Best No Foreign Transaction Fee Credit Cards In Canada For February 2025

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With no foreign exchange fees, the scoring model used takes into account factors such as, but not limited to, cash back and rewards earn rates and categories, fees, welcome bonuses, and travel features like insurance and lounge access. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

Scotiabank Gold American Express® Card

This card is great for those who eat in or dine out often or regularly enjoy movies and live events. It also provides a high return on grocery spending.

Rewards: Earn 6 Scene+ points per dollar spent at more than grocery stores owned by Sobeys (including Safeway, Foodland and FreshCo); earn 5 Scene+ points per dollar spent in Canada on dining, food delivery, food subscriptions, and other eligible grocery stores; earn 5 Scene+ points per dollar spent in Canada on entertainment (includes movies, theatres and ticket agencies); 3 Scene+ points per dollar spent in Canada on gas and transit (includes rideshares, public transit and taxis); 3 Scene+ points per dollar spent in Canada on eligible streaming services; and 1 Scene+ point on everything else.

Welcome Offer: Earn up to 40,000 Scene+ points. Earn 20,000 points by making at least $2,000 in eligible purchases in the first three months and get an additional 20,000 points after spending at least $7,500 in the first year. Must open account by July 1, 2025 to qualify.

Annual Fee: $120

Other Benefits and Drawbacks: You get the benefits of being an American Express cardholder, such as Amex Offers (dining, shopping, and travel offers), Amex Front of the Line (access to presale and reserved tickets) and American Express Invites (special offers and events). There are also complimentary concierge services and a discount on Priority Pass membership, which gives you access to airport lounges. There is insurance coverage for new mobile devices, trip cancellation/interruption, and flight delays. The main drawbacks are that American Express isn’t as widely accepted as Visa or Mastercard, and there’s no annual fee waiver for the first year.

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Meridian Visa Infinite* Travel Rewards Card

A rewards card with good insurance coverage and the ability to earn more points while travelling.

Rewards: Earn 6 points for every $2 spent on purchases made outside Canada in foreign currencies. Earn 3 points for every $2 spent on all other card purchases.

Welcome Offer: None

Annual Fee: $99 (waived for the first year).

Other Benefits and Drawbacks: Unlike the World Elite cards, the minimum annual income requirement for this card is $60,000 for individuals or $100,000 for households. There’s also a variety of insurance coverage, such as mobile device, travel emergency medical, trip cancellation, trip delay/interruption, delayed baggage and lost/damaged baggage, travel accident, vehicle rental collision/loss damage, and mobile device insurance. The drawback is the lower reward rate for everyday purchases made in Canada.

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Home Trust Preferred Visa Card

A cash-back card with no annual fees and a low minimum income requirement.

Rewards: 1% cash back on every eligible purchase.

Welcome Offer: None.

Annual Fee: $0.

Other Benefits and Drawbacks: The annual income requirement is just $15,000. It has a zero liability policy, purchase security insurance, and a guaranteed hotel reservation worldwide if you arrive late. The insurance coverage isn’t as good as other no FX cards, including those with no annual fee. Also, this card isn’t available if you live in Quebec.

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KOHO Extra Mastercard® Prepaid Card

A cash-back prepaid card that’s geared towards those who likely wouldn’t qualify for a regular credit card or don’t want one.

Rewards: 1.5% cash back on groceries, dining and takeout, and recurring bill and subscription payments. Earn 0.25% back on everything else.

Welcome Offer: Earn a $20 cash bonus after signing up and making the first $20 purchase within 30 days of registration

Annual Fee: $144 or $12/month

Other Benefits and Drawbacks: This card has a good cash-back rate for some of the more popular spending categories. It’s a prepaid card and you can currently earn 3% interest on your balance. It also has one free international ATM per month and you can subscribe to Koho’s credit building line of credit for $7 a month, instead of the regular $10 a month. While there are some good benefits, it doesn’t have any insurance coverage that most other no FX fee cards offer. Also, the fee is $144 if you pay annually, but you can choose to pay monthly ($12/month).

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Scotiabank Passport Visa Infinite Business Card

A rewards card for business owners who travel regularly, want airport lounge access and require additional insurance coverage.

Rewards: 1.5 Scene+ points per dollar spent.

Welcome Offer: 30,000 Scene+ points if you spend $5,000 in the first three months of opening your account and an additional 10,000 Scene+ points if you spend at least $60,000 in the first 12 months for a total of 40,000 points (a $400 value).

Annual Fee: $199

Other Benefits and Drawbacks: You get free membership to the Visa Airport Companion Program, which includes six annual visits to more than 1,200 airport lounges. The value of the six free visits is higher than the annual fee. There’s also purchase security and extended warranty protection, free Avis Preferred Plus membership for discounts on car rentals and a variety of insurance coverage, including travel emergency medical, trip cancellation/interruption, flight delay delayed and lost baggage, travel accident, rental car collision loss/damage, and hotel/motel burglary insurance. That said, the earn rate is quite low compared to other Scene+ cards. Also, the entire welcome bonus is likely difficult to earn if your business is fairly new or you don’t spend more than $60,000 annually.

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Scotiabank Passport® Visa Infinite* Card

A card for someone who wants to earn rewards points at a higher rate and is looking for free airport lounge access.

Rewards: Earn 3 Scene+ points per dollar spent at grocery stores owned by Sobeys (including Safeway, Foodland and IGA) as well as 2 Scene+ points for dining and other grocery stores, entertainment (movie, theatre and concert tickets) and transit (rideshares, public transit and taxis).

Welcome Offer: Get 25,000 Scene+ points when you spend at least $1,000 in the first three months and an additional 10,000 points when you spend at least $40,000 in the first year for a total of 35,000 points.

Annual Fee: $150

Other Benefits and Drawbacks: Included is free membership to the Visa Airport Companion program, which includes six complimentary visits to more than 1,200 lounges. If you use all six visits annually, it covers the cost of the annual fee. There’s also free Avis Preferred Plus membership, which provides you with discounts on car rentals. And there’s a lot of insurance coverage, including travel emergency medical, trip cancellation/interruption, flight delay, lost and delayed baggage, rental car collision loss/damage, hotel/motel burglary and travel accident insurance. The main drawback is it will be hard to earn the entire welcome bonus if you don’t spend more than $40,000 a year.

An exchange rate is the rate at which one currency is exchanged for another currency. For example, 1 U.S. dollar is currently equal to (or can be exchanged for) $1.37 Canadian dollars, so the USD-CAD exchange rate is 1.37. Conversely, 1 Canadian dollar is equal to 0.73 U.S. dollars. Exchange rates are dynamic and can fluctuate throughout the day in the foreign exchange market.

A foreign transaction fee is an extra fee charged by your credit card issuer when you make any transaction in a foreign currency. In Canada, this rate is typically around 2.5%. This means for every $100 you spend overseas, you’ll pay an extra $2.50 in foreign transaction fees.

When you’re looking for the right credit card with no foreign transaction fees, consider the following attributes:

• Annual fee
• Welcome bonus
• APR
• Eligibility
• Income requirements
• Spending requirements
• Earning rates for cash back or points, if applicable
• Perks such as travel insurance, lounge access or car rental discounts, if applicable
• Additional insurance, such as mobile device insurance, ticket protector insurance or extended warranties

The central reason to get a no foreign transaction fee card is obvious: to save 2.5% on purchases made overseas or at foreign online retailers.

Benefits to No Foreign Exchange Fee Credit Cards

There are a number of benefits to credit cards with no foreign transaction fees.

Save on Foreign Transaction Fees

These cards save you 2.5% on something you may not even be aware you’re being charged. On a long trip, that 2.5% can add up quickly and this card can save you hundreds of dollars.

Selection of Various Card Types

There are a variety of great cards, that offer no foreign exchange fees, some that top our other lists in terms of rewards and insurance. There are a variety of cards that offer no foreign exchange fees, including:

• Rewards cards
• Cash-back cards
• No annual fee cards
• Prepaid credit cards

Good Average Return Rate on Purchases

With a credit card that saves on foreign exchange fees, you can expect to earn at least 2.5% on your purchases. However, if your card also offers points or cash back, your purchases will earn even more. For example, if you had a cash-back card that earns 1% on purchases, but charges foreign exchange fees, you’ll technically lose 1.5% on each transaction. Conversely, a no foreign transaction fee card that offers 1% cash back will earn you 3.5% on your purchases.

Top Insurance Coverage

Many no foreign transaction fee cards know their audience: travellers. With that in mind, they provide valuable travel insurance, which can include emergency medical, travel accident, trip cancellation and delay, lost/delayed baggage, car rental insurance, hotel/motel burglary insurance and more.

Drawbacks to No Foreign Exchange Fee Credit Cards

There are some drawbacks to no foreign exchange fee credit cards, but they have nothing to do with the lack of a foreign exchange fee.

Not a Lot of Cards to Choose From

The main drawback to these cards is that they are incredibly rare in Canada. Most credit cards on the market charge an foreign exchange fee in this country. However, you can decide if you’d like to have another card as your primary card and supplement travel with a no foreign exchange fee card.

No Low Interest Credit Cards

There aren’t any low-interest foreign exchange fee credit cards currently on the market. However, the KOHO Extra Prepaid Mastercard has no interest because it’s a prepaid card.

Related: Best Low-Interest Credit Cards

When choosing a card with no foreign exchange fee, consider what you’re using this card for most often. If it’s to be used exclusively for travel, you may look for a card that comes with travel insurance, rental car insurance or hotel and airport perks. If this card will be used as your primary card, look for the features you value most, like cash back or points earnings in the categories you tend to spend frequently in.

Is a No Foreign Transaction Fee Credit Card Worth It?

If you frequently travel internationally, shop across the border or even just on foreign websites, a card with no foreign transaction fees is likely worth it. When you consider that some of these cards can offer other valuable perks, like travel insurance, it makes sense to get a credit card that doesn’t charge you foreign transaction fees.

Even if you only travel or shop at foreign retailers a few times a year, keeping a credit card that has no foreign transaction fees in your wallet can be a good idea. There are some on this list that have no annual fee, so it would cost nothing to keep it on hand for when you need it. Travelling can often involve spending, especially on food, entertainment and shopping. With a card that has no foreign transaction fee, you can avoid paying an extra $25 on every $1,000 you spend across the border.

However, if you have a credit card that offers significant earnings on spending, but doesn’t waive the foreign exchange fee, you may have to crunch the numbers to see which is more beneficial to your bottom line.

Are Foreign Transaction Fees Refunded?

If your credit card has a foreign exchange fee, you shouldn’t expect to see it refunded. Watch out for foreign transaction fees at foreign ATMs as well.

If you’re a frequent cross-border traveller, having a credit card with no foreign transaction fees makes good financial sense as you’re saving the 2.5% fee per transaction. Here are some additional tips to make the most of your card:

Pick the best perks: Choose a card that fits your spending and travel habits. If you travel a lot, a no foreign transaction fee card with perks such as travel insurance or rental car discounts, such as the Rogers Red World Elite® Mastercard®, could be a good match. If you prefer a card that offers points or cashback for everyday spending, a card such as the Meridian Visa Infinite Travel Rewards card might find a good place in your wallet.

Watch the annual fee: A high annual fee can eat away at any potential savings, especially if you only use the card a few times a year. In that case, choose a no-fee or low-fee credit card. If your card of choice has a higher annual fee, make sure the benefits make it worthwhile.

Know your card’s APR: It’s always a good idea to pay off your credit card balance each month to avoid paying interest, but if you know you’re likely to carry a balance, use a card with the lowest interest rate and make at least the minimum payment before the due date.

Related: Best Credit Cards for Canada