Best no foreign transaction fee credit cards in Canada 2025

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 travel 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 credit cards from well known Canadian banks, as well as low-cost debit and prepaid cards from specialist providers, such as Wise card and KOHO Extra.

Key points: Best credit cards with no foreign transaction fees

Also, let's take a quick look at some frequently asked questions:

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 have foreign transaction fees - but they're pretty common, and they can push up the costs of spending overseas without you even realizing 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% or 3% 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 Canadian banks like Scotiabank, BMO and RBC that offer some cards with no foreign transaction fees.

Travel cards with no foreign transaction fees in Canada

Several Canadian banks and specialist providers offer cards that waive foreign transaction fees.

*Please note that this is not a comprehensive list, and offerings may change over time.

5 Best travel 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.

Information correct at the time of writing - 21st February, 2025.

• 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

• 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

• BMO Premium Rewards Credit Card: 95 CAD annual fee card offering 2x points on travel and dining, a $50 annual lifestyle credit, and no foreign transaction fees.

• RBC Visa Signature Credit Card: No annual fee and no foreign transaction fees on US purchases only, with travel benefits and purchase protection.

Wise - no foreign transaction fee debit card

💡 Great for: 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 CAD to convert to 40+ different currencies for spending with no foreign transaction fees.

Currency exchange uses the mid-market rate, with low conversion fees from 0.48.

Wise travel cards work linked with Wise multi-currency account. You can hold 40+ currencies in your account, however you can also spend in currencies you don't hold in your account.

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.

No fee to get a card, plus no annual, monthly or ongoing charges.

Learn more about it on How to use Wise card abroad guide.

KOHO Extra - no foreign transaction fee prepaid card

💡 Great for: Earn cashback up to 1.5% and 4% interest on your balance, while spending with no foreign transaction fee

Handy secure prepaid card which offers strong interest at up to 4% and 1.5% 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.

KOHO is one of the best prepaid cards in Canada. If you're interested in getting one of KOHO's credit building products, this card can get you a discount on those as well.

Learn more from our guide on KOHO international transaction fees.

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 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 or regional banking giants like Scotiabank which both have a lot of options available.

Let's take a look at them more in detail, next.

Canadian credit cards with no foreign transaction fees

Scotiabank Passport Visa Infinite - no foreign transaction fee credit card

💡 Great for: Credit card with rewards which have been designed for travelers 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.

BMO Premium Rewards Credit Card – No Foreign Transaction Fee Credit Card

💡 Great for: A rewards-heavy credit card with 2x points on on eligible hotels and airfare and 4x points on gas, EV charging, groceries and dining with no foreign transaction fees.

The BMO Premium Rewards Credit Card is designed for frequent travellers looking to maximize points on everyday spending while avoiding foreign transaction fees.

While the card comes with a 95 CAD annual fee, it's offset by some convenient travel benefits, rewards points, and insurance coverage. However, cash advances come with additional charges, making it better suited for spending rather than cash withdrawals.

RBC Visa Signature Credit Card – No Foreign Transaction Fee (US Purchases Only) Credit Card

💡 Great for: Canadians who frequently shop or travel in the US, with no foreign transaction fees on USD purchases and no annual fee.

The RBC Visa Signature Credit Card is ideal for Canadians who spend in the US, offering no foreign transaction fees on USD purchases and access to Visa Signature benefits, including travel perks, purchase protection, and concierge services.

Since foreign transaction fees are waived only on USD purchases, this card is best suited for cross-border shoppers or those with frequent expenses in the US. It has no annual fee, but balance transfers come with a 10 USD or 3% fee (whichever is greater).

How do I avoid 3% foreign transaction fee on my credit card?

A 3% foreign transaction fee might not seem like much at first, but it can quickly add up when you're travelling or shopping online in a different currency. Fortunately, there are ways to avoid these extra charges and keep more money in your pocket. Here's how:

• Get a travel card without a foreign transaction fee: Choose a card like Wise or KOHO, which lets you spend internationally without the typical 3% fee, saving you money on every transaction.

•  Always pay in the local currency: If you're given the option to pay in CAD while abroad, say no—it triggers dynamic currency conversion, which often results in worse exchange rates.

• Choose a credit card with no FX fees: Cards like Scotiabank Passport Visa Infinite, BMO Premium Rewards, and RBC Visa Signature waive foreign transaction fees, making them a smarter choice for travellers.

• Use a multi-currency account: Providers like Wise allow you to hold and spend in multiple currencies, letting you pay in the local currency without hidden markups.

• Withdraw cash wisely: Some travel cards offer free or low-cost international ATM withdrawals, helping you avoid high fees when you need cash abroad.

How to get a travel 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 credit cards with no foreign transaction fees, 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

Other fees to keep in mind

Information correct at the time of writing - 21st February, 2025.

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 no foreign exchange fee credit card Canada 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.

Exchange rate markups on credit cards

When you make purchases in a foreign currency using your credit card abroad, the transaction amount is converted into your home currency. This conversion often includes an exchange rate markup — a percentage added to the base exchange rate — which increases the total cost of your purchase.

Providers often set their own rates, typically starting with the interbank rate (the rate banks use to trade with each other) and adding a markup. This markup is effectively their profit margin and can vary significantly between providers. Over time, especially with frequent international transactions, these markups can add up, resulting in significant additional expenses.

In Canada, credit card networks like Visa and Mastercard typically charge 1-3% of the amount as a fee, but many banks will also apply an exchange rate markup ranging anywhere from 0.99% to 2.5% on foreign currency transactions.

This is in addition to any foreign transaction fees imposed by the card issuer.

Here are a few ways that you can avoid these markups:

• Use no foreign transaction fee cards like Wise debit card or Scotiabank Passport Visa Infinite.

• Avoid paying in your home currency (dynamic currency conversion).

• Choose multi-currency cards or travel cards like Wise for better rates.

• Monitor exchange rates for favorable timings.

• Check your card terms for hidden fees.

Best travel card for withdrawing cash abroad

When traveling internationally, withdrawing cash from ATMs can incur various fees, including foreign transaction fees and ATM withdrawal fees alongside unfavorable exchange rates. However, choosing the right travel card can help minimize these costs and save you money.

Information correct at the time of writing - 21st February, 2025.

Learn more on How to avoid international ATM fees.

Key takeaways: No foreign transaction fee credit cards

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 0.48, and the KOHO Extra prepaid card which lets you earn both interest and cash back while paying no extra fees when you're abroad.

No FX fee credit cards in 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, like the BMO Premium Rewards Credit Card, 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 specialist providers like Wise which you can use to convert dollars to the currency you need, and to withdraw cash from ATMs in your destination.

If you'd like to purchase your foreign currency online, conveniently - you can learn more about it on online currency exchange services.

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.

Some providers also offer virtual debit cards, allowing you to make purchases abroad with your mobile phone or online from international retailers.

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.