Millions of Canadians travel abroad with their domestic credit cards—and not realizing they’re racking up foreign transaction (also called “forex”) fees with every purchase. The 2.5% charged for every purchase you make in a foreign currency might not seem much, but can add up very quickly. For perspective, that’s $25 in forex fees for every $1,000 you spend on your card, and you have to pay the exchange rate as well.
If you like to explore other countries on vacation or your work frequently takes you abroad, it’s worth considering a card that travels with you.
The good news is there are a few credit cards that offer no foreign transaction fees (or their fees are returned to you as cash back), ultimately helping frequent travellers put the 2.5% back into their pockets. These picks are based on our analysis of each card’s benefits and annual fees; foreign transaction fees and how they’re handled (if rebated); and whether there are additional rewards incentives for using the card domestically and/or abroad.