Compare Credit Cards
You know that sick feeling when your credit card statement arrives after a US shopping spree? Those foreign transaction fees hit like a surprise tax on your vacation memories. Here’s what most Canadians don’t realize: you’re basically paying an extra 2.5% surcharge just for the privilege of spending your own money abroad.
Think about it. That $1,000 you dropped on your Florida trip actually cost you $1,025. Those Amazon.com deals suddenly aren’t such deals anymore. And forget about those “amazing” Black Friday prices from US retailers when you’re tacking on currency conversion fees that nobody warned you about.
Why Foreign Transaction Fees Are Killing Your Travel Budget
Credit card companies love foreign transaction fees. It’s easy money for them, hidden in your statement where most people never look twice. They roll it right into the converted amount so you don’t even see it as a separate charge. Sneaky? Absolutely.
But here’s where it gets worse. Your card network (Visa, Mastercard, whatever) also marks up the exchange rate. So while the Bank of Canada shows USD at $1.35 CAD, your credit card might charge you $1.37. You’re getting hit twice without even knowing it.
Want to avoid these fees? You need a credit card specifically designed for international spending. Not all cards are created equal here. Some eliminate the fees completely. Others reward you enough to offset them. The trick is knowing which ones actually deliver.
Scotiabank Gold American Express: The Grocery and Travel Powerhouse
Let’s start with the heavyweight champion of no foreign transaction fee cards. The Scotiabank Gold American Express doesn’t just eliminate that 2.5% foreign transaction fee. It turns your everyday spending into serious rewards.
You get 6x Scene+ points at Sobeys, Safeway, FreshCo and other Empire grocery stores. That’s basically 6% back on groceries if you redeem for travel. Plus 5x points on restaurants and food delivery. Another 5x on entertainment. This card gets that you eat out, order in, and occasionally want to see a movie without feeling guilty about it.
The $120 annual fee? Waived for your first year. And with up to 50,000 bonus Scene+ points as a welcome offer (worth $500 toward travel), you’re already ahead before you even start using it. Spend $2,000 in your first three months, get 30,000 points. Hit $7,500 in your first year, snag another 20,000.
Here’s what really matters though. This card gives you $1 million in emergency medical coverage for trips up to 25 days. Mobile device insurance up to $1,000. Purchase protection. All the stuff you hope you never need but definitely want when things go sideways.
The catch? It’s American Express. Not everyone takes it. You’ll need a backup Visa or Mastercard for those places that give you the “sorry, we don’t accept Amex” line.
Scotiabank Passport Visa Infinite: When You Actually Want Airport Lounge Access
Now if you’re thinking “I need something that works everywhere and gets me into airport lounges,” the Scotiabank Passport Visa Infinite has entered the chat. No foreign transaction fees, obviously. But this card brings something unique to the table: six free Priority Pass lounge visits annually.
Ever priced out airport lounge access? A single visit costs $35-50 USD. Six visits basically pays for your $150 annual fee right there. Plus you’re earning 3x Scene+ points at Sobeys and friends, 2x on groceries, dining, entertainment, and transit. Not as generous as the Gold Amex, but solid for a Visa Infinite.
The income requirement is steeper here. You need $60,000 personal or $100,000 household income. But if you qualify, you’re getting comprehensive travel insurance, rental car discounts up to 25%, and that sweet lounge access that makes layovers actually bearable.
First year bonus? Up to 45,000 Scene+ points when you spend properly. That’s $450 toward travel. Combined with the lounge passes and foreign transaction savings, you’re looking at over $1,300 in value your first year.
Wealthsimple Cash Card: The Dark Horse Nobody’s Talking About
This one’s weird but hear me out. The Wealthsimple Cash Card technically isn’t even a credit card. It’s a prepaid Mastercard. But it eliminates foreign transaction fees AND gives you 1% cash back on everything. Twice what most flat-rate cards offer.
No credit check required. No annual fee. Your money sits in a high-interest savings account earning decent returns while you’re not spending it. Cash back deposits automatically every week. No minimum redemption amounts or complicated portals.
Perfect for people who want to avoid credit card debt but still want rewards and no foreign fees. Or as a backup card when you’re traveling and don’t want to put everything on credit. Just load what you need and go.
Home Trust Preferred Visa: The Secured Option That Actually Makes Sense
Bad credit? Building credit? The Home Trust Preferred Visa works as a secured credit card but still eliminates foreign transaction fees. You put down a deposit that becomes your credit limit. Use it like a regular credit card. Build your credit score. Travel without fees.
You even get 1% cash back on everything. No annual fee either. This shouldn’t exist but it does. If your credit’s taken a beating and you need to rebuild while still traveling or shopping internationally, this is your card.
The minimum credit limit is $500 based on your security deposit. Not huge, but enough to book flights, hotels, and handle vacation spending without foreign transaction fees eating into your budget.
EQ Bank Card: The Debit Card That Thinks It’s a Credit Card
Another oddball worth considering. The EQ Bank Card is a debit card with no foreign transaction fees. You get 0.5% cash back on all purchases. Free ATM withdrawals in Canada. No monthly fees.
Not as rewarding as the credit cards, sure. But if you’re strictly anti-credit or want a fee-free way to access cash abroad, this works. Your money sits in an EQ Bank Savings Plus account earning interest until you spend it. No credit check. No debt risk.
Great backup option for international ATM withdrawals since most credit cards charge cash advance fees plus interest from day one when you pull cash. This doesn’t.
How to Actually Choose the Right Card
Stop overthinking this. Here’s your decision tree:
Shop at Sobeys/Safeway/FreshCo regularly? Get the Scotiabank Gold Amex. Those 6x grocery points alone justify everything else.
Travel frequently and want lounge access? Scotiabank Passport Visa Infinite if you qualify income-wise.
Want simplicity with great rewards? Wealthsimple Cash Card gives you 1% back on everything with zero complications.
Building credit or have credit issues? Home Trust Preferred Visa lets you travel fee-free while rebuilding.
Need a debit option? EQ Bank Card for ATM access without the credit card cash advance nightmare.
The Real Cost of Not Having One of These Cards
Let’s do math that actually matters. Average Canadian traveler spends about $3,000 abroad annually. That’s $75 in foreign transaction fees with a regular card. Shop online from US retailers? Add another $30-50 annually. Business travel? Could be hundreds more.
Over five years, you’re looking at $500-1,000 in completely avoidable fees. That’s a flight to Europe. A weekend in New York. Real money you’re just handing over to banks because you didn’t switch cards.
What About Those “Pay in Canadian Dollars” Offers?
Quick PSA: Never, ever accept when foreign merchants offer to charge you in Canadian dollars. This “dynamic currency conversion” convenience uses exchange rates that are absolutely terrible. We’re talking 3-7% worse than market rates.
Always pay in the local currency. Let your no foreign transaction fee card handle the conversion at actual market rates. Those helpful merchants offering to convert for you? They’re making money off your confusion.
Making These Cards Work Harder
Here’s what smart cardholders do. They use their no-forex card for all international spending, obviously. But they also use them for Canadian purchases in bonus categories. That Scotiabank Gold Amex earning 6x at grocery stores? Use it for all your Sobeys runs even when you’re not traveling.
Stack these cards with other rewards strategies. Book travel through Scene+ Travel portal for extra points. Use Amex Offers on the Scotiabank Gold for statement credits. Pay for group dinners and collect the cash to maximize dining multipliers.
Some people keep multiple no-forex cards. Different cards for different spending patterns. Scotiabank Gold Amex for groceries and restaurants. Passport Visa for everything else. Maximize every purchase category.
The Fine Print Nobody Reads
These cards still use the Mastercard or Visa exchange rate, which includes a small markup from the actual mid-market rate. But we’re talking 0.2-0.5% versus the 2.5% foreign transaction fee you’d normally pay. Still a massive win.
Annual fees seem scary but do the math. If you’re saving $75+ on foreign transaction fees and earning hundreds in rewards, that $120-150 annual fee pays for itself. First year free offers make it a no-brainer to at least try them out.
Watch for cards that only eliminate fees on certain currencies or transaction types. The ones listed here eliminate fees on all foreign transactions. No gotchas. No exceptions.
Stop Bleeding Money on Every International Purchase
Look, switching credit cards feels like hassle. But applying takes 10 minutes online. Cards arrive in a week. Set up automatic payments so you never miss due dates. Then just use them instead of your current card.
You’re either saving money on foreign transactions or you’re not. There’s no middle ground here. These fees don’t negotiate. They don’t care about customer loyalty. They just quietly drain your money every time you cross a border or click “checkout” on an international website.
Pick a card. Apply today. Your next vacation, your next Amazon.com order, your next international business trip just got 2.5% cheaper. In this economy, that’s money you can’t afford to leave on the table.
Why Choose Smarter Loans?
Access to Over 50 Lenders in One Place
Transparency in Rates & Terms
100% Free to Use
Apply Once & Get Multiple Offers
Save Time & Money
Expert Tips and Advice
