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
|
FX fee: 0%
Annual fee: $0 Features: 1% cash back1 on eligible purchases |
Get started |
![]() |
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
|
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®
|
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
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.‡
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
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
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.