Most credit cards in Canada charge a 2.5% foreign transaction fee on purchases made in other currencies. Fortunately, there are several credit cards that have no foreign transaction fees. Exchange rate will be determined by credit card processor (Mastercard, Visa) at the time of purchase.

Scotiabank Passport Visa Infinite Card

Scotiabank Passport Visa Infinite Card sets itself apart with 6 Complimentary airport lounge access per year. It has $150 annual fee and features:

• Earn 3 Scotia points per dollar at participating grocery stores like Sobey’s, IGA, and Freshco, 2 Scotia points per dollar on groceries, restaurants, entertainment, and daily transit (including taxis), and 1 point per dollar on everything else.
• Purchase Assurance and Extended Warranty Insurance
• Emergency Travel Medical insurance
• Flight Delay Insurance
• Baggage Delay or Loss insurance
• Trip Cancellation and Trip Interruption/Delay insurance
• Hotel/Motel Burglary Insurance
• Car Rental insurance

Scotiabank Gold American Express

Scotiabank Gold American Express is another no foreign transaction fee credit card from Scotiabank with $150 annual fee. It does not come with Complimentary airport lounge access, but it has higher earn rate compared to Scotiabank Passport Visa Infinite Card:

• Earn 6 Scotia points for every dollar spent at participating grocery stores like Sobey’s, IGA, and Freshco; 5 points for every dollar spent on eligible grocery stores, restaurants, fast food, and drinking establishments; 3 points for every dollar on transit purchases; and 1 point on everything else
• New Mobile Device Insurance
• Purchase Assurance and Extended Warranty Insurance
• Emergency Travel Medical insurance
• Flight Delay Insurance
• Baggage Delay or Loss insurance
• Trip Cancellation and Trip Interruption/Delay insurance
• Hotel/Motel Burglary Insurance
• Car Rental insurance

Home Trust Preferred Visa

In addition to having no foreign transaction fee, the Home Trust Preferred Visa comes with 1% cash back on all your spending in Canada

Note: There are multiple reports of fraudulent charges on Home Trust Preferred Visa, so I would not recommend this card, unless you have no other options. It also has inactivity fee. If you don’t use the card to make at least one purchase in a 12-month period, you’ll be charged $12.

Roger World Elite Mastercard (only for USD purchases)

Although Roger World Elite Mastercard has 2.5% foreign transaction fee, it also provides 3% unlimited cash back on all eligible purchases made in U.S. dollars, making a net 0.5% cashback on purchases in U.S. dollars.