The Best No Foreign Transaction Fee Credit Cards in Canada

Travelling outside of Canada can lead to wonderful experiences, but it often comes with a few financial hassles. One primary concern for many Canadians is the added cost of foreign transaction fees on their credit card purchases. These fees, ranging between 2.5% and 3%, can affect your travel budget and make a dent in your overall spending power.

Fortunately, there are several credit cards in Canada that offer no foreign transaction fees as a key feature. By using these cards for your international purchases, you can save money on every transaction made in a foreign currency.

To help you find the right no foreign transaction fee credit card, I’ve compiled a list of a few of the best ones in Canada. I also explain how these credit cards differ from US dollar credit cards, which are another popular option.

The Benefit of a No Foreign Transaction Fee Credit Card

Whenever you make purchases with a Canadian credit card while shopping in a foreign country, a foreign currency exchange occurs at the moment of the transaction. The vast majority of credit cards charge an additional fee of 2.5%-3% for every one of these transactions. The fee is known as a foreign transaction fee, but it’s essentially an administration or processing fee.

No foreign transaction fee credit cards waive this fee for cardholders. The benefit is that it saves you money when you travel or shop internationally.

While 2%-3% may not sound like a whole lot, consider this:

Let’s say you take your family on a trip to Disney World in Florida. Over the course of a week, you charge $10,000 to your Canadian credit card for hotels, park passes, food, etc. (Disney isn’t cheap). This amount of spending would result in foreign exchange fees being added to your bill to the tune of $250 or more.

If you add this up over several years and many different trips outside of Canada, you can easily spend hundreds, even thousands, of dollars in foreign transaction fees.

That’s what a no foreign transaction fee credit card helps you avoid.

Best No Foreign Transaction Fee Credit Cards in Canada

The following four credit cards waive the foreign transaction fee when you make purchases in a non-Canadian currency. But they also offer valuable rewards programs and a wide range of additional benefits, including complimentary insurance coverage and airport lounge access.

1. Scotiabank Passport Visa Infinite Card

Card Features:

• Welcome Bonus (Up to $350 value)
• No foreign transaction fees
• $150 annual fee
• $0 for a supplementary card
• 20.99% purchase interest
• 22.99% Cash Advance interest
• Earn 3X Scene+ points per dollar spent on groceries (Sobeys, Safeway, IGA, Foodland, and more)
• Earn 2X Scene+ points per dollar spent on dining and other eligible grocery stores
• Earn 2X Scene+ points per dollar spent on eligible entertainment purchases (movies, ticket agencies)
• Earn 2X Scene+ points per dollar spent on eligible transit purchases (rideshare, buses, taxis, etc.)
• Up to 8 types of insurance coverage are included
• Minimum income threshold $60,000 personal/$100,000 household
• 6 Complimentary airport lounge access passes via the Vis Airport Companion Program
• Complimentary AVIS Preferred Plus Membership

The Scotiabank Passport Visa Infinite Card grabs the number one spot on our list for a couple of reasons. At the time of this writing, it’s the only major Canadian bank that offers a Canadian dollar credit card with no foreign transaction fees, which is perhaps impressive and disappointing at the same time.

Cardholders also receive six complimentary airport lounge passes per year. The estimated value of that benefit alone is over $340.

Best of all, you earn valuable Scene points when you use the card, which can be redeemed for travel, groceries, shopping, dining, movies, and more. It all adds up to a compelling offer from Scotiabank.

2. HSBC World Elite Mastercard

Card Features:

• Welcome Bonus (Up to $499 value)
• No foreign transaction fees
• $149 annual fee
• $0 for a supplementary card
• 20.99% purchase interest
• 22.99% Cash Advance and Balance Transfer interest
• Earn 3% in travel rewards on all eligible travel purchases
• Earn 2% in travel rewards on eligible grocery, gas, and drugstore purchases
• Earn 1% in travel rewards on all other eligible purchases
• $100 annual travel enhancement credit
• Up to 9 types of insurance coverage are included
• Minimum income threshold $80,000 personal/$150,000 household
• Complimentary membership to Travel Pass airport lounges provided by DragonPass
• 10% discount on select hotel bookings with HSBC Expedia and Agoda websites
• Unlimited Boingo Wi-Fi access

The HSBC World Elite Mastercard is an excellent option for international travellers. Not only does the card not charge any foreign transaction fees, but cardholders benefit from a generous welcome bonus, a solid travel rewards program, and up to 9 different types of complimentary travel insurance, including Emergency Travel Medical coverage. Plus, the annual fee is waived in the first year, making the card even more attractive.

3. Scotiabank Gold American Express Card

Card Features:

• Welcome Bonus (Up to $400 value in the first 12 months)
• No foreign transaction fees
• $120 annual fee
• $29 for a supplementary card
• 20.99% purchase interest
• 22.99% Cash Advance and Balance Transfer interest
• Earn 6X Scene+ points per dollar spent on groceries (Sobeys, Safeway, IGA, Foodland, and more)
• Earn 5X Scene+ points per dollar spent on dining, food delivery, and other eligible grocery stores
• Earn 5X Scene+ points per dollar spent on eligible entertainment purchases
• Earn 3X Scene+ points per dollar spent on eligible transit purchases (rideshare, buses, taxis, etc.)
• Earn 3X Scene+ points per dollar spent on eligible streaming services
• Exclusive Amex Offers
• Amex Front Of The Line
• Amex Express Invites
• Airport lounge access (no complimentary passes, but a discounted Priority Pass membership)
• Up to 9 types of insurance coverage are included

Scotiabank has not one but two “no foreign transaction fee” cards on our list. Like the Passport Visa Infinite, the Scotiabank Gold American Express Card has a generous Welcome Bonus. In addition, you can earn even more Scene+ points than you can with the Passport Infinite card. There are also up to 9 insurance coverages included with the card.

What you don’t get with this card is the complimentary airport lounge passes, just a discount on an annual Priority Pass Membership. Regardless, if you’re a fan of American Express and don’t want to pay foreign transaction fees, this card is for you.

4. Home Trust Preferred Visa

Card Features:

• No Welcome Bonus
• No foreign transaction fees
• No annual fee
• 1% cash back on all eligible purchases (no cap)
• Purchase Security Insurance
• Visa Zero Liability policy

When considering the best credit card issuers in Canada, Home Trust isn’t usually top of mind. They do, however, offer a no foreign transaction fee credit card. The Home Trust Preferred Visa is a cash back rewards credit card that doesn’t charge any annual or foreign exchange fees. The rewards program is modest – cardholders earn 1% cash back on all eligible purchases with no spending cap – but that’s to be expected from a no annual fee credit card.

Home Trust card doesn’t offer the same amount of benefits as other cards on our list. But if you just need a complimentary card that won’t charge you extra for foreign currency transactions, it’s an excellent option. One limitation of this card is that you can’t earn cash back on foreign currency purchases, Canadian dollars only.

No Foreign Transaction Fee Cards vs. US Dollar Credit Cards

I recently wrote an article covering the best US dollar credit cards in Canada. US dollar credit cards also do not charge foreign exchange fees when you make purchases in US dollars because everything stays in the same currency. There is no currency exchange between Canadian and US dollars at the time of the transaction.

No Foreign Transaction Fee cards are ideal for Canadians who often travel and make purchases in one or more foreign currencies, not just in U.S. dollars. These cards don’t charge any foreign exchange fees, saving you money when you spend abroad.

You’ll only pay the exchange rate that applies at the moment of purchase. This can save you significant amounts of money if you regularly shop online from international retailers or enjoy vacations outside of Canada.

USD Dollar credit cards, on the other hand, are specifically designed for those who make frequent transactions in US dollars. These cards allow you to maintain a balance in US dollars, helping you avoid fluctuations in the exchange rate between Canadian and US currencies.

By having a dedicated card for your US transactions, you can better manage your spending and avoid the need to exchange money frequently. However, it’s important to note that you’ll likely need a US dollar bank account to pay off the balance conveniently.

When deciding between a no forex fee card and a USD dollar credit card, consider your spending habits and the currencies you primarily deal with. If you mostly transact in US dollars, a USD dollar credit card might be a better fit for you.

However, if you often spend in multiple foreign currencies and want to avoid foreign exchange fees, a no foreign transaction fee card can be a more versatile and cost-effective option.

Final Thoughts

When selecting a no foreign transaction fee credit card, don’t forget to consider the rewards and benefits it offers. Some cards have specific rewards tied to travel, such as airline miles or hotel points, while others have a more general cash back or points system that can be used for different purchases.

By carefully considering your needs and preferences, you can find the best no foreign transaction fee credit card for your situation.

FAQs

Does the Rogers World Elite Mastercard charge a foreign transaction fee?

Yes, the Rogers World Elite Mastercard charges a 2.5% foreign transaction fee on purchases made in a non-Canadian currency. However, many online sources note that because the card pays 3% cash back on purchases in the U.S., it cancels out the fee. Technically, the net result is a 0.5% cash back earning rate. It’s an interesting offer but it is not an actual “no foreign transaction fee” credit card.

Which are the best banks in Canada with no foreign transaction fee credit cards?

Currently, the only major Canadian bank offering no foreign transaction fee credit cards is Scotiabank, making them the best option. However, all of the big banks have US dollar credit cards. In fact, a few of them made our list of the best US dollar credit cards in Canada.

Do any Canadian business credit cards offer no foreign transaction fees?

Scotiabank has a business credit card that doesn’t charge a foreign transaction fee. It’s the Scotiabank Passport Visa Infinite Business Card, and it also comes with six free airport lounge visits and lets you earn Scene+ points when you spend. The annual fee of this card is $199.