"What is a foreign transaction fee on a credit card?"

"A foreign transaction fee (also called a foreign currency fee or FX fee) is an additional charge — typically 2.5% — applied to any purchase made in a currency other than Canadian dollars. It applies to: purchases made while travelling outside Canada, purchases from foreign websites (e.g., Amazon.com in USD, subscriptions billed in USD/EUR), and any charge that processes through a foreign bank. The fee is applied on top of the currency exchange rate, effectively making international purchases 2.5% more expensive than domestic ones."

"How much is the foreign transaction fee in Canada?"

"The standard foreign transaction fee in Canada is 2.5% of the purchase amount in Canadian dollars, after currency conversion. For example: you buy USD $100 on Amazon.com. At a 1.38 CAD/USD exchange rate, that's CAD $138. The 2.5% foreign transaction fee adds CAD $3.45. Your total charge: CAD $141.45. Multiply this across hundreds of international purchases per year and the fees accumulate significantly. On $10,000 in foreign spending annually, 2.5% FX fees cost $250 in extra charges."

"Which Canadian credit cards have no foreign transaction fee?"

"Several Canadian credit cards waive the foreign transaction fee entirely. Major no-FX cards include: Scotiabank Gold American Express ($120/year), Scotiabank Passport Visa Infinite ($150/year), National Bank World Elite Mastercard ($150/year), Home Trust Preferred Visa ($0/year), Stack Mastercard ($0/year), Rogers Red World Elite Mastercard (technically charges 2.5% FX but earns 3% on foreign currency, net +0.5%). These cards are particularly valuable for frequent international travellers and US online shoppers."

"Does the foreign transaction fee apply to online shopping from foreign websites?"

"Yes — the 2.5% foreign transaction fee applies to online purchases processed in a foreign currency, regardless of whether you're physically travelling. If you buy from Amazon.com (USD), Netflix (sometimes billed in USD), Google Play (sometimes USD), or any US or international website that charges in a non-CAD currency, the 2.5% FX fee is added. Use a no-FX credit card for all international online shopping to eliminate this charge."

"Is the foreign transaction fee the same as the currency conversion fee?"

"They are related but distinct. The currency conversion is the exchange rate markup charged by Visa, Mastercard, or Amex when converting from a foreign currency to CAD. This is typically a small markup (0.5–1%) built into the exchange rate. The foreign transaction fee is an additional separate charge (2.5%) applied by your bank on top of the converted amount. Both charges appear when you make a foreign purchase. Some no-FX cards waive the foreign transaction fee but still apply the network's exchange rate — they do not waive the currency conversion itself."

Foreign Transaction Fees on Canadian Credit Cards: What You Need to Know (2026)

Foreign transaction fees are one of the most costly — and avoidable — credit card charges for Canadians who travel, shop online from US sites, or have any international spending.

Here’s how they work, how much they cost, and how to avoid them entirely.

What Is a Foreign Transaction Fee?

A foreign transaction fee (also called an FX fee or foreign currency fee) is an additional charge applied when you make a purchase in a currency other than Canadian dollars. Most Canadian credit cards charge 2.5% of the transaction amount.

The fee applies in two situations:

Physical travel — any purchase made outside Canada in a foreign currency
Online shopping — any website or subscription billing in USD, EUR, GBP, or another non-CAD currency

How the Fee Is Calculated

Example: You book a US hotel for USD $300.

Currency conversion: USD $300 × 1.38 (exchange rate) = CAD $414
Foreign transaction fee: CAD $414 × 2.5% = CAD $10.35
Total charge to your card: CAD $424.35

You pay $10.35 more than the exchange rate alone — for a single booking.

Annual Cost of Foreign Transaction Fees

Annual Foreign Spending (CAD)	2.5% FX Fee Cost
$2,000	$50
$5,000	$125
$10,000	$250
$15,000	$375
$20,000	$500

Frequent international travellers and Canadians who shop heavily from US sites (Amazon.com, US streaming, US retailers) can easily accumulate $200–$500+ in avoidable FX fees per year.

Where Foreign Transaction Fees Apply

Purchase Type	FX Fee Applied?
US hotel booking in USD	✓ Yes
European restaurant (EUR)	✓ Yes
Amazon.com (USD)	✓ Yes
Netflix (sometimes USD)	✓ Yes
US streaming subscriptions	✓ Yes
International airline tickets	✓ Yes (if billed in foreign currency)
Air Canada flights booked in CAD	No
Canadian Amazon.ca purchases	No
Canadian restaurants	No

No Foreign Transaction Fee Credit Cards in Canada

These cards charge 0% on foreign-currency purchases:

Card	Annual Fee	Network	Notes
Scotiabank Gold Amex	$120	Amex	6x Scene+ dining/grocery; best all-round no-FX card
Scotiabank Passport Visa Infinite	$150	Visa Infinite	+ 6 DragonPass lounge visits; Scene+ earn
National Bank World Elite	$150	Mastercard	+ $150 travel credit; 4 DragonPass visits
Home Trust Preferred Visa	$0	Visa	1% cash back; best no-fee no-FX option
Rogers Red World Elite	$0	Mastercard	Technically 2.5% FX but earns 3% on foreign = net +0.5%

Rogers Red: A Special Case

The Rogers Red World Elite Mastercard charges 2.5% FX but earns 3% cash back on all foreign currency purchases — resulting in a net +0.5% on every international purchase. While not technically a no-FX card, it is one of the best cards for US spending: you come out ahead compared to a standard card.

Comparison on USD $1,000 purchase:

Card	FX Fee	Cash Back	Net Position
Standard Canadian card	$25	$10 (1%)	-$15
Rogers Red World Elite	$25	$30 (3%)	+$5
Scotiabank Gold Amex	$0	$12 (1%)	+$12
Home Trust Preferred	$0	$10 (1%)	+$10

For pure net return on foreign spending, Scotiabank Gold Amex wins (no FX + 1x Scene+ everywhere or 6x on dining/grocery). Rogers Red wins when dining or general spending categories are combined with the flat 3% on foreign.

Travel Money: Credit Card vs Prepaid Card vs Cash

Method	Exchange Rate	FX Fee	Convenience
No-FX credit card	Near-interbank rate	0%	Excellent
Standard credit card	Near-interbank rate	2.5%	Excellent
Airport currency exchange	Poor rate	High markup	Very poor
Prepaid travel card (e.g., Wise)	Near-interbank rate	~0.5–1%	Good
ATM withdrawal (debit)	Near-interbank rate	$3–$5 + FX	Moderate

No-FX credit cards deliver the best combination of exchange rate and fee elimination — better than cash, better than airport currency exchanges, comparable to or better than prepaid travel cards.

What About Amex vs Visa vs Mastercard Exchange Rates?

All three major networks (Visa, Mastercard, Amex) publish near-interbank exchange rates. The difference between networks is typically minimal (less than 0.2%). The 2.5% bank FX fee is what creates the major cost — not the network exchange rate itself.

Key Takeaways

Foreign transaction fees cost 2.5% on every purchase in a foreign currency
They apply online — not just when physically travelling
No-FX cards eliminate this charge — the Scotiabank Gold Amex ($120/year) and Home Trust Preferred Visa ($0/year) are the top options
Rogers Red earns back 3% on foreign spend — net positive even with the 2.5% fee
Airport currency exchange is always worse — use a no-FX card instead

Best No-FX Cards by Profile

Profile	Best Card
All-round traveller	Scotiabank Gold Amex ($120/year)
Traveller who wants Visa	Scotiabank Passport Visa Infinite ($150/year)
No annual fee	Home Trust Preferred Visa ($0/year)
Mastercard user	National Bank World Elite ($150/year) or Rogers Red ($0/year)
Heavy US online shopper	Rogers Red World Elite (net +0.5% on USD)

Information current as of June 2026. Foreign transaction fee policies and rates are set by individual issuers and subject to change. See our Advertiser Disclosure.