Best No Foreign Transaction Fee Credit Card in Canada

Travelling to a foreign country gets expensive. You’ve got to pay for your airline tickets, hotel room, car rentals, food purchases, and not to mention, pricey tickets to local attractions.

But even if you’ve done your research and correctly budgeted for all of these amounts, you’re bound to forget about a few extra charges.

One of the biggest travel expenses that often gets missed is the foreign transaction fees on your credit card.

Fortunately, there are several no foreign transaction fee credit cards in Canada, and today we’re reviewing our top picks.

The Best No Foreign Transaction Fee Credit Cards in 2023

What Are Foreign Transaction Fees?

Foreign transaction fees are that annoying 2.5% charge you get on your credit card every time you make a purchase in a foreign currency. That means you get dinged every time you buy something that’s not in Canadian dollars, even if you’re shopping online from the comfort of your couch.

It might not seem like a lot, but these charges can accumulate quickly and really cost you in the long run. Plus, you have to pay the exchange rate as well. Wowsers.

Why Use a No Foreign Transaction Fee Credit Card

Foreign transaction fees are a fee charged by your credit card company when you make purchases at a non-Canadian retailer. Foreign transaction fees are applied to purchases that you make in a foreign currency, whether you are out of the country or not.

The fees are charged as a percentage of your purchase and are usually baked into the exchange rate, so you may not even notice that you are paying a few percentage points on every purchase you make in foreign currency.

While a few percentage points here and there may not sound like much, if you’re a power traveller or small business owner who regularly makes purchases in foreign currency, those few points could add up to hundreds of dollars.

The Best No Foreign Transaction Fee Credit Cards in Canada

Scotiabank Passport® Visa Infinite* Card

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 Offer ends October 31, 2023.

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Our top pick is the Scotiabank Passport® Visa Infinite* Card. This credit card wins big points because, on top of charging no foreign transaction fees, it’s also one of the best travel rewards credit cards in Canada. With this credit card, you’ll pocket Scene+ points from eligible purchases. Earn 3X Scene+ points on every $1 you spend on all eligible purchases¹ at Sobeys, IGA, Safeway, Foodland, FreshCo, Voilà by Sobeys, Voilà by IGA, Voilà by Safeway, Chalo! FreshCo, Thrifty Foods, IGA West, Les Marchés TradItIon, Rachelle Béry and Co-Op. Earn 2 Scene+ points on every $1 you spend on other eligible grocery stores, dining, entertainment purchases, and daily transit purchases (including buses, subways, taxis and more), and earn 1 Scene point on every $1 you spend on all other eligible purchases.

There is also the Welcome Bonus to consider. Here’s how it works:

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 October 31, 2023.

Another perk of this credit card is complimentary Visa Airport Companion Program membership that includes six complimentary lounge visits per year from the date of enrollment, providing you with access to 1,200+ airport lounges globally, including participating Plaza Premium Lounge

Of course, the no foreign exchange fee markup on purchases made in foreign currency at home or abroad also has major appeal.

The Details

• Annual Fee: $150
• Minimum Income Eligibility: You must have a minimum annual income of $60,000 or a minimum household income of $100,000 or a minimum assets under management of $250,000.
• Credit Score: Excellent
• Welcome Offer: 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 Offer ends October 31, 2023.
• Other Perks: Visa Airport Companion Program membership and no foreign exchange fee markup
• Purchase APR: 20.99% | Cash Advance APR: 22.99%

¹ Conditions Apply. Visit here for the Scotiabank Passport® Visa Infinite* Card to learn more.

Scotiabank Gold American Express® Card

Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points¹. Offer ends October 31, 2023.

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The Scotiabank Gold American Express® Card is not only one of the best travel credit cards in Canada, but it’s also the only major bank that saves you 2.5% on foreign transaction fees. That means you will not pay 2.5% foreign transaction fees on any foreign currency purchases, including online shopping and when travelling abroad — only the exchange rate applies. A huge cost-cutting perk!

Plus with everyday purchases, you can also accumulate Scene+ points that can be redeemed for future travel. Earn 6X Scene+ points on every $1 CAD you spend in Canada on all eligible purchases¹ at Sobeys, IGA, Safeway, Foodland, FreshCo, Voilà by Sobeys, Voilà by IGA, Voilà by Safeway, Chalo! FreshCo, Thrifty Foods, IGA West, Les Marchés Tradition, Rachelle Béry and Co-Op. Earn 5X the Scene+ points for every $1 CAD spent on other eligible grocery stores, restaurants, fast food, and drinking establishments (including food delivery and food subscription services), as well as on eligible entertainment purchases (movies, theatre, and ticket agencies). Plus, you’ll get 3X the Scene+ points for every $1 CAD spent on eligible gas, daily transit, and eligible select streaming purchases, and 1X Scene+ point per $1 spent on every other purchase.

For a limited time, this card has an amazing Welcome Bonus:

Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points¹. Earn 20,000 bonus Scene+ points by making at least $1,000 in everyday eligible purchases in your first 3 months. Plus, for a limited time, you are eligible to earn a 20,000 Scene+ point bonus when you spend at least $7,500 in everyday eligible purchases in your first year. Offer ends October 31, 2023.

What’s also exceptional about this credit card is the flexibility in rewards redemption. All you have to do is log in to the system and select the “Apply Points to Travel” option.

Then just use your accumulated points to offset any travel costs (flights, rental cars, hotels, etc.) charged to your credit card. It’s that easy – no black-out periods or mind-boggling restrictions.

The Details

• Annual Fee: $120
• Credit Score Required: Excellent
• Welcome Offer: Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points¹. Offer ends October 31, 2023.
• Other Perks: No foreign transaction fees, comprehensive travel insurance, Amex Front of the Line® access
• Purchase APR: 20.99% | Cash Advance APR: 22.99%

¹ Conditions Apply. Visit here for the Scotiabank Gold American Express® Card to learn more.

Home Trust Preferred Visa

Earn 1% cash back¹ on every eligible purchase you make with no cap on your annual cash back earnings.

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If you want to save on foreign transaction fees, but you aren’t ready to pay a high annual fee for a credit card, the Home Trust Preferred Visa is an excellent option.

Earn 1% cash back¹ on every eligible purchase you make with no cap on your annual cash back earnings. In addition, this credit card has a $0 annual fee.

Another perk of this credit card includes no foreign currency fees charged on purchases made abroad, or foreign transactions online.

A heads up: The Home Trust Preferred Visa isn’t available to residents of Quebec. It also doesn’t allow tap payments, and as of 2020, cash back is not earned on international transactions.

The Details:

• Annual Fee: $0
• Minimum Income Eligibility: You will need to make at least $15,000 as annual income
• Credit Score Required: Fair;Good
• Welcome Offer: N/A
• Other Perks: No foreign currency surcharges
• Purchase APR: 21.99% | Cash Advance APR: 21.99%

This credit card product is not available in Quebec.

¹ Cash advances, balance transfers, interest, fees and foreign transactions (including online purchases in foreign currencies) are not eligible for CashBack Rewards.

HSBC World Elite® Mastercard®

Earn 3% in travel rewards on all eligible travel purchases* (6 points per $1); 2% in travel rewards on all eligible gas, grocery, and drugstore purchases* (4 points per $1); and 1% in travel rewards on all other eligible purchases* (2 points per $1).

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If you’re looking for a great all-around travel card that delivers on the perks and doesn’t charge foreign transaction fees (only the exchange rate applies), check out the HSBC World Elite® Mastercard®.

This card is great for travel-related purchases. Earn 3% in travel rewards on all eligible travel purchases* (6 points per $1); 2% in travel rewards on all eligible gas, grocery, and drugstore purchases* (4 points per $1); and 1% in travel rewards on all other eligible purchases* (2 points per $1). What you do with those rewards is up to you—you can redeem them for travel rewards, merchandise, HSBC financial products, gift cards, and more.

There’s also a Welcome Bonus for New Cardholders:

Special offer: Earn up to 80,000 points* ($400 travel value) PLUS a full annual fee rebate for the primary cardholder for the first year* ($149 value) and receive a $100 annual travel enhancement credit*. Must apply by May 31, 2023. Conditions apply.

• Welcome bonus of 20,000 points* ($100 travel value)
• Earn 10,000 points* each month when you spend at least $1,000 each month for the first 6 months of account opening (up to $300 travel value)
• First year annual fee rebate for the primary cardholder* ($149)
• Receive a $100 annual travel enhancement credit*

An HSBC Rewards point is worth $0.005 when redeemed for travel, so that adds up to $649 in total value* in the first year. Conditions apply.

The annual travel enhancement credit* that you can use for nice little perks such as upgrading your seat, covering baggage fees, and more. And, for those that like to travel in style, your card also includes a complimentary membership to Mastercard Travel Pass provided by DragonPass, offering you access to over 1,300 airport lounges worldwide.

There’s even worldwide emergency travel medical insurance rounding out this impressive package, with coverage for 31 days. Other perks include unlimited Boingo Wi-Fi and 10% off select hotel bookings made through HSBC Expedia and Agoda.co, making this a very attractive card indeed.

The Details

• Annual Fee: $149
• Minimum Income Eligibility: Annual individual income of $80,000 or $150,000 household income, or minimum of $400,000 in assets under management (based on liquid, investable assets with a financial institutions in Canada)
• Credit Score Required: N/A
• Welcome Bonus: Get up to $649 in total value* for the first year! Must apply by May 31, 2023. Conditions apply.
• Purchase APR: 20.99% | Cash Advance APR: 22.99% | Balance Transfer APR: 22.99%

This offer is only available to residents of Canada other than the province of Quebec (Quebec residents eligible for separate offer).

*Terms and Conditions apply.

®/TM Mastercard and World Elite are registered trademarks, and the circles design is a trademark of Mastercard International Incorporated. Used pursuant to license.

Comparison: Best No Foreign Transaction Fee Credit Cards in 2023

*Terms and conditions apply.

No Foreign Transaction Fee Credit Card vs. Cash

When travelling abroad, it’s smart to carry a bit of cash in your wallet (usually $100 or less), which you can use for small purchases, taxi rides, public transit rides, and tips.

But travelling with a big wad of cash is never a good idea. There’s no replacement if you misplace your money and zero recourse if you get robbed. You’re out of luck!

Since credit cards are widely accepted worldwide, why not use a no foreign transaction fee credit card instead? You’ll get the benefit of purchase protection, and you can put a hold or cancel your card if it’s stolen or lost while travelling.

Plus, with some credit cards, you’ll rack up cash back or travel rewards that you can put toward your next vacation.

Tips For Using Credit Cards Abroad

Travelling abroad with a credit card definitely makes managing your money a little easier, but there are a few things to keep in mind on top of just having a credit card with no foreign transaction fees.

Here are a few tips:

• To get the best rates, make sure that you always choose the local currency over Canadian currency. Your card offers better exchange rates than the vendor will.
• Change your pin to 4 digits. Some of the older machines won’t accept cards that have longer pin numbers.
• Notify your credit card provider that you are travelling. Some companies don’t require this but others, including the Home Trust Preferred Visa, request that you notify them of your travel plans.
• Have a backup credit card, just in case.

The Bottom Line

Whether you’re a small business owner who spends thousands of dollars on foreign currency purchases every year, or you’re a traveller looking to minimize the unexpected costs incurred while travelling abroad, one of the no foreign transaction fee credit cards listed above will suit your needs. While some may want to use their travel card for everyday spending, others may want to spend strategically. Consider using your travel card for your cross-border online purchases and then choose another of Canada’s top credit cards to use for your everyday spending.

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