Best Canadian Credit Cards With No Foreign Transaction Fees
What You Should Know
- Most credit cards in Canada charge a foreign transaction fee of up to 2.5% when you make purchases in a foreign currency.
- No FX fee credit cards don’t charge a foreign transaction fee.
- No FX fee credit cards can be beneficial for frequent travelers and those who make regular purchases in foreign currencies.
- Some no FX fee credit cards might be charging a much higher exchange rate than that set by credit card networks.
Whenever you use your regular credit card to buy something in a foreign currency or use it during your travel abroad, you could be paying a foreign transaction fee (also called forex fee or FX fee) of about 2.5% in addition to the spot rate, for every purchase that you make.
If you are someone who travels abroad frequently or makes purchases in foreign currencies often, you could benefit from getting yourself a credit card with no foreign transaction fee, that could save you a significant amount of money.
Most credit cards with no foreign transaction fees also come with additional perks such as travel rewards and cashbacks, while some offer comprehensive travel insurances. Picking a card that suits your spending habits would ensure that you get maximum value for every dollar that you spend, along with extra benefits. We have listed the best no FX fee credit cards in Canada along with their benefits so that you can pick the one best for you.
| Credit Card | Annual Fee | Top Benefits |
|---|---|---|
| Brim Mastercard | $0 |
|
| Scotiabank Gold AMEX Card | $120 (first-year waived) |
|
| Scotiabank Passport Visa Infinite | $139 |
|
| HSBC World Elite Mastercard | $149 (first-year waived) |
|
| Brim World Elite | $199 (first-year waived) |
|
| Home Trust Preferred Visa | $0 |
|
Brim Mastercard
21.50% on cash advances
- 1 reward point for every $1 spent.
- Up to 30% back in points when shopping with partners - 10% on Lululemon, 5% on Indigo, 4% on Nike, 4% on Microsoft.
- Redeem points on any transaction or as cashback.
- Free global wif-fi by Boingo.
- Installment Pay.
- Mobile Device Insurance - $500
- Common Carrier Accident Insurance - $100,000/insured or $300,000/accident.
- Event Ticket Protector - $1,000
- Canadian Resident having reached mature age in the province of residence.
- Minimum annual Income of $60,000 or household income of $100,000.
Scotiabank Gold AMEX Card
22.99% on cash advances
- 5X Scene+ points on eligible grocery, food, food subscription and entertainment purchases (Including Hello Fresh, SkipTheDishes, Chef’s Plate and Cineplex).
- 3X Scene+ points on eligible gas, daily transit and streaming service purchases (Including Uber and Netflix).
- 1X Scene+ points on all other purchases.
- Redeem Scene+ points for travel, shopping, dining and credit.
- AMEX benefits - AMEX Offers, AMEX Front of the Line, American Express Invites.
- 24/7 Complimentary Concierge.
- Preferred discount on Priority Pass. VIP Lounge Access (No complimentary lounge visits).
- Travel Accident Insurance
- Out-of-Province Emergency Medical Insurance - 25 days for cardholders under the age of 65, 3 days for cardholders over the age of 65
- Rental Car Collision/Damage Insurance - up to 48 days
- Canadian Resident having reached mature age in the province of residence.
- Have not declared bankruptcy in the past 7 years.
- Earn a minimum of $1,000 monthly gross income.
Scotiabank Passport Visa Infinite
22.99% on cash advances
- 2X Scene+ points on eligible grocery, dining, entertainment and daily transit purchases.
- 1X Scene+ points on all other purchases.
- Redeem Scene+ points for travel, shopping, dining and credit.
- Complimentary Visa Airport Companion Program membership, plus six complimentary lounge visits per year.
- Complimentary Avis Preferred Plus membership.
- Visa Infinite Benefits - Concierge Service, Hotel Collection and, Dining and Wine Country program.
- Scotia SelectPay for paying in installments.
- Travel Accident Insurance
- Out-of-Province Emergency Medical Insurance - 25 days for cardholders under the age of 65, 3 days for cardholders over the age of 65
- Rental Car Collision/Damage Insurance - up to 48 days
- Canadian Resident having reached mature age in the province of residence.
- Minimum annual Income of $60,000 or household income of $100,000.
HSBC World Elite Mastercard
22.99% on cash advances
- Earn 3% in travel rewards (6 points per $1) on all eligible travel purchases.
- Earn 1.5% in travel rewards (3 points per $1) on all other eligible purchases.
- Redeem points for travel, gift cards, financial rewards, rewards for miles.
- Annual $100 travel enhancement credit.
- Complimentary Mastercard Travel Pass membership provided by DragonPass for access to over 1300 airport lounges (No complimentary lounge visits).
- Free global wif-fi by Boingo.
- 10% discount on select hotel bookings when booking directly through HSBC Expedia and Agoda websites.
- Worldwide Emergency Medical Insurance (except Cuba) - up to 31 days for cardholders under 65 years of age
- Rental Car Collision/Damage Insurance - up to 31 days
- Trip Cancellation / Interruption - $2,000 per insured (max $5,000)
- Canadian Resident having reached mature age in the province of residence.
- Minimum annual Income of $80,000 or household income of $150,000.
Brim World Elite
21.50% on cash advances
- 2 reward points for every $1 spent.
- Up to 30% back in points when shopping with partners - 10% on Lululemon, 5% on Indigo, 4% on Nike, 4% on Microsoft.
- Redeem points on any transaction or as cashback.
- Free global wif-fi by Boingo.
- Installment Pay.
- Lounge Key Membership (No complimentary visits).
- Common Carrier Accident Insurance - $150,000/insured or $500,000/accident
- Out-of-Province Emergency Medical Insurance - 15 days for cardholders under the age of 65, 3 days for cardholders over the age of 65
- Rental Car Collision/Damage Insurance - up to 48 days
- Canadian Resident having reached mature age in the province of residence.
- Minimum annual Income of $80,000 or household income of $150,000.
Home Trust Preferred Visa
19.99% on cash advances
- 1% cashback on all eligible purchases (excluding cash advances, balance transfers, interest, fees and foreign currency transactions)
- Guaranteed Hotel Reservation when requested.
- Purchase Protection for 90 days after purchase.
- Canadian Resident having reached mature age in the province of residence.
- Minimum annual Income of $15,000.
- Not a resident of Quebec.
Considerations for Choosing a No FX Fee Credit Card
Annual Fee and Benefits
Some no foreign transaction fee credit cards in Canada have no annual fee while others charge an annual fee which can amount to a few hundred dollars. The cards that don’t have an annual fee usually come with fewer perks and rewards, while the ones that charge an annual fee are often bundled with a better reward structure and more benefits. Some cards with an annual fee also waive off the first year’s fee and offer welcome bonuses for the first year.
The card you pick would greatly depend on your expenditure pattern. For example, if you want to use your no FX fee credit card for your travel abroad only once or twice a year, and don’t find the reward structure offered by a card useful to your needs, you could get a card with no annual fee. Instead, if you travel abroad for work every once in a while, a card that has an annual fee but offers good travel perks and insurances might be a better choice for you.
Exchange Rates for Transactions in Foreign Currencies
For a transaction made in a foreign currency, the exact amount you end up paying in your home currency would depend on the credit card you use at the time. Some credit cards use the exchange rate set by the credit card networks such as VISA, Mastercard and Amex and charge a foreign transaction fee on top of it (usually 2.5%), while others set an exchange rate of their own. Some cards may have a zero FX fee, yet they might be charging a much higher exchange rate on transactions. Thus it is important to find out how exactly a credit card is charging you for your foreign currency transactions.
It is also noteworthy that all the major credit card networks - VISA, Mastercard and AMEX have different exchange rates and vary slightly. The exchange rate that you get would thus also depend on your card issuer.
What is a Foreign Transaction Fee?
Regular credit cards charge you the foreign transaction fee for converting your transactions in foreign currencies to Canadian Dollars before posting the charge to your credit card statement. It is also noteworthy that the FX fee applies to any refunds that you receive as well, and you don’t get the initially paid 2.5% conversion fee back either. Cards with no FX fee don’t charge this fee. However, they may be charging an exchange rate higher than the exchange rate of the credit card network.
Other Alternatives for No FX fee Credit Cards
US Dollar Credit Cards
A lot of Canadians travel to the United States frequently for work or make online purchases with US retailers. Some Canadians also have an income in US Dollars but pay their bills in Canadian Dollars. US Dollar Credit Cards are best suited for such people as these types of cards do not charge an FX fee on transactions made in US Dollars. The transactions are done entirely in US Dollars with the payment made in US Dollars as well, saving the currency conversion fees. It is to be noted that an FX fee will be charged for purchases made in currencies other than USD.
Some US Dollar credit cards available in Canada are:
Prepaid Cards
There are prepaid cards available in Canada that offer benefits on transactions in Foreign Currencies. Some of them are listed below along with their features.
- CIBC AC Conversion Visa Prepaid Card - This reloadable card allows you to load up to 10 currencies and spend directly in the foreign currencies. There is no extra conversion fee and the loaded currencies are not affected by fluctuations in exchange rates. It should be noted that the exchange rate here is the one set by CIBC and is usually higher than the rate set by the card network rate.
- KOHO Premium Prepaid Card - A reloadable prepaid card with 0% FX Fee and one free international ATM withdrawal per month.
- STACK Reloadable Mastercard - This reloadable prepaid card gives you cashback on foreign exchange fees on FX purchases and ATM withdrawals outside Canada.
Credit Cards with Cashback on FX Transactions
Some credit cards may offer cashback on transactions in foreign currencies that could balance out the foreign conversion fee charged. Some examples of such cards are:
- The Rogers World Elite Mastercard and the Rogers Platinum Mastercard both offer 3% cashback on US Dollar transactions, which offsets the 2.5% FX fee.
- The Amazon.ca Rewards Mastercard offers eligible Prime members 2.5% back on foreign currency transactions to help cover FX fees.
Bottom Line
Using a no FX fee credit card for your travel abroad and purchases in foreign currencies can save you a significant amount of money that you can use towards other expenses. Most of these cards come with added rewards and perks that can help choose the most suitable card for your needs.