The Canadian dollar not doing so well and that many Canadians buy products in places like Amazon.com and eBay.com, there has been an increase in demand for credit cards for foreign transaction costs in Canada.
As you imagine, it is not something that Canadian banks do by kindness or generosity – they will want to earn money on the interest they charge on these cards! Even if it is not the responsibility of credit card companies to invoice customers of international transactions, due to the high costs of banks, these costs are passed on to consumers in smaller amounts. This can be a huge problem for Canadians who travel internationally, especially if they travel frequently.
Fortunately, some credit cards are still flexible enough to provide you with excellent service without charging you an arm and one leg; These are called foreign transaction costs. These cards allow you to make purchases and withdraw money from the currency you want without incurring additional costs beyond those you normally pay with your card. Credit cards without foreign transaction costs can be particularly advantageous when they travel abroad, as they reduce the cost of using your card in a foreign country.
What is a transaction fee abroad?
There is a huge difference between foreign transaction costs and exchange rates concerning the understanding of the bank’s motivations. The foreign transaction costs (which we will call the “FTF”) are costs that your bank charge you whenever you use your credit card abroad.
You consider foreign transaction costs as something you need to pay to use your credit card abroad. However, the reality is exactly the opposite! The FTF is costs that apply when you exchange Canadian or American currency in another currency or use your card abroad at a rate lower than the rate of the market in force.
A single FTF would be ridiculous, but you will find that most banks charge monthly costs equivalent to the cost of the exchange rate. In this case, you would pay 3% if you used your card in a country where the exchange rate was 1% (the best scenario). If the rate of the currency of your card is 2%, you would pay 4%. (If the rates were 10%, then you would pay 12%). You can see how it works when the rates are high.
The best without credit cards for foreign transaction costs in Canada
All these cards offer no annual expenses and no transaction costs abroad (so you can use them all over the world). Interest rates are low, which helps balance transfers and maintains your low expenses. If there is something that stands out for them, it is their long, 0% promotional periods on equilibrium transfers and no annual costs or hidden costs involved in these transactions.
The list below shows the best transaction costs credit cards without foreign in Canada.
1. Visa Passport Scotiabank Infinite Card
With a decent welcome bonus of 30,000 scotia reward points (worth $ 300 for travel), no exchange fees and an effective gain rate of 2% on grocery store, dining room, entertainment and daily transit purchases made at home and abroad, the travel card of Scotiabank Passport Infinite is distinguished as a True Treeler card.
In addition, as part of welcome incentives, users also earn five additional Scotland reward for each dollar they spend in the bonus categories, which could bring their total to 10,000 points. As part of a complementary with this card, users are offered a Priority Pass subscription and six annual visits to participating restaurants and airport salons.
During the visit of another country, tourists can rest easily knowing that they will receive a 2% return without having to pay FX costs on all their meals, drinks, entertainment and public transport. The general acceptance of visa cards worldwide guarantees that you will not encounter any problem using this card when you travel.
Priority Pass membership and six annual visits to participating restaurants and airport salons are also complementary to this card. It is always good to be able to obtain several advantages of travel from a single card (and a single annual fee).
2. HSBC World Elite Mastercard
One of the most beautiful credit cards in Canada without foreign transaction costs is the MAStercard HSBC World Elite. This card gives a variety of value for transactions carried out in any native currency, which you win or exchange.
The card offers 1.5% return to all purchases, which is a fantastic basic rate for any card. In addition, he earns money on travel -related transactions at a remarkable rate of 3%. For example, you will gain a lot of points and you will not have to worry about the additional costs that eat out your advantages if you reserve local hotels in foreign currencies.
The use of HSBC reward points is very versatile. To pay the card costs on the card, you can use them as a declaration credits. You can also transfer your HSBC awards to British Airways Avios, Cathay Pacific Asia Miles or Singapore Krisflyer if you prefer to use frequent leaflet clubs to maximize the value of your points on business class tickets or international trips.
You will also receive an annual credit optimization credit of $ 100 to compensate for annual costs of $ 149, which should not be overlooked. However, it is easy to use this credit for other purchases made via an online travel agency. Officially, you can use it to pay for seats improvements, loading costs and access to airport salons.
3. Amazon.ca MasterCard Awards
Another credit card that goes largely unnoticed is the Mastercard Amazon.ca Rewards. When you consider the advantages, it is reasonable, but to receive a higher generation rate, you must be an Amazon Prime member. It is undeniable that receiving 5% on Amazon.ca is fantastic, but only if you make an important purchase there. Although the 5% of Whole Foods are attractive, using your American Express Cobalt card to pay, would give you a better deal.
Likewise, non -prisoners only receive 1% money back on international transactions. You would essentially pay 1.5% because the cost of the currency of 2.5% always applies. Overall, if you are an Amazon Prime member and you buy frequently on Amazon, this card is worth taking into account.
4. Brim World Elite Mastercard
The Brim World Elite Mastercard is the first credit card in Canada if you wish to receive spare services on international transactions, because users receive 2% of all purchases. On -board points are practically equivalent to the money backing because they are worth $ 1 each and are easy to convert to declaration credit.
Instead of category incentives When shopping online, you can earn additional rewards from the vast network of Brim’s retail partners, sometimes up to 10%. In addition, you cannot benefit from any international transaction cost during purchases abroad.
This is certainly not the cheapest way to avoid foreign transaction costs, costing $ 199 per year (raised for the first year), but to make sure you receive the most of the card, you must strive to optimize the advantages of Brim partner each time you can.
5. EXPRESS CARD AMERICAN Ordank Scotiabank
One of the best versatile credit cards in Canada is the Scotiabank Gold American Express card. The following categories will bring you backwards from Scotland: 5% return to grocery store, restaurants and entertainment; 3% return to gas; 1% return to everything else. Although even in the bonus categories, the card offers only 1% money back on transactions abroad. Even thus, gaining any type of advantages when eating abroad is a good thing.
You will always have a reliable choice without FX when you travel and make purchases at Amex, accepting merchants for a card you want in your wallet because of its unrivaled income prices at home. Currently, the card offers new customers a welcome offer of 40,000 points. There has never been a better time than now to add a credit card without transaction costs abroad to your list.
6. Wealthsimple cash card
Without a doubt, many credit cards are available without foreign transaction costs, but most are only valid for purchases. What if you need money? Your best option is the WealthSimple cash card because it has no transaction costs abroad for ATM withdrawals. You will only have to pay the unique costs of the ATM operator, usually $ 3. The daily withdrawal cap is 1,000 CAD, but it should be more than enough for you to get out of it. The withdrawal limit is 500 CAD per transaction.
You must load money on the Wealthsimple cash card in advance to use it because it is a prepaid credit card. Possibility, there are no gadgets with this prepaid card because there are no monthly or annual fees. In addition, 1% of each purchase is gained in cash rewards. This card is ideal for travelers who do not want to pay fees.
Last words
The number of choices can be overwhelming – and not only because there are so many cards to choose.
The trick is to find the best card for your needs, which will vary depending on where you are traveling and the quantity you spend while traveling. We did the hard work for you and found great cards that do not charge these annoying costs.
