Canadian Cards with no Foreign Transaction Fees
#1
Original Poster
Join Date: Oct 2003
Location: YVR
Programs: WS Platinum, former AC E35K
Posts: 6,335
Canadian Credit cards with no FX transaction fees?
Girlfriend and I are going traveling for 6 months to Asia, Europe and Africa. We're looking to get a credit card that does not have foreign transaction fee's, or at least fee's lower than the standard 2.5 / 3%.
All I can find are US CC's that have zero transaction fee's, but nothing for Canadian residents. Any suggestions?
thanks for your help.
All I can find are US CC's that have zero transaction fee's, but nothing for Canadian residents. Any suggestions?
thanks for your help.
#2
Join Date: Aug 2008
Location: YXY
Posts: 3,504
Canadian Cards with no Foreign Transaction Fees
For Canada, I've found this chart published by the Financial Consumer Agency Canada
http://www.fcac-acfc.gc.ca/eng/resou...eesTab-eng.asp
The only 0% one is Home Trust - but there you need a credit line based on your property and there is a 3% entry fee. 3% of the credit line, that is. Ouch.
Peoples Trust is next in line with 1% - but their website only offered prepaid and secured card.
Next is Desjardins (and some Credit Unions that sell Desjardins card as well) with 1,8%, followed by Diners Club Platinum at 2% (but DC has not been opening new accounts for at least two years, maybe they'll restart as BMO is now taking over operations), the Vancity Credit Union and the Citizens Bank of Canada at 2% as well.
Most come in at 2,5%, but beware of ATB at 2,9% and TD at 5%!
Looking at the chart I realise that many banks charge you hefty fees if you pay "Bets, Lottery Tickets or Casino Gaming Chips". Wow, I had no idea.
http://www.fcac-acfc.gc.ca/eng/resou...eesTab-eng.asp
The only 0% one is Home Trust - but there you need a credit line based on your property and there is a 3% entry fee. 3% of the credit line, that is. Ouch.
Peoples Trust is next in line with 1% - but their website only offered prepaid and secured card.
Next is Desjardins (and some Credit Unions that sell Desjardins card as well) with 1,8%, followed by Diners Club Platinum at 2% (but DC has not been opening new accounts for at least two years, maybe they'll restart as BMO is now taking over operations), the Vancity Credit Union and the Citizens Bank of Canada at 2% as well.
Most come in at 2,5%, but beware of ATB at 2,9% and TD at 5%!
Looking at the chart I realise that many banks charge you hefty fees if you pay "Bets, Lottery Tickets or Casino Gaming Chips". Wow, I had no idea.
#3
Join Date: Nov 2010
Location: Vancouver, Canada
Posts: 56
Canadian Cards Without Foreign Exchange Fees
Is anyone aware of a Canadian credit card without a foreign exchange fee? I recently applied for the Capital One Aspire Mastercard for travel (love the 2% return!) and was told that all Canadian cards have the fee (usually 2.5% added into the exchange rate). Is this true? Oh you Americans have it so good with your wide variety of options !
http://thetraveltot.com
http://thetraveltot.com
#4
Join Date: Nov 2010
Location: Vancouver, Canada
Posts: 56
Love the chart sokolov. Thank you.
http://thetraveltot.com
http://thetraveltot.com
Last edited by thetraveltot; Nov 7, 2011 at 10:26 pm
#5
Join Date: Aug 2008
Location: YXY
Posts: 3,504
You are most welcome. I confirmed today that there is no need to have a bank account with Desjardins (or their respective Credit Union partners such as Coast Capital) to apply for their credit cards.
I think the Desjardins Elegance GOLD VISA is a nice secondary card (if you have something upmarket like an Amex Gold Rewards already).
I think the Desjardins Elegance GOLD VISA is a nice secondary card (if you have something upmarket like an Amex Gold Rewards already).
#6
Join Date: Sep 2007
Posts: 415
That is a misprint in the chart. TD's rate is 2.5% as stated in their own documentation, and also based on my experience as a longtime customer.
As for the Desjardins products, the Odyssey and Platinum cards both give you 2% cashback (or Bonusdollars, as their reward scheme is called) on foreign currency transactions. This effectively nulls the 1.8% forex commission. Unfortunately, you do have to pay an annual fee for those cards, but if you investigate the insurance coverages and other details of the Desjardins cards, you might find them to be very worthwhile travelling companions.
In general though, Canadian banks/card issuers have escaped the scrutiny and forced disclosures that many lawsuits have brought to light in our southern neighbour. As a result, Canadian cards (both credit and debit) are terrible for harbouring all manner of hidden fees, as the chart you have linked to well shows you.
As for the Desjardins products, the Odyssey and Platinum cards both give you 2% cashback (or Bonusdollars, as their reward scheme is called) on foreign currency transactions. This effectively nulls the 1.8% forex commission. Unfortunately, you do have to pay an annual fee for those cards, but if you investigate the insurance coverages and other details of the Desjardins cards, you might find them to be very worthwhile travelling companions.
In general though, Canadian banks/card issuers have escaped the scrutiny and forced disclosures that many lawsuits have brought to light in our southern neighbour. As a result, Canadian cards (both credit and debit) are terrible for harbouring all manner of hidden fees, as the chart you have linked to well shows you.
#7
Join Date: Apr 2007
Location: Toronto, Ont., Canada
Programs: Aeroplan; Marriott Platinum; IHG Platinum; Best Western Diamond
Posts: 2,132
When travelling, Amex cards are bad for foreign conversions. They first convert to USD, then to Cad. So you get hit with bad conversion rates twice, and the 2.5%.
In that sense, all non-Amex cards are better.
In that sense, all non-Amex cards are better.
#8
Join Date: Jan 2011
Location: YYZ
Posts: 765
The only td card that has no USD transaction fees is their TD U.S. Dollar Visa Card. But I guess it depends how much you actually use to make it worth while.
I've been with MBNA for awhile as well, and I think they were one of the last CC to begin charging a fee.
#10
Join Date: Sep 2007
Posts: 415
CapitalOne is a nice example of the dichotomy. As I understand it, CapitalOne has never charged forex fees on their US cards, yet have always happily done so on all their Canadian cards. If any issuer was likely to scrap the forex fee, I'd wager on CapitalOne doing it first.
#11
Join Date: Dec 2009
Location: NB, Canada
Programs: Fairmont, Amex MR, Marriott
Posts: 2,531
Very doubtful. If I understand it correctly, in the US a variety of legal actions forced the issuers/banks to clearly divulge in the monthly bills the forex fees they were charging customers. In Canada no such legal action has taken place, so most of the banks/issuers continue to bury the details of forex fees deep inside the legalese of the T&Cs, and hide the real cost of using cards overseas from consumers. Until Canadian banks are forced into the same position that US banks were forced into it is very, very unlikely that any issuer will reduce the Forex fee.
We have protected our banks mercilessly here in Canada, which has made them stronger, and much more expensive. Could be argued either way that this is good or bad.
#12
A FlyerTalk Posting Legend; Moderator: American Express, Capital One, Citi, Chase, Credit Card Programs, Diners Club, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
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Posts: 48,884
American Express has not been a market leader on this front, waiving the transaction fees only on expensive Platinum and Centurion cards. Chase and Citi have extended this down into the mid-priced cards, while Capital One does it system-wide. I would be surprised to see American Express remove this fee in other markets unless an issuer who competes for the same demographic does it first. Unfortunately it appears BMO has no plans to eliminate it on their Diners Club cards.
#13
Join Date: Dec 2009
Location: NB, Canada
Programs: Fairmont, Amex MR, Marriott
Posts: 2,531
As a datapoint, I just spent a few days in Maine and Massachusetts and Amex was generally about 0.2 cents better on the exchange rate than BMO mastercard.
Did not track the actual exchange rate, just the difference between the two cards.
Did not track the actual exchange rate, just the difference between the two cards.
#15
A FlyerTalk Posting Legend; Moderator: American Express, Capital One, Citi, Chase, Credit Card Programs, Diners Club, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,884
The published terms show a 2.5% fee. The fee may be built into the exchange rate and not itemized separately:
https://www.cibc.com/ca/credit-cards...es-n-fees.html
https://www.cibc.com/ca/credit-cards...es-n-fees.html