It’s a significant feature given that other no foreign transaction fee cards (e.g. The HSBC World Elite ® Mastercard ® is lucrative for those who make a substantial amount of purchases in foreign currencies, because it charges no foreign transaction fees and all eligible purchases made with the card, be they foreign or domestic, earn HSBC Rewards points. – Other: No bankruptcies in the past seven years – Residency: Canadian citizen or permanent resident – Age: Age of majority in your province or territory – Minimum income: Minimum annual income of $60,000 or a minimum household income of $100,000 or a minimum assets under management of $250,000 Best no foreign transaction fees credit cards in Canada Debit and out-of-country ATM cash withdrawals are no better, each typically charging a foreign exchange fee of 2.5% or more. Not to mention it also wipes away the 1-2% in rewards you thought you were earning.Īside from that, using a credit card that subsidizes or waives your foreign transaction fee is actually cheaper than exchanging currencies at the bank, or at a boutique foreign exchange bureau – which routinely cost anywhere from 1%-3% to exchange your money. If you use your credit card while wintering in the United States, you could easily rack up $10,000-$20,000 in credit card charges. That’s $250 to $500 in foreign exchange fees going to the credit card companies. Those who use their credit card to make business purchases from U.S. People who shop across the border regularly or shop online ![]() So what’s the big deal about a credit card that subsidizes foreign transaction fees? Well, the savings can be huge for some Canadian customers, especially: Why you want a no foreign transaction fee credit card For a quick comparison: 30% of Americans have a passport, compared to 70% of Canadians. The fact is, Canadians travel out of Canada a lot more often than Americans travel out of the United States, so it’s easier for an American issuer to give up on FX fees than for a Canadian issuer. Unlike the United States, where credit card issuers are increasingly abandoning foreign transaction fees altogether, FX fees usually represent too large a part of Canadian credit card companies’ income streams for them to walk away from. The good news is that a select few credit cards in Canada make up for or waive the fee so that you’re not charged at all. The bad news is most Canadian credit card companies add a 2.5%-3% foreign transaction fee to each purchase that cardholders make outside the country. Many Canadians are in for a nasty surprise after a trip abroad. We may receive a commission for products or services you sign up for through partner links. Please be aware this post may contain links to products from our partners. We adhere to strict standards of editorial integrity to help you make decisions with confidence.
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