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When you use your credit card outside of Canada, you might notice a pesky 2.5% foreign transaction fee attaching itself to every purchase. While not high on its own, the extra fees add up over one trip and can add up to the cost of a hotel night. Fortunately, there are plenty of no foreign transaction fee credit cards in Canada that let you avoid these charges altogether.
The cards on the list may not be what you expect, as even premium travel-targeted credit cards like the Amex Platinum charge foreign transaction fees.
Scotiabank Passport Visa Infinite Privilege Card – Apply Now
This card is all good things. It’s PMB’s favourite card to use abroad for three reasons: its elevated, categorized earn rates work in all countries, it offers 10 complimentary lounge visits, and, of course, it doesn’t charge foreign transaction fees.
The combination of earning 3X on travel and avoiding the 2.5% foreign transaction fee is already powerful. Add 2X on dining, and you have a strong case for one of Canada’s best travel cards.
The Scotiabank Passport Visa Infinite+ is also PMB’s “show up and get in” lounge card, as 10 complimentary lounge passes are the most generous offering among all Visa Infinite Privilege cards in Canada. You can partially offset the $599 annual fee with an easy-to-use $250 travel credit, and all the perks are well worth the difference.
Now, to be fair, the earn rate doesn’t matter if the points are useless. Fortunately, Scene+ arguably offers the best fixed-value points currency on the market, allowing you to redeem points at 1 cent each against travel purchases you charge directly to your card. The redemption simply appears as a statement credit. There is no need to use the proprietary travel portal to unlock maximum value.
If you don’t need as robust a travel card offering, consider the younger sibling Scotiabank Passport Visa Infinite + variant. For a $150 annual fee, you still get elevated earn rates abroad (2X on groceries, dining, entertainment, and transit), no foreign transaction fees, and six complimentary lounge visits.
Scotiabank Gold American Express Card – Apply Now
The Scotiabank Gold American Express Card makes a strong case for being the only card in your wallet. Yes, it does not charge foreign transaction fees, but it’s also an exceptionally strong everyday spending card at home.
It earns 6X at Sobeys, Safeway, Fresh Co. grocery stores, 5X on all other grocery stores, dining, and transit, and 3X on gas, daily transit including rideshare, and streaming services. A large portion of most people’s regular spending is earning at least 3X and that’s nothing to scoff at.
Unlike other cards with earn rates this high, Scotiabank set a generous spending cap of $50,000 a year. I reckon most of us spend more time at home than travelling, so this is a great card to keep in the wallet. When you do travel, you can keep using it and avoid the 2.5% foreign transaction fee. For an annual fee of $120, the Scotia Amex Gold punches above its weight.
On the topic of everyday spending, don’t underestimate the power of Scene+ points there, too. The 1 cent per point redemption rate also works for groceries (Sobeys and Empire Co shops in-store), Uber rides, and public transit rides. Luxury travel is fantastic, but so is saving money on regular daily expenses.
One important caveat: the Gold Amex’s accelerated 6X, 5X, and 3X earn rates only apply to purchases made in Canadian dollars. Foreign-currency purchases earn 1 Scene+ point per dollar, although you still avoid the 2.5% foreign transaction fee.
Capital One Quicksilver – Apply Now
This card comes in World and World Elite versions, which are identical except for income requirements.
Capital One launched the Quicksilver cards with little fanfare and quickly rose to the top as the best cash back card on the market. Here’s the deal: no annual fee, no foreign transaction fees, and a welcome bonus of double cash back on all spending in the first 12 months, with no spending caps.
Because the normal earn rate is 3% on groceries, gas, and EV charging, the first-year match effectively brings that to 6%. Non-category spending similarly works out to 2% instead of the usual 1%.
Even non-elevated categorized spending will earn 2% back, double the usual 1%. This is the card I recommend to all my friends and family who want cash rewards instead of points.
Simply put, the Capital One Quicksilver cards are no-annual-fee credit cards with no foreign transaction fees, which is also extremely compelling for everyday spending.
Wealthsimple Visa Infinite + Card – Apply Now
Simplicity is the name of the game with the Wealthsimple Visa Infinite + card. Earn 2% cash back on everything — that’s it. It doesn’t matter what category you spend in, where you spend, or when you spend. If it’s charged to the card, you earn 2% cash back. Add in no foreign transaction fees, and you’ve got yourself a fantastic cash back card whether you’re spending at home or abroad.
The $20 monthly fee (charged as $240 annually in Quebec) is waived if you have $100,000+ in assets stored with Wealthsimple or at least $4,000 per month in direct deposits; the easiest way to meet the requirements is to move your paycheque to Wealthsimple. To be transparent, I find this card really compelling only if you qualify to have the annual fee waived, because you can otherwise get the Capital One Quicksilver for $0.
Wealthsimple also offers a Visa Infinite Privilege version with the same earn rates and same annual fee-waiver conditions (and same annual fee) if you meet the higher $150,000 personal / $200,000 household income requirement. This is a fantastic product with six free lounge visits a year (on a no annual fee card if you meet qualifications) and higher travel insurance limits than the Visa Infinite.
If you’re deciding between Wealthsimple and Capital One Quicksilver, the difference, other than the earn rate, is that Wealthsimple offers a better insurance package, including emergency medical coverage, trip cancellation and interruption, and even mobile device insurance. Wealthsimple offers a premium card with no annual fee if you’re engaged with their ecosystem.
Honourable Mention: Rogers Red World Elite Mastercard – Apply Now
This is only an honourable mention because the Rogers Red World Elite Mastercard doesn’t actually waive the foreign transaction fee. Instead, it offers 3% cash back on all U.S. Dollar (USD) spending, which effectively offsets the 2.5% foreign transaction fee, leaving a net 0.5% in earnings.
It’s our favourite card to use at Costco despite recent card changes, earning 2% back if you have 1 qualifying service with Rogers, Fido, Shaw, or Comwave. Keep in mind Costco does not code as grocery and also only accepts Mastercard.
The Rogers Red World Elite Mastercard also has no annual fee and comes with a reasonably impressive World Elite insurance package. If most of your foreign spending is in U.S. dollars, the Rogers card could make sense for you.
Takeaway
While writing this article, I did not expect 3 of 5 cards to have no annual fee. Even more reason for the rest of the premium card market to catch up and eliminate those pesky 2.5% foreign transaction fees! You’ll notice one major omission: no cards that earn transferable rewards currently offer waived foreign transaction fees.
Even so, Canadians no longer need to choose between avoiding foreign transaction fees and earning meaningful rewards. Scene+ points are one of the favourite currencies available. Personally, I’d lean toward the Scotiabank Passport cards because they usually offer hefty sign-up bonuses, up to 10 annual lounge visits, and elevated earning rates even when abroad.
But if you value straightforward cash back rewards, both the Capital One Quicksilver and Wealthsimple cards are fantastic offerings, and choosing between them depends on your travel priorities. Ultimately, there’s little reason to keep paying foreign transaction fees when so many competitive alternatives exist.
