14 Jun The best no foreign transaction fee credit cards in Canada for 2024
Canadians love travel and shopping, but when using their credit cards outside of Canada, many pay foreign transaction fees—as much as 2.5%—on every purchase, and that’s on top of the exchange rate. The good news is there are several strong credit card options for Canadians that either offer no foreign transaction fees or reward purchases with more than enough cash back to cover the fees.
| Rogers Red World Elite Mastercard* Annual fee: $0 |
Why we love it |
|---|---|
| Home Trust Preferred Visa* Annual fee: $0 |
1% cash back on all Canadian purchases, and no forex fees on all foreign-currency purchases (not just U.S.) |
| Rogers Red World Elite Mastercard Annual fee: $0 |
3% cash back on U.S. currency purchases—enough to cover forex fees, and then some |
| Scotiabank Passport Visa Infinite* Annual fee: $150 |
The only no forex fee card in Canada to also offer airport lounge access. |
| Scotiabank Gold American Express* Annual fee: $120 |
Impressive earn rate of up to 6 Scene+ points per $1 spent, full range of travel insurance benefits, and more. |
| Meridian Visa Infinite Travel Rewards Annual fee: $99 annual fee |
Roughly 0.5% back on all purchases in a non-Canadian currency (after forex fees) and outstanding travel coverage |
| Amazon Rewards Mastercard Annual fee: $0 (Prime membership required for full card benefits) |
Amazon Prime members get 2.5% in Amazon points on all foreign currency purchases, which can be used on gift cards |
| EQ Bank Pre-Paid Card* Annual fee: $0 |
0.5% cash back on purchases, plus interest on your savings |
What happened to Brim’s no forex fee card?
If you’re a current Brim cardholder or considering Brim for your travel or cross-border shopping, you should know about recent changes to the card. Previously offering 0% FX fee (and no annual fee), the card is now changing 1.5% for purchases made in another currency. (Another change was going from 1 point for every dollar spent to 1 point for every $2.) You still have no forex options, though. Check below.
—Lisa Hannam, Editor-In-Chief, MoneySense
Best no forex cards with no annual fee
At a glance: The Home Trust Preferred Visa is a true no foreign exchange fee card that also charges no annual fee. This means it waives the forex on purchases in all foreign currencies, not just U.S. dollars.
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Home Trust Preferred Visa
- Annual fee: $0
- Earn rates: 1% on all purchases in Canada and pay no FX fees on foreign currency purchases
- Welcome offer: You can earn 1% cashback on eligible purchases in Canada, with no caps on cashback earn.
The pros
- This is the only no foreign transaction fee credit card available in Canada that doesn’t charge an annual fee and has accessible minimum income requirements (just $15,000 annually).
- Earn 1% cash back on everything you buy in Canadian dollars with no limits on how much you can earn.
- Like most no-fee cards, it comes with basic perks like zero liability policy insurance and purchase security insurance
The cons
- You won’t earn any cash back on purchases made in a non-Canadian currency, which is a slight drawback but remember: you also won’t pay foreign transaction fees which means you’ll still end up saving a considerable 2.5% when using this card versus most other cards.
- Cash back is only redeemed once annually in January (as opposed to on-demand).
At a glance: With much higher earn rates than most no-fee cards, the Rogers Red World Elite Mastercard actually nets you cash back on purchases in U.S. dollars. However, demanding personal income levels make this card inaccessible to some applicants.
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Rogers Red World Elite Mastercard
- Annual fee: $0
- Earn rate: 1.5% cash back on all purchases, or 2% back for Rogers, Fido and Shaw customers; 3% cash back on all purchases in USD
- Welcome bonus: You can This card does not have a welcome bonus at this time.
- Annual income requirement: Personal income of $80,000 or household income of $150,000
The pros
- This card earns a minimum of 1.5% cash back on everything you buy, an impressive rate more often seen in cards which charge an annual fee.
- The Rogers Red World Elite Mastercard earns an accelerated 3% cash back on purchases made in U.S. dollars, which offsets the roughly 2.5% foreign transaction fee, making this an ideal card for snowbirds or anyone who regularly travels to the United States.
- You can redeem your cash back rewards anytime, in increments of $10, using the Rogers app.
- Despite being a no-fee card, the Rogers Red World Elite Mastercard gives you benefits like rental car collision damage coverage and travel insurance.
The cons
- Unlike “true” no foreign transaction fee credit cards which help you save on all non-Canadian currency purchases, the Rogers Red World Elite Mastercard will only help you avoid foreign transaction fees on purchases made in U.S. dollars.
- You’ll need an income of at least $80,000 per year (or $150,000 per household) to qualify for the card—the highest income requirement on our ranking of best no foreign transaction fee credit cards.
Best no forex cards for rewards and perks
At a glance: As the first card from one of Canada’s big banks to waive its foreign transaction fees, the Scotiabank Passport Visa Infinite offers strong rewards, an easy-to-understand and flexible rewards system, and seriously impressive airport lounge benefits.
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Scotiabank Passport Visa Infinite
- Annual fee: $150
- Earn rate: 3 Scene+ points per $1 spent at Sobeys stores; 2 points per $1 on groceries, dining, entertainment and transit; 1 point per $1 on everything else. Plus, pay no FX fees
- Welcome offer: 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. Offer ends July 1, 2024.
- Annual income requirement: Personal income of $60,000 or household income of $100,000
The pros
- The Scotiabank Passport Visa Infinite is the only no forex fee card in Canada to also offer airport lounge access. With this card, you’ll receive a complimentary Priority Pass membership with six free airport lounge visits per year; that’s the most lounge passes available on a card with an annual fee below $200.
- Redeeming Scene+ points for travel rewards is intuitive and as easy as cash back in your wallet. There are no complicated travel charts or maps (1,000 points is always worth $10 in travel savings wherever you travel).
- Scotia’s Scene+ points are extremely flexible. You can redeem points using Scotia’s travel agency or apply points on any travel purchase from virtually any airline or hotel provider up to 12 months later (even for travel purchases booked through Google Travel and Airbnb).
- The Scotiabank Passport Visa Infinite rewards high-volume spenders. Every year that you charge $40,000 or more, you’ll earn an additional 10,000 bonus points ($100 value toward travel).
- This card offers a full range of travel insurance benefits including travel emergency medical insurance, trip cancellation/trip interruption insurance and more.
The cons
- While the Scotiabank Passport offers considerable perks, its annual fee is $150, which is among the highest on this list.
- Perks aside, the card’s rewards on everyday purchases in Canada—1 or 2 points per $1 on most purchases—isn’t all that impressive for a premium annual-fee card, even when compared to other Scotiabank credit cards on this list.
- You’ll need to earn an income of at least $60,000 (or $100,000 as a household) to qualify.
At a glance: The Scotiabank Gold American Express has an impressive everyday earn rate, especially on food and transit. Combined with its lack of foreign transaction fees, this card is not just one of the best no forex fee cards but one of the best overall rewards cards in Canada.
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Scotiabank Gold American Express
- Annual fee: $120
- Earn rates: 6 points per $1 spent at Sobeys-affiliated stores; 5 points per $1 on dining, entertainment and groceries; 3 points per $1 on gas, transit and streaming; 1 point per $1 on everything else
- Welcome offer: You can earn up to $650 in value in the first 12 months, including up to 40,000 bonus Scene+ points. Must apply by July 1, 2024.
- Annual income requirement: $12,000
The pros
- This credit card’s earn rate is bound to raise eyebrows, with an outstanding 5 points on groceries and dining, and 6 points when you shop at Sobeys-affiliated stores.
- Scene+ points are flexible, easy to use and you can redeem them retroactively for up to 12 months after you make a travel purchase, which means you can book when you want and reap the rewards later.
- Redeem for travel in easy increments of 1,000 points (valued at $10). There are no complicated rules or exceptions to manage, and you will get the same value no matter where you go.
- Scotia’s definition of travel is extremely broad so you can redeem for purchases even at Uber, UberEats and Airbnb.
- The Scotiabank Gold American Express offers a full range of travel insurance benefits, including travel emergency medical coverage, trip cancellation/trip interruption insurance and more.
- This card comes with Amex Experience perks. Amex grants early access to presale tickets to a wide range of events (including concerts and sports events), while Amex Offers get you additional discounts and savings on a rotating roster of retailers.
- The card’s minimum income requirement is $12,000, making it accessible to most Canadians.
The cons
- While American Express is accepted at thousands of locations across Canada, there are some notable exceptions. For example, Loblaws doesn’t accept Amex and you might not be able to use this card at some smaller independent shops, groceries, convenience stores and restaurants. Depending on where you’re travelling, Amex acceptance may be even more limited.
- When you buy in a foreign currency, you only earn points at the base rate. This means, for example, that if you buy groceries in a foreign currency, the foreign-transaction fee will be waived but you will only earn 1 point per $1 spent rather than the 5 points usually offered in the grocery category for purchases in a Canadian currency.
At a glance: This is a competitive mid-tier credit card with a below-average annual fee, offering better-than-average travel insurance and bonus points on non-Canadian purchases which will help you save on foreign transaction fees.
Meridian Visa Infinite Travel Rewards
- Annual fee: $99
- Earn rate: 1.5 points per dollar; 3 points per dollar on purchases made in foreign currencies
- Welcome offer: Earn 6 points per $2 spent on purchases made outside Canada in foreign currencies, and 3 points per $2 on all other purchases.
- Annual income requirement: Personal income of $60,000 or household income of $100,000
The pros
- The 3 points per $1 earn rate on foreign purchases means you’ll net roughly 0.5% back on anything in a non-Canadian currency (after offsetting foreign transaction fees).
- The strong base rate of 1.5% on Canadian purchases is an above-average return, regardless of the category.
- The annual fee for the Meridian Visa Infinite Travel Rewards card is only $99, which is less than many comparable cards on this list with no foreign transaction fees.
- The travel coverage on the Meridian Visa Infinite Travel Rewards card is outstanding and includes up to $5,000,000 in emergency travel coverage for up to 48 days, which manages to beat out travel coverage offered by even the best travel credit cards.
- While many credit card travel insurance benefits only apply to those 65 and older, the emergency travel insurance coverage on the Meridian Visa Infinite Travel Rewards credit card applies to those up to 75 years old.
The cons
- This card offers no bonus categories, so it may not be the best rewards structure for those who tend to spend a lot in common categories like groceries, gas or recurring bills.
- Rewards points can’t be used to offset the cost of airline taxes or surcharges.
- The income requirement makes it out of reach for some Canadians.
At a glance: 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.
Amazon Rewards Mastercard
- Annual fee: $0 (Prime subscription required for full card benefits)
- Earn rate: Prime members earn 2.5% on Amazon.ca and foreign currency transactions. Non-Prime members earn 1.5% back on Amazon.ca. Get 1% everywhere else
- Welcome offer: 5% back at Amazon.ca, Whole Foods Market stores for 6 months up to $3,000 in eligible purchases (for a value of $150)
- Income requirement: None specified
The pros
- If you’re an Amazon Prime Member, you’ll earn 2.5% in Amazon points on any purchase made in any foreign currency with the Amazon.ca Mastercard (which effectively acts to offset the foreign transaction fee).
- Amazon points are extremely easy to understand: 1% in Amazon.ca rewards points is 1 cent that can be used towards an Amazon gift card.
- Regular Amazon shoppers can earn lucrative savings with 2.5% savings on Amazon.ca (if you’re a Prime Member) and 1% on all other Canadian purchases.
The cons
- While technically a no annual fee credit card, the boosted 2.5% earn rate on foreign purchases is available exclusively to cardholders who also have a Prime membership ($99 year). If you’re not a Prime Member, you’re out of luck and have to pay the annual fee.
- Non-Prime members will also earn fewer rewards on Amazon.ca purchase (1.5% versus the 2.5% afforded to Prime members).
- As a retail card, naturally you’re restricted to redeeming rewards only on Amazon purchases by redeeming for Amazon.ca gift cards.
Best no forex fee credit card alternative
At a glance: OK, OK, this isn’t a credit card, but a prepaid debit card. Still, the EQ Bank Card can help you avoid costly fees when you’re withdrawing or spending money in a foreign currency by waiving all foreign exchange fees charged by EQ (transactions are still subject to Mastercard’s currency conversion rate). This is a great back-up card for those purchases where the credit card in your wallet isn’t accepted.
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EQ Bank Card
- Annual fee: None
- Earn rate: 0.5% cash back on all your spending
- Welcome offer: This card does not currently have a welcome offer.
- Annual income requirement: None
The pros
- As a pre-paid Mastercard, you essentially pay with the money you already put on the card. So this card is ideal for those Canadians who want to avoid using credit and better manage debt.
- This card can be used like a credit card, including to take out cash from a foreign ATM, but you won’t be hit with the withdrawal fees seen on credit cards.
- Pay no fees, including foreign exchange.
- You’ll earn 0.5% cash back on your international purchases, as well as on any spends in Canadian dollars, too.
The cons
- EQ Bank is an online bank, which means you can’t visit brick and mortar branches for in-person support, though support is available online.
- To access your cash, you have to preload the card by transferring funds from your savings account. You’ll be fine as long as you plan ahead and remember to do this.
How we determine the best cards
The MoneySense editorial team selects the best credit cards by assessing the value they provide to Canadians across various categories. Our best no foreign transaction fee credit cards ranking is based on an extensive list of card details and features—with a focus on those that matter to international travellers and shoppers—including foreign transaction fees, annual fees, interest rates, welcome offers, rewards earn rates and redemption options, annual income requirements, and perks such as insurance coverage and purchase protection. We have also considered the pros and cons of each card to help you determine which ones best suit your financial needs. Our rankings are an unbiased source of information for Canadians. The addition of links from affiliate partners has no bearing on the results. Read more about how MoneySense makes money.
What is a credit card conversion rate?
A credit card conversion rate is a surcharge you pay for purchases in a foreign currency. These rates are set by your credit card network such as American Express, Visa and Mastercard. These rates are usually pretty close to market rates, but they’re often better than what you’d get at a currency exchange. You can find the conversion rate for your card in your credit card agreement.
Should you pay using local currency or converted currency?
Sometimes, you’ll be given the option to pay in a local currency or have the price converted to your home currency. In general, it’s in your financial interest to buy in the local currency, because converting to another currency can incur fees that are tacked onto the purchase price. This is true whether or not you are using a card that charges transaction fees, so in either case, you’ll be saving money by keeping the currency local.
What if using my no foreign transaction fee credit card isn’t an option while I’m abroad?
Using a no foreign transaction fee credit card is great–until you want to make a purchase from a business that doesn’t accept credit cards. It’s always smart to carry some cash on you just for these occasions, but withdrawing money from an ATM can also come with costly fees. One good solution is to use a debit card that doesn’t charge foreign transaction fees, like the EQ Bank Card. Note that while your card might waive the fees, the ATM probably won’t. Also be aware that using a credit card to withdraw cash from an ATM incurs the highest fees of all and should be avoided except for emergencies.
