If you regularly make purchases denominated in the U.S. dollar as I do, you may have considered getting a U.S. dollar credit card or one that waives the foreign currency transaction fees.
Credit cards that waive the foreign currency conversion markup save you 2.5% in fees per transaction. However, they are not the perfect solution if you travel to the U.S. often or are one of many snowbird Canadians who flee Canada during the winter months.
The reason for this is that credit card issuers still ding you with a poor currency exchange rate that negatively impacts your purchasing power.
On the other hand, a U.S. dollar credit card means you are spending U.S. dollars, and no currency conversion is required for your US purchases. With these cards, you save the foreign transaction fee, and you can afford to forget what the current USD-CAD exchange rate is.
Best U.S. Dollar Credit Cards in Canada
Are you looking for the best U.S. dollar credit cards for those living in Canada? Here are five top-rated U.S. dollar credit cards issued by banks in Canada.
1. BMO U.S. Dollar Mastercard
- Annual fee: $35 USD (waived when some conditions are met)
- Purchase APR: 20.99%
- Cash Advances: 22.99%
The BMO U.S. Dollar Mastercard comes with a $35 annual fee. When you spend $1,000 USD or more in a year, the annual fee is waived in the following year.
The card comes with:
- Extended warranty and purchase protection.
- 24-hour out-of-country emergency assistance through Global Assist.
- Broad acceptance at more than 30 million locations in the U.S., Canada, and elsewhere.
2. Scotiabank U.S Dollar Visa Card
- Annual fee: $35 USD
- Purchase rate: 19.99%
- Cash Advances: 22.99%
If you travel to the U.S. or if you shop online at U.S. stores, the Scotiabank U.S. Dollar Visa Card is worth looking at.
It saves you on the foreign currency conversion fee and also provides purchase security and extended warranty coverage. Supplementary cards for additional authorized users are free, and you can save up to 25% on car rentals at AVIS and Budget locations.
3. TD U.S. Dollar Visa Card
- Annual fee: $39 USD
- Purchase APR: 19.99%
- Cash Advances: 22.99%
The TD U.S. Dollar Visa Card costs $39 annually. It offers trip interruption insurance, emergency travel assistance, travel accident, and delayed and lost baggage insurance.
In addition, this card comes with:
- Auto rental collision/loss damage insurance.
- 5% to 10% discount at AVIS and Budget car rental locations.
- Purchase security and extended warranty.
4. RBC U.S. Dollar Visa Gold
- Annual fee: $65 USD
- Purchase APR: 19.99%
- Cash Advances: 22.99%
The RBC U.S. Dollar Gold Card is a bit more expensive at $65 USD per year; however, it does offer some perks to offset the cost:
- Earn 1 Avion point per $1 USD spent.
- Travel accident, auto rental collision/loss damage, trip cancellation/trip interruption, and emergency purchases insurance.
- Purchase security and extended warranty.
Note that each supplementary card costs $30 USD.
5. CIBC U.S. Dollar Aventura Gold Visa
- Annual fee: $35 USD
- Purchase APR: 20.99%
- Cash Advances: 22.99%
- Income requirement: $15,000 minimum
The CIBC U.S. Dollar Aventura Gold Visa offers:
- Auto rental collision/loss damage insurance
- Accident insurance
- Purchase security and extended warranty
New cardholders can earn up to 10,000 Aventura points if they meet certain conditions.
U.S. Dollar Credit Cards in Canada Summary
| Credit Card | Annual Fee |
| BMO U.S. Dollar Mastercard | $35 |
| Scotiabank U.S. Dollar Visa Card | $35 |
| TD U.S. Dollar Visa Gold Card | $39 |
| RBC U.S. Dollar Visa Gold Card | $65 |
| CIBC U.S. Dollar Aventura Gold Visa Card | $35 |
Benefits of U.S. Dollar Credit Cards in Canada
- Ideal for frequent travellers to the U.S. or online shoppers who purchase from U.S. websites.
- Some cards offer travel rewards, cash back, or other incentives on U.S. dollar purchases.
- U.S. dollar bills can be paid directly from a U.S. dollar bank account, eliminating conversion fees.
- They may offer additional perks such as concierge services, purchase protection, and extended warranty coverage.
- Enjoy Visa or Mastercard zero liability insurance for unauthorized transactions.
Downsides of U.S. Dollar Credit Cards
- Foreign transaction fees may still apply for non-U.S. purchases.
- Many US dollar credit cards don’t offer cash back rewards.
- Not all Canadian banks offer U.S. dollar credit cards, which can limit your options.
- Some cards have higher annual fees compared to similar Canadian dollar cards.
- If you’re not earning in U.S. dollars, you’ll need to exchange your Canadian dollars, which could involve conversion fees.
U.S. Dollar Credit Cards vs. No Foreign Transaction Fee Cards
U.S. dollar credit cards simply do not involve any foreign conversions when you make U.S. dollar purchases. A U.S. dollar card makes sense when you already have a US dollar bank account that you can use to pay off your credit card balance directly.
A no-foreign transaction fee credit card pays for your U.S. dollar or other foreign currency transactions using Canadian dollars at the exchange rate in effect at the time of your payment. They waive the foreign transaction fee of 2.5% or more.
A no-FX markup credit card is helpful if you only make occasional U.S. purchases and/or you do not have a U.S. dollar bank account.
Popular no-FX cards include:
- Scotiabank Gold AMEX Card
- KOHO Extra Mastercard
- Scotiabank Passport Visa Card, and
- Home Trust Preferred Visa
Best U.S. Dollar Credit Cards in Canada
Overall
Summary
The best US dollar credit cards in Canada make it easier for you to make purchases using USD while also saving you on foreign currency transaction fees.
To avoid the 2.5% forex fee, I use Brim Mastercard Card in Canadian dollars with no annual fee. They don’t charge any foreign fee.