Best For No Blackout Dates: American Express Gold Card
- Best features: Not only does the American Express Gold Card offer no blackout dates, it provides cardholders with bountiful rewards like a welcome offer of 60,000 points after you spend $4,000 on eligible purchases within the first six months of card membership. See if the Amex Gold is right for you.
- Biggest drawbacks: Both the $250 annual fee and welcome offer threshold may be a little high for someone on a budget.
- Alternatives: If you dont travel enough to justify the $250 annual fee, a no-annual-fee credit card like the Capital One SavorOne Cash Rewards Credit Card offers 3X points for dining and doesnt charge a foreign transaction fee. Pair it with the Blue Cash Preferred® Card from American Express , which offers an impressive 6% cash back at U.S. supermarkets , and you could see bigger cash back rewards for less of an annual fee.
- Bottom line: This card will benefit travelers who spend a good bit at restaurants and U.S. supermarkets and prefer to redeem rewards on travel versus cash back.
Read our American Express® Gold Card review or jump back to this cards offer details.
How To Make The Most Of A No Foreign Transaction Fee Credit Card
- Contact your bank before you travel. Make sure to notify your bank before you travel, as banks will often freeze an account on suspicion of fraud if they detect unusual activity, such as a purchase being made thousands of miles from the cardholders address.
- Come prepared with multiple cards. Whether youre traveling domestically or abroad, your ability to use a credit card at a merchant depends on whether the merchant accepts that cards payment network. If youre planning to travel internationally and your primary card is American Express or Discover, its best to bring along a Visa or Mastercard as a backup.
- Know how your rewards programs define travel. Its important to pay attention to the specifics to get the most from your rewards credit card. Many rewards cards offer bonus points on smaller travel purchases, but issuers have their own definitions of travel. Some issuers put expenses such as rideshares and parking fees in the travel category, while others dont.
Benefits Of Using A No
As long as credit cards are widely accepted at your destination, you can avoid taking out large amounts of cash at currency exchange kiosks, airports or ATMs. Plus, purchasing with your card helps you earn rewards on every dollar spent, you get purchase protection and PIN protection, and you can easily cancel your card if its stolen while youre abroad.
Our picks of the best no-foreign-transaction-fee credit cards in Canada are based on our analysis of each cards benefits and annual fees foreign transaction fees and how theyre handled and whether there are additional rewards incentives for using the card domestically and/or abroad.
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Canadas Best No Foreign Transaction Fee Credit Cards 2021
By Winston Sih on June 30, 2021
Cards that waive or refund the fee for foreign currency charges are few and far betweenbut if you’re a frequent traveller theyre worth seeking out.
Currency exchange board showing cross rates between various countries.
Millions of Canadians travel abroad with their domestic credit cards and dont realize theyre racking up foreign transaction fees that can amount to 2.5% on top every purchase. The good news is, there are a few credit cards out there that offer either zero foreign transaction fees or a return of the fees as cash back.
If you like to vacation in other countries or your work frequently takes you abroad, its worth considering a no-foreign-transaction-fees card that travels with you.
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Capital One Quicksilver Student Cash Rewards Credit Card
- Whether you’re at a 4-year university, community college or other higher education institution, this card might be an option for you
- Earn unlimited 1.5% cash back on every purchase, every day
- Enjoy no annual fee, foreign transaction fees, or hidden fees
- You can help build your credit with responsible use of a card like this
- No rotating categories or sign-ups needed to earn cash rewards plus, cash back won’t expire for the life of the account and there’s no limit to how much you can earn
- Be automatically considered for a higher credit line in as little as 6 months
- $0 fraud liability if your card is ever lost or stolen
- Set up Autopay for your account and your payments will be made automatically every month
- Whether you’re at a 4-year university, community college or other higher education institution, this card might be an option for you
- Earn unlimited 1.5% cash back on every purchase, every day
- Enjoy no annual fee, foreign transaction fees, or hidden fees
- You can help build your credit with responsible use of a card like this
- No rotating categories or sign-ups needed to earn cash rewards plus, cash back won’t expire for the life of the account and there’s no limit to how much you can earn
- Be automatically considered for a higher credit line in as little as 6 months
- $0 fraud liability if your card is ever lost or stolen
- Set up Autopay for your account and your payments will be made automatically every month
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How Do I Know If My Credit Card Has A Foreign Transaction Fee
You can find out whether youre technically being charged Visa and MasterCards currency conversion fee by checking your cards terms and conditions. I say technically because while some issuers do waive the network charge, others incorporate its cost into their base foreign transaction fee to minimize confusion.
Best Premium Travel Card: Sapphire Reserve
- Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®
- $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year.
- Earn 5x total points on air travel and 10x total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases
- Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards®. For example, 50,000 points are worth $750 toward travel
- With Pay Yourself BackSM, your points are worth 50% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
- 1:1 point transfer to leading airline and hotel loyalty programs
- Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority PassTM Select and up to $100 application fee credit every four years for Global Entry, NEXUS, or TSA PreCheck®
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more
The Sapphire Reserve is essentially a beefed-up version of the Preferred, with a higher annual fee and a few key differences.
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Best No Foreign Transaction Fee Credit Cards Of January 2022
Discover the best credit cards for international travel.
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ALSO CONSIDER:Best credit cards of 2022 || Best travel credit cards || Best rewards credit cards || Best cash back credit cards
Most credit cards tack an extra charge onto purchases made outside the United States. If you’re planning to travel abroad, you’ll want to look out for these foreign transaction fees . They are assessed by your credit card issuer and are usually 1% to 3% of the purchase amount, with 3% being common. That amount might not seem like a big deal, but if you spent, say, $3,000 at a hotel, you could be looking at an additional $90 charge.
The best way to avoid foreign transaction fees is to get a travel credit card that doesn’t charge them. Fortunately, any travel credit card worth its salt including airline cards will not charge foreign transaction fees, so you have plenty of options. Some major issuers most notably Capital One and Discover don’t charge these fees on any of their cards.
Here are our favorite cards without the fee.
ALSO CONSIDER:Best credit cards of 2022 || Best travel credit cards || Best rewards credit cards || Best cash back credit cards
Home Trust Preferred Visa*
Home Trust offers one of the only credit cards that has no foreign transaction fees whatsoever. Its a no-annual-fee card, plus you get a simple 1% cash back with no limits on how much you earn. Previously, there were no restrictions on where you can earn, but now you only receive cash back on domestic purchases. However, compared to other cards, the simplicity of Home Trust Preferred Visa is attractive.
As there are no annual fees, the card is pretty lean on extra coverage, but cardholders do receive roadside assistance at no additional charge.
- Annual fee:$0
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Which Issuers Are Most Widely Accepted Internationally
Something else to seriously consider when traveling abroad is that not every payment network is accepted worldwide. Mastercard and Visa are by and large the two most popular networks if a merchant abroad accepts credit cards, it is likely going to accept one of these cards.
Discover and American Express, which are commonly accepted in the U.S., may not be accepted around the world. This is why its a smart idea to have multiple types of cards in your wallet.
Related: 9 types of cards you should pack for your next trip abroad
Issuers often will have card options that operate on different networks. All Chase credit cards except for the Chase Freedom Flex operate on the Visa payment network. Barclays, Citi and Capital One offer cards on both the Visa and Mastercard networks. Wells Fargo uses the Visa network for some cards and the American Express network for others. Discover and American Express, of course, always use their own payment networks.
If you have at least one Visa and one Mastercard, youll likely have a card that is accepted almost anywhere. Just keep in mind that in many places around the world, cash is still king. In parts of Asia, Africa and even Europe, many smaller merchants will either not accept credit cards or they will charge a high surcharge on any credit card payment.
While you should always use a credit card when possible , its good to have local currency in hand whenever you are traveling.
Quick Tips For Comparing Cards With No Foreign Transaction Fees
Different aspects require your attention when comparing credit cards without foreign transaction fees.
Best No Foreign Transaction Fee Credit Cards Compared at a Glance
Compare the top credit cards with no international fees based on factors such as the specific type of card youre after, annual fees and reward rates.
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What Are Foreign Transaction Fees And What Do They Mean For You
The fee charged by many credit cards for purchases you make in a foreign currency might not seem like much, but it can add up quickly. To be clear: The fee is applied to every purchase made in a currency thats not Canadian dollarseven when you shop online. For perspective, thats $25 in transaction fees for every $1,000 you spend on your card, and you have to pay the exchange rate as well.
What Is A Foreign Transaction Fee
Foreign transaction fees are charges that credit card issuers and payment networks place on purchases made in a foreign currency or on purchases that involve a foreign bank. A foreign transaction can be a purchase processed through a foreign bank or when you travel overseas, including when you use an ATM. Note that there can actually be multiple fees at a foreign ATM, including a flat-rate international ATM surcharge as well as an ATM access fee.
Usually, a credit card foreign transaction fee is around 3% of the purchase price. Of that 3%, your card issuer typically charges 2% for processing the transaction and the remaining 1% is for converting the transaction from one currency to another. To put this in perspective, a $100 purchase would cost you an additional $3 in foreign transaction fees.
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Best Visa Card With No Foreign Transaction Fee
As the largest merchant payment network, Visa-branded cards are accepted virtually anywhere in the world. And if you want a Visa card thats a great travel companion, you cant go wrong with the Capital One VentureOne Rewards Credit Card. This card gives you 1.25x miles on every purchase and comes with no annual fee. You can use your miles to fly on any airline and stay at any hotel, with no restrictions.
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The Capital One VentureOne Rewards Credit Card also lets you transfer your miles to many of the leading travel loyalty programs. An introductory rate may be available and is intended for those with excellent, or at least very good credit scores.
How Much Should You Expect To Pay In Fees
The average international transaction fee will be around 3% for purchases made in US dollars. 1% of that fee may go to the payment processor, whether its Visa or MasterCard, and the other 2% might go to the bank that issued your credit card, such as Chase or Bank of America.
You might be thinking that 3% doesnt sound too bad, but these fees can quickly add up if youre making a lot of small purchases or youre making large purchases. For example, if you spend $100 and your fee is 3%, youll spend an extra $3, but if you spend $1,000, youll be paying an extra $30 in fees.
On top of that, most credit cards charge a 3-5% margin on the daily interbank or market exchange rate for the day. For many cards, this rate is at their sole discretion, and you may not know how big that margin is in advance.1 When combined with the fees, you could be paying at least a 6% premium on your purchase by using your credit card. Ouch.
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Moneygeek’s Quick Guide To Understanding Foreign Transaction Fees
When you use a credit card issued in the U.S. outside of the country, you might need to pay a foreign transaction fee of around 3%. Cards that charge this fee apply it on every international transaction. As a result, if you plan to use a credit card outside of the U.S., it makes sense to travel with one that does not charge any foreign transaction fees.
Foreign transaction fees come as fixed percentages. This implies that no matter the size of your transaction, youll need to pay a fixed percentage of the transaction amount as fees.
No Foreign Transaction Fee Credit Card Vs Cash
When travelling abroad, its smart to carry a bit of cash in your wallet , which you can use for small purchases, taxi rides, public transit rides, and tips.
But travelling with a big wad of cash is never a good idea. Theres no replacement if you misplace your money and zero recourse if you get robbed. Youre out of luck!
Since credit cards are widely accepted worldwide, why not use a no foreign transaction fee credit card instead? Youll get the benefit of purchase protection, and you can put a hold or cancel your card if its stolen or lost while travelling.
Plus, with some credit cards, youll rack up cash back or travel rewards that you can put towards your next vacation.
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Best Cards With No Foreign Transaction Fees
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In addition to lacking foreign transaction fees, each card offers a unique combination of perks and benefits for travelers. Lets look at the details for each of our top picks.
Why Use A Credit Card With No Foreign Transaction Fees
It should be obvious by now that having a no foreign transaction fee credit card is a must. Theres absolutely no reason why you should pay additional fees when you dont have to. Sure, 2.5% doesnt sound like a lot, but it adds up. For example, lets say you went on a trip to Europe and charged roughly $4,000 to your card that charges foreign exchange fees. Youd essentially be paying $100. Thats enough for a nice meal during your trip.
There are so many credit cards that have no forex fees, so you should just pick one that best suits your needs. Even if you get a no fee card and only use it once or twice a year, itll be worth it.
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