In this article, we’re exploring the options for a no-foreign transaction fee credit card Canada style.
This article is part of our free series on banking in Canada, which covers everything from how to open a non-resident bank account in Canada to the largest banks in the country – click here to learn more.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- No Foreign Transaction Fee Credit Card in Canada
- What Are the Benefits of a No Foreign Transaction Fee Credit Card?
- What Should I Consider Before Applying for a Canadian Credit Card?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
No Foreign Transaction Fee Credit Card Canada
No foreign transaction fee credit cards in Canada are available from several major banks and smaller financial institutions. Among the largest card issuers are Scotiabank and HSBC. However, CIBC and RBC do issue USD-denominated credit card options to accommodate clients looking to make purchases in the United States.
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What Are the Benefits of a No Foreign Transaction Fee Credit Card?
Two major benefits of using a no foreign transaction fee credit card include savings on foreign purchases and eliminating uncertain pricing while traveling. In other words, the price you pay is final and you will not need to calculate the extra foreign transaction fees added to each purchase.
Is It Worth It to Get a Credit Card With No Foreign Transaction Fees?
It can be worth it to get a credit card with no foreign transaction fees if you plan on making regular purchases in a foreign currency. In other words, if you expect to incur foreign transaction fees regularly, you could save money by having the right card.
In most cases, credit cards charge between 2% and 3% on foreign transactions. So, ultimately, whether it is worth it to get a credit card with no foreign transaction fees depends on your spending habits and expectations for the year ahead.
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What Should I Consider Before Applying for a Canadian Credit Card?
Before applying for a Canadian credit card, there are several factors you should consider. First, whether you need a credit card. Second, which cards your current bank offers, and finally, whether you are looking for specific benefits and rewards.
That said, there are also factors that you can compare across all cards. Looking at each factor carefully will help you identify the best card for your needs.
Factors to Consider Before Applying for a Canadian Credit Card
- Annual fee for maintaining the card
- Applicable interest rates
- Card loyalty incentives
- Available cash-back incentives
- Travel rewards and bonuses
- Available travel insurance
- Foreign transaction fees
Can a No Foreign Exchange Fee Credit Card Be Used to Buy Foreign Currency?
Whether you use a no foreign exchange fee credit card or a normal credit card to withdraw foreign currency, your card issuer will likely view this as a cash advance. It’s important to note that most credit card issuers charge significantly higher interest rates for cash advances than regular purchases. So, if this is something you plan to do, you should confirm the applicable rates before proceeding.
Which Canadian Banks Offer No Foreign Transaction Fee Credit Cards?
Several major Canadian banks offer no foreign transaction fee credit cards. These banks include Scotiabank and HSBC. That said, other Canadian banks, including CIBC and RBC, offer USD credit cards, which allow the cardholder to eliminate foreign transaction fees on purchases in the United States.
Frequently Asked Questions
Below are two of the most common questions that we receive from people looking for a no-foreign transaction fee credit card in Canada. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Are Foreign Transaction Fees on Credit Cards?
Foreign transaction fees on credit cards are the fees charged anytime a purchase is made in a foreign currency. For clarity, a foreign currency is any currency outside the country where the card was issued. So, a Canadian credit card being used to make a purchase in the United States (in USD) would typically incur foreign transaction fees.
Can I Use a Credit Card With No Foreign Transaction Fees Anywhere in the World?
Yes, you can use a no-foreign transaction fee credit card anywhere in the world where the card is accepted. This means you can make purchases in person, online, or over the phone anywhere in a foreign currency and you will not be charged a foreign transaction fee.
Do You Want Help Opening Bank Accounts?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…
+ Direct support from a team of banking experts
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+ Expert insights on which banks to choose & why
+ Plus FULL access to our entire suite of account opening tools and intelligence!
And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
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