Cards that waive or refund the fee for foreign currency charges are few and far between—but if you're a frequent traveller they’re worth seeking out.
Currency exchange board showing cross rates between various countries.
Millions of Canadians travel abroad with their domestic credit cards and don’t realize they’re racking up foreign transaction fees (often referred to as “forex” fees) that can amount to 2.5% on top every purchase. The good news is, there are a few credit cards out there that offer either zero foreign transaction fees or a return of the fees as cash back.
If you like to vacation in other countries or your work frequently takes you abroad, it’s worth considering a no-foreign-transaction-fees card that travels with you.
Brim Financial has three Mastercard credit cards, all of which do not have fees for foreign transactions. The entry-level Brim Mastercard offers 1 point per $1 spent on everyday purchases, with 100 points redeemable for $1 in rewards. It essentially serves as a cash back credit card. The mid-range card, the Brim World Mastercard, earns 1.5 points per $1 spent. As for the premium card, Brim World Elite Mastercard offers 2 points per $1 spent. The last two have caps of up to $25,000 in purchases for rewards, after which the earn rate becomes 1 point per $1 spent.
The three Mastercard credit cards offer bonus points when shopping at Brim retail partners For example, you can earn up to 3% at Nike and 4% at Microsoft. Several airlines, like Emirates and Lufthansa, are also partners, also offering up to 3% cash back rate when booking flights. The app and website feature top-notch digital interfaces with budgeting tools. Also, the three cards offer new mobile device insurance and a free Boingo membership (access to Wi-Fi around the globe). The World and World Elite cards offer additional benefits, such as rental car insurance, hotel/motel burglary insurance and emergency travel medical insurance.
| Brim Mastercard | Brim World | Brim World Elite |
| No fee | $99 annual fee | $200 annual fee |
| 1 point per $1 | 1.5 points per $1 | 2 points per $1 |
| No forex fees | No forex fees | No forex fees |
| No specific income required | $60,000 income required | $100,000 income required |
Get more details about Brim Mastercard*
Home Trust offers one of the only credit cards that has no foreign transaction fees whatsoever. It’s a no-annual-fee card, plus you get a simple 1% cash back with no limits on how much you earn. Previously, there were no restrictions on where you can earn, but now you only receive cash back on domestic purchases. However, compared to other cards, the simplicity of Home Trust Preferred Visa is attractive.
As there are no annual fees, the card is pretty lean on extra coverage, but cardholders do receive roadside assistance at no additional charge. (Note: This card is not available to residents of Quebec.)
Get more details about the Home Trust Preferred Visa*
One of the first cards from a major bank to boast no foreign transaction fees, the Scotiabank Passport Visa Infinite is great for those looking for a travel card with a few more perks. While users will pay $139 a year for the card, they’ll receive a complimentary Priority Pass membership with six free airport lounge visits per year, plus a bonus of 30,000 Scotia Rewards Points after spending $1,000 in the first three months of having the card.
Combining the simplicity of a no-foreign-transaction-fees card and a flexible Scotia Rewards program that you can redeem for flights (without blackout dates), hotels and car rentals, the Scotiabank Passport Visa Infinite is a great rewards card for travel as well as everyday purchases here at home.
Get more details about the Scotiabank Passport Visa Infinite*
The Scotiabank Gold American Express is a very competitive option, especially if you’re a snowbird who travels frequently to the U.S. Its points accumulation structure is similar to that of the American Express Cobalt Card, with 5 points per $1 earned on dining, groceries and entertainment purchases in Canada. Plus, of course, it comes with no foreign transaction fees.
Redemptions can be made on travel at 1 point per $0.01—or 1%. At a $120 annual fee, the card offers robust traveller and purchase protection, too.
Get more details about the Scotiabank Gold American Express*
HSBC’s World Elite Mastercard has robust travel features, no foreign transaction fees, and strong earn rates. When you make foreign purchases on this card, no fee is charged (only the exchange rate applies) and a $100 annual travel enhancement credit allows you to charge seat upgrades, baggage fees or airport lounge passes to the card and get them redeemed for credit on eligible airlines. The HSBC World Elite Mastercard also participates in Mastercard Airport Experiences provided by LoungeKey, which gives users access to over 850 lounges worldwide (you’re charged at USD$27 a visit).
While the card has an annual fee, HSBC waives the first year for the primary cardholder, and you get emergency travel medical insurance coverage for trips up to 31 days. Earn 3% in points (or 6 points per $1) on eligible travel purchases, and 1.5% (or 3 points per $1) on all other purchases.
At $99 per year, the fee for this card rings in lower than other competitive cards at $120 a year—and, as a bonus, the first year is free. This card offers a robust suite of Visa Infinite benefits, from emergency healthcare coverage of up to $5,000,000 per insured person on eligible medical care and services required, trip cancellation and interruption insurance, baggage insurance, and mobile device insurance. As for rewards rates, users earn 3 points per $1 on foreign purchases (since 1 point = $0.01 when redeemed for travel, that brings you 0.5% ahead compared to standard 2.5% foreign transaction fees). You’ll get 1.5 points per $1 on your everyday purchases.
The no-annual-fee Rogers World Elite Mastercard is super-flexible, especially when it comes to earning and redeeming rewards. The standard 2.5% forex fee is still charged, but with 3% provided back, cardholders are essentially ahead 0.5% on the value of their U.S. travel as well as online shopping purchases in U.S. currency. (Note that other foreign currencies are not subject to the 3% earn rate.) Users can redeem rewards toward all eligible purchases over $20 made in the prior 90 days. Plus, you get World Elite Mastercard insurance protection, which includes emergency air transportation or evacuation, emergency dental care, and more.
This Mastercard from Rogers is an excellent no-annual-fee option for those who want to earn cash back while travelling south of the border. It gives users 3% cash back on U.S. currency purchases, which works out to 0.5% when you factor in the standard 2.5% foreign transaction fee. On all other card purchases, whether in Canadian dollars or a foreign currency, you’ll earn 1% back. The card doesn’t have a minimum income requirement, so those who don’t qualify for the Rogers World Elite Mastercard listed above may want to consider it.
This unique high-tier, prepaid, reloadable Visa allows you to spend your own money, mirroring the convenience and rewards of a credit card. This card also has no foreign exchange fees, making it ideal for travellers. You’ll get 0.5% cash back on all purchases, and up to 2% cash back when you spend on transportation, groceries and dining, and extra cash back at select merchants. The card does come at a cost—an $84 annual fee—but it doesn’t charge interest. You also gain access to free financial coaching if you opt for it.
Get more details about the Koho Premium Visa*
Attention Amazon shoppers–which means, listen up to pretty much everyone. The Amazon.ca Rewards Mastercard is a no-fee retailer credit card. So if you are a Prime member and order from amazon.ca, you can earn 2.5% for Amazon rewards points using the card, even when not paying in Canadian currency. The Amazon Prime membership costs $7.99 a month, plus tax. As for those foreign transaction purchases, as said you do earn points, and it is just enough to offset any foreign transaction fees. But it essentially means you won’t earn any rewards on foreign purchases. What if you’re not a Prime member? You earn less on foreign currency transactions, so making it a typical rewards credit card with a 1% earn rate. The rewards points are redeemable for Amazon gift cards (with 2,000 points worth $20, or 1 point worth $0.01, which is 1% in Amazon savings).
| Earn Rate | With Prime Membership | Without Prime Membership |
| Forex purchases | 2.5% | 1% |
| Amazon.ca | 2.5% | 1.5% |
| Whole Foods | 2.5% | 1.5% |
| Everything else | 1% | 1% |
The fee (typically 2.5%) charged by many credit cards for purchases you make in a foreign currency might not seem like much, but it can add up quickly. To be clear: The fee is applied to every purchase made in a currency that’s not Canadian dollars—even when you shop online. For perspective, that’s $25 in transaction fees for every $1,000 you spend on your card, and you have to pay the exchange rate as well.
No, the foreign transaction fee is an additional charge added on top of the current exchange rate. These exchange rates are determined by the credit card companies, using the up-to-date value of the Canadian dollar and the value of whichever currency you’re converting to.
Your fee will vary according to which credit company you choose, so it’s worth it to look into the various options if you’re a frequent traveller or you often find yourself shopping in another currency. Ultimately, choosing a card with no foreign transaction fee, or which offers a rebate on foreign transaction fees, is one of the best ways to save money when you spend in a foreign currency.
As long as credit cards are widely accepted at your destination, you can avoid taking out large amounts of cash at currency exchange kiosks, airports or ATMs. Plus, purchasing with your card helps you earn rewards on every dollar spent, you get purchase protection and PIN protection, and you can easily cancel your card if it’s stolen while you’re abroad.
Our picks of the best no-foreign-transaction-fee credit cards in Canada are based on our analysis of each card’s benefits and annual fees; foreign transaction fees and how they’re handled (if rebated); and whether there are additional rewards incentives for using the card domestically and/or abroad.
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Rogers mastercard will change their benefit on July 1, 2020, replacing the 4% (world elite) by a 1,5% cashback and the 3% for their others cards to 1%. This is no longer enough to keep them in the “No foreign transaction fee” category…
Home Trust Preferred Visa has dropped both the roadside assistance and the collision and loss insurance coverage on auto rentals.
Not sure if its typical, but Rogers doesn’t refund the 2.5% if you get a refund. Merchant was out of stock and refunded a $1000 purchase and I was out $25.
What about Stack?