The Best No Foreign Transaction Fee Credit Cards in Canada for 2023 - Money We Have (2024)

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Having one of the best no foreign transaction fee credit cards in Canada is essential since it’ll significantly reduce your costs when travelling. That’s because most Canadian credit cards charge a foreign transaction fee of 2.5% whenever you make a purchase in any currency besides Canadian dollars. That may sound like a lot, but if you were to spend $5,000 abroad, that’s $125 in fees you’d be paying.

It makes no sense to pay more than you have to. Instead, you’re better off getting one of the best credit cards with no foreign transaction fees since you’ll save on the exchange fees and get some great travel benefits.

The best no foreign transaction fee credit cards in canada

TheScotiabank Passport Visa Infinite Cardis the best no foreign transaction fee credit card for those who don’t want to hold multiple credit cards. The earning rate is 3 Scene+ points per $1 spent at Empire owned supermarkets, 2 points at other eligible grocery stores, dining, entertainment, and daily transit purchases, and 1 point on all other purchases.

This card is appealing because you also get some great travel benefits. A complimentary Visa Airport Companion Program membership is provided via DragonPass, with six free annual passes. For reference, airport lounge access usually costs US$99 a year, plus US$32 a visit, so cardholders get a lot of value. You also get a comprehensive travel insurance policy. This is one of the best travel credit cards in Canada.

Other benefits include a free Avis Preferred Plus membership, concierge service, access to the Visa Infinite Hotel Collection, and Dining and Wine Country program. The card does have an annual fee of $150.

Eligibility: A minimum personal income of $60,000 or a household income of $100,000 or at least $250,000 in assets under management. A credit score of 700 is also recommended.
Welcome bonus: You’ll typically get 35,000 to 50,000 Scene+ points as the welcome offer. In most cases, you’ll need to spend a minimum amount in the first three months and another in the first 12 months for the full bonus.

The high earn rate sets the Scotiabank Gold American Express Card apart from the other no foreign transaction fee credit cards on this list. You get 6 Scene+ points per $1 spent at Empire-owned grocery stores, 5 points on other grocery stores, dining, and entertainment purchases, 3 points on gas, public transportation, rideshares and streaming purchases, and 1 point on all other purchases. That earning rate rivals theAmerican Express Cobalt Card.

It’s worth nothing the bonus categories don’t apply to any foreign transactions (they do for the Scotiabank Passport Visa Infinite Card), but you do get additional benefits such as a comprehensive insurance package that covers you up to 25 days, airport lounge access (no free passes), and mobile device insurance.

Even though you don’t get any free airport lounge passes, the additional points you earn from the bonus categories in Canada make up for it. This is the card you should choose if you want to earn many points fast. The annual fee is $120.

Eligibility: There’s no minimum income requirement. A credit score of at least 700 is recommended.
Welcome bonus: Typically worth between 40,000 and 60,000 Scene+ points when. To get the full bonus, you usually need to meet multiple minimum spending requirements.

The EQ Bank Card is the perfect choice for those who want to access foreign currency for cheap. You’ll earn 0.5% cash back on all your purchases. In addition, any funds loaded to your card also earn interest (the percentage is higher than the purchase rate).

This card stands out because you don’t get charged any foreign transaction fees when using foreign ATMs. That means you can withdraw cash locally as needed instead of exchanging funds in advance or when you arrive. Note that the one-time fee that foreign ATMs charge are not reimbursed. However, any ATM fees in Canada are credited back to you.

Since this is a prepaid card, you can only spend the funds that you’ve loaded onto your card. Loading funds is easy even when you’re abroad, as you only need to send yourself an e-transfer. The good news is that prepaid cards don’t require an income or credit history to be approved. Plus, the card has no fees.

Eligibility: Must have an EQ Bank account. No income or credit history is required.
Welcome bonus: You get a $20 cash bonus when signing up with areferral linkand funding your account with $100 within 30 days of account opening.

TheCIBC AC Conversion Cardisn’t a traditional no foreign transaction fee credit card; it’s aprepaid credit cardwhere you can load up to 10 currencies. This is a good choice for anyone who’s travelling to multiple countries with different currencies supported by the CIBC AC Conversion card. By preloading your funds, you’re essentially locking in your rates before you travel.

Ten currencies may not sound like a lot, but that covers you for 40 different countries, which is a good amount. The currencies available include Canadian dollars, United States dollars, Euros, Great Britain pounds, Mexican pesos, Hong Kong dollars, Australian dollars, Japanese Yen, Turkish Lira, and the Swiss Franc.

One downside with this card is that you only get one free foreign ATM withdrawal a month. If you need additional transactions, it’ll cost you $3 – $5 each. This card has no fee and you’ll get $10 when you refer your friends.

Eligibility: No income or minimum credit score required.
Welcome bonus: $20 when signing up with myexclusive referral link.

TheHome Trust Preferred Visais a no fee, no foreign exchange fee credit card. The earn rate is 1% cash back on all purchases, but it doesn’t apply to purchases made in foreign currencies. That means you only earn cash back on transactions made in Canadian dollars, but at least you won’t pay the FX fees when purchasing in a currency that’s not Canadian dollars.

This card’s only real other benefit is purchase security, which covers your purchases for 90 days from theft, loss, or damage. Some people like this card over others because it has no annual fee and is a true credit card. That means you don’t need to preload funds to use it. That said, if you choose this card, call customer service before you depart to let them know you’re travelling. In the past, they would automatically block transactions made outside of Canada.

Eligibility: No minimum income is required. A credit score of at least 660 is recommended.
Welcome bonus: None.

Another prepaid credit card with no foreign transaction fees is theWealthsimple Cash Card. All purchases earn you 1% back in cash, stock, or crypto. In addition, any funds you have loaded to your card earn interest. That means your money always grows even when you’re not spending it.

As a no fee, prepaid card, there aren’t any other benefits. The main draw here is the cash back earned and the no foreign transaction fees. You also won’t pay foreign transaction fees on ATM withdrawals. That said, most foreign ATM operators will charge you a one-time fee, and Wealthsimple limits your withdrawals to $500 CAD a transaction. There’s also a daily withdrawal limit of $1,000 CAD per day.

This card is very similar to the EQ Bank Card. Many people prefer the EQ Bank Card because you get $20 when signing up with a referral link. However, Wealthsimple does give you a higher cash back and savings interest rate.

Eligibility: Must have a Wealthsimple Cash account, but no income or credit history is required.
Welcome bonus: Up to $3,000 (it’s random)

Brim Financial has two no foreign transaction fee credit cards: the Brim Mastercard and the Brim World Elite Mastercard. The basic card has no annual fee and gives you 1 point per $1 spent. Not World Elite version has an annual fee of $199, but it’s often waived for the first year. The earn rate with this card is 2 points per $1 spent.

Besides the regular cash back, Brim Financial has hundreds of retail partners where you can earn up to 10% back in points. In addition, all cardholders get free global Wi-Fi, budgeting tools, mobile device insurance, and event ticket insurance. If you get the World Elite version, you also get travel insurance and Mastercard Travel Pass provided by DragonPass (no free passes).

Many people use the Brim Financial World Elite Mastercard as their preferredpayment method at Costcosince they can earn 2% in cash back when making in-store purchases.

Eligibility: The Brim Financial Mastercard has a personal income requirement of $15,000. The World Elite version requires a personal income of $80,000 or a household income of $150,000. A credit score of 660 is recommended for the basic version and 700 for the World Elite.
Welcome bonus: Up to $200 in first time bonuses for the Brim Financial Mastercard and up to $500 for the Brim Financial World Elite Mastercard.

TheAmazon.ca Rewards Mastercardis one of the best no foreign transaction fee credit cards in Canada, but it flies under the radar. You’ll earn 2.5% back at Amazon.ca, Whole Foods and foreign transactions. All other purchases earn you 1% back. However, you must be an Amazon Prime member to get this rate. Non-Prime members earn 1.5% back at Amazon.ca and Whole Foods, and 1% on foreign transaction fees.

The cash back works like this. Once you’ve earned 2,000 points, a $20 Amazon.ca gift card is deposited into your account. Other benefits with the card include discounts at Avis and Budget Rent a Car, purchase assurance, extended warranty, and zero liability insurance.

This card is only worth considering if you’re an Amazon Prime member and you do a lot of shopping on Amazon. The good news is that there’s no annual fee.

Eligibility: Must be an Amazon Prime member for the increased earning rate. No minimum income or credit score is listed.
Welcome bonus: A $35 Amazon.ca gift card is given instantly upon approval.

What are foreign transaction fees?

Foreign transaction fees are a surcharge that’s added to the exchange rate when you make a purchase in any currency that’s not Canadian dollars. This includes any online purchases you make that are in US Dollars. It doesn’t matter if it’s a Canadian company, if you’re paying in a foreign currency, most credit cards will add a foreign transaction fee. This fee is baked right into the exchange rate, so when looking at your statement, you may not even notice it.

Credit card provider foreign transaction fees

Most credit card providers charge a foreign transaction fee of 2.5%. That said, some cards will charge as high as 3.5%. To give you some perspective, for every $1,000 you spend in a foreign currency, it’s costing you $25 to $35 in fees. As you can imagine, these fees can add up quickly and make your purchases more expensive.

Credit card issuer foreign transaction fees

Credit card issuers (Visa, Mastercard, and American Express) also charge a small fee. That said, the fees are minimal. For example, at the time of this writing, the exchange rates for 1 CAD dollar to 1 US dollar was as follows:

• Official exchange rate – 0.77118
• Visa exchange rate – 0.77333
• Mastercard exchange rate – 0.77255

This exchange is required since the official exchange rate is only available to financial institutions. The credit card issuers charge a tiny percentage to do the conversion. Technically speaking, Mastercard offers better exchange rates than Visa. However, as you can see, the difference is so tiny it won’t matter.

To view current exchange rates, you can check out xe.com, Visa, and Mastercard. American Express does not list their exchange rates, but they’re similar.

How are foreign transaction fees determined?

Credit card issuers and credit card providers determine foreign exchange fees. When credit providers charge foreign exchange fees, they’re posted in your user agreement.

As for the exchange rates themselves, they’re based on supply and demand in the foreign exchange market. For example, if a country is in a conflict or has experienced a natural disaster that has affected its economy, the demand for its currency would likely decrease. As a result, the value of their money would decrease in value.

How do no foreign transaction fee credit cards work?

The best credit cards with no foreign transaction fees are exactly as advertised. Instead of charging the extra 2.5% to 3.5% in fees, they waive it entirely. That means consumers with these cards will automatically get the lowest exchange rate offered by Visa, Mastercard, or American Express.

That said, some credit cards promote that they have no foreign exchange fees, but you might be getting a rebate or cash back instead. For example, a credit card might charge a 2.5% foreign transaction fee, but you get 2.5% cash back on purchases made in a foreign currency. When looking at credit cards with no foreign transaction fees, read the fine print.

Where can no foreign transaction fee credit cards be used?

Since credit cards with no foreign transaction fees are just regular credit cards, they can be used just about anywhere, including:

• In Canada
• Abroad
• Online
• At ATMs (fees may apply)

Remember that your credit card issuer must be accepted where you’re making a purchase for your credit card to work. For example, if you have a no foreign transaction fee Visa, and the merchant doesn’t accept Visa, you won’t be able to use it.

Should I pay in the local currency or CAD?

Some merchants will allow you to pay in the local currency or CAD when processing your payments. This is known asdynamic currency conversion. You should ALWAYS choose the local currency if you’re paying with one of the best credit cards without foreign transaction fees because you’re guaranteed to get the best exchange rates. If you were to choose CAD dollars, there’s a slight markup included by the payment processor.That fee can vary depending on the processor but your credit card will almost always offer a better currency conversion fee than a foreign processor.

Do foreign transaction fees apply to ATMs?

If you were to use a credit card to withdraw cash from an ATM, it’s considered a cash advance. In this situation, you would likely pay 22%+ interest immediately. In addition, a foreign transaction fee would apply, and the ATM might charge you a one-time fee. In other words, don’t use a traditional credit card to withdraw money from an ATM.

There is one exception to this rule. Some prepaid cards, such as the Wealthsimple Cash Card and EQ Bank Card, don’t charge foreign transaction fees or interest when using foreign ATMs. That’s because they’re prepaid cards and are similar to debit cards.

If you used your debit card in a foreign ATM, you’d likely be charged a foreign transaction fee of 2.5% to 3.5%. Your bank and the ATM provider will likely charge a one-time use fee. In other words, using a no FX credit card that doesn’t charge you a markup on foreign ATM withdrawals is the best way to get foreign currency.

Is a no foreign transaction fee credit card worth it?

It should be evident by now that having a no foreign transaction fee credit card is necessary. There’s no reason you should pay additional fees when you don’t have to. 2.5% doesn’t sound like a lot, but it adds up. For example, let’s say you went on a trip to Europe and charged roughly $4,000 to your card that charges foreign exchange fees. You’d essentially be paying $100. That’s enough for a nice meal during your trip.

There are so many credit cards that have no forex fees, so you should pick one that best suits your needs. Even if you get a no fee card and only use it once or twice a year, getting the best prices and avoiding paying extra will be worth it.

How to choose a credit card with no foreign transaction fees

My list of the best credit cards without foreign transaction fees in Canada will greatly reduce the amount of time you need to research. From this handful of cards, you should consider the following to help you choose the perfect card:

• Annual fee –Do you want to pay a yearly fee or not?
• Benefits included –Does the credit card come with any additional benefits that you’re interested in, such ascomplimentary accessto airport lounges, discounts on car rentals, and travel insurance such as auto rental collision damage waiver insurance.
• ATM access –If you plan on withdrawing cash, consider a card that has no ATM fees.
• Cash back or no fee –Some of the cards give you cash back that offsets the forex fees, while others don’t charge any fees at all.
• Welcome offer: Always worth looking into when you are getting a new card.

How to apply for a credit card with no foreign transaction fees

If you’re ready to apply for a credit card with no foreign transaction fees, then follow these steps:

1. Browse and compare the best credit cards with no foreign transaction fees above
2. Click apply now
3. Check that you meet all the qualifications
4. Fill out your personal details
5. Wait for approval
6. When the card arrives, activate it

FAQ

Are foreign transaction fees refunded?

Foreign transaction fees are not refunded for regular credit cards. It doesn’t matter if you make a purchase and return it 10 minutes later; you’ll lose out on the exchange TWICE! That’s because you’re charged a 2.5% fee for the purchase and a 2.5% fee to convert the funds back to Canadian dollars when you do a return. In other words, if you’re not using one of the best no foreign transaction fee credit cards in Canada, you’ll be paying a 5% fee to do a return.

You’re not charged the fee with no foreign transaction fee credit cards. That means if you’re doing a refund, you should get the full amount back. That said, there might be a slight difference if you do the return on a different date, as the exchange rate could have changed.

What is the best no FX fee credit card in Canada?

When it comes to the best no FX fee credit card in Canada, I like to lean towards either the Scotiabank Passport Visa Infinite or the EQ Bank Card.

The Scotiabank Passport Visa Infinite is a well-rounded travel rewards credit card with a number of handy perks and benefits. It’s easy to earn rewards on day-to-day spending, and the rewards program is pretty decent. This makes it a solid choice for an all-in-one credit card as opposed to looking for something just to target avoiding no FX fees. As mentioned earlier, it’s frequently one of my top picks for the best travel cards in Canada.

The EQ Bank Card, on the other hand, is a prepaid card rather than a credit card. Some people prefer this when travelling as they feel safer and better protected. You would likely have this card in addition to a credit card. While it doesn’t come with any fancy travel perks or benefits, it offers cash back for domestic and international purchases, which is pretty handy since it’s a free card.

How do US dollar credit cards differ from no foreign transaction credit cards?

Just about every financial institution offers a US dollar credit card. That means there will be no foreign transaction fees when you charge US dollar purchases to the card. However, any other currency, including Canadian dollars, would incur the forex fee charge.

In addition, since this is a US dollar credit card, you need to pay your bill in US dollars. Unless you have a steady stream of US dollars, you’ll have to convert Canadian dollars to pay your bills. Of course, there’s a cost to convert your currency, which varies depending on where you exchange your money.

What are the pros and cons of no foreign transaction fee credit cards

It should be obvious that credit cards with no foreign transaction fees can be highly beneficial, but that doesn’t mean you should sign up for one immediately. You’ll want to consider the pros and cons before making a decision.

Pros of no foreign transaction fee credit cards

• No foreign transaction fees –You’ll save at least 2.5% on purchases made in a foreign currency.
• Cheap way to get foreign cash –No foreign transaction fee prepaid cards are the cheapest way to get cash when withdrawing from foreign ATMs.
• Some benefits –A few credit cards with no foreign transaction fees come with benefits such as travel insurance and airport lounge access.

Cons of no foreign transaction fee credit cards

• No American Express cards –There are no American Express cards in Canada that have no foreign transaction fees.
• Limited benefits –Most no foreign transaction fee credit cards come with only a few benefits.
• Low earn rate –With most credit cards, foreign purchases only give you the base earn rate.

No foreign transaction fee credit card alternatives

In the rare event that you’re not approved for a credit card that doesn’t charge foreign transaction fees, you can consider one of the following alternatives:

• Get a prepaid card –The Wealthsimple Cash Card, EQ Bank Card and CIBC AC Conversion Card are all prepaid cards, so you’re guaranteed to be approved.
• Exchange cash in advance –If you use one of thebest ways to exchange money, you can pay for purchases with cash when abroad.
• Use a regular credit card –Although you’ll have to pay foreign transaction fees, at least you can still charge your purchases.