Last updated: October 2026
How Canadians Can Avoid Foreign Transaction Fees When Travelling (2026)
Here’s a fee most Canadians pay without noticing: almost every Canadian credit card adds a ~2.5% foreign transaction (FX) fee on purchases made in any currency other than Canadian dollars. That beachside dinner in Mexico, the hotel in New York, the USD subscription renewing quietly each month — each costs an extra 2.5% on top of the exchange rate.
On a $5,000 trip, that’s $125 handed to your bank for nothing. For frequent travellers or cross-border shoppers, the leak runs into the hundreds per year. Here’s how to plug it.
How the fee actually works
When you pay in a foreign currency, two things happen: (1) the network (Visa/Mastercard/Amex) converts the amount at close to the wholesale exchange rate, and (2) your card issuer tacks on a foreign transaction fee — typically 2.5% in Canada — as a separate line item. A “no foreign transaction fee” card skips step 2. You still pay the network’s exchange rate (which is generally fair), just not the markup.
This fee also applies to online purchases in foreign currencies — USD-billed subscriptions, American retailers, app stores — not just travel.
Strategy 1: Get a no-FX-fee credit card
A small but growing set of Canadian cards charges 0% foreign transaction fees. The standouts as of October 2026:
Scotiabank Passport Visa Infinite — best for travellers
- Annual fee: $150
- FX fee: 0%
- Why: full travel insurance suite, airport lounge access, and Scene+ points on spending. The welcome offer has recently included up to 35,000 bonus Scene+ points, ending Nov 1, 2026 (confirmed as of October 2026). If you travel even twice a year, the fee avoidance plus perks usually justify the annual fee.
Learn more about Scotiabank Passport Visa Infinite on the provider’s website.
Scotiabank Gold American Express — best everyday rewards
- Annual fee: $120
- FX fee: 0%
- Why: strong everyday earn (up to 6 Scene+ points per dollar on groceries, dining, and entertainment — confirmed as of October 2026) with no FX fee — a rare combination. Amex acceptance abroad is generally good in tourist areas.
Home Trust Preferred Visa — best with no annual fee
- Annual fee: $0
- FX fee: 0%
- Why: the only truly no-annual-fee Canadian credit card with no foreign transaction fee. The earn rate is modest (1% cash back on eligible purchases, confirmed as of October 2026), but for occasional travellers who won’t pay $150/year, it’s the obvious pick.
Learn more about Home Trust Preferred Visa on the provider’s website.
Wealthsimple Visa Infinite — best cash back on foreign spend
- Annual fee: $240/year (charged $20/month), automatically waived with $100,000+ in individual Wealthsimple assets or $4,000+/month in direct deposits to a Wealthsimple chequing account (confirmed as of October 2026)
- FX fee: 0%
- Why: 2% cash back on all purchases with no FX fee — simple and strong if you already use Wealthsimple’s ecosystem.
Strategy 2: Use a card whose rewards beat the fee
Not every good travel card waives the FX fee. The Rogers Red World Elite Mastercard ($0 annual fee) earns 3% cash back on U.S.-dollar purchases while charging the standard 2.5% FX fee — netting you roughly +0.5% on USD spending. It’s not truly fee-free, but for U.S. shopping it beats most “no fee” cards that earn 1%.
Strategy 3: Multi-currency debit for cash and ATMs
For ATM withdrawals and spending where credit isn’t ideal, a multi-currency account helps:
- Wise multi-currency card: converts at the mid-market rate with a transparent conversion fee (often well under 2.5%), and the first two ATM withdrawals per month are free up to a combined $350 CAD (confirmed as of October 2026).
- EQ Bank card: no foreign transaction fees on card purchases — EQ Bank passes on the Mastercard Currency Conversion rate directly (confirmed as of October 2026), useful as a backup spending card.
Strategy 4: Just pay in the local currency
When a foreign terminal or website offers to charge you “in CAD” (dynamic currency conversion), always decline and pay in the local currency. The merchant’s conversion rate is almost always worse than your card network’s rate — even before fees. This single habit saves more than most people realize.
Side-by-side comparison
| Card / Tool | FX fee | Annual fee | Best for |
|---|---|---|---|
| Scotiabank Passport Visa Infinite | 0% | $150 | Frequent travellers; lounge + insurance |
| Scotiabank Gold Amex | 0% | $120 | Everyday rewards with no FX fee |
| Home Trust Preferred Visa | 0% | $0 | Occasional travellers; no annual fee |
| Wealthsimple Visa Infinite | 0% | $240 ($0 with $100K+ assets or $4K/mo direct deposits) | Cash back on foreign spend |
| Rogers Red World Elite MC | 2.5% (offset by 3% USD earn) | $0 | U.S. shopping on a free card |
| Wise multi-currency card | No markup; transparent conversion fee applies | $0 | ATM withdrawals, multi-currency holding |
Quick math: is it worth switching?
Take $8,000/year in foreign-currency spending (two decent trips plus some USD online shopping):
- Standard card at 2.5%: $200/year in FX fees.
- Home Trust Preferred ($0 fee): $0 in FX fees. Savings: $200/year, for free.
- Scotiabank Passport ($150 fee): $0 in FX fees + lounge visits + insurance. Net: $50 saved before counting perks.
Even the free option pays. The $150 cards make sense if you’ll use the travel insurance and lounge access — price those perks against what you’d otherwise pay for travel medical insurance alone.
One caution: travel insurance fine print matters (trip length limits, pre-existing conditions, age cutoffs). Read the certificate of insurance before relying on a card’s coverage, and consider speaking with a licensed advisor for complex travel insurance needs. As always, confirm current fees, FX policies, and welcome offers with the official provider before applying — card terms change.
Disclosure: Next Level Canada may earn a commission if you apply through links in this article, at no extra cost to you. See our Affiliate Disclosure page for details.