We’ve compiled a list of Canada's best travel credit cards to make your search easier.
Colin Graves
Jan 13, 2026
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Many Canadians don’t realize how much foreign transaction fees cost them until they return from a trip and see their credit card statement. Some aren’t even aware that they exist.
The good news is that some credit cards waive these charges entirely. Sometimes called no-foreign-transaction-fee cards, they can help you save money when travelling or shopping online at international retailers.
What are foreign transaction fees?
A foreign transaction fee is an extra charge that many Canadian credit cards apply when you purchase in a currency other than Canadian dollars. Most credit cards charge an extra 2.5% on these transactions, which means that $5,000 in spending outside Canada would add an additional $125 in fees.
How do no-foreign-transaction-fee credit cards work?
No-foreign-transaction-fee credit cards work much like any other credit card, except they waive the extra 2.5% fee that most issuers charge on foreign currency purchases.
Your purchase is still converted from the local currency into Canadian dollars using the card network's exchange rate, but the card issuer does not add its usual surcharge.
Some no-foreign-transaction-fee cards also offer travel rewards or cash back, allowing you to earn rewards without paying extra fees on your purchases.
Key Takeaways
| Category | Credit Card | Annual Fee | Base Rewards (%) | First Year Value* |
|---|---|---|---|---|
| Best for Travel Rewards | Scotiabank Passport® Visa Infinite + Card | $150 | 1% | $1,500 |
| Category Best for Travel Rewards | Credit Card Scotiabank Passport® Visa Infinite + Card | Annual Fee $150 | Base Rewards (%) 1% | First Year Value* $1,500 |
| Best for Low Interest Rate | Scotiabank Platinum American Express® Card | $399 | 2% | $2,585 |
| Category Best for Low Interest Rate | Credit Card Scotiabank Platinum American Express® Card | Annual Fee $399 | Base Rewards (%) 2% | First Year Value* $2,585 |
| Best for No Annual Fee | Home Trust Preferred Visa | $0 | 1% | $180 |
| Category Best for No Annual Fee | Credit Card Home Trust Preferred Visa | Annual Fee $0 | Base Rewards (%) 1% | First Year Value* $180 |
| Best for Overall Rewards | Scotiabank Gold American Express® Card | $120 | 1% | $1,050 |
| Category Best for Overall Rewards | Credit Card Scotiabank Gold American Express® Card | Annual Fee $120 | Base Rewards (%) 1% | First Year Value* $1,050 |
| Koho Card | $177 (Koho Everything Plan) | 2% | N/A | |
| Category Koho Card | Credit Card $177 (Koho Everything Plan) | Annual Fee 2% | Base Rewards (%) N/A |
Best No Foreign Transaction Fee Credit Cards in Canada
Based on our research, here are the 5 best credit cards in Canada with no foreign transaction fees. Each card on our list has one or more standout features.
Best for Travel
Scotiabank Passport Visa Infinite+
Overview
Annual Fee: $150
Supplementary Card: $0
Purchase Interest Rate: 20.99%
Cash Advance Interest Rate: 22.99%
Foreign transaction fee: 0%
Minimum annual income: Up to $80,000 individual or $150,000 household
Rewards and Perks
Earn 3 Scene+ points on eligible grocery purchases
Earn 2 Scene+ points on dining out
Earn 2 Scene+ points for gasoline and transit, including rideshare
Earn 3 Scene+ points on eligible entertainment purchases
Earn 1 Scene+ point per dollar spent on eligible travel purchases
Earn 3 extra Scene+ points per dollar spent on hotels and car rentals through Scene+ Travel
Earn 1 Scene+ point on all other purchases
Six complimentary airport lounge passes annually
Up to 8 types of insurance coverage
Car rental discounts of up to 25%
Shell Canada fuel discounts
Pros
Comprehensive travel insurance coverage
Flexible travel redemptions
Cons
High annual fee
Income requirements will be a barrier for some
Borrowell’s Take
The Scotiabank Passport Visa Infinite+ is one of Canada’s best travel credit cards, offering excellent travel perks, including complimentary airport lounge passes, comprehensive insurance coverage, and no foreign transaction fees.
You can get a slightly higher earning rate on travel with the Scotiabank Platinum Amex card, and more lounge passes, but the annual fee is more than twice as high. Another nice feature of the Passport Visa Infinite is an annual bonus of 10,000 Scene+ points if your spending exceeds $40,000.
Visit the Scotiabank website to apply.
Best for Low Interest Rate
Scotiabank Platinum American Express Card
Overview
Annual Fee: $399
Supplementary Card: $99
Purchase Interest Rate: 9.99%
Cash Advance Interest Rate: 9.99%
Foreign transaction fee: 0%
Minimum annual income: $12,000/year
Rewards and Perks
Earn 2 Scene+ points per dollar spent on eligible travel purchases
Earn an extra 3 Scene+ points per dollar spent on hotels and car rentals when you book through Scene+ Travel
Earn 2 Scene+ points on all other purchases
10 complimentary airport lounge passes per year
Up to 8 types of insurance coverage
Pros
Low standard purchase interest rate
Great for airport lounge access
Cons
High annual fee
Not suitable if you rarely travel
Borrowell’s Take
At $399, the annual fee is steep, but frequent travellers with a high annual spend can benefit from the Scotiabank Platinum Amex’s attractive earn rate of up to 5% on travel spending and 10 annual airport lounge passes.
The card also comes with a low, 9.99% interest rate on purchases and cash advances, which can come in handy if you regularly carry a balance. If you don’t travel regularly, the benefits won’t be worth the cost.
Visit the Scotiabank website to apply.
Best for No Annual Fee
Home Trust Preferred Visa
Overview
Annual Fee: $0
Supplementary Card: $0
Purchase Interest Rate: 21.99%
Cash Advance Interest Rate: 21.99%
Rewards and Perks
1% cash back on everyday purchases with no cap
Purchase security insurance
Visa Zero Liability policy
Pros
No annual fee
Solid cash back rate for a no-annual-fee card
Cons
No welcome offer
Limited insurance coverage
Borrowell’s Take
If you want to avoid foreign transaction fees without incurring a high annual fee, the Home Trust Preferred Visa has you covered. The no-annual-fee credit card pays 1% cash back on all card purchases, with no annual or foreign exchange fees. Beyond that, the benefits are limited. There is no travel insurance coverage or welcome offer, just a simple, straightforward, low-cost credit card.
Visit the Home Trust website to apply.
Best for Overall Rewards
Scotiabank Gold American Express Card
Overview
Annual Fee: $120
Supplementary Card: $29
Purchase Interest Rate: 21.99%
Cash Advance Interest Rate: 22.99%
Rewards and Perks
Earn 6 Scene+ points on eligible grocery purchases
Earn 5 Scene+ points on dining, food delivery, and food subscriptions
Earn 3 Scene+ points for gasoline and transit purchases, including rideshare
Earn 3 Scene+ points on eligible streaming purchases
Earn 1 Scene+ point for every $1 on eligible travel purchases
Earn an extra 3 Scene+ points per dollar spent in Canada on hotels and car rentals through Scene+ Travel
Earn 1 point on all other purchases
Shell Canada gasoline discounts
Up to 9 types of insurance coverage
Discount on Priority Pass airport lounge membership
Exclusive Amex benefits
Pros
Comprehensive insurance coverage
Flexible travel redemption options
Cons
No airport lounge passes
High interest rate
Borrowell’s Take
The Scotiabank Gold American Express Card is one of the most versatile rewards credit cards on the market, offering up to five bonus point categories on everything from groceries and gasoline to travel and dining out.
You can earn up to 6 Scene+ points on grocery purchases and 4 Scene+ points on travel, and it includes extensive insurance coverage. There are no airport lounge passes included, just a Priority Pass membership discount, but if you’re looking for generous rewards across a wide range of spending categories, this might be the card for you.
Visit the Scotiabank website to apply.
Best Prepaid Card
Koho (with the Everything Plan)
Overview
Annual Fee: $177
Supplementary Card: $0
Purchase Interest Rate: 0%
Cash Advance Interest Rate: 0%
Rewards and Perks
Up to 2% cash back on groceries, transportation, food, and drink
0.5% cash back on all other purchases
Earn 3.5% interest on your deposit balance
Free credit score
Earn an average of 6.5% extra cash back from Koho partner stores
Discount on Koho credit building
Pros
No credit application required
Prepaid card, so no interest is charged
Cons
High monthly or annual fee to waive the foreign transaction fee
Lacks many credit card benefits, like insurance coverage
Borrowell’s Take
The Koho prepaid Mastercard proves you don’t need a credit card to save on foreign transaction fees. The card is technically a prepaid debit card that functions like a credit card. Because you are spending your own money that you’ve loaded onto the card, you won’t pay any interest, and you don’t need to submit a credit application to be approved. The catch is that to have foreign transaction fees waived, you need to sign up for Koho’s Everything Plan, which costs $22 per month or $177 annually.
While the plan includes additional benefits, such as 2% cash back on groceries, transportation, and food and drink, as well as a free credit score, the price is steep. But if you want to avoid foreign exchange fees without getting a traditional credit card, the Koho card is an option.
Visit Koho to sign up today.
How much could you save with a no-foreign-transaction-fee credit card?
Foreign transaction fees might seem small, but they can quickly eat into your travel budget. At the typical rate of 2.5%, even a few thousand dollars in foreign spending can result in more than $100 in extra charges. Here's how much you could save by using a no-foreign-transaction-fee credit card instead.
| Annual foreign spending | Typical 2.5% foreign transaction fee | Potential savings |
|---|---|---|
| $1,000 | $25 | $25 |
| Annual foreign spending $1,000 | Typical 2.5% foreign transaction fee $25 | Potential savings $25 |
| $2,500 | $62.50 | $62.50 |
| Annual foreign spending $2,500 | Typical 2.5% foreign transaction fee $62.50 | Potential savings $62.50 |
| $5,000 | $125 | $125 |
| Annual foreign spending $5,000 | Typical 2.5% foreign transaction fee $125 | Potential savings $125 |
| $10,000 | $250 | $250 |
| Annual foreign spending $10,000 | Typical 2.5% foreign transaction fee $250 | Potential savings $250 |
Colin Graves is a personal finance writer and editor whose work has appeared in publications such as Time.com, MoneySense, Money.ca, MapleMoney and more. A former Big Five bank manager, Colin has completed the Professional Financial Planning (PFPC) and Canadian Securities (CSC) courses.
Frequently Asked Questions
If you travel regularly, spend winters down south, or frequently shop on international websites, a no-foreign-transaction-fee credit card can be an easy way to reduce unnecessary costs.
While some of these cards charge annual fees, the money you save from avoiding the typical 2.5% surcharge can quickly outweigh the cost. The key is to look beyond the foreign transaction fee and compare rewards, insurance coverages, and annual fees to find the card that’s best suited for you.
Foreign transaction fees and exchange rates are often confused, but they're two separate charges.
When you make a purchase in another currency, such as U.S. dollars or euros, the payment network (typically Visa or Mastercard) converts the amount into Canadian dollars using its exchange rate. This conversion happens whether or not your credit card charges a foreign transaction fee.
A foreign transaction fee is an additional charge added by your credit card issuer after the currency conversion. Most Canadian credit cards charge a fee of around 2.5% of the purchase amount.
For example, if you spend the equivalent of CAD $100 while travelling:
Your purchase is converted into Canadian dollars using the card network's exchange rate.
If your card charges a 2.5% foreign transaction fee, you'll pay an extra $2.50 on top of the converted amount.
If you have a no-foreign-transaction-fee credit card, you'll still pay the converted amount, but the additional $2.50 fee is waived.
While no-foreign-transaction-fee credit cards can save you money, it's worth remembering that exchange rates still apply. The savings come from eliminating the extra surcharge charged by the card issuer, not from avoiding currency conversion altogether.
Not all no-foreign-transaction-fee credit cards offer the same overall value. While avoiding the typical 2.5% surcharge can save you money, it's important to compare the card's other features before applying.
Here are some of the key factors to consider:
Annual fee
Many no-foreign-transaction-fee credit cards charge an annual fee, although some options are available with no annual fee. Consider whether the amount you'll save on foreign transaction fees, combined with any rewards and benefits, is enough to justify the cost.
Rewards
Some cards earn travel rewards or cash back on everyday spending, while others offer bonus rewards in categories such as groceries, dining, or travel. If you spend frequently in these categories, a higher rewards rate may provide more value than simply avoiding foreign transaction fees.
Travel insurance and perks
If you travel regularly, look for features such as emergency medical insurance, trip cancellation and interruption insurance, rental car coverage, and airport lounge access. These benefits can add significant value, especially if you'd otherwise pay for them separately.
Income requirements
Premium travel credit cards often require a minimum personal or household income. If you don't meet the eligibility requirements, you may need to consider a no-annual-fee card or a prepaid option instead.
Card acceptance
Visa and Mastercard are widely accepted around the world, while American Express is accepted by fewer merchants in some countries. If you're travelling internationally, it's worth considering where you'll be using your card and whether acceptance could be an issue.
Your spending habits
The best no-foreign-transaction-fee credit card depends on how you plan to use it. Frequent travellers may benefit from premium travel perks and insurance, while occasional travellers or people who shop online from international retailers may find a lower-cost card offers better overall value.
In most cases, it's better to pay in the local currency rather than Canadian dollars.
Many merchants and ATMs offer the option to pay in Canadian dollars through a service called Dynamic Currency Conversion (DCC). While this may seem convenient, the exchange rate used is often less favourable than the rate provided by your credit card network (such as Visa or Mastercard). As a result, you could end up paying more for your purchase.
If you have a no-foreign-transaction-fee credit card, choosing the local currency is usually the best option. You'll still benefit from your card network's exchange rate while avoiding the additional foreign transaction fee charged by most Canadian credit cards.
Bottom line: Whenever you're given the choice, select the local currency and let your credit card handle the currency conversion.
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