The Best No Foreign Transaction Fee Credit Cards in Canada (2025)

Ever come back from a vacation or clicked "complete purchase" on an international website, only to find unexpected charges on your credit card bill? Those sneaky additions aren't just currency exchange fluctuations—they're foreign transaction fees (or FX fees) that many card issuers tack onto purchases made outside your home country.

Good news: "No foreign transaction fee" credit cards eliminate these extra costs when you shop internationally, whether you're browsing markets in Barcelona or ordering from US-based websites from your couch in Canada. If you travel frequently or shop online from international retailers, these specialized cards could put significant savings back in your pocket over time.

1. KOHO Prepaid Travel Mastercard

Why juggle multiple cards when travelling? Your KOHO Prepaid Travel Mastercard handles everything abroad just like it does at home—but with serious travel perks built right in.

Travel Without the Extra Costs

• Zero foreign transaction fees*

• Free international ATM withdrawal once monthly, so you can access local currency without the extra cost

• Instant card lock through the app if your card goes missing (because vacation should be stressful only in the good ways)

• Mastercard zero liability protection against unauthorized purchases

• Up to 2% cash back on groceries, dining and transportation—yes, even when you're exploring Bangkok street food or catching trains in Europe

• Bonus cash back from travel partners like Expedia, Booking.com, and Contiki

Stay Connected Everywhere

Extra and Everything plan members get a game-changing travel bonus: a complimentary KOHO eSIM with up to 3GB monthly data!

1. Activation is a breeze: Simply activate your free eSIM and choose from 200+ global destinations

2. Instant connectivity: Land in the USA, Japan, Portugal, UK, India or dozens more countries and connect automatically to local networks

3. Phone works like home: No more hunting for sketchy public WiFi or swapping SIM cards—just seamless access to maps, messaging, and browsing

Travel Protection When You Need It

Add comprehensive travel insurance starting at just $20** with flexible coverage options:

• Emergency medical services for unexpected illnesses or injuries

• Trip cancellation and interruption protection

• Accidental death and dismemberment coverage

• Lost or damaged baggage protection

• Rental car coverage for worry-free driving abroad

*No 1.5% FX fee if you are on Extra or Everything plan, currency conversion rate applies.

**Insurance provided by a third party insurance provider and Walnut is the broker on record. Terms and Conditions apply.

2. Scotiabank Passport Visa Infinite Card

This card is the ultimate travel companion for globe-trotting Canadians. The Scotiabank Passport Visa Infinite eliminates that pesky 2.5% foreign transaction fee entirely, letting you shop, dine, and explore abroad without the hidden costs.

What makes it stand out? You'll collect Scene+ points at impressive rates—triple points at participating grocery stores like Sobey's and FreshCo, and double points on dining, entertainment and transit. These points are incredibly flexible, covering everything from travel bookings to groceries and statement credits.

3. Scotiabank Gold American Express Card

This versatile card deserves serious attention from travellers who want both international perks and everyday rewards. The Scotiabank Gold Amex completely eliminates the typical 2.5% foreign transaction fee, giving you worry-free spending whether you're shopping online from international sites or exploring markets abroad.

Where this card truly excels is its rewards structure—you'll collect an impressive 5 points per dollar on groceries, restaurants, food delivery, and entertainment, plus triple points on gas and transit expenses. This makes it perfect for foodies and social butterflies even when you're not travelling.

4. Home Trust Preferred Visa

This card keeps things refreshingly simple while still delivering solid value. This no-annual-fee card eliminates the standard 2.5% foreign transaction fee that most cards sneak into your bill when you shop internationally—instantly saving you money on every purchase made abroad or from foreign websites.

When you're spending at home, you'll automatically earn 1% cash back on all purchases with no complicated categories to track and no earnings caps to worry about. The straightforward rewards system means your cash back just keeps growing with every transaction.

5. Scotiabank Platinum American Express Card

The Scotiabank Platinum American Express occupies an interesting middle ground in the credit card space. It eliminates the typical 2.5% foreign transaction fee while also offering something rare: a below-average interest rate paired with actual rewards and premium travel benefits.

When travelling, you'll appreciate both the forex fee savings and included airport lounge access—a touch of luxury that makes layovers considerably more bearable. The card also provides Scene points on purchases and comprehensive travel insurance coverage, creating value beyond just the interest rate advantage.

What You Need to Know About Foreign Transaction Fees on Credit Cards

Foreign Transaction Fees

When your card crosses borders—whether physically during travel or virtually when shopping on international websites—your purchases need conversion from foreign currencies to Canadian dollars. This is where most card issuers quietly add a foreign transaction fee (typically 2.5%) on top of the currency exchange. This seemingly small percentage can add up quickly, especially on larger purchases or longer trips abroad.

Credit Card Exchange Rate Markups

Even beyond the foreign transaction fee, there's another layer of cost: credit card networks like Visa, Mastercard, and American Express apply their own markup to the exchange rate. While Bank of Canada might list $1 USD at $1.35 CAD, your card network might use $1.37 CAD—creating an additional hidden cost on every purchase. These small differences compound across multiple transactions.

Dynamic Currency Conversion (DCC) Trap

Ever been asked if you'd prefer to pay in Canadian dollars while abroad? This service—Dynamic Currency Conversion (DCC)—sounds helpful but typically costs you significantly more. Merchants offer this "convenience" using exchange rates that can be 3-7% worse than market rates. The golden rule: always choose to pay in the local currency, not CAD, when given the option at checkout terminals or online.

FX Credit Adjustments Explained

Noticed multiple charges and credits for a single foreign purchase? This happens when timing creates a gap between authorization and final processing. Your card issuer initially authorizes the purchase amount, but when the merchant finally processes it days later, currency fluctuations may have changed the CAD equivalent. The result is a refund of the original amount followed by a charge for the final amount—appearing as "foreign exchange credit adjustments" on your statement.

The Real Cost of International Spending

Let's be real—those foreign transaction fees are basically the equivalent of paying extra for the privilege of spending your own money abroad. At 2.5% on most standard cards, it's like voluntarily taking a haircut on every purchase you make outside Canada. That weekend getaway to New York? Those Amazon.ca orders? All costing you more than necessary.

Before you pack for your next adventure or click "checkout" on that international site, take a minute to consider whether your current card is taking an unnecessary cut of your hard-earned cash. Your future self (especially the one sipping coffee at that cute Parisian café) will thank you for making the switch.