How To Find Credit Cards with No Foreign Transaction Fee in Canada?
While preparing for your trip to Canada, one of the best ways to put your finances in order is by researching credit cards with no foreign transaction fee in Canada. This is because you are charged a 2 percent conversion fee on every purchase you make.
Although 2 percent from your purchases appears to be a small amount, it accumulates fast. A credit card without a foreign transaction fee can help you save a lot of money on your purchases.
Different banks and other financial institutions offer these cards but ensure you get a widely used one.
What Is A Foreign Transaction Fee?
Every time you exchange currencies, you incur an exchange fee. Credit cards usually charge a fee of 2.5 percent of every transaction made in another currency, on top of the exchange fee. It applies to online and physical purchases using foreign currency.
The transaction fee isn’t part of the exchange rates. The credit card company determines the exchange rates by using Canadian dollar value. Credit card companies charge a different foreign transaction fee, but you can get one with no exchange fee.
Advantages Of Using Credit Cards in Canada With No Foreign Transaction Fee
Most people convert their currency to Canadian dollars at the embassy before leaving their country. Others do it in banks, at currency exchange kiosks, or at the airport once they get to the country. The currency conversion is expensive.
Using a no-foreign-transaction-fees credit card to shop and make payments rewards you for every dollar you use. The card is also safer to carry around because it is easy to cancel if it is stolen.
Furthermore, just like any other credit card, a credit card with no foreign transaction fees is less bulky to carry around than cash, and it is safer because you have a pin for protection.
Best No-Foreign-Transaction-Fee Canadian Credit Cards
Now that you know what a foreign transaction fee is and the benefits of using a no transaction fee credit card, you can try these Canada credit cards with no foreign transaction fee.
Home Trust Preferred Visa
Using a Home Trust Preferred Visa has many advantages. To begin with, this is a 0-fee transaction credit card. You pay what you spend only. Also, you won’t pay an annual fee, and there is a reward of 1 percent cash back, regardless of how much you earn.
Home Trust Preferred Visa does not give a welcome bonus to the new users, but it has an income requirement of $15,000.
Brim Financial MasterCard
When you opt to go the Brim Financial MasterCard way, you are spoiled for choice with different cards. They have three cards with different levels. Depending on your earnings and preference, you can choose entry-level, mid-range, or premium cards with Brim.
The entry-level card gives you $1 for every 100 points you earn. The number of points earned per dollar when using the mid-range credit card is more. For every $1 spent in purchases, the user gets 1.5 points (and 2 points when using the premium card).
Another advantage of using a Brim MasterCard is the bonus points you get when shopping at their retail shops. For instance, shopping at Nike or Microsoft earns you 3 percent cash back.
Brim’s website and mobile app are easy to use and have other financial tools like budgeting tools. The mid-range and the premium MasterCard have rental car insurance and emergency travel medical insurance.
Scotiabank Passport Visa Infinite
Scotiabank is a central bank in Canada, and it has a travel card with no foreign transaction fees. Although the users pay an annual fee of $139, the card has numerous benefits.
To begin with, the users have access to the Priority Pass membership, where you get six airport lounge visits per year for free. The users also get rewards. Every $1,000 spent in the first three months earns you 30,000 Scotia points.
The rewards are redeemable for flights, hotels, and car rentals. The card has zero foreign transaction fees, and the earning rate is 2 points for every $1 payment on travel, groceries, and entertainment. The income requirement is $60,000.
HSBC World Elite MasterCard
HSBC offers one of the top-rated credit cards in Canada with no transaction fee. This travel credit card allows the users to have incredible vacations by providing convenient travel features.
This card has a yearly fee of $149, but the first-year users get a wave on the fee.
Using the HSBC World Elite MasterCard allows you to access many lounges globally, for which you pay a fee of $27 per visit. The card also offers emergency travel medical insurance coverage for trips, with a limit of up to 31 days.
For every $1 spent on travel purchases, you earn 6 points, and the other purchases get you 3 points for every $1 you use. The requirements are an income of $80,000 per person. Household usage of the card requires an income of $150,000.
Amazon Rewards MasterCard
Amazon shoppers also get to enjoy credit cards with no foreign transaction fee in Canada. The Amazon Rewards MasterCard is suitable for Amazon loyal customers who want to save some money.
Those eligible are required to have a Prime membership and shop at Amazon.ca.
The monthly fee of the Amazon card, inclusive of tax, is $7.99.
Although you enjoy a no-foreign transaction fee, the card does not reward you for making foreign purchases.
It has a 1 percent earn rate, and you can redeem them for Amazon gift cards. The earn rate for this card depends on the type of purchase and the user’s membership.
Rogers World Elite MasterCard
If you are a shopper who enjoys earning and redeeming rewards, the Rogers World Elite MasterCard is a sound option. Although the users pay the foreign transaction fee, they get 3 percent cash back in rewards.
The card benefits travellers and online shoppers using U.S. currency.
The card does not require the users to pay an annual fee, and new users get a $25 welcome bonus. The requirements for a Rogers World Elite MasterCard are an individual earning $80,000 and a household earning $150,000.
Rogers Platinum MasterCard
The Rogers Platinum Card benefits people travelling to the south of the border. Users do not pay an annual fee, and new users get a $25 cashback. The card has a standard transaction fee of 25 percent.
However, the users get a 3 percent reward for any payments made in U.S. dollars. You will get cashback with a rate of 1 percent for purchases made in the other currencies.
Although the transaction fee charges for every credit card transaction are small, they can accumulate, increasing the costs. The good news is, you’ll save yourself from more expenses by getting credit cards with no foreign transaction fees in Canada.