaming services - Redeem points for statement credit for any travel expense
- No foreign transaction fees
- Enjoy the exclusive benefits of being an American Express cardholder
- Annual fee: $120
The Scotiabank Gold American Express Card is one of the best all-round credit cards in Canada. You’ll earn Scene+ points to the tune of 5% back on groceries, restaurants, and entertainment, 3% back on gas, transit, and streaming services, and 1% back on everything else.
However, it’s worth noting that the card only earns 1% back on foreign purchases, even in the bonus categories. Still, it’s good to earn any amount of rewards when you’re eating abroad.
For a card that you want in your wallet anyway for its peerless earn rates at home, you’ll always have a solid no-FX option when travelling and paying at stores that take Amex.
Best No Fee Credit Card with No Foreign Transaction Fees
- Earn 1% cash back on all transactions in Canadian dollars
- Plus, save money abroad with no foreign transaction fees
- Minimum annual income: $15,000 personal
- No annual fee
If you’d rather not pay an annual fee, consider the entry-level Home Trust Preferred Visa Card instead. It has no annual fee, and earns 1% back on all purchases in Canadian dollars.
Unfortunately, you won’t earn cash back on foreign transactions; however, you’ll still save money that you’d otherwise be charged on a card with foreign transaction fees.
As a card with no annual fee, there aren’t many other notable features to benefit from, aside from saving on foreign transactions. However, if your ultimate goal is to save cash, the Home Trust Preferred Visa Card is your best bet.
Best Business Credit Card with No Foreign Transaction Fees
- Earn 30,000 Scene+ points upon spending $5,000 in the first three months
- Earn 10,000 Scene+ points upon spending $60,000 in the first year
- Plus, earn 1.5x Scene+ points on all purchases
- Priority Pass membership with six free lounge visits per year
- No foreign transaction fees
- Qualify on the basis of your business financials
- Annual fee: $199
For businesses with a lot of expenses in US dollars or other currencies, the Scotiabank Passport Visa Infinite Business is your best choice.
The card earns a steady 1.5% back in the form of Scene+ points, along with a welcome bonus of 30,000 points, worth $300. Considering that other business credit cards charge a 2.5% foreign transaction fee, and often offer lower rewards rates, you might find immense value in paying the $199 annual fee if your business makes a lot of purchases in a foreign currency.
Not to mention, the card has great travel perks too. You’ll get a comprehensive insurance package, lounge access, car rental discounts, and assorted Visa Infinite benefits.
If you spend a lot of time abroad for your business and need a Visa card, this one’s a fantastic option not only for keeping your rewards up and costs down, but also for boosting your travel experience along the way.
No Foreign Transaction Fee Credit Cards: What You Need to Know
When choosing a credit card with no foreign transaction fees, you should familiarize yourself with what benefits a no-FX credit card can offer, what features to look out for, and how no-FX credit cards can fit into an optimized overall credit card strategy.
Why get a credit card with no foreign transaction fees?
Currency conversion fees are a quick way to chip away at your precious travel budget, whether it’s ATM withdrawals or purchases on your card.
When you’re spending abroad with your credit card, all transactions must be converted from the local currency to Canadian dollars before appearing on your account statement. Most cards levy a 2.5% foreign transaction fee on top of the spot rate.
For example, let’s say a purchase priced at $75 (USD) converts to $100 (CAD). Ultimately it’ll be charged as $102.50. Instead, cards with no foreign transaction fees will convert transactions to Canadian dollars at the mid-market rate (as set by the bank or payment network), without a surcharge – in that case, you’d only be charged $100.
Cards without these fees are indispensable for travellers, as they effectively represent a 2.5% discount on all of your spending while travelling out of the country.
They’re also useful at home. If you do any online shopping at retailers based outside of Canada who charge prices in other currencies, you’d be subject to conversion fees unless you use one of these cards.
What should you look for in a credit card with no foreign transaction fees?
No foreign transaction fees itself is the obvious feature to look for, but not all of these cards are created equal.
There are a few basic no-fee cards that fit this bill, but the lack of foreign transaction fees is usually their only notable feature.
A select handful of travel-oriented cards have no foreign transaction fees, but it’s hardly the standard in Canada. Don’t assume that all travel cards have this perk, or you’ll be sorely disappointed; indeed, most of the highest-end premium travel cards still impose a 2.5% FX fee.
Beware that not all credit cards earn rewards the same way on foreign transactions.
Some cards, like the Scotiabank Gold American Express Card, earn different rewards rates for foreign currencies. You don’t get a category bonus if the purchase isn’t in Canadian dollars.
Other cards, like the Rogers World Elite Mastercard, can be the opposite: they may actually offer higher rewards on foreign transactions, but don’t waive the conversion fee. The higher rewards are meant to offset the fee.
On these cards, if you have to return an item, you’d be dinged for the conversion twice, once each way, with no rewards to show for it and a total loss of 5%. These cards are much better for daily travel spending, and not for online shopping or souvenir purchases. Instead, a true no-FX card is much more versatile.
What’s the optimal strategy for credit cards with no foreign transaction fees?
No foreign transaction fees is a relatively rare feature on Canadian credit cards. It’s rather frustrating to be dinged an extra 2.5% on all your spending when you’re abroad, so it’s a good idea to leave room for at least one credit card with no foreign transaction fees in your wallet.
Ideally, you’ll want a credit card with no foreign transaction fees that also earns strong rewards on your foreign spending, as well as some useful benefits that you’ll get value out of. Without these, the no-FX benefit on its own can often struggle to justify a card’s annual fee.
For example, the trade-off between the Scotiabank Passport Visa Infinite Card and the Scotiabank Gold American Express Card (both of which have no foreign transaction fees) is that the former has a lower 2% bonus earning rate that also applies on foreign purchases, whereas the latter has higher bonus earning rates of 3% and 5%, but the only apply on purchases made in Canada. Abroad, you’ll only earn 1%.
Depending on how much you travel internationally, you might well prefer the Scotiabank Passport over the Scotiabank Gold Amex, since it’ll be a better partner along your international trips with its higher earning rate, airport lounge benefits, and wider global acceptance on the Visa network.
Alternatively, you may also consider US credit cards, where the lack of foreign transaction fees is much more commonplace on both premium travel credit cards and basic no-fee cards alike. You can use those US cards in Canada, or anywhere else, without additional fees.
However, you’d still have to consider any costs involved in exchanging Canadian dollars to US dollars in order to pay your credit card bill, including fees, the spread, and currency fluctuations.
Either way, a savvy traveller always makes sure they have at least one credit card with no foreign transaction fees on hand for their international trips, tailored towards their foreign spending volume, tolerance for annual fees, and other benefits they might value.
Frequently Asked Questions
Below are some questions we frequently hear from readers about the best credit cards with no foreign transaction fees in Canada.
What will the foreign exchange rate be?
Conversion rates are set by Visa, Mastercard, and American Express. They’re very close to the true mid-market rate, often within tenths of a percent, and are usually much better than most other ways to exchange currency when you travel.
When is the foreign exchange rate determined?
The transaction will be converted to Canadian dollars at the time it is settled and posts to your account, not at the time it was authorized.
Will I get good rates on purchases in all currencies?
For all foreign currencies other than US dollars, credit cards will process two conversions: first from the underlying currency to USD, then from USD to CAD. You may be subject to a negligible spread on both conversions, but no additional fees.
Can I use cards with no foreign transaction fees anywhere in the world?
These cards all run on either the Visa, Mastercard, or American Express payment networks. They’ll be accepted at any merchant where Visa, Mastercard, or Amex is accepted, respectively.
If I’m offered the choice to pay in the local currency or to pay a converted CAD/USD amount, what should I do?
Always choose to pay in the local currency. The converted CAD/USD option is known as “dynamic currency conversion”, and is almost always a terrible deal that uses a very unfavourable exchange rate.
If you’re paying with a credit card that has no foreign transaction fees, you’ll be much better off paying the correct amount in the local currency and then having that converted into CAD/USD on your credit card bill based on the mid-market rate.
Can I use credit cards with no foreign exchange fee to buy foreign currency?
You shouldn’t. If you purchase cash from a currency broker, or use an ATM to withdraw from your credit card, those would be considered cash-like transactions. You’ll be charged a cash advance fee (usually a flat rate), and interest on the cash advance charge will begin accruing immediately (unlike regular purchases which have a grace period until your statement payment is due).