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.
Table of Contents Show
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.
- KOHO Extra Mastercard
- EQ Bank Card
- CIBC AC Conversion Prepaid Card
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:
N/A
None
APPLY NOW
On KOHO’s website
- Earn up to 6% cash back on purchases at partnered merchants and a higher minimum cash back rate on most purchases.
- Earn 2% high interest on your balance.
- No foreign exchange fees.
- Get priority user support.
- Get access to a financial coach to answer financial questions.
- Get one free withdrawal per month at an international ATM.
- Easily subscribe to credit building and improve your credit score.
Earn up to 5% cashback
No foreign exchange fees
No interest fees
Must pay a monthly or annual fee
Cash back rate is not as high as some cards
The KOHO Premium Prepaid Mastercard offers cashback on all purchases and pays interest on your balance. Waivers for foreign exchange fees and a free international ATM withdrawal make it a suitable option for travellers.
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
Rating
Join for freeRead review
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
Rating
VISIT EQ BANKRead review
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
Rating
VISIT CIBCRead review
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:
760
900
Very Good
APPLY NOW
On Scotiabank’s website
- Earn 3x Scene+ points for shopping at select grocery stores, including Sobeys and Safeway.
- Earn 2x points on dining, select grocery stores, entertainment venues and eligible transit options.
- Earn 1 point for all other eligible purchases.
- No foreign transaction fees on purchases overseas.
- Includes Avis® Preferred Plus membership.
- Access to over 1,200 global airport lounges with the Visa Airport Companion Program.
- Comprehensive travel insurance benefits are included.
- A minimum annual income of $60,000 or a minimum household income of $100,000 is required.
Earn up to 3x Scene+ points
No foreign transaction fees
Premium perks like travel insurance included
High-income requirement of $60,000
$150 annual fee
The Scotiabank Passport Visa Infinite Card is a great option for anyone who wants to earn Scene+ points on their purchases. Zero foreign exchange fees, comprehensive travel insurance coverage, and Visa Airport Companion Program membership also make it a good option for travelers.
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 and no annual fee for the first year.
Interest rates: 20.99% for purchases, 22.99% for cash advances.
Minimum income requirement: $12,000
Recommended credit score:
660
900
Good
APPLY NOW
On Scotiabank’s website
- Zero foreign transaction fees when travelling overseas or shopping abroad.
- Earn 6x Scene+ points at select grocery stores, including Sobeys and Safeway.
- Earn 5x points on dining or food delivery at select stores and restaurants as well as select movies, theatres and ticket agencies.
- Earn 3x points on eligible gas and transit purchases.
- Earn 1 point for every $1 CAD spent on eligible purchases.
- Comprehensive travel insurance benefits and extended warranty protection are included.
- Priority Pass™ membership discount to access VIP lounges.
- Amex Offers® including deals on shopping, travel and dining.
- Access to Front Of The Line® presale tickets to concerts, restaurants and events.
- Minimum annual income of $12,000 required.
Earn up to 6x Scene+ point
Lots of premium perks included
No foreign transaction fees
Low income eligibility at $12,000
Expensive annual fee
$29 fee for each additional card
Scotiabank Gold American Express Card provides a great opportunity to earn Scene+ points on all purchases and extra points on select purchases. Its zero foreign transaction fees and travel insurance coverage make it a good choice for travellers.
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
What is a foreign transaction fee?
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%.
Are there any other fees associated with using a no foreign transaction fee debit card?
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.
Can I use a no foreign transaction fee debit card to withdraw cash from ATMs overseas?
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.
Do no foreign transaction fee debit cards offer rewards?
Some no foreign transaction fee debit cards offer cash back, such as the KOHO Extra Mastercard. It also waives one foreign ATM withdrawal monthly.
How do I avoid ATM fees when using a no foreign transaction fee debit card?
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.