Consider this scenario, you are on a beautiful holiday in Paris. You visited the Louvre Museum and marvelled at the wondrous artefacts, you walked along the banks of the River Seine and stopped at a wonderful restaurant to indulge in a meal of Duck Confit and Escargot. After that, you took a romantic walk with your partner all the way to the Eiffel Tower. On the way, you stopped to eat some crepes as well. Once you reached the Eiffel Tower, you bought the tickets to go to the second level and marvel at the sight of one of the most beautiful cities in the world. You paid for all these awesome things using your incredibly useful international credit card. After you finish your spectacular French holiday and fly back home to Canada, you were confronted with your credit card bill. On that bill, you saw that you have been charged an extra 2.5% over the amount you spent during your holiday in Paris. Boom, the truth dawns on you. It’s a fact that is unknown to most credit card users, but most credit cards in the market today charge foreign transaction fees from their customers. If you make any payment using non Canadian currency (like buying entry tickets to the Louvre, Paris and paying in Euros), you will end up paying almost an extra 2.5% over the price of what you have purchased. Not only do you pay based on the prevailing exchange rate, but you also pay an extra 2.5% over that. If you are a frequent international traveller or you make frequent purchases using your credit card and pay in foreign currencies, you will end up racking up a massive amount of money paid as a result of the foreign transaction fees. However, don’t fret, there is a way for you to save yourself from paying all the extra foreign transaction fees. Enter the No Foreign Transaction Fee Credit Cards. These cards will let you continue to purchase using foreign currencies without forcing you to pay a bomb in the form of foreign transaction fees. In this post, we will talk about the very best no foreign transaction fee credit cards of Canada. We will talk about their pros and cons so that it becomes easier for you to choose the best one for yourself.
Here Are The Best No Foreign Transaction Fee Credit Cards of Canada
Home Trust Preferred Visa
Starting off our list of the best no foreign transaction fee credit cards of Canada is the wonderful Home Trust Preferred Visa Credit Card. This awesome card also has no annual fee and comes with the extra advantage of 1% cash back on all of your spending in Canada with no limits or caps.
A true no foreign transaction fee card, Home Trust uses the rate of exchange set by Visa with no additional surcharges at all.
Home Trust Preferred Visa cardholders also have the option of cashing in on a large range of other perks including a free Roadside Assistance membership, hire car insurance, and Visa Zero Liability coverage to help protect them against potential fraudulent activities. The downside is that this card is not available to the residents of Quebec (the most French part of Canada). It’s also worth noting that the credit card can only make a grand total of 10 transactions per day (which should be sufficient for most users though).
Scotiabank Passport Visa Infinite
The Scotiabank Passport Visa Infinite comes next on our list of the best no foreign transaction fee credit cards in Canada. This was the first ever no foreign transaction fee credit card launched by one of Canada’s most revered banks. For new Scotiabank cardholders, this card also comes with a welcome offer of 30,000 bonus points. You can also enjoy upto six visits to Priority Pass lounges all over the world. It’s a wonderful solution for people who are looking for all-in-one travel cards.
With its robust travel insurance benefits and competitive rewards structure of two Scotia points per dollar on groceries, restaurants, entertainment, and daily transit (including taxis), and 1 point per dollar on everything else, this card could earn you some serious rewards while saving you tons of cash.
Scotia Rewards are flexible and may be redeemed for flight purchases on any airline with no blackout dates. 1 Scotia point is worth $0.01 or 1% in travel rewards. Not to mention, you’re eligible to receive 25% off car rentals at participating Avis locations – a perk that’s offered to all holders of Scotiabank cards.
Scotiabank Gold American Express
Scotiabank added a second no foreign transaction fee card in its roster of travel credit cards in 2019. The Scotiabank Gold American Express card stopped charging its 2.5% transaction fee for purchases made using non Canadian currencies.
The Scotiabank Gold AMEX also gives you 5 Scotia Rewards points for every $1 spent on groceries, restaurants, and entertainment in Canada – which is one of the highest earn rates for everyday spending.
Additionally, this card comes with top-notch travel insurance benefits, which suggests it might also make an excellent choice for an all-in-one travel card to use in Canada as well as in foreign countries. The credit card also rewards its new customers with a welcome bonus of 20,000 points which add up to $200 in value. The one drawback of this card is that since it’s issued by American Express, not any outlets will be able to accept it, except outside the US and Canada.
Rogers Platinum and Fido Mastercards
Technically speaking, the Rogers Platinum and Fido Mastercards haven’t waived their foreign transaction fees but they have offered a wonderful 3% cashback option for eligible purchases which have been done using non-Canadian currencies. Since Mastercard foreign transaction fees typically hover around 2.5%, your net rewards on foreign purchases on either of those cards would amount to a net 0.5% cash back. When it comes to regular purchases made within Canada, this awesome credit card provides 2% cash back to customers on purchases that are Rogers and Fido related. All other purchases get 1.25% cashback. Another advantage enjoyed by these cards is the absence of annual fees.
Rogers World Elite Mastercard
Next on the list of the best no foreign transaction fee credit cards in Canada is the Rogers World Elite Mastercard. In the same vein as the aforementioned Rogers Platinum and Fido Mastercards, the more premium Rogers World Elite Mastercard offers a better cash back on non-Canadian currency purchases that serves to offset its 2.5% foreign transaction fee. It offers 4% on international purchases. That provides a net 1.5% cash back to you for every dollar you spend abroad.
The Rogers World Elite Mastercard also offers a wonderful 1.75% cash back on all purchases made in Canada and charges no annual fee. However, the card’s income requirement is steep as you’ll need to have a minimum annual income of $80,000 in order to be approved for it.
Brim Financial Cards
Next on the list of the best no foreign transaction fee credit cards in Canada list are the Brim Financial Cards. Brim Financial is a relatively new player in the Canadian market. It offers a trio of Mastercard credit cards that don’t charge any foreign transaction fees to its customers.These are the cards: the essential Brim Card ($0 annual fee), Brim World ($99 annual fee), and the Brim World Elite ($199 annual fee). Depending on which of the three cards you select, you’ll earn anywhere from 1 to 2 rewards points for each dollar you spend.
While Brim’s launch did face a couple of hiccups and delays, their cards are now in people’s hands, and as promised, they don’t charge foreign transaction fees. Interestingly, Brim’s website says they use their own rate of exchange when converting currencies as against the rates set by Mastercard. As added benefits, these cards also come with mobile insurance and a free membership to Boingo Wi-Fi.
Meridian Visa Infinite Travel Rewards Card
Technically speaking, the Meridian Visa Infinite Travel Rewards Card is not a “no foreign transaction fee credit card”. However, it provides 3% reward points for all foreign purchases. When you take foreign transaction fees into account, that sums up to be a net return of 0.5% on purchases made during a non-Canadian currency, helping you earn with every penny you spend abroad. Aside from offering a flat 1.5% cashback on all other purchases, this awesome credit card also provides wonderful travel coverage (upto $5 million emergency health coverage), cell phone insurance, and a great welcome offer which results in the waiver of the $99 annual fee.
HSBC World Elite and Premier World Elite Mastercards
HSBC has two no foreign transaction fee credit cards in its arsenal: the HSBC World Elite MasterCard as well as the HSBC Premier World Elite MasterCard. Both of the cards fall in the premium category. They have somewhat high annual fees of $149 and a minimum annual requirement of $80,000. New cardholders can also enjoy over $100 worth of welcome bonuses. In terms of rewards, you’ll pocket up to three points for each dollar you spend on eligible travel purchases. The cards also include great travel insurance benefits. The redemption structure of these cards is a major drawback as you need to amass a mammoth 25,000 points before you can start redeeming the rewards. As long as you don’t mind waiting a little for redeeming your rewards, this shouldn’t prove to be a problem for you.
Best no foreign transaction fee credit cards of Canada: Conclusion
If you travel often or make payments with foreign currencies, then you should definitely try and get your hands at one of these awesome no foreign transaction fee credit cards in Canada. The Home Trust Preferred Visa is great for those that need a card with no foreign transaction fees and no annual fee. If you travel often, the Scotiabank Passport Visa Infinite might be the right choice for you since it combines zero foreign transaction fees with access to Priority Pass airport lounges all over the world. If you’re trying to find a card that suits your day-to-day needs and offers the highest savings on foreign purchases, the Scotiabank Gold American Express is another wonderful choice. Hopefully, this post will help you choose the right no foreign transaction fee credit card for yourself.