Best no foreign transaction fee credit cards in Canada
Most Canadian credit cards charge a foreign transaction fee up to 2.5% on top of the exchange rate for purchases made in another currency, leading to higher costs than necessary.
Choosing a no foreign transaction fee credit card, or a credit card with no overseas fees, is a smart move if you shop global websites or travel allowing you to avoid these extra charges. These types of cards not only eliminate foreign transaction fees but often offer additional rewards such as cash back and travel points.
To ensure you're not overpaying on international purchases, explore the best no foreign transaction fee credit cards in Canada.
The best no foreign transaction fee credit card
Scotiabank Passport® Visa Infinite* Card
3x Scene+ points on every $1 you spend at Sobeys, Safeway, IGA, Foodland and participating Co-ops and more
2x Scene+ points for every $1 you spend on other eligible grocery stores, dining, eligible entertainment purchases and eligible daily transit options (including ride shares, buses, subways, taxis and more)
1x Scene+ point for every $1 spent on all other eligible everyday purchases
$150 Annual Fee
20.99% Purchase APR
22.99% Cash Advance APR
22.99% Balance Transfer Rate
5.00% Balance Transfer Fee
0.00% Foreign Transaction Fee
Good Recommended Credit Score
$60,000 Required Annual Personal Income
$100,000 Required Annual Household Income
Welcome Offer Ends Jul 1, 2024
Earn up to $1,300* in value in the first 12 months, including up to 40,000 bonus Scene+ points and first year annual fee waived
Learn moreWhy we picked the Scotiabank passport as the best no foreign transaction fee credit card in Canada
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.
Earn rate
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.
Travel perks
Additionally, travellers who frequently face layovers will appreciate the card’s 6 free airport lounge passes that renew each year.
It's also a great travel insurance credit card with travel medical, trip interruption and cancellation, and rental car insurance.
Welcome bonus
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.
Scotiabank exchange rate
As of the date of this writing, it would cost you $1.415900 CAD to buy $1 USD.
You can see all Scotiabank's currency exchange rate updates here.
Eligibility criteria for the Scotiabank Passport
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
¹ Conditions Apply. Visit here for the Scotiabank Passport® Visa Infinite* Card to learn more.
Apply for the Scotiabank Passport Visa Infinite
The 4 best no foreign transaction fee credit cards in Canada
| Credit card | Foreign transaction fee (FX)/Annual fee/Features | Apply now |
|---|---|---|
 |
FX fee: 0%
Annual fee: $0 Features: 1% cash back1 on eligible purchases |
Apply now |
 |
FX fee: 0% fee
Annual fee: $150 Features: Complimentary Visa Airport Companion Program membership, plus 6 complimentary lounge visits per year |
Apply now |
 |
FX fee: 0%
Annual fee: $120 Features: 5X the Scene+™ points for every $1 CAD spent on other food and drink |
Apply now |
 |
FX fee: 0%
Annual fee: $84 (charged at $9 per month) Features: 1.5% cash back on groceries, transportation, food, and drink. 5% interest on your entire balance (this is a prepaid credit card) |
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.
$0 Annual Fee
21.99% Purchase APR
21.99% Cash Advance APR
21.99% Balance Transfer Rate
0.00% Foreign Transaction Fee
Good Recommended Credit Score
$15,000 Required Annual Personal Income
Best Scene+ credit card with no fee for foreign transaction
Scotiabank Gold American Express® Card
6x Scene+ points on every $1 you spend at Sobeys, Safeway, Freshco, Foodland and more
5x Scene+ points for every $1 you spend on dining, food delivery and other eligible grocery stores. Includes popular food delivery and food subscriptions.
5x Scene+ points for every $1 you spend in Canada eligible entertainment purposes. Includes movies, theatre and ticket agency stores.
3x Scene+ points for every $1 CAD you spend in Canada on eligible gas and daily transit options. Includes ride shares, buses, subway, taxis and more.
3x Scene+ points for every $1 CAD you spend in Canada on eligible select streaming services.
1x Scene+ point for every $1 spent on all other eligible everyday purchases.
$120 Annual Fee $29 for each supplementary card
20.99% Purchase APR
22.99% Cash Advance APR
22.99% Balance Transfer Rate
0.00% Foreign Transaction Fee
Very Good Recommended Credit Score
Welcome Offer Ends Jul 1, 2024
Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points.
Learn moreBest cash back credit card with no fx fees (prepaid card)
KOHO Extra
1.5% cash back on groceries, transportation, food, and drink
0.25% cash back on all other purchases
5% interest on your entire balance
5% cash back extra at partnered merchants
30% off Credit Building
$7 for credit building, instead of $10 (save 30%)
$84 Annual Fee or $9 per month
0.00% Purchase APR
0.00% Foreign Transaction Fee
Fair Recommended Credit Score
$0 Required Annual Personal Income
$0 Required Annual Household 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.
What is the Mastercard exchange rate or Visa exchange rate?
The Mastercard and Visa exchange rates are the rates these companies use to convert transactions made in a foreign currency to your card's billing currency. Both companies base their rates on the wholesale exchange rates from the global currency markets and may add their margins. These rates are subject to daily fluctuations due to changes in the international currency markets.
For Mastercard and Visa, the applicable exchange rate for your transaction is effective on the date the transaction is processed, which may not be the same as the transaction date. The rate applied to a specific transaction is determined on the processing day, potentially leading to a difference in the rate between the time of purchase and processing.
These conversion rates are separate from any foreign transaction fee charges from your card issuer, which are additional costs added to the conversion rate.
You can visit their official websites to get the most current exchange rates for either Mastercard or Visa. Both companies offer a currency conversion calculator
Frequently asked questions about no foreign transaction fee credit cards
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