Most credit cards charge a foreign exchange fee when you make a purchase in another country or a site based outside of Canada, also known as a FX fee. This means that credit card providers charge about 2.5% for every transaction that’s not in Canadian dollars. So, if you’re a frequent traveller, shop across the border often, or even just do online shopping on international retail sites, there’s a chance this small charge could wind up costing you big bucks—and easily compromise any cash back or rewards you’re earning too.
Getting a credit card with no foreign transaction fee is the way to avoid this additional charge— without having to carry around wads of foreign currency (a practice which often comes with its own fees, too).
Considering that 90% of the population lives within 160 km of the U.S. border and over half of Canadians want to travel more, getting a card without a foreign transaction fee makes sense for many people. The catch? It’s a rare feature to find in a Canadian credit card.
However, we’ve rounded up and ranked the best no foreign transaction fee credit cards in Canada, so you can avoid that pesky fee and then some. We’ve even included some cards that have no annual fee—meaning, they cost nothing and save you 2.5% on your cross-border purchases.
1
Scotiabank Gold American Express® Card
Welcome Bonus
Up to 40,000 Scene+ points
Annual Fee
$120
Regular APR
20.99%
2
KOHO Extra Mastercard® Prepaid Card
Welcome Bonus
$20 cash bonus
Annual Fee
$84 or $9/month
Regular APR
N/A
3
Scotiabank Passport Visa Infinite Card
Welcome Bonus
Up to 35,000 Scene+ points
Annual Fee
$150
Regular APR
20.99%
When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With no foreign exchange fees, the scoring model used takes into account factors such as, but not limited to, cash back and rewards earn rates and categories, fees, welcome bonuses, and travel features like insurance and lounge access. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.
This card is great for those who eat in or dine out often or regularly enjoy movies and live events. It also provides a high return on grocery spending.
Rewards: Earn 6 Scene+ points per dollar spent at more than grocery stores owned by Sobeys (including Safeway, Foodland and FreshCo); earn 5 Scene+ points per dollar spent in Canada on dining, food delivery, food subscriptions, and other eligible grocery stores; earn 5 Scene+ points per dollar spent in Canada on entertainment (includes movies, theatres and ticket agencies); 3 Scene+ points per dollar spent in Canada on gas and transit (includes rideshares, public transit and taxis); 3 Scene+ points per dollar spent in Canada on eligible streaming services; and 1 Scene+ point on everything else.
Welcome Offer: 20,000 Scene+ points when you spend $1,000 within your first three months and an additional 20,000 points when you spend an additional $7,500 within your first 12 months for a total of 40,000 points (a $400 value).
Annual Fee: $120
Other Benefits and Drawbacks: You get the benefits of being an American Express cardholder, such as Amex Offers (dining, shopping and travel offers), Amex Front of the Line (access to presale and reserved tickets) and American Express Invites (special offers and events). There’s also complimentary concierge services and a discount on Priority Pass membership, which gives you access to airport lounges. And there is insurance coverage for new mobile devices, trip cancellation/interruption and flight delays. The main drawbacks are that American Express isn’t as widely accepted as Visa or Mastercard and there’s no annual fee waiver for the first year.
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Great for those who love to travel as the rewards are highest for that spending category. There’s also a $100 annual travel enhancement credit.
Rewards: 6 points per dollar spent on eligible travel purchases; 4 points per dollar spent on eligible gas, grocery and drugstore purchases; and 2 points per dollar spent on all everything else.
Welcome Offer: None
Annual Fee: $149 (rebated in the first year)
Other Benefits and Drawbacks: There’s an annual $100 travel enhancement credit that can be used for baggage fees, airport lounges, or airline seat upgrades. And there’s insurance coverage for baggage delay/loss, emergency medical and flight delays. You’ll also receive free access to Wi-Fi through Boingo and a Travel Pass membership, which gives you access to more than 1,300 airport travel lounges. However, there’s a charge of $32 USD ($42.83 CAD) per person for every visit. Rewards points can be used for travel, gift cards, merchandise, or paying down your mortgage or depositing into a savings account. The major drawbacks are that you need an annual income of $80,000 or an annual household income of $150,000 to apply.
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This card has great rewards if you shop at certain partner stores and is made for travellers.
Rewards: 2 points per dollar spent on the first $25,000 and 1 point per dollar spent thereafter. You can also earn additional points at certain partner retailers such as Lululemon, Frank and Oak, Indigo, and Patagonia. Best of all, there’s no spending cap.
Welcome Offer: None.
Annual Fee: $199 (waived for the first year).
Other Benefits and Drawbacks: You’ll receive a virtual card, which can be used after you’re approved. There’s no need to wait for your card to arrive in the mail. There’s also a flexible payment option that allows you to pay for purchases of $500 or more over 12, 16, 20, or 24 months. And you’ll get access to airport lounges with your Lounge Key Membership (a US$32 fee applies per person for each visit) as well as a variety of insurance coverage, including mobile device, accident, extended warranty, purchase security, out-of-province emergency travel medical, rental car collision/loss damage, and trip cancellation/interruption insurance. There are a few drawbacks, such as the $199 annual fee, the annual income requirement of $80,000 (or annual household income of $150,000) and a fee for taking advantage of the flexible payment option.
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A cash-back card with no annual fee and many benefits for travellers.
Rewards: Earn unlimited 2% cash back (exclusively for eligible Rogers, Fido or Shaw customers) on non-U.S. dollar purchases, otherwise earn 1.5% unlimited cash back. Earn unlimited 3% cash back on U.S. dollar purchases.
Welcome Offer: N/A
Annual Fee: $0.
Other Benefits and Drawbacks: You get extended warranty and purchase protection, vehicle rental collision/damage, out-of-province/country emergency medical, and trip interruption/cancellation insurance. There’s also free membership to Mastercard Travel Pass, which provides airport lounge access (a fee of US$32 ($42.83 CAD) per person for each visit applies). The major drawback is the annual income requirement of $80,000 for individuals or $150,000 for households. Also, the higher cash-back rate isn’t available for purchases made in countries other than the United States.
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A rewards card with good insurance coverage and the ability to earn more points while travelling.
Rewards: Earn 3 points for every dollar spent on purchases made outside Canada in a foreign currency and 1.5 points per dollar spent on everything else.
Welcome Offer: None.
Annual Fee: $99 (waived for the first year).
Other Benefits and Drawbacks: Unlike the World Elite cards, the minimum annual income requirement for this card is $60,000 for individuals or $100,000 for households. There’s also a variety of insurance coverage, such as mobile device, event ticket protector, travel emergency medical, trip cancellation, trip delay/interruption, delayed baggage and lost/damaged baggage, travel accident, vehicle rental collision/loss damage, and mobile device insurance. The drawbacks include no welcome bonus and the low rewards for everyday purchases made in Canada.
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A no annual fee card with some good insurance benefits for someone who wants a flexible payment option. It’s also a great card to get last-minute for a vacation, since it’s virtual.
Rewards: Earn 1 point per dollar spent. You can also earn more points with certain partner retailers such as Indigo, Frank and Oak, and Lululemon through the Brim Open Rewards program.
Welcome Offer: None.
Annual Fee: $0.
Other Benefits and Drawbacks: It’s a virtual card, which means you can start using it right away. It also comes with free access to Wi-Fi through Boingo and a flexible payment option of 12, 16, 20 or 24 months on purchases of $500 or more. And there’s a variety of insurance coverage, including mobile device, event ticket protector, purchase security and extended warranty coverage. However, the coverage amounts are lower and there isn’t as much coverage when compared to the Brim World Elite Mastercard. It also requires a minimum annual income requirement of $60,000 for individuals or $100,000 for households.
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A cash-back card with no annual fees and a low minimum income requirement.
Rewards: 1% cash back on every eligible purchase.
Welcome Offer: None.
Annual Fee: $0.
Other Benefits and Drawbacks: The annual income requirement is just $15,000. It has a zero liability policy, purchase security insurance, and a guaranteed hotel reservation worldwide if you arrive late. The insurance coverage isn’t as good as other no FX cards, including those with no annual fee. Also, this card isn’t available if you live in Quebec.
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A cash-back prepaid card that’s geared towards those who likely wouldn’t qualify for a regular credit card or don’t want one.
Rewards: 1.5% cash back on groceries, dining and takeout, and recurring bill and subscription payments. Earn 0.25% back on everything else.
Welcome Offer: $20 cash bonus when you sign up for a KOHO account with our link when you make your first purchase within 30 days of registration
Annual Fee: $84 or $9/month (30-day free trial).
Other Benefits and Drawbacks: This card has a good cash-back rate for some of the more popular spending categories. It’s a prepaid card and you can currently earn 5% interest on your balance. It also has one free international ATM per month and you can subscribe to Koho’s credit building line of credit for $7 a month, instead of the regular $10 a month. While there are some good benefits, it doesn’t have any insurance coverage that most other no FX fee cards offer. Also, the fee is $84 if you pay annually, but it adds up to $108 if you choose to pay monthly ($9/month).
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A rewards card for business owners who travel regularly, want airport lounge access and require additional insurance coverage.
Rewards: 1.5 Scene+ points per dollar spent.
Welcome Offer: 30,000 Scene+ points if you spend $5,000 in the first three months of opening your account and an additional 10,000 Scene+ points if you spend at least $60,000 in the first 12 months for a total of 40,000 points (a $400 value).
Annual Fee: $199
Other Benefits and Drawbacks: You get free membership to the Visa Airport Companion Program, which includes six annual visits to more than 1,200 airport lounges. The value of the six free visits is higher than the annual fee. There’s also purchase security and extended warranty protection, free Avis Preferred Plus membership for discounts on car rentals and a variety of insurance coverage, including travel emergency medical, trip cancellation/interruption, flight delay delayed and lost baggage, travel accident, rental car collision loss/damage, and hotel/motel burglary insurance. That said, the earn rate is quite low compared to other Scene+ cards. Also, the entire welcome bonus is likely difficult to earn if your business is fairly new or you don’t spend more than $60,000 annually.
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A card for someone who wants to earn rewards points at a higher rate and is looking for free airport lounge access.
Rewards: Earn 3 Scene+ points per dollar spent at grocery stores owned by Sobeys (including Safeway, Foodland and IGA) as well as 2 Scene+ points for dining and other grocery stores, entertainment (movie, theatre and concert tickets) and transit (rideshares, public transit and taxis).
Welcome Offer: Get 25,000 Scene+ points when you spend at least $1,000 in the first three months and an additional 10,000 points when you spend at least $40,000 in the first year for a total of 35,000 points (a $350 value).
Annual Fee: $150.
Other Benefits and Drawbacks: Included is free membership to the Visa Airport Companion program, which includes six complimentary visits to more than 1,200 lounges. If you use all six visits annually, it covers the cost of the annual fee. There’s also free Avis Preferred Plus membership, which provides you with discounts on car rentals. And there’s a lot of insurance coverage, including travel emergency medical, trip cancellation/interruption, flight delay, lost and delayed baggage, rental car collision loss/damage, hotel/motel burglary and travel accident insurance. The main drawback is it will be hard to earn the entire welcome bonus if you don’t spend more than $40,000 a year.
An exchange rate is the rate at which one currency is exchanged for another currency. For example, 1 U.S. dollar is currently equal to (or can be exchanged for) $1.37 Canadian dollars, so the USD-CAD exchange rate is 1.37. Conversely, 1 Canadian dollar is equal to 0.73 U.S. dollars. Exchange rates are dynamic and can fluctuate throughout the day in the foreign exchange market.
A foreign transaction fee is an extra fee charged by your credit card issuer when you make any transaction in a foreign currency. In Canada, this rate is typically around 2.5%. This means for every $100 you spend overseas, you’ll pay an extra $2.50 in foreign transaction fees.
When you’re looking for the right credit card with no foreign transaction fees, consider the following attributes:
The central reason to get a no foreign transaction fee card is obvious: to save 2.5% on purchases made overseas or at foreign online retailers.
There are a number of benefits to credit cards with no foreign transaction fees.
These cards save you 2.5% on something you may not even be aware you’re being charged. On a long trip, that 2.5% can add up quickly and this card can save you hundreds of dollars.
There are a variety of great cards, that offer no foreign exchange fees, some that top our other lists in terms of rewards and insurance. There are a variety of cards that offer no foreign exchange fees, including:
With a credit card that saves on foreign exchange fees, you can expect to earn at least 2.5% on your purchases. However, if your card also offers points or cash back, your purchases will earn even more. For example, if you had a cash-back card that earns 1% on purchases, but charges foreign exchange fees, you’ll technically lose 1.5% on each transaction. Conversely, a no foreign transaction fee card that offers 1% cash back will earn you 3.5% on your purchases.
Many no foreign transaction fee cards know their audience: travellers. With that in mind, they provide valuable travel insurance, which can include emergency medical, travel accident, trip cancellation and delay, lost/delayed baggage, car rental insurance, hotel/motel burglary insurance and more.
There are some drawbacks to no foreign exchange fee credit cards, but they have nothing to do with the lack of a foreign exchange fee.
The main drawback to these cards is that they are incredibly rare in Canada. Most credit cards on the market charge an foreign exchange fee in this country. However, you can decide if you’d like to have another card as your primary card and supplement travel with a no foreign exchange fee card.
There aren’t any low-interest foreign exchange fee credit cards currently on the market. However, the KOHO Extra Prepaid Mastercard has no interest because it’s a prepaid card.
Related: Best Low-Interest Credit Cards
When choosing a card with no foreign exchange fee, consider what you’re using this card for most often. If it’s to be used exclusively for travel, you may look for a card that comes with travel insurance, rental car insurance or hotel and airport perks. If this card will be used as your primary card, look for the features you value most, like cash back or points earnings in the categories you tend to spend frequently in.
If you frequently travel internationally, shop across the border or even just on foreign websites, a card with no foreign transaction fees is likely worth it. When you consider that some of these cards can offer other valuable perks, like travel insurance, it makes sense to get a credit card that doesn’t charge you foreign transaction fees.
Even if you only travel or shop at foreign retailers a few times a year, keeping a credit card that has no foreign transaction fees in your wallet can be a good idea. There are some on this list that have no annual fee, so it would cost nothing to keep it on hand for when you need it. Travelling can often involve spending, especially on food, entertainment and shopping. With a card that has no foreign transaction fee, you can avoid paying an extra $25 on every $1,000 you spend across the border.
However, if you have a credit card that offers significant earnings on spending, but doesn’t waive the foreign exchange fee, you may have to crunch the numbers to see which is more beneficial to your bottom line.
If your credit card has a foreign exchange fee, you shouldn’t expect to see it refunded. Watch out for foreign transaction fees at foreign ATMs as well.
If you’re a frequent cross-border traveller, having a credit card with no foreign transaction fees makes good financial sense as you’re saving the 2.5% fee per transaction. Here are some additional tips to make the most of your card:
Pick the best perks: Choose a card that fits your spending and travel habits. If you travel a lot, a no foreign transaction fee card with perks such as travel insurance or rental car discounts, such as the Rogers Red World Elite® Mastercard®, could be a good match. If you prefer a card that offers points or cashback for everyday spending, a card such as the Meridian Visa Infinite Travel Rewards card might find a good place in your wallet.
Watch the annual fee: A high annual fee can eat away at any potential savings, especially if you only use the card a few times a year. In that case, choose a no-fee or low-fee credit card. If your card of choice has a higher annual fee, make sure the benefits make it worthwhile.
Know your card’s APR: It’s always a good idea to pay off your credit card balance each month to avoid paying interest, but if you know you’re likely to carry a balance, use a card with the lowest interest rate and make at least the minimum payment before the due date.
Related: Best Credit Cards for Canada
The Scotiabank Gold American Express is what we consider to be the best no FX fee credit card in Canada. It’s a travel rewards card with a high return on spending for entertainment, dining and groceries. There are a number of benefits, including travel emergency medical, trip cancellation/interruption, flight delay, delayed and lost baggage, travel accident and hotel/motel burglary insurance.
The Rogers Red World Elite® Mastercard® has no annual fee and is a cash-back card. The card has a good cash-back rate for a card with no fee. It also offers a variety of insurance benefits including trip interruption/cancellation, out-of-province/country emergency medical, rental car collision/damage insurance and extended warranty/purchase protection insurance.
All the cards on this list have no foreign transaction fees. That said, there isn’t a wide selection of cards that don’t have foreign transaction fee on the Canadian market.
Typically, banks offer foreign transaction fees on some financial products and have no foreign transaction fees on others. That’s why it’s important to read the fine print carefully.
International charges can be avoided by using a credit card with no foreign transaction fees, and finding out if your institution reimburses out-of-network ATM fees. You can also choose to withdraw local currency from ATMs and/or bring foreign currency with you. Typically, your bank will offer the best exchange rate and often won’t charge extra fees for the service.
There are a number of Visa cards that don’t charge an FX fee, such as the Meridian Visa Infinite Travel Rewards card, the Home Trust Secured Visa Card, the Scotia Passport Visa Infinite Business Card and the Scotia Passport Visa Infinite Card.
No. Instead RBC offers a U.S. credit card that does not charge any foreign transaction fees in the U.S. There are, however, foreign transaction fees for purchases in other foreign currencies.
Generally, it’s best to use credit cards when travelling abroad. Cards are safer than cash and even if your card charges a foreign transaction fee, you can get a better rate than if you exchange for cash or take money out of an ATM that charges both the exchange rate and a fee. That said, it’s still smart to carry some cash when you’re travelling, for smaller purchases such as tips or street vendors.
No. The Meridian Visa Infinite Travel Rewards Card, the Home Trust Preferred Visa Card, the Scotiabank Passport Visa Infinite Business Card and the Scotiabank Passport Visa Infinite Card do not have foreign transaction fees.
