Debit cards with no foreign transaction fees in Canada

Foreign transaction fees can really add up if you travel frequently or shop online at non-Canadian stores. You’ll have a hard time finding debit cards with no foreign transaction fees in Canada, but the good news is that prepaid cards — which work like debit or credit cards — often come with low or no foreign transaction fees.

Get a prepaid card with no foreign transaction fees

Similar to a debit or credit card, a prepaid card lets you make purchases and manage your money. Prepaid cards let you spend using funds that have been deposited into your account, so you can only spend what you have. Unlike many debit and credit cards in Canada, prepaid cards often come with low or no foreign transaction fees.

1 - 1 of 1

Sort by:

Name	Product	Monthly Fee	Cost per transaction	Foreign transaction fee	Rewards	Feature
EQ Bank Card EQ Bank Card		$0	$0	0%	0.5% cash back		Get 2.50% - 3.00% interest on your money and get 0.5% CashBack on every purchase.	Go to site More Info	Compare	loading Fetching your data...

loading

CompareClear

Alternative: Credit cards with no foreign transaction fees

Credit cards, like debit cards, often attract international transaction fees and ATM fees. Credit cards can give you access to extra funds outside of your available debit balance, which can come in handy during emergencies.

Since a credit card gives you access to money you don’t really have, overspending can become a problem. You could end up accruing high amounts of interest if you’re unable to pay your balance in full. Also, be aware that using your credit card for ATM withdrawals or buying foreign currency or traveller’s cheques is considered a cash advance, which comes with an additional fee.

But do any credit cards not charge a foreign transaction fee? The answer is yes.

The good news is that if you’re searching for a Canada credit card with no foreign transaction fee, there are a few options to choose from. Compare a range of cards to find one that’s right for you.

1 - 3 of 3

Sort by:

Name	Product	Foreign Currency Conversion Fee	Purchase Interest Rate	Annual Fee	call to action	Reward
Scotiabank Passport Visa Infinite Card		0%	20.99%	$0 annual fee for the first year ($150 thereafter)	Go to site More Info	Earn Earn 3 Scene+ points on every $1 you spend at Sobeys, Safeway, FreshCo, Foodland and more, 2 Scene+ points points for every $1 spent on eligible grocery store, dining, entertainment and daily transit purchases, and earn 1 Scene+ point for every $1 spent elsewhere.	Earn up to 35,000 bonus Scene+ points and get the first year annual fee waived (that’s up to $1,100 in value in the first 12 months). Apply by January 3, 2024.	Compare	loading Fetching your data...
Scotiabank Gold American Express Card		0%	20.99%	$120	Go to site More Info	Earn 6 Scene+ points on every $1 you spend in Canada at Sobeys, Safeway, FreshCo, Foodland and more, 5 Scene+ points per $1 spent on eligible grocery, dining and entertainment purchases, 3 Scene+ points per $1 spent on eligible gas, transportation and select streaming services, and 1 Scene+ point per $1 spent on eligible purchases elsewhere.	Earn up to 40,000 bonus Scene+ points in your first year (that's up to $650 towards travel). Apply by July 1, 2024.	Compare	loading Fetching your data...
BMO U.S. Dollar Mastercard		2.5%	20.99%	$35 USD	Go to site More Info	Receive an annual fee rebate with a minimum yearly spend of US$1,000. Plus, spend in US Dollars with no exchange rate surprises.	When your purchases total US$1,000 or more in a year, the next year's annual fee (US$35) is rebated to your card.	Compare	loading Fetching your data...

loading

CompareClear

Alternative: Travel money cards

A travel money card gives you the ability to load multiple currencies onto a single card to avoid currency conversion fees, and you can lock in exchange rates before you travel. Depending on the card you’re using, you may be charged a fee when loading funds onto the card or withdrawing money from ATMs. Make sure you compare your options, as travel money cards have varying exchange rates and fees.

Fees for making international purchases with a debit card

While using your debit card when overseas gives you quick and easy access to money, it pays to find out just how much you’ll end up paying in other fees and costs:

• Foreign transaction fee. This fee is a combination of what your card provider charges along with what the payment processor charges. You have to pay this fee when you use your card to pay in foreign currency, which your card provider converts into pound sterling. It is usually between 2% and 3% of the transaction value.
• Overseas ATM fees. When using your debit card to withdraw money from an overseas ATM, the owner charges a fee, as does your card provider. Lower these fees by withdrawing from your provider’s international ATM partners (if there are any), withdrawing large sums to reduce your ATM visits or switching bank accounts to one that charges no or low international ATM withdrawal fees.
• Foreign exchange rate margin. When converting currencies, banks make money by deducting a small fee (also called a margin or markup) worth a small percentage of the exchange rate between 2 currencies. A high exchange fee means a poor exchange rate and less foreign currency for each Canadian dollar you convert.
• International money transfer fee. If you’d like to send money to someone overseas from your regular bank account in Canada, bank wire transfers can cost $50 or more. Online international money transfer services usually charge lower fees and often support more sending and receiving options.

Pros and cons of using debit cards with no foreign transaction fees

A no foreign transaction fee debit card or prepaid card can come in handy, but there are some drawbacks.

Pros

• Save when shopping online. A no foreign transaction fee debit card or prepaid card can lead to significant savings if you frequently buy from foreign retailers.
• Save when travelling. Debit cards with no foreign transaction fees make it easy to spend overseas like you would at home without worrying about being hit with conversion fees.
• Avoid overspending and paying interest. With a debit card, you’re limited to spending what’s in your account. This is unlike a credit card, which lets you spend borrowed funds that have to be repaid with interest.
• No transfers required. A debit or prepaid card gives you direct access to money in your bank account, so you don’t have to worry about loading foreign currency onto your card from another card or account.
• No conversion required. Using your debit card to pay in foreign currency is easy and does not require complicated calculations. Your card provider does this for you using current exchange rates.

Cons

• No access to extra emergency funds. You can only access funds in your bank account. In an emergency, a credit card could work better.
• Limited choice. While a number of Canadian financial institutions provide debit cards, not many offer cards with no foreign transaction fees, so your choices remain limited.

Bottom line

When currency is converted, banks charge a foreign transaction fee, which is usually around 2.5% of the transaction amount. It’s possible to reduce foreign transaction fees with a prepaid card, which works like a debit or credit card.

If you’re looking for an alternative to debit cards with no transaction fees, consider getting a travel money card or a Canada credit card with no foreign transaction fees.

Frequently asked questions about debit cards with no foreign transaction fees

• What is a foreign transaction fee?

  Financial institutions charge foreign transaction fees (usually around 2.5%) whenever a currency conversion is required. For example, if you pay for a US purchase with a Canadian debit card, your bank will charge a fee for exchanging Canadian dollars to US dollars to process the payment.

• Is there a foreign transaction fee for making online purchases from foreign website?

  If you make an online purchase from a foreign retailer that charges you in any currency other than Canadian dollars, then you would have to pay a foreign transaction fee (unless your card waives this fee).

  If a foreign retailer charges you in Canadian dollars, then your funds don't have to be converted and you won't pay a foreign transaction fee.

• Is there a foreign transaction fee for booking a plane ticket through an international airline's Canadian website?

  If the international airline charges you in Canadian dollars, you likely won't have to pay a foreign transaction fee. But if you pay in any other currency, your financial institution will likely charge you a foreign transaction fee.

• Can I get a replacement debit card if I lose my card while travelling?

  Yes. Both Visa and Mastercard offer overseas debit card replacements.

• Do all Canadian credit cards have foreign transaction fees?

  No. While many cards do have foreign transaction fees, it's also possible to find a Canada credit card with no foreign transaction fee. Options include the HSBC World Elite Mastercard, the Scotiabank Gold American Express Card and the Scotiabank Passport Visa Infinite Card.

• How can I avoid foreign transaction fees in Canada?

  If you're a foreign resident visiting Canada, you can avoid these fees by choosing a debit or credit card with no foreign transaction fees. There are also prepaid cards available that don't charge foreign transaction fees, so shop around to find the card that's right for you.