When travelling abroad, you can save money big time by using a no foreign transaction fee credit card or a debit card that waives this fee.
No foreign transaction fee debit cards make it easy to access cash at ATMs and pay for goods and services without getting hit with a constant barrage of foreign transaction surcharges.
Read on to learn about your top 3 debit card options for avoiding FX fees in Canada.
Best No Foreign Transaction Debit Cards of 2023
These Mastercard and Visa cards are prepaid cards that combine the benefits and features of credit and debit cards.
1. KOHO Extra Mastercard
- Foreign transaction fee: None
- Free international ATM: 1/month
- Monthly fee: $9 or $84 per year
- Rewards: Up to 5% cashback
The KOHO Extra Mastercard is a prepaid rewards card that offers up to 5% cashback on all purchases (both locally and abroad).
It comes with a unique-looking physical card and a virtual card for quick online payments.
Users earn 2% interest on their balance, making this one of the best savings accounts in Canada.
When you spend abroad using the KOHO Extra Mastercard, you don’t pay FX fees. You can also make one free international ATM withdrawal each month.
A KOHO Card can be funded using direct deposit or e-Transfer.
When you sign up for the KOHO Card using our promo code CASHBACK and make a purchase, you receive a $20 bonus.
KOHO Extra (Premium) Prepaid Mastercard
Best premium prepaid card in Canada
Annual fee: $9/month or $84/year
Rewards: Earn 2% cashback on 3 categories of spending, and earn 0.5% cash back on other purchases. Up to 6% cash back at partner retailers.
Welcome offer: $20 sign-up bonus when you enter our CASHBACK promo code.
Interest rates: 0%
Minimum income requirement: None
Recommended credit score:
None
On KOHO’s website
Alternatively, you can get the KOHO Easy Mastercard if you don’t want to pay monthly fees.
The free card offers 1% cash back on groceries and transportation plus 0.50% interest on your balance.
It also waives a portion of the transaction fee. Instead of a typical 2.50%, you pay 1.5%.
KOHO Easy Prepaid Mastercard
$20 sign-up bonus after first purchase
Earn up to 5% cash back
0.50% savings interest on your balance
$0 monthly fee
2. EQ Bank Card
- Foreign transaction fee: None
- Free international ATM: 0
- Monthly fee: $0
- Rewards: 0.50% cashback
The EQ Bank Card can be paired with an EQ Bank Savings Plus Account and used for free withdrawals at any ATM in Canada.
This Mastercard offers 0.50% cashback on all purchases and pays 2.50% interest on your balance.
In addition to having no monthly fees, the EQ Bank Card waives foreign transaction fees.
To get the card, open a free Savings Plus Account online and fund it using direct deposit, cheque, or by connecting a bank account at another financial institution.
EQ Bank Card
Earn 2.50%* interest on your balance
0.50% cash back on purchases
No monthly account or FX fees
Free ATM withdrawals
3. CIBC AC Conversion Visa Prepaid Card
- Foreign transaction fee: None or 2.5% (there are fees for loading money)
- Monthly fee: $0
- Free international ATM: 0
- Rewards: 1% cashback
The CIBC AC Conversion Card holds up to 10 currencies, including CAD, USD, AUD, EUR, GBP, MXN, HKD, JPY, TRY, and CHF.
This makes the card useful for spending foreign currencies like a local in 45 countries.
When paying using a currency loaded on the card, FX fees do not apply. If you need to convert currencies to make a payment, the standard 2.50% FX fee applies.
This card pays a 1% cashback for a limited time.
CIBC AC Conversion Visa Card
Earn 1%* cashback on purchases
Holds 10 currencies at once
No monthly account fees
Enjoy Visa’s Zero Liability
Credit Cards With No Foreign Transaction Fees
These premium credit cards waive foreign transaction fees.
Scotiabank Passport Visa Infinite
- Foreign transaction fee: None
- Annual card fee: $150
- Minimum income eligibility: $60,000
- Cashback rewards: Up to 3%
The Scotiabank Passport Visa Infinite Card comes with comprehensive travel insurance, airport lounge access, and more. It also waives foreign transaction fees.
Scotiabank Passport Visa Infinite Card
Best for no FX fees and travel perks
Annual fee: $150
Rewards: Earn 3x Scene+ points on eligible grocery purchases, 2x pts. on dining, entertainment and transit, and 1x pts. on everything else.
Welcome offer: Up to 40,000 bonus Scene+ points and no annual fee for the first year.
Interest rates: 20.99% for purchases, 22.99% for cash advances.
Minimum income requirement: $60,000
Recommended credit score:
Very Good
On Scotiabank’s website
Scotiabank Gold American Express Card
- Foreign transaction fee: None
- Annual card fee: $120
- Minimum income eligibility: None
- Cashback rewards: Up to 6%
The Scotiabank Gold Amex Card offers comprehensive travel benefits, insurance, and discounted Priority Pass membership. It also waives the 2.5% fee on foreign currency purchases.
Scotiabank Gold American Express Card
Best travel credit card in Canada
Annual fee: $120
Rewards: Earn up to 6x Scene+ points on groceries, 5x pts. on dining, food delivery, & entertainment, 3x pts. on gas, and 1x pts. on everything else.
Welcome offer: Get up to 40,000 bonus Scene+ points in the first 12 months.
Interest rates: 20.99% for purchases, 22.99% for cash advances.
Minimum income requirement: $12,000
Recommended credit score:
Good
On Scotiabank’s website
What is a No Foreign Transaction Fee Debit Card?
A no foreign transaction fee debit card is a type of debit card (or prepaid card) that does not charge extra fees when used for making purchases in a foreign country or in a foreign currency.
Typically, debit and credit cards charge a 2.50% to 3% fee when used outside of your home country.
No foreign transaction fee debit cards are excellent options for people who frequently travel or shop on foreign merchants online.
Benefits of a Debit Card With No Foreign Transaction Fees
The pros of a no foreign transaction fee debit card include:
- Save on FX fees online, in-person, and when withdrawing at an ATM.
- More convenient than carrying cash.
- Offers security via Visa and Mastercard’s Zero Liability.
- Some pay cash back and offer other rewards.
- They are widely accepted.
- You won’t be paying cash advance fees.
Downsides of a No Foreign Transaction Fee Debit Card
The cons of these debit cards include:
- No access to a line of credit.
- You may still be charged an operating fee by ATMs when you withdraw cash.
- Currency conversion rates are not always favourable.
- There are limited perks compared to premium credit cards.
- It may be more difficult to recover lost funds from a debit account compared to a credit card.
FAQs
A foreign transaction fee is a fee charged by banks or credit card issuers for transactions made in a foreign currency or outside of your home country. The fee is typically a percentage of the total transaction amount, ranging from 1.5% to 3%.
While a no foreign transaction fee debit card does not charge extra fees for foreign transactions, you may still be subject to ATM fees and currency conversion fees.
Yes, you can use your no foreign transaction fee debit card to withdraw cash from ATMs abroad. ATM fees and currency conversion fees may apply.
Some no foreign transaction fee debit cards offer cash back, such as the KOHO Extra Mastercard. It also waives one foreign ATM withdrawal monthly.
To avoid ATM fees when using a no foreign transaction fee debit card, look for ATMs that are part of your bank’s network or that have agreements with your bank to waive or reduce fees. You can also try to withdraw larger amounts of cash at one time to minimize the number of transactions and fees.
