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Fact Checked: Scott Birke

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Updated: December 01, 2023

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.

Best no foreign transaction fee credit cards in Canada

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware this post may contain links to products from our partners. We may receive a commission for products or services you sign up for through partner links.

Fact Checked: Scott Birke

🗓️

Updated: December 01, 2023

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.

To avoid a painful credit card statement after your trip abroad—the 2.5%-3% foreign transaction fee applied to each purchase you made outside Canada, you need a credit card with no fee for foreign transactions, or FX fees. 

Below is Money.ca's list of the best no FX fee cards in Canada to help you save money on currency exchanges when you travel or simply shop online. 

The 4 best no foreign transaction fee credit cards in Canada

Credit card Read more Foreign transaction fee (FX)/Annual fee/Features Apply now
Home Trust Preferred Visa No Foreign Transaction Fee credit card Home Trust Preferred Visa
FX fee: 0%
Annual fee: $0
Features: 1% cash back1 on eligible purchases
Get started
Scotiabank Passport Visa Infinite Scotiabank Passport® Visa Infinite* Card

FX fee: 0% fee
Annual fee: $150
Features: Complimentary Visa Airport Companion Program membership, plus 6 complimentary lounge visits per year
Get started
Scotiabank gold american express card Scotiabank Gold American Express® Card

FX fee: 0%
Annual fee: $120
Features: 5X the Scene+™ points for every $1 CAD spent on other food and drink
Get started
Rogers World Elite Mastercard Rogers™ World Elite® Mastercard®

FX fee: 2.5%
Annual fee: $0
Features: 0.5% cash back on purchases in U.S. dollars after factoring in the foreign transaction fee
Get started

Why you want a credit card with no fee for foreign transactions

Foreign transaction fees altogether (FX fees) usually represent too large a part of Canadian credit card companies’ income streams for them to walk away from. The fact is, Canadians travel out of Canada a lot more often than Americans travel out of the United States, so it’s easier for an American issuer to give up on FX fees than for a Canadian issuer. For a quick comparison: 30% of Americans have a passport, compared to 70% of Canadians.

So what’s the big deal about a credit card that subsidizes foreign transaction fees? Well, the savings can be huge for some Canadian customers, especially:

  • Snowbirds who winter in the south
  • People who shop across the border regularly or shop online
  • Those who use their credit card to make business purchases from U.S. vendors.

Think about it. If you use your credit card while wintering in the United States, you could easily rack up $10,000-$20,000 in credit card charges. That’s $250 to $500 in foreign exchange fees going to the credit card companies. Not to mention it also wipes away the 1-2% in rewards you thought you were earning.

Aside from that, using a credit card with no fee for foreign transaction, which subsidizes or waives your foreign transaction fee, is actually cheaper than at a boutique foreign exchange bureau – which routinely cost anywhere from 1%-3% to exchange your money. Debit and out-of-country ATM cash withdrawals are no better, each typically charging a foreign exchange fee of 2.5% or more.

Best no fee credit card with no fee for foreign transaction

Home Trust Preferred Visa

1% Earn 1% cash back on all purchases with no cap.

21.99% Purchase APR

21.99% Balance Transfer Rate

21.99% Cash Advance APR

$0.00 Annual Fee

0.00% Foreign Transaction Fee

Good Recommended Credit Score

  • Overview of the Home Trust Preferred Visa

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    One card that offers relief from foreign transaction fees is the Home Trust Preferred Visa. Aside from waiving the 0% foreign transaction fee option, this credit card also gives Canadians 1% cash back1 on all eligible purchases, without any limits on how much cash back you can earn. And there’s no annual fee.

    Minimum credit score: N/A

    Minimum income: $80,000 individual or $150,000 household

    Age: Age of majority in your province or territory

    Residency: Canadian

    Click here to apply or learn more by reading our complete Home Trust Preferred Visa review.

    1 Cash advances, balance transfers, interest, fees and foreign transactions (including online purchases in foreign currencies) are not eligible for CashBack Rewards.

Best travel credit card with no fee for foreign transaction

Scotiabank Passport® Visa Infinite* Card

3x Cardholders earn 3X Scene+ points for each dollar charged to their account on all eligible purchases at select grocers.

2x Earn 2 points for every $1 they spend in four distinct categories: other eligible grocery stores, dining, entertainment purchases, and daily transit purchases (including buses, subways, taxis and more)

1x All other eligible purchases earn 1 Scene+ point per $1 spent.

20.99% Purchase APR

22.99% Balance Transfer Rate

22.99% Cash Advance APR

$150.00 Annual Fee

0.00% Foreign Transaction Fee

Good Recommended Credit Score

Welcome Offer Ends Jan 3

Earn up to $1,100* in value in the first 12 months, including up to 35,000 bonus Scene+ points.‡

Claim offer
  • Overview of the Scotiabank Passport® Visa Infinite* Card

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    Though accompanied by an annual fee of $150, the Scotiabank Passport® Visa Infinite* Card not only waives foreign transaction fees, but also offers great rewards rates for spending in foreign currency, as well as superior travel benefits. You’ll pay no fees for purchasing online or abroad in a foreign currency and will earn 3X Scene+™ points points on every $1 you spend at Sobeys, Safeway, IGA, Foodland and Participating Co-ops, and more eligible grocers¹; 2 points for each $1 spent on other eligible grocery stores, dining, entertainment purchases and daily transit purchases, no matter what currency the purchase was made in. One Scene+ point per $1 spent is earned on all other eligible purchases.

    Additionally, travellers who frequently face layovers will appreciate the card’s 6 free airport lounge passes that renew each year. They’ll also like the travel protections that accompany the card, including travel medical, trip interruption and cancellation, and rental car insurance. Furthermore, there’s currently an offer for new cardholders. Earn up to $1,100* in value in the first 12 months, including up to 35,000 bonus Scene+ points and first year annual fee waived on your first supplementary card.¹ Earn 25,000 bonus Scene+ points by making at least $1,000 in everyday eligible purchases in your first 3 months. Plus, as a Scotiabank Passport Visa Infinite cardholder, you are eligible to earn an annual 10,000 Scene+ point bonus when you spend at least $40,000 in everyday net eligible purchases annually. Offer ends January 3, 2024.

    Minimum credit score: Excellent

    Minimum income: Minimum annual income of $60,000 or a minimum household income of $100,000 or a minimum assets under management of $250,000

    Age: Age of majority in your province or territory

    Residency: Canadian citizen or permanent resident

    Other: No bankruptcies in the past seven years

    Click here to apply or learn more by reading our complete Scotiabank Passport® Visa Infinite* card review.

    ¹ Conditions Apply. Visit here for the Scotiabank Passport® Visa Infinite* Card to learn more.


Best Scene+ credit card with no fee for foreign transaction

Scotiabank Gold American Express® Card

40,000 Earn up to to 40,000 bonus Scene+ points

3% 3X Scene+ points for every $1 CAD spent on eligible gas, as well as daily transit and select streaming services.

20.99% Purchase APR

22.99% Cash Advance APR

$120.00 Annual Fee

0.00% Foreign Transaction Fee

Very Good Recommended Credit Score

  • Overview of the Scotiabank Gold Amex

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    Like the Scotiabank Passport® Visa Infinite* Card, when you use the Scotiabank Gold American Express® Card for any overseas purchases, you’ll only have to pay the exchange rate, with no foreign transaction fees added on top. But unlike the Scotiabank Passport® Visa Infinite* Card, you won’t earn extra points for purchases in special categories if the purchase is made in foreign currency.

    That said, the Scotiabank Gold American Express® Card still holds its own, combining a sizable first-year bonus with steady earning power after that. Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points¹. Earn 20,000 bonus Scene+ points by making at least $1,000 in everyday eligible purchases in your first three months. Plus, for a limited time, you are eligible to earn a 20,000 Scene+ point bonus when you spend at least $7,500 in everyday eligible purchases in your first year. Offer ends October 31, 2023.

    Plus regular earn rates of 6X Scene+™ points on every $1 CAD you spend in Canada at Sobeys, Safeway, FreshCo, Foodland, and more eligible grocers¹; 5X Scene+™ points per $1 CAD spent on other eligible grocery, dining, and entertainment purchases; 3X Scene+™ points per $1 CAD spent on eligible gas, daily transit, and select streaming services; and a standard 1X Scene+™ point per $1 spent on all other purchases (last applicable to all currencies).

    Minimum credit score: Excellent

    Age: Age of majority in your province or territory

    Residency: Canadian citizen or permanent resident

    Other: No bankruptcies in the past seven years

    Click here to apply or learn more by reading our complete Scotiabank Gold American Express® card review.

    ¹ Conditions Apply. Visit here for the Scotiabank Gold American Express® Card to learn more.


Best cash back credit card with rebated foreign transaction fees

Rogers™ World Elite® Mastercard

3% Earn 3% unlimited cash back on purchases made in U.S. dollars.

1.5% Earn 1.5% unlimited cash back on everything else.

19.99% Purchase APR Increasing to 20.99% April 2024

22.99% Balance Transfer Rate

22.99% Cash Advance APR

$0.00 Annual Fee To maintain eligibility, you must spend at least $15,000/year.

Excellent Recommended Credit Score

$80,000.00 Required Annual Personal Income

  • Overview of the Rogers World Elite Mastercard

    +

    Credit cards can help travellers avoid foreign transaction fees by matching any fees with an equal amount of cash back, or more. The latter is true with the impressive Rogers™ World Elite® Mastercard®. Applicants must meet a higher annual income and credit requirement (though the card still has no annual fee), but receive perks and superior cash back rates as a result. With the World Elite card, cardholders will receive 3% cash back for their purchases made in U.S. dollars, and 1.5% cash back for any purchases made in Canadian dollars.

    The Rogers™ World Elite® Mastercard® can net a total cash back rate of 0.50% on purchases in U.S. dollars after factoring in the 2.5% foreign transaction fee. Cardholders will also get a comprehensive insurance package that includes collision damage coverage for rental vehicles, and trip interruption, trip cancellation, and emergency travel medical insurance. This is an excellent deal for no annual fee, but applicants need to show $80,000 in annual income or $150,000 in household income.

    Minimum credit score: Good/Excellent

    Minimum income: $80,000 individual or $150,000 household

    Age: Age of majority in province of residence

    Age: Age of majority in province of residence

    Residency: Canadian

    Other: No bankruptcies in the past seven years

    Click here to apply or learn more by reading our complete Rogers™ World Elite® Mastercard® review.

Can’t I just use a USD credit card instead of a credit card with no foreign transaction fees?

Those who do most of their foreign spending in the US might be wondering if they can successfully avoid foreign transaction fees with a U.S. Dollar credit card. But remember that unless you actually keep USD in your bank account , it’s unlikely that you’ll be able to truly avoid the fees. Ultimately you’ll have to pay your U.S. Dollar credit card bill in U.S. dollars, and if you don’t have the USD handy to do so, you’ll need to convert your Canadian dollars to U.S. dollars at the bank. At that point the bank will charge you its 1%-3% foreign exchange surcharge (which is likely less than Visa, Mastercard, or Amex currency exchange fees)

If you frequent the U.S. on travel, get paid in American Dollars, or buy American products, it makes sense to have a U.S. Dollar credit card. 

Here's more info on our top two U.S. Dollar credit cards

What about prepaid cards with no foreign transaction fees?

For those looking for a prepaid card instead when planning their next trip the no-annual fee CIBC Air Canada® AC Conversion™ Visa* Prepaid Card allows cardholders to upload cash across up to 10 foreign currencies at a locked-in exchange rate. It's an easy solution for spending local currency in your next travel destination.

Will more Canadian credit cards with no foreign transaction fees enter the market?

Hopefully more Canadian credit card issuers that don’t rely on foreign transaction fees for a substantial portion of their revenue will soon step up to the plate and issue more no foreign transaction fee cards. Perhaps some of the niche issuers like President’s Choice, Walmart, or Canadian Tire can shake things up a little bit the way Home Trust, HSBC, Scotia and Rogers have. But as of right now, those are four of the only games in town, and they’re offering Canadians a SUPERLATIVE opportunity. Just not enough of us know about it.

About our author

Sarah Pritzker
Sarah Pritzker, Freelance Contributor

Sarah Pritzker has been writing for Money.ca since 2017, and loves learning about the latest trends in Canadian personal finance. Topics of particular interest to Sarah include investing, debt consolidation, debt counselling, and rewards programs. When she's not researching credit cards or loan repayment strategies, Sarah is most likely hanging out with her husband and three kids.

Disclaimer

The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.

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