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.

HSBC World Elite Mastercard

HSBC World Elite Mastercard is probably one of the best credit card in Canada with no foreign transaction fees. Although it has $150 annual fee, it provides $100 travel enhancement credit per year, effectively making the card’s annual fee only $50. If you happen to be a HSBC Premier customer, you will receive an additional $50 credit card annual fee rebate, making the card no annual fee.

HSBC World Elite Mastercard also has high earn-rate on travel purchases and provides comprehensive insurance:

• Earn 3% in travel rewards on all eligible travel purchases (6 points per $1); 2% in travel rewards on all eligible gas, grocery, and drugstore purchases (4 points per $1); and 1% in travel rewards on all other eligible purchases
• Price Protection Service
• 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 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

Brim Financial Mastercard

Brim Mastercard (no annual fee) and Brim World Elite Mastercard ($150 annual fee) have no foreign transaction fees. These cards earn rewards on all everyday purchases, ranging from 1% – 2% depending on the card you choose. They usually have bonus rewards when shopping from over 200 eligible partner merchants. The World Elite version also offer comprehensive 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.