5 Best Cards without Foreign Transaction Fees in Canada 2024
Hefty foreign transaction fees often apply for spending in a foreign currency when you travel overseas or when you shop with an online retailer based abroad - but they don’t have to be a headache with a no foreign transaction fee card.
With a bit of research you can pick from international debit or prepaid cards, or travel credit cards which have features designed for ease of use overseas, allowing you to spend and make cash withdrawals internationally without unexpected and inflated costs. This guide walks through no foreign transaction fee cards from well known Canadian banks, specialist providers, and some top low cost alternatives like the Wise card.
Key points: Best cards with no foreign transaction fees
Wise card: Spend in 150+ countries with mid-market rate currency conversion and no ongoing fees
EQ Bank: Earn cashback with no ongoing charges and no foreign transaction fee
KOHO Extra: 9 CAD a month card which offers cashback, interest, no foreign transaction fee and one free international ATM withdrawal monthly
Scotiabank Passport Visa Infinite: Credit card with 150 CAD annual fee which has great travel benefits and perks
HSBC World Elite Mastercard: 149 CAD annual fee for a card with travel optimised benefits, including complimentary insurance and travel credits
What is a foreign transaction fee?
A foreign transaction fee is an extra percentage fee added to your bill when you spend in a foreign currency. That may be when you’re overseas and buy something or make an ATM withdrawal, or when you spend with a card online, and pay in a currency other than dollars.
Not all credit and debit cards use foreign transaction fees - but they’re pretty common, and they can push up the costs of spending overseas without you even realising it.
How do foreign transaction fees work?
When you spend a foreign currency the amount is converted back to CAD using the rate set by your card or bank, plus the foreign transaction fee. The foreign transaction fee you pay may be shown as a separate line on your statement or card bill, but it is usually just rolled into the CAD amount shown for the purchase or withdrawal, either on your bank statement for a debit card, or on your monthly bill for a credit card.
How much are foreign transaction fees?
Foreign transaction fees are set by the bank or card issuer, and so can vary. However, it’s common to find a charge of about 2.5% of the transaction value being used.
In this article, we’ll cover providers that do not have foreign transaction fees such as Wise and KOHO, as well as banks like EQ Bank that offer some cards with no foreign transaction fees.
5 best international cards with no foreign transaction fees Canada
There are plenty of different options for no foreign transaction fees in Canada including debit, prepaid and credit cards. To give a picture we’ve selected 5 of the best across all categories and lined them up side by side for comparison. There’s more detail on each later to help you pick.
| Card name | Card type | Fees | Exchange Rates | Overseas withdrawal fee |
|---|---|---|---|---|
| Wise card | Debit card | No card order fee; on ongoing fee | Mid-market exchange rate with no foreign transaction fee | 2 withdrawals to 350 CAD/month free; 1.5 CAD + 1.75% after that |
| EQ Bank | Debit card | No card order fee; on ongoing fee | Network exchange rate with no foreign transaction fee | No EQ fees - international ATM operators may charge their own fees |
| KOHO Extra | Prepaid card | 9 CAD/month | Network exchange rate with no foreign transaction fee | 1 international withdrawal free monthly, after this if international ATM operators charge their own fees these will not be reimbursed |
| Scotiabank Passport Visa Infinite | Credit card | 150 CAD/year; interest applies on spending if you don’t clear your bill on time | Network exchange rate with no foreign transaction fee | 7.5 CAD cash advance fee + any interest accrued |
| HSBC World Elite Mastercard | Credit card | 149 CAD/year; interest applies on spending if you don’t clear your bill on time | Network exchange rate with no foreign transaction fee | 5 CAD cash advance fee + any interest accrued |
Wise debit card: No charge to get your card, no ongoing fees. Currency exchange uses the mid-market rate, and you’ll get 2 free ATM withdrawals every month with low fees after that
EQ Bank debit card: Pretty much no fees to worry about, and you can earn cash back at 0.5%. Hold a balance in CAD and spend internationally with no EQ foreign transaction fee and no EQ ATM withdrawal charges either
KOHO Extra prepaid card: Secure prepaid card for 9 CAD/month, which has good cash back and interest earning options and no foreign transaction fee
Scotiabank Passport Visa Infinite credit card: 150 CAD annual fee for a credit card which has travel optimised rewards and benefits and no foreign transaction fee to worry about when you spend overseas
HSBC World Elite Mastercard credit card: Get travel benefits and complimentary insurance as part of the package when you pay 149 CAD/year annual fee
Wise debit card
Key point: Powerful international account which supports 40+ currencies for holding and exchange, with mid-market exchange rates and low, transparent fees
Open a Wise account online or in the Wise app, and add money in dollars to convert to 40+ different currencies for spending with no foreign transaction fee. Currency exchange uses the mid-market rate and low fees from 0.43%. If you don’t have the currency you need in your account balance, the card can automatically convert for you with the mid-market rate and the lowest possible fee every time. No fee to get a card, plus no annual, monthly or ongoing charges.
Foreign transaction fee: No foreign transaction fee
Annual or monthly fee: No annual or monthly fee
Currency conversion: Mid-market exchange rate, with low fees from 0.43%
Benefits and rewards: Hold and exchange 40+ currencies, get paid with local bank details for 9 currencies, spend in 150+ countries
| Advantages of Wise debit card | Disadvantages of Wise debit card |
|---|---|
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EQ Bank debit card
Key point: Add a CAD balance to spend internationally with no fee, and earn 0.5% cash back as you do
EQ Bank has an impressive range of accounts and products including the EQ Bank debit card which comes with pretty much no fees to pay, and cash back on spending set at 0.5%. If you’re charged a fee by an international ATM operator, EQ Bank won’t reimburse it, but there are no overseas ATM fees from EQ, and there’s no foreign transaction fee to pay. Any overseas spending is just converted to CAD using the Mastercard rate and deducted from your linked card account.
Foreign transaction fee: No foreign transaction fee
Annual or monthly fee: No annual or monthly fee
Currency conversion: Mastercard rate
Benefits and rewards: 0.5% cash back on all spending
| Advantages of EQ Bank debit card | Disadvantages of EQ Bank debit card |
|---|---|
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KOHO Extra prepaid card
Key point: earn cashback up to 2% and 5% interest on your balance, while spending with no foreign transaction fee
Handy secure prepaid card which offers strong interest at up to 5% and 2% cash back so you can earn when you save and when you spend. There’s no foreign transaction fee, but there is a monthly charge of 9 CAD so you’ll need to weigh this up against the benefits of this card. If you’re interested in getting one of KOHO’s credit building products, this card can get you a discount on those as well.
Foreign transaction fee: No foreign transaction fee
Annual or monthly fee: 9 CAD/month
Currency conversion: Network exchange rate
Benefits and rewards: Earn cashback up to 2% and 5% interest; KOHO will reimburse one international ATM fee a month
| Advantages of KOHO Extra card | Disadvantages of KOHO Extra debit card |
|---|---|
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Scotiabank Passport Visa Infinite credit card
Key point: Credit card with rewards which have been designed for travellers including free airport lounge access
Scotiabank’s Passport Visa Infinite credit card offers rewards which vary depending on the category of spending, with discounts for card holders and 6 opportunities to go to an airport lounge annually as part of the package. There’s an annual fee of 150 CAD, and like any credit card, you’ll pay interest if you don’t clear your bill on time every time. Cash advance charges apply when you make cash withdrawals, and you may pay extra interest in this case, making this a card that’s better for overseas spending than cash use.
Foreign transaction fee: No foreign transaction fee
Annual or monthly fee: 150 CAD annual fee
Currency conversion: Visa exchange rate
Benefits and rewards: Earn rewards based on spend type, discounts and lounge access when you fly
| Advantages of Scotiabank Visa Infinite card | Disadvantages of Scotiabank Visa Infinite card |
|---|---|
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HSBC World Elite Mastercard credit card
Key point: Complimentary travel insurance and rewards on offer, with no foreign transaction fee
The HSBC World Elite Mastercard has a lot of travel benefits including some insurance thrown into the package, but you’ll need to pay an annual fee of 149 CAD as well as any accrued interest or penalties. There are specific travel rewards including higher cash back when you spend on travel and 100 CAD a year in credit you can use for perks like upgrades to airline seats, making it worth considering if you’re specifically looking for a no foreign transaction fee credit card rather than a debit or prepaid option.
Foreign transaction fee: No foreign transaction fee
Annual or monthly fee: 149 CAD/year
Currency conversion: Mastercard exchange rate
Benefits and rewards: Mastercard and HSBC benefits, some travel insurance, reward earning options
| Advantages of HSBC World Elite Mastercard | Disadvantages of HSBC World Elite Mastercard |
|---|---|
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How to get a card with no foreign transaction fees in Canada
The process to get a card with no foreign transaction fee will vary a lot depending on the provider and the card type. For a credit card you’ll need to prove your eligibility and undergo credit checks. Some banks may require you to visit a branch, although it’s pretty common to be able to get your card ordered online.
Specialist non-bank providers also tend to offer digital onboarding and verification steps for convenience. Plus, there’s no credit check when you use a debit or prepaid card from a non-bank provider. As an example, here's how to order a Wise card in Canada:
Open a Wise Account online in just a few minutes
Get verified by adding images of your ID and proof of address
Top up your Wise Account in the currency of your choice
Tap the Cards tab and order your Wise card
Your physical card will arrive in the post - you can also start spending with your digital card right away
How to use cards internationally
Cards are commonly accepted in most countries, and the only way to pay in most cases when you shop online. Using a card should be convenient and easy. However, to keep costs down there are a few things to remember if you’re using your card overseas:
Make sure your card will be accepted by the merchant or ATM - look for your card’s network logo (Visa or Mastercard for example)
Check if your bank or card provider charges foreign transaction fees
Always pay in the local currency to avoid extra fees incurred through dynamic currency conversion (more on that next)
Check if you have to let your bank or card provider know of your travel plans in advance for security reasons
Clear your credit card bill as soon as possible to avoid interest and late payment fees
What is dynamic currency conversion?
Dynamic Currency Conversion (DCC) is when you’re asked by a merchant or at an ATM overseas, if you’d prefer to pay in your home currency rather than the one in the country you’re in.
It sounds pretty simple, and paying in CAD means you can instantly see what your purchase or withdrawal cost you back home without needing to do any maths. However, DCC is not as straightforward as you’d hope. In fact if you agree to pay in CAD you’ll end up paying more in the end because the merchant or ATM will pick the exchange rate used instead of your card network. This will often include extra fees - which aren’t necessarily disclosed, so you may not know until much later that you’ve paid more than you have to.
Always pay in the local currency wherever you are to avoid this tricky extra charge.
Which Canadian banks do not charge foreign transaction fees?
Banks often charge foreign transaction fees when customers spend on their cards, but some of them do offer a few card options with no foreign transaction fees. Most commonly these are credit cards, although as we saw above, EQ Bank stands out as one which has a debit card which has no foreign transaction fee to worry about, and very few fees overall. Aside from that, check out international banks like HSBC, or regional banking giants like Scotiabnk which both have a lot of options available.
Conclusion: Best card for overseas spending Canada
Canadian customers looking for a no foreign transaction fee card are actually pretty well served, with cards from banks and specialists to give customers a great range of choice. Whether you’re looking to hold a foreign currency balance and get the mid-market rate when you spend, or want a credit card to spread the costs of your payment across several months, there’s something for you.
Compare a few options, including regular credit cards and alternatives like the Wise debit card for convenient spending with the mid-market rate and low fees from 0.43%, and the KOHO Extra prepaid card which lets you earn both interest and cash back while paying no extra fees when you’re abroad.
Best card with no overseas transaction fees Canada FAQs
How do I avoid foreign transaction fees?
To avoid foreign transaction fees you may need to get a specific card for travel use. Options include travel credit cards which are good for spreading the costs of your travel if you don’t mind paying interest to do so, and travel debit cards from providers like Wise which are flexible with low overall fees.
Which banks charge no foreign transaction fees?
EQ Bank is a good option for a no foreign transaction fee debit card. Some other banks have no foreign transaction fee cards but they’re usually credit cards which come with higher overall costs. Instead, take a look at non-bank services like Wise and KOHO which both have handy debit products which have no extra costs for foreign currency spending.
Is it better to pay in local or foreign currency with my card when travelling?
Always pay in the local currency wherever you are to avoid extra charges that apply because of dynamic currency conversion when you pay in CAD abroad.
What is the most cost effective way to exchange currency?
You’ll need to check out a few currency exchange options to work out which is most cost effective for you. Consider bank issued no foreign transaction fee cards, and also specialist travel cards from non bank providers like Wise which you can use to convert dollars to the currency you need, and to withdraw cash from ATMs in your destination.
Is it better to buy currency for the country you are visiting?
There’s no need to buy currency in advance of travel if you don’t want to. Instead, get a no foreign transaction fee travel debit card from a provider like Wise or KOHO and use it to make cash withdrawals on arrival - this can mean you get a better rate compared to switching at home.
How do you avoid exchange rate fees?
Cut down on the fees involved in exchanging currencies by shopping around for a travel account and card with no foreign transaction fees and good exchange rates. Providers like Wise and KOHO can be a good place to start your research.