Best No Foreign Transaction Fee Credit Cards in Canada for 2024



What Are No-Foreign-Transaction-Fee Credit Cards?

The name says it all. No-Foreign-Transaction-Fee Credit Cards are Credit cards that do not charge a fee when you use them outside your home country.  Like most regular credit cards, No-Foreign-Transaction-Fee Credit Cards offer benefits such as travel insurance, airline miles, and cash back. These benefits can add value to your overall travel experience.

To understand how No-Foreign-Transaction-Fee Cards work and to learn about the best options available today, this article covers the following topics:

  •       Who benefits from No-Foreign-Transaction-Fee Credit Cards?
  •       What fees are associated with No-Foreign-Transaction-Fee Credit Cards?
  •       How you can maximize travel rewards using a No-Foreign-Transaction-Fee Card.
  •       What are the best No-Foreign-Transaction-Fee Credit Cards in Canada?
  •       How to apply for a No-Foreign-Transaction-Fee Credit Card.


What Are No-Foreign-Transaction-Fee Credit Cards?

These cards are a must-have for any regular traveller. The primary reason is the cost-saving potential they offer. With these cards, travellers can avoid paying the typical 1% to 3% foreign transaction fees charged by most other credit cards.

1-3% doesn’t seem like a not but can add up in the long term. For example, let's say you spend $5,000 on a vacation abroad, and your credit card charges a 3% foreign transaction fee. This would result in an additional $150 in fees. Now, imagine you travel regularly or live abroad for part of the year. The costs could quickly reach into the thousands. All more incentive to sign up for a No-Foreign-Transaction-Fee Card.

These cards are ideal for another reason - they offer several travel-related benefits. These benefits include travel insurance, access to airport lounges, and reward points to redeem for travel. 

The main appeal of No-Foreign-Transaction-Fee Credit Cards is their convenience. Paying for goods and services abroad is often a hurdle, with many travellers preferring to convert currencies and pay in cash rather than risk an unexpectedly steep foreign transaction fee. No-Foreign-Transaction-Fee Credit Cards eliminate this worry.

Travelling stress-free is great, but a No-Foreign-Transaction-Fee Credit card offers other benefits as well. Many online shopping portals charge a foreign transaction fee if you buy from a foreign merchant or in a foreign currency. No-Foreign-Transaction-Fee Cards eliminate these costs as well and help you save money on retail.

How To Get The Most Out Of Your No-Foreign-Transaction-Fee Card Rewards

One of the significant advantages of No-Foreign-Transaction-Fee Credit Cards is the potential to earn travel rewards. Below are examples of typical  travel rewards:

  •       Early boarding passes.
  •       Up to 5X points back on travel purchases made using the Card.
  •       1-10% cashback on travel-related purchases.
  •       Access to airport lounges.
  •       Travel Insurance

To maximize your travel rewards, it's essential to use your Card as much as possible. The fact that they are ideal to use abroad doesn’t mean you can’t use them domestically, and a good way to build up points and savings before a trip is to use the card at home for your purchases.

Another way to maximize your rewards is to use the bonus categories. Depending on the Card, certain spending categories such as restaurants, hotels or specific retailers come with better bonus points or miles. By focusing your spending on these categories, you can earn rewards much faster.

Sign up for a card that offers a sign-up bonus. Many No-Foreign-Transaction-Fee Credit Cards offer a bonus with a few thousand points or cash back if you spend a certain amount of money in the first three months of opening an account. 

Finally, remember to pay your balance in full each month. This will help you avoid interest charges and keep your credit score healthy. Set up automatic payments if you are prone to forgetting.

Mistakes To Avoid With No-Foreign-Transaction-Fee Credit Cards

As with all credit cards, No-Foreign-Transaction-Fee Credit Cards come with certain pitfalls. A few notable ones include:

  •       Carrying a balance from month to month. Leaving any balance in your account at the end of each month results in accumulating interest charges. While several No-Foreign-Transaction-Fee cards offer an initial 0% interest rate for a few months to a year, after this period you may be faced with 19.99% - 29.99% APR (interest rate). Paying interest at these rates can quickly outweigh the potential savings you may build.
  •       Not reading the terms and conditions. Getting a credit card is an important decision, so be sure you’re clued up on interest rates, annual fees, and the rewards program your card offers.

Understanding these details can help you avoid any unexpected charges and get the most out of your card.

Best No-Foreign-Transaction-Fee Credit Cards 

Now that you have a better idea of the benefits that No-Foreign-Transaction-Fee cards offer, you can start learning about the excellent No-Foreign-Transaction-Fee Credit Cards on offer in Canada. Some of the top options include:

Scotiabank Passport®  Visa Infinite* Card
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Annual Fee: $150
Purchases Interest Rate: 20.99%
Cash Advance Interest Rate: 22.99%
Min Income Requirement: $60000
Why Apply:
  • Amazing Welcome Offer
  • Bonus Earning Offers
  • Scotia Rewards Earnings
  • No Foreign Transaction Fees
  • Airport Lounge Access
Recommended Credit Score:
740 900
Excellent
Apply Nowlock On Scotiabank's Secure Website

 

For an annual fee of $139, card holders obtain an array of travel benefits including point travel redemption, travel insurance and airport lounge access. Scotiabank boasts about this credit card because it is the only major bank in Canada that offers a credit card with no foreign transaction fees and airport lounge access.

 

  • Amazing Welcome Offer. When you spend $1,100 on the credit card within the first 12 months of ownership, you’ll earn 40,000 bonus points
  • Bonus Earning Offers. If you spend $40,000 in a year with this credit card, you’ll earn an additional 10,000 points (worth about $100).
  • Scotia Rewards Earnings. Earn 2 Scotia points for every dollar you spend on groceries, dining, entertainment and daily transit. Earn 1 Scotia point for every dollar spent on other purchases.
  • No Foreign Transaction Fees. While the exchange rate of your foreign purchases will still apply, you’ll save money on foreign transaction fees which would typically be 2.5%.
  • Airport Lounge Access. A complimentary Priority Pass membership is provided with this credit card along with six free lounge visits per year.

The Scotiabank Passport™ Visa Infinite*Card offers 2 points for every $1 spent on grocery store, dining, entertainment, and transit purchases, and 1 point per $1 on everything else. That’s hardly best-in-class, so why does the Scotiabank Passport™ Visa Infinite* Card tie for best Scotiabank travel credit card?

Two reasons: a very lucrative bonus point offer and no foreign transaction fees.

Let’s start with the bonus points. You earn 30,000 welcome points when you spend $1,000 in the first 3 months. That’s worth up to $300, is easy to obtain, and is a solid reason to try this card for a year.

But wait, there’s more. Every year you charge $40,000 to your Scotiabank Passport™ Visa Infinite* Card, you’ll get 10,000 bonus points. If you can hit the $40,000 minimum each year, the 10,000 bonus points will nearly cancel out the $139 annual fee.

If that wasn’t enough, the Scotiabank Passport® Visa*doesn’t charge any foreign transaction fees. It comes with a suite of travel insurance benefits, Visa Infinite benefits, and includes six free airport lounge passes.

  Scotiabank Gold American Express® Card
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Annual Fee: $120
Purchases Interest Rate: 20.99%
Cash Advance Interest Rate: 22.99%
Min Income Requirement: Not Available
Why Apply:
  • Generous sign-up bonus
  • Flexible redemption options
  • Travel convenience
  • Additional protection
Recommended Credit Score:
670 900
Average to Excellent

With a generous rewards rate of up to 6 points per dollar on gas, groceries, restaurants and entertainment, the Scotiabank Gold American Express Card will help make your travel plans a reality. Plus, with a flexible points program, you can book you flights on your own schedule.

  • Generous sign-up bonus -The Scotiabank Gold American Express® offers a way for new cardholders to quickly stockpile points. It lets you earn up to 45,000 bonus Scene+™ points in your first year (that’s up to $450 towards travel)   
  • Flexible redemption options - With the Scotia Rewards Program, you can book your travel with any airline or hotel through its full-service travel agency. You can use your points to cover the whole cost of the trip, including taxes and fees, or combine your points and a charge to your card. Points can also be used to book hotels and rental cars.
  • Travel convenience - Added features such as rental car discounts and hotel room upgrades are designed to make travel as convenient and comfortable as possible.
  • Additional protection - This Amex credit card provides has one of the most comprehensive travel protection benefits with insurance against flight delays and lost baggage even insurance against burglaries.

With a generous rewards rate of up to 6 points per dollar on gas, groceries, restaurants and entertainment, the Scotiabank Gold American Express Card will help make your travel plans a reality. Plus, with a flexible points program, you can book you flights on your own schedule.Excellent credit card with 7 types of travel coverage and great reward earn rates.

  • Generous sign-up bonus -The Scotiabank Gold American Express offers a way for new cardholders to quickly stockpile points. It lets you earn 45,000 bonus Scene+™ points in your first year. 
  • Flexible redemption options - With the Scotia Rewards Program, you can book your travel with any airline or hotel through its full-service travel agency. You can use your points to cover the whole cost of the trip, including taxes and fees, or combine your points and a charge to your card. Points can also be used to book hotels and rental cars.
  • Travel convenience - Added features such as rental car discounts and hotel room upgrades are designed to make travel as convenient and comfortable as possible.
  • Additional protection - This Amex credit card provides has one of the most comprehensive travel protection benefits with insurance against flight delays and lost baggage even insurance against burglaries.




Home Trust Preferred Visa Card
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Annual Fee: $0
Purchases Interest Rate: 19.99%
Cash Advance Interest Rate: 19.99%
Min Income Requirement: Not Available
Why Apply:
  • No annual fee
  • No foreign exchange fees
  • 1% Cash back rewards on eligible purchases
Recommended Credit Score:
670 900
Average to Excellent
Apply Nowlock On Home Trust's Secure Website

With no foreign transaction fee and no annual fee in one credit card, what’s not to like about the Home Trust Preferred Visa? And because this is a no fee credit card, all benefits come free.

Why We Like It:

  • No annual fee – You can try it for free.
  • No foreign exchange fees – 0% foreign currency conversion charge when shopping abroad. It’s perfect for online and cross-border purchases – saving you 2.5% of the total cost.

  • 1% Cash back rewards – Regardless of the category, this credit card gives 1% cash back on all eligible purchases. The total cash back balance is credited to your account at the start of each year.
  • Car Rental Collision Insurance included
  • Purchase Security Insurance included


The Home Trust Preferred Visa Card is an excellent credit card for those who would like to save on foreign transactions fees.

This credit card provides 1% cash back rate along with its no foreign transaction fees which is excellent for travelers and online shoppers. In fact, cardholders will be saving 2.5% fees on purchases made outside Canada or in a foreign currency.

The combination of these 2 features make this card a great card to have, especially when there is no annual fee.

One of the most attractive features of the Home Trust Preferred Visa is the cash back rewards. Cash can be earned on all eligible purchases and there is no limit on how much cash you can earn. Your rewards are paid as a credit to your credit card statement annually (every January).

 

In addition to the lucrative cash back rewards, there is no annual fee for this card. There are also secondary benefits that card holders are eligible for including no foreign exchange fees.

 

The most notable of this list is the lack of foreign exchange fees. If you’re an avid traveler or do a lot of online shopping in foreign currencies, the Home Trust Preferred Visa is an excellent choice. Foreign transaction fees might seem like nothing, but they add up, especially when you factor in foreign exchange rates. 

 

Not only is the Home Trust Preferred Visa great from a financial aspect, the bank itself has stellar ideals and makes it their mission to cater to their customers. They aim to provide financial services to individuals who don’t have a typical credit background and can’t reach their financial goals with traditional banks. 

 

There are some drawbacks to using this credit card and working with Home Trust. For one, this card is not accessible in Quebec. In addition, the amount of transactions the cardholder can incur per day is ten. Most credit card users won’t exceed this limit, but it’s a hassle to always have it on your mind. The card also does not allow for tap payments and customer service is not available 24/7, only during business hours.

 

Overall, the Home Trust Preferred Visa is a phenomenal choice. If you’re an individual who travels a lot, this card is especially beneficial considering how rare no foreign transaction fees are in combination with no annual fee. Home Trust is a small, yet effective, bank that delivers to their customers. 

This credit card has a close cousin which is the Home Trust Secured Visa.To get more information read our review on the Home Trust Secured Visa.

How To Compare No-Foreign-Transaction-Fee Credit Cards

When comparing No-Foreign-Transaction-Fee Credit Cards, there are several factors to consider, such as:

  •       The foreign transaction fee policy. While all of these cards eliminate foreign transaction fees, some may have specific terms or conditions that apply.
  •       Consider the rewards program. Look at how you earn points or miles, what they can be redeemed for, and how much they are worth. Also, consider any bonus categories or sign-up bonuses that the card offers.
  •       Consider the interest rate and annual fees. A card with no annual fee may be more appealing than one with an annual fee depending on your situation. Decide on the choice that is best for your financial situation.
  •       Consider your spending habits and travel plans. If a card is targeted at people who travel once a month but you travel once a year, there may be other options more suited to your preferences.


How To Apply For No-Foreign-Transaction-Fee Credit Cards

Once you’ve narrowed down a card that meets your requirements, you’ll need to apply. Most credit card issuers allow you to apply online, which is typically the quickest and easiest method. You’ll need to provide some personal information, including name, address, social security number and income.

Check your credit score before applying, as most credit card issuers require a good credit score to qualify for a No-Foreign-Transaction-Fee Credit Card.

Once you've submitted your application, you'll usually receive a decision within a few minutes. If approved, your new card should arrive in the mail within a few weeks.

Conclusion: Making Your Credit Cards Work For You

Many Credit Cards offer Zero foreign transaction fees and are popular with frequent travellers. Depending on the card you choose, you can earn travel rewards, exclusive access to rental cars and airport lounges, and cashback on domestic purchases. However, not all cards are the same, and what works for one traveller may not work for another.

Be sure to consider your credit score, travel goals, interesting rewards programmes, fees and interest rates before making this important decision. Then, enjoy financial rewards and safe travels!

Frequently Asked Questions

Q: Do all credit cards charge foreign transaction fees?

A: No, not all credit cards charge foreign transaction fees. Cards that do not charge these fees are often referred to as No Foreign Transaction Fee Credit Cards.

Q: How much can I save with a No-Foreign-Transaction-Fee Credit Card?

A: The amount you can save depends on how much you spend while travelling. However, considering that foreign transaction fees typically range from 1% to 3% of the transaction amount, the savings can quickly add up for frequent travellers.

Q: Are there any downsides to No Foreign Transaction Fee Credit Cards?

A: While these cards can provide excellent value, they often require a good to excellent credit score. They may also have higher interest rates or annual fees compared to other cards.

Author Bio

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Mohamed Konate

Mohamed Konate is a personal finance expert, blogger, and marketing consultant based in Toronto. He is a former financial services professional who worked at major Canadian financial institutions for many years. He managed the marketing strategy around various financial products ranging from credit cards to lines of credit. Mohamed is passionate about personal finance and holds a Bachelor's in Business Administration from the University of Quebec (Montreal) and a Master's in International Business from the University of Sherbrooke (Quebec). He is also the author of the Canadian Credit Card Guidebook.