Travelling abroad can be exciting, but for Canadian travellers, the costs add up quickly. Beyond flights, hotels, and dining, hidden charges on your credit card can quietly drain your budget. For years, the 2.5% foreign transaction fee has been a standard cost Canadians pay when using their cards outside the country. Recently, however, more banks and card providers are offering “no foreign transaction fee” credit cards. The question is—are these cards truly saving you money, or are the savings masked by other fees and conditions?
This guide explores the reality of a no-foreign-transaction-fee credit card in Canada, what to look out for, and which cards actually deliver meaningful value.
Understanding the Foreign Transaction Fee
Most Canadian credit cards charge a 2.5% foreign transaction fee on purchases made in another currency. This applies whether you’re shopping in person abroad or buying online through platforms like AliExpress Canada or Expedia Canada.
For example, if you spend $1,000 in Europe, you could pay an extra $25 in foreign transaction fees. Over the course of a two-week trip, these fees can stack up to hundreds of dollars. Eliminating them sounds appealing, but you must look deeper. Some cards that waive these fees may carry higher annual costs, stricter eligibility requirements, or reduced reward flexibility.
The Marketing Behind “No Foreign Transaction Fee”
Banks know travellers are sensitive to hidden charges. By offering a card with no foreign transaction fees, issuers can position their product as travel-friendly. But the real question is: do the benefits outweigh the costs?
A card that removes this fee but charges a steep annual fee could cancel out your savings unless you travel frequently. Similarly, cards may offer fewer reward accelerators, making it harder to earn back value. As a traveller, you must compare both costs and benefits, not just the absence of one fee.
What to Look for in a No-Fee Travel Card
When evaluating a no foreign transaction fee credit card in Canada, consider more than just the waived fee. Ask yourself:
- Does the card offer meaningful travel rewards, like Scene+ points or Aeroplan miles?
- Are the annual fees reasonable compared to the savings?
- Do you get additional perks such as travel insurance, lounge access, or purchase protection?
- Is there flexibility in redeeming rewards with partners like Expedia Canada or for everyday categories like groceries and dining?
Cards that bundle travel insurance, airport lounge access, and concierge services can provide value beyond currency savings, making them stronger choices for frequent travellers.
Cards That Actually Deliver
Not all “no fee” promises are equal. Here are three Canadian cards that truly waive foreign transaction fees while offering real travel benefits.
Scotiabank Passport® Visa Infinite Card
The Scotiabank Passport® Visa Infinite Card is one of the most well-rounded options for travellers. It offers:
- No foreign transaction fees, saving you 2.5% on every purchase abroad.
- Up to $1,350 in first-year rewards and savings, including 45,000 Scene+ points.
- Six complimentary airport lounge passes.
- Comprehensive travel insurance and Visa Infinite concierge services.
With an annual fee of $150 and strong earn rates on groceries, dining, entertainment, and transit, this card is designed for Canadians who travel often. For those booking hotels, car rentals, or excursions through Scene+ Travel (powered by Expedia), rewards accelerate even further.
Scotiabank Gold American Express® Card
The Scotiabank Gold American Express® Card stands out for food and entertainment lovers. It offers:
- No foreign transaction fees.
- Up to $1,050 in first-year value, including 50,000 Scene+ points and waived annual fee for year one.
- Strong earn rates: 6x Scene+ points at Sobeys and Safeway, 5x on dining, food delivery, and entertainment, 3x on transit and streaming, and 1x on everything else.
If you regularly spend on dining, streaming services, or transit, this card provides strong value. Travel redemptions through Scene+ Travel, powered by Expedia, or at Cineplex provide the best return. The waived fee is particularly helpful for online purchases from merchants like Dell Canada.
Scotiabank Platinum American Express® Card
For Canadians who want premium benefits, the Scotiabank Platinum American Express® Card offers:
- No foreign transaction fees.
- Up to $2,500 in first-year value, including 80,000 Scene+ points.
- Ten complimentary airport lounge passes per year.
- Comprehensive travel and mobile device insurance.
Although its annual fee of $399 is higher, frequent travellers can benefit from the broad perks and strong earn rates. This card helps maximize spending, whether you’re booking with Expedia Canada or redeeming Scene+ points for travel.
Balancing Rewards and Reality
While no foreign transaction fee cards appear to save you money, remember that each benefit is balanced by cost. A lower annual fee may reduce travel perks, while a premium card may require higher income or credit score eligibility.
Ultimately, the best choice depends on how you spend. If you rarely travel, a cash back card like the Tangerine Cash Back Card may offer stronger domestic value. But if you travel abroad multiple times per year, the Scotiabank travel cards listed above will likely save you more than their fees.
Maximize Savings with Great Canadian Rebates
The truth about a no foreign transaction fee credit card in Canada is simple: it helps, but the real savings come when you combine the right card with smart shopping strategies. This is where Great Canadian Rebates makes the difference.
By shopping through Great Canadian Rebates, Canadians earn cash back and gain access to thousands of exclusive deals. Whether you’re booking hotels on Expedia Canada or applying for a premium product like the Scotiabank credit card, the savings multiply when combined with GCR rebates.
Great Canadian Rebates updates deals regularly, ensuring members save on more than just travel. With easy direct deposit or eGift card payout options, rewards are tangible and accessible.