Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

Debit cards with no foreign transaction fees in Canada

Prepaid cards work like debit or credit cards and often come with low or no foreign transaction fees.

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 a debit card 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 - 4 of 4
Name Product Monthly Fee Cost per transaction Foreign transaction fee Rewards Feature
OFFER
KOHO Easy Prepaid Mastercard
$0
$0
1.5%
1% cash back
Use promo code FINDERCODE and receive a $20 cash bonus into your KOHO balance once you make your first purchase within 30 days of signing up.
Earn 1% cash back on groceries, billing and services. Plus, earn 0.5% interest on your entire balance.
EQ Bank Card
$0
$0
0%
2.50% interest, 0.5% cash back
Get 2.50% interest on your money and get 0.5% CashBack on every purchase.
CIBC AC Conversion Visa Prepaid Card
$0
$0
0%
1% cash back
Load up to 10 different currencies with 1 card, earn 1% cash back on all spend and avoid fees.
OFFER
KOHO Extra Prepaid Card
$9/month or $84 annually
$0
0%
Up to 2% cash back
Use promo code FINDERCODE and receive a $20 cash bonus into your KOHO balance once you make your first purchase within 30 days of signing up.
Earn 2% instant cash back on groceries, eating and drinking and bills and services, and 0.5% cash back on all other purchases. Plus, earn 2.00% interest on your entire balance.
loading

Alternative: Credit cards with no foreign transaction fees

Credit cards, like debit cards, 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.

1 - 3 of 3
Name Product Foreign Currency Conversion Fee Purchase Interest Rate Annual Fee Reward
Scotiabank Passport Visa Infinite Card
0%
20.99%
$0 annual fee for the first year ($150 thereafter)
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 40,000 bonus Scene+ points and get the first year annual fee waived (that’s up to $1,300 in value in the first 12 months). Apply by April 30, 2023.
Scotiabank Gold American Express Card
0%
20.99%
$0 annual fee for the first year ($120 thereafter)
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 45,000 bonus Scene+ points in your first year (that's up to $850 towards travel) and get the first year annual fee waived. Apply by April 30, 2023.
BMO U.S. Dollar Mastercard
2.5%
20.99%
$35 USD
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.
loading

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 a debit card with low 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 credit card with no foreign transaction fees.

Frequently asked questions

More guides on Finder

  • EQ Bank Card review

    Earn interest on your savings, avoid ATM and foreign transaction fees and get cashback on every purchase.

  • KOHO Essential Prepaid Card review

    The low-fee KOHO Essential Prepaid Card lets you earn cashback and collect interest on your available card balance. Read more in our review.

  • WALO review

    Let your child explore the world of finance in a safe setting with the innovative WALO app.

  • PC Money Account review

    Enjoy zero monthly fees and unlimited free transactions when you sign up for the PC Money Account prepaid card.

  • Mogo Visa Platinum Prepaid Card review

    Protect the environment and only spend money that you actually have in your account with this eco-friendly prepaid card.

  • KOHO Extra Prepaid Card review

    Find out how you can sign up for the KOHO Extra Prepaid Card to earn cashback when you spend money from your account.

  • KOHO Easy Joint Prepaid Card review

    Find out how you can pool your finances and earn cash back with a KOHO Joint Prepaid Card.

  • KOHO Save review

    The KOHO account allows you to earn interest on saving balances and earn cashback on expenditures.

  • KOHO Easy Prepaid Mastercard review

    See how Koho offers similar services to traditional banking without many of the common fees.

Ask an Expert

You must be logged in to post a comment.

Go to site