forex – Money We Have

The Best No Foreign Transaction Fee Credit Cards in Canada for 2026

Barry Choi — Thu, 12 Mar 2026 17:27:28 +0000

Most Canadian credit cards add a 2.5% fee every time you make a purchase in a foreign currency. While this percentage might seem small, it adds up quickly during international trips or when shopping from global retailers online.

Choosing a credit card that eliminates foreign transaction fees can lead to substantial savings. If you spend several thousand dollars abroad or on foreign currency purchases, you could save over a hundred dollars in fees alone. These cards often come with additional travel perks, making them a practical choice for Canadians who travel internationally or shop across borders.

The best no foreign transaction fee credit cards in canada

Credit card	Annual fee
Scotiabank Passport Visa Infinite Card	$150
Scotiabank Gold American Express Card	$120
EQ Bank Card	$0
Home Trust Preferred Visa	$0
Wealthsimple Cash Card	$0
Amazon.ca Rewards Mastercard	$0

The Scotiabank Passport Visa Infinite Card stands out as a comprehensive option for travellers who prefer carrying a single card. This card charges an annual fee of $150 but delivers substantial value through its rewards program and travel perks.

You earn 3 Scene+ points per dollar at Empire-owned supermarkets, 2 points at eligible grocery stores, restaurants, entertainment venues, and on daily transit, plus 1 point on everything else. The bonus earning categories apply even when making purchases abroad in foreign currencies.

Travel benefits form the core appeal of this card. You receive a complimentary membership to the Visa Airport Companion Program through DragonPass, which includes six free lounge visits annually. Standard airport lounge access typically costs around US$99 yearly plus US$32 per visit, making this benefit valuable for frequent travellers.

The travel insurance package covers trips up to 31 days and includes medical emergencies, trip cancellation, trip interruption, lost baggage, and flight delay coverage. Additional perks include concierge services available 24/7, access to the Visa Infinite Hotel Collection with room upgrades and complimentary breakfast, and membership in the Dining and Wine Country program.

You also get a free Avis Preferred Plus membership, which provides faster rental car service and the ability to choose your vehicle. Priority Pass membership is not included, but the DragonPass access serves a similar purpose.

Eligibility: A minimum personal income of $60,000 or a household income of $100,000 or at least $250,000 in assets under management. A credit score of 700 is also recommended.
Welcome bonus: You’ll typically get 35,000 to 50,000 Scene+ points as the welcome offer. In most cases, you’ll need to spend a minimum amount in the first three months and another in the first 12 months for the full bonus.

The Scotiabank Gold American Express Card delivers exceptional earn rates that rival top-tier rewards cards in Canada. The annual fee sits at $120, making it slightly more affordable than the Passport card while still offering premium benefits.

Earning potential is where this card excels. You collect 6 Scene+ points per dollar at Empire-owned grocery stores, 5 points at other grocery stores, plus dining and entertainment purchases, 3 points on gas, public transit, rideshares, and streaming services, and 1 point on all other spending.

One important distinction exists with foreign transactions. While you won’t pay foreign transaction fees, purchases made in currencies other than Canadian dollars only earn the base rate of 1 point per dollar. The bonus categories don’t apply to international spending.

The card provides a comprehensive travel insurance package covering trips up to 25 days, including emergency medical coverage, trip cancellation and interruption, baggage loss and delay, and rental car coverage. Mobile device insurance protects your phone or tablet against damage and theft when you purchase the device with your card.

You also receive airport lounge access, though unlike the Passport card, you don’t get complimentary passes. You’ll need to pay per visit or purchase a membership separately if you want to use this benefit.

Eligibility: There’s no minimum income requirement. A credit score of at least 700 is recommended.
Welcome bonus: Typically worth between 40,000 and 60,000 Scene+ points when. To get the full bonus, you usually need to meet multiple minimum spending requirements.

The EQ Bank Card functions as a prepaid card with unique advantages for travellers. There’s no annual fee, and you earn 0.5% cash back on all purchases regardless of currency.

What makes this card particularly useful is that any balance loaded onto the card earns interest at a competitive rate. Your money grows even when you’re not spending it, which is uncommon for prepaid cards.

The standout feature is the ATM policy. You won’t pay foreign transaction fees when withdrawing cash from ATMs abroad. EQ Bank even reimburses ATM fees charged by other financial institutions in Canada. However, one-time fees charged by foreign ATM operators are not covered.

This approach gives you flexibility when travelling. Instead of exchanging currency before departure or upon arrival, you can withdraw local currency as needed. You can load additional funds to your card while abroad by sending yourself an e-transfer.

Since this is a prepaid card, you can only spend what you’ve loaded. This helps with budgeting and eliminates the risk of overspending. Prepaid cards don’t require a credit check or minimum income, making them accessible to nearly everyone.

Eligibility: Must have an EQ Bank account. No income or credit history is required.
Welcome bonus: You get a $20 cash bonus when signing up with a referral link and funding your account with $100 within 30 days of account opening.

The Home Trust Preferred Visa offers a straightforward approach with no annual fee and no foreign exchange fees. You earn 1% cash back on purchases made in Canadian dollars, but it doesn’t apply to foreign-currency transactions.

This card functions as a traditional credit card rather than a prepaid option. You don’t need to load funds in advance, and you receive a credit line based on your creditworthiness. This makes it more convenient than prepaid alternatives for those who qualify.

Benefits are minimal beyond the no forex fee feature. You get purchase security coverage for 90 days against theft, loss, or damage. No travel insurance, airport lounge access, or concierge services are included.

One quirk to note: customer service has historically blocked transactions made outside Canada for security reasons. Call before you travel to notify them of your plans and avoid having your card declined.

Eligibility: No minimum income is required. A credit score of at least 660 is recommended.
Welcome bonus: None.

Another prepaid credit card with no foreign transaction fees is the Wealthsimple Cash Card. All purchases earn you 1% back in cash, stock, or crypto. In addition, any funds you have loaded to your card earn interest. That means your money always grows even when you’re not spending it.

As a no fee, prepaid card, there aren’t any other benefits. The main draw here is the cash back earned and the no foreign transaction fees. You also won’t pay foreign transaction fees on ATM withdrawals. That said, most foreign ATM operators will charge you a one-time fee, and Wealthsimple limits your withdrawals to $500 CAD a transaction. There’s also a daily withdrawal limit of $1,000 CAD per day.

This card is very similar to the EQ Bank Card. Many people prefer the EQ Bank Card because you get $20 when signing up with a referral link. However, Wealthsimple does give you a higher cash back and savings interest rate.

Eligibility: Must have a Wealthsimple Cash account, but no income or credit history is required.
Welcome bonus: Up to $3,000 (it’s random)

The Amazon.ca Rewards Mastercard is one of the best no foreign transaction fee credit cards in Canada, but it flies under the radar. You’ll earn 2.5% back at Amazon.ca, Whole Foods and foreign transactions. All other purchases earn you 1% back. However, you must be an Amazon Prime member to get this rate. Non-Prime members earn 1.5% back at Amazon.ca and Whole Foods, and 1% on foreign transaction fees.

The cash back works like this. Once you’ve earned 2,000 points, a $20 Amazon.ca gift card is deposited into your account. Other benefits with the card include discounts at Avis and Budget Rent a Car, purchase assurance, extended warranty, and zero liability insurance.

This card is only worth considering if you’re an Amazon Prime member and you do a lot of shopping on Amazon. The good news is that there’s no annual fee.

Eligibility: Must be an Amazon Prime member for the increased earning rate. No minimum income or credit score is listed.
Welcome bonus: A $35 Amazon.ca gift card is given instantly upon approval.

What are foreign transaction fees?

When you make a purchase in any currency other than Canadian dollars, an additional charge gets applied to the exchange rate. This applies to all international transactions, including online shopping in US dollars.

Even if you’re buying from a Canadian business, paying in a foreign currency typically triggers these charges. The fee is embedded directly in the exchange rate, making it difficult to spot on your credit card statement.

Charges from your card provider

Your credit card provider typically adds a 2.5% foreign transaction fee to international purchases. Some providers charge up to 3.5%, depending on the card you hold.

Here’s what these forex fees mean for your spending:

$1,000 in foreign purchases = $25 to $35 in fees
$2,000 in foreign purchases = $50 to $70 in fees
$5,000 in foreign purchases = $125 to $175 in fees

These currency conversion fees accumulate quickly, especially if you travel frequently or shop internationally online.

Charges from payment networks

Visa, Mastercard, and American Express apply their own small fees for currency conversion. These charges are much smaller than provider fees.

The payment networks use slightly different exchange rates than the official rate available to financial institutions. Here’s a comparison when converting 1 CAD to USD:

Official exchange rate – 0.77118
Visa exchange rate – 0.77333
Mastercard exchange rate – 0.77255

Mastercard offers marginally better rates than Visa, though the difference is minimal in practice. American Express uses comparable rates but doesn’t publish them publicly.

You can check current conversion rates through xe.com, along with Visa and Mastercard’s websites. Understanding both types of fees helps you calculate the true cost of foreign currency transactions.

How Are Foreign Transaction Fees Calculated?

Your credit card company sets the foreign transaction fee, which typically appears in your cardholder agreement. The fee structure combines two main components: the currency conversion fee and the network’s exchange rate.

Visa and Mastercard each apply their own exchange rates when processing international purchases. These rates differ from the mid-market rate, which represents the true wholesale price between currencies. The gap between what you pay and the mid-market rate contributes to the total cost of your foreign purchase.

Exchange rates fluctuate based on currency market conditions. Economic events, political stability, and supply and demand for specific currencies all influence these rates daily. Your card issuer applies the rate that’s active when your transaction processes, not necessarily when you make the purchase.

Most Canadian credit cards add a 2.5% fee on top of the exchange rate used for currency conversion, though some cards charge between 1% and 3%.

Should I Pay in the Local Currency or CAD?

When making purchases abroad, merchants may offer you the choice between paying in the local currency or Canadian dollars through dynamic currency conversion. You should always select the local currency option. Your credit card issuer will convert the transaction using their exchange rate, which is typically more favourable than the payment processor’s.

Choosing to pay in CAD means accepting the merchant’s conversion rate, which includes a markup. This additional cost varies by processor but consistently exceeds the conversion rate your card provider uses. Even if your card doesn’t charge foreign transaction fees, paying in local currency remains the better option because you avoid the inflated merchant conversion rates.

Credit cards without foreign exchange fees make this choice even more advantageous. You receive competitive exchange rates without any percentage-based surcharges, maximizing your purchasing power overseas.

Do Foreign Transaction Fees Apply to ATMs?

Using a credit card at an ATM abroad triggers a cash advance, which means you’ll face immediate interest charges exceeding 22%. A foreign transaction fee also applies on top of this, and the ATM operator may charge their own service fee. This combination makes traditional credit cards a poor choice for withdrawing cash overseas.

Prepaid cards offer a better alternative. Cards like the Wealthsimple Cash Card and EQ Bank Card function like debit cards and don’t charge foreign transaction fees or interest on ATM withdrawals abroad. These cards provide access to cash without the costly charges associated with credit card advances.

Standard debit cards aren’t ideal either. Banks typically charge foreign transaction fees between 2.5% and 3.5% when you use your debit card at an international ATM. Both your bank and the ATM provider will likely apply one-time usage fees.

Is a No Foreign Transaction Fee Credit Card Worth It?

You should strongly consider getting a no foreign transaction fee credit card to avoid paying unnecessary charges on international purchases. Most cards charge 2.5% on foreign currency transactions, which accumulates quickly when you travel or shop online from international retailers.

Consider this scenario: if you spend $4,000 during a vacation abroad using a card that charges foreign exchange fees, you’ll pay an extra $100 in fees alone. That amount could cover a quality restaurant experience or another activity during your trip.

Numerous credit cards waive these fees entirely, so you can select one that aligns with your spending habits and preferences. Even if you only use the card occasionally throughout the year for international transactions, you’ll save money every time you avoid foreign transaction fees. There’s no compelling reason to pay extra when alternatives exist that eliminate these charges completely.

The savings become more significant if you travel frequently or regularly purchase from foreign websites. Choosing a card without foreign transaction fees makes financial sense for anyone who makes purchases in currencies other than Canadian dollars.

How to Select a Credit Card Without Foreign Transaction Fees

When comparing cards from your shortlist, several factors will help you identify the right option for your needs.

Consider whether you prefer a no-fee credit card or are comfortable paying an annual fee in exchange for premium perks. Cards with annual fees often offer added benefits such as airport lounge access, car rental discounts, and travel insurance coverage.

Key factors to evaluate:

Card benefits – Review what extra features matter to you, such as travel insurance or rental vehicle protection
ATM withdrawal costs – Some cards waive fees when you take out cash abroad
Rewards structure – Certain cards offer cash back that can offset other costs, while others simply don’t charge foreign transaction fees
Welcome bonuses – New cardholders may receive promotional offers worth considering
Purchase APR – Check the interest rate if you plan to carry a balance

Your spending habits and travel frequency should guide your decision. A card with an annual fee might deliver better value if you travel regularly and use the included benefits.

Frequently Asked Questions

Are foreign transaction fees refunded?

Foreign transaction fees are generally not refundable once charged to your account. These fees become part of your transaction total and are processed immediately with your purchase.

If you notice an incorrect fee on your statement, you can contact your card issuer to dispute it. Document the transaction details and explain why you believe the charge is wrong. Your issuer will investigate and may credit your account if they find an error.

The most effective approach is to avoid these fees altogether by using a card that doesn’t charge them. Prevention saves you the time and effort of seeking refunds that may not be granted.

What Makes US Dollar Cards Different from No-FX-Fee Cards?

US dollar credit cards and no foreign transaction fee cards serve different purposes. A US dollar card bills your purchases in American currency, which you then pay in USD from a US dollar account.

No foreign transaction fee cards bill in Canadian dollars but don’t charge the standard 2.5% conversion fee. You still pay in CAD, but the exchange rate is applied without an additional markup.

US Dollar Cards:

Require a US dollar bank account for payments
Best for frequent US travellers
Avoid conversion fees on USD purchases only
Still charge fees for other currencies

No Foreign Transaction Fee Cards:

Bill in Canadian dollars
Work for all foreign currencies
No extra account needed
Apply exchange rates without added fees

If you primarily travel to the United States and maintain USD accounts, a US dollar card may suit you. For worldwide travel or varied currency use, a no-fee card offers more flexibility.

What Other Options Exist Besides No-FX-Fee Cards?

Prepaid travel cards provide an alternative for managing foreign currency expenses. You load these cards with funds before travelling and use them like debit cards abroad. Many charge lower fees than traditional cards, though they may have loading and ATM withdrawal costs.

Digital payment services and mobile wallets sometimes offer competitive exchange rates. However, their acceptance varies by location and merchant, limiting their reliability as your sole payment method.

Alternative options include:

Multi-currency prepaid cards
Online payment platforms with international features
Traveller’s cheques (largely outdated)
Cash withdrawn from low-fee bank accounts

Each alternative has trade-offs in cost, security, and acceptance. No foreign transaction fee credit cards typically offer the best combination of convenience, protection, and value for most travellers. They work everywhere credit cards are accepted and require no advance planning or currency loading.

The cost of travel: The best way to exchange money

Barry Choi — Tue, 18 Jan 2022 05:00:00 +0000

What is the best way to exchange money? That’s easily the question I get asked the most these days. Maybe it’s because finding deals on flights and hotels is a little easier these days but it’s more likely that people are just more aware of how exchange rates affect us.

Years ago, the Canadian dollar was on par with the U.S. dollar but now the exchange has devalued our dollars. What many people don’t realize is that the exchange rate you see on xe.com is never the rate you’ll pay. Bank, currency exchange offices and ATMs add their own markup to make a profit. In addition, most credit cards add a fee of 2.5% on top of their rates for even more profit. Despite these additional fees, there are ways to reduce your currency exchange fees.

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Avoid fees completely with credit cards

Although it’s not technically cash, using a credit card with no foreign exchange fees is the cheapest way to pay for things. Not every card waives the foreign transaction fee so if you don’t have one of the following cards, you’ll be charged an extra 2.5% whenever you make a purchase in a foreign currency.

The Scotiabank Passport Visa Infinite has an annual fee of $139, but you get a Priority Pass Membership and six free passes a year and a sign up bonus that’s usually worth $250 – $350 so there’s a lot of value with this card. I personally think it’s the best all-in-one travel card since it has no forex fees and you get a good earn rate. You earn Scene+ points with this card which can help you lower the cost of your travels. If you’re the type of person who doesn’t like to carry multiple credit cards, then this is the one for you.

The Home Trust Preferred Visa is a pretty basic no-fee card since it only gives you 1% cash-back, but for some people, that’s all they’re looking for. That said, the 1% cash back only applies to purchases made in Canadian dollars. I used to use this card all the time while travelling, but I’ve switched to the Scotiabank Passport Visa Infinite since I like the additional benefits included.

Check out my post about Canadian credit cards without foreign transaction fees for an in-depth analysis of each card. If you’re looking for ways to earn points for free travel, then you’ll want to read my guide to the best travel credit cards in Canada.

One other thing about using credit cards when travelling. When given the choice, always choose to be charged in the local currency as opposed to your home currency. The reason for this is that merchants set their own rates which can be much higher than the rate Visa and MasterCard use when you pay in the local currency. This is known as dynamic currency conversion and is a common practice in many parts of the world.

Exchange options when you need cash

Although credit cards are widely accepted around the world, there are still many merchants and countries that prefer to do business with cash. There have been multiple trips I’ve taken where I’ve ended up using cash more than credit. This wasn’t by choice, it’s just how the local economy works. Since exchanging money also comes with fees, you’ll want to consider the following to lower your costs.

The Wealthsimple Cash Card is your solution if you need cash in any destination. This prepaid credit card doesn’t charge foreign exchange fees on ATM withdrawals or foreign transactions. That said, the ATM may charge a one-time user fee of around $3. Even when you factor that fee in, the Wealthsimple Cash Card is the cheapest way to get cash while on the go. Plus, you get $10 for free when you sign up with my referral link.

ATMs

Using local ATMs is one of the cheapest way to exchange money. Generally speaking, ATMs charge the spot rate plus about 2.5% -3.5%. This extra charge is known as a foreign transaction fee and can’t be avoided (check with your debit card provider for the exact fee). Your home bank and the specific machine you’re using may also charge you a one-time fee of up to $5 so that’s something to consider with your overall costs. The best way to exchange money while minimizing costs is to simply withdraw your daily limit or use an ATM that’s a partner with your bank.

Foreign exchange offices

This gets a bit tricky since every exchange office has different rates. Foreign exchange offices found in airports and malls usually don’t have good rates. Any “no-fee” exchange office also tends to have higher rates since they need to make a commission. Despite all of this, some exchange bureaus offer competitive rates. The key is to know what the exchange rates are so you can do the math to see if the rates are fair. If the premium is 2.5% or less then you’re getting a decent rate.

Banks

This may come as a surprise but exchanging money at any of the big banks in Canada is usually not a good idea. Unless you’re getting USD, banks charge a pretty premium when exchanging money. Their overall rates really aren’t that good and often you’ll need to order the currency in advance.

For a more detailed look at the above and why travellers cheques are pretty much useless these days, check out my post about the best foreign exchange options for travellers.

When to exchange money for travel

When to exchange money is a question that’s asked by many travellers but it’s a game best not played since you’re essentially trying to time the market. The reason it’s become a bigger issue as of late is because of Brexit. Once the vote was confirmed to separate, the British Pound dropped 10% overnight. Let’s be clear, such shifts in the value of currencies are quite rare. If you were planning to travel to England soon, this worked in your favour but in general, you shouldn’t try to time the market.

If you still insist on trying to get the best rate on cash but you don’t know when to exchange money, I suggest dollar cost averaging. That means you would purchase a set amount of cash a few times leading up to your trip. So let’s say you exchanged $1000 worth of cash 3 different times at the rate you got each time was .90, .85, .95. In this example, your average cost would end up being .90. You didn’t buy at the lowest rate nor did you buy at its peak – you paid the average.

The problem with this strategy is that you’re exchanging money in advance at home where rates aren’t very good. As you’ve read, the best way to exchange money is a combination of using credit cards and local ATMs so why bother trying to time the markets?

Check out other parts of the series below

Part 1: Budgeting for a trip
Part 2: How to pick a vacation destination
Part 3: How to find cheap flights
Part 4: How to save money on hotels
Part 5: How to eat cheap when travelling
Part 6: The best way to exchange money
Part 7: The basics of travel insurance
Part 8: Sticking to your travel budget