Quick answer
Most Canadian credit cards charge a foreign transaction (FX) fee of about 2.5% on purchases in a foreign currency. On $3,000 of spending abroad, that’s $75. The fee often cancels out the rewards you earn on those purchases. A card with no FX fee, such as the Scotiabank Passport Visa Infinite, removes it.
Last updated: October 2026. Card terms and program rules change. Figures come from issuer pages and published reviews checked in October 2026. Confirm details with the issuer before you apply.
What do these fees cost you each year?
Try the foreign transaction fee calculator →What the fee is
When you pay in a currency other than Canadian dollars, your card network converts the amount, and your issuer adds a percentage on top. On most Canadian cards that percentage is 2.5%. It shows up either as a separate line on your statement or built into the converted amount.
What it costs
| Foreign-currency spending | Fee at 2.5% |
|---|---|
| $1,000 | $25 |
| $3,000 | $75 |
| $6,000 | $150 |
| $10,000 | $250 |
Why it matters for rewards
On foreign-currency purchases, a typical rewards card can leave you slightly behind.
When it applies
- Purchases made in another country in the local currency.
- Online purchases charged in a foreign currency, even if you never leave Canada.
- Hotel and car rental charges billed in a foreign currency.
- Refunds are converted at the rate on the day of the refund, which may differ from the original rate.
How to avoid or reduce it
- Use a card with no FX fee for foreign-currency spending. The Scotiabank Passport Visa Infinite is one example.
- Pay in the local currency when a terminal or website offers to charge you in Canadian dollars. That offer, called dynamic currency conversion, usually uses a worse exchange rate.
- Check the currency before you pay online. Some foreign sites let you choose Canadian dollars at checkout; compare against your card’s rate.
- Keep your no-FX card for travel only if its everyday earn rates are lower than your main card.
Is a no-FX card worth an annual fee?
Divide the card’s annual fee by 2.5% to find the spending where FX savings alone cover it. For a $150 fee, that’s $6,000 a year in foreign-currency purchases. Below that, count the card’s other perks, such as lounge visits or travel insurance, before deciding. If your card earns points rather than cash, turn its earn rate into a percentage first using cents per point.
Frequently asked questions
Do all Canadian credit cards charge a foreign transaction fee?
Most do, typically 2.5%. A smaller number of cards waive it; check the card’s rates and fees page.
Does the fee apply when I shop online from Canada?
Yes, if the merchant charges you in a foreign currency. The fee depends on the currency, not where you are.
Should I pay in Canadian dollars when a terminal offers it abroad?
Usually not. Paying in the local currency lets your card network do the conversion, which is typically cheaper than the merchant’s rate.
Related: the short definition of foreign transaction fees in our credit card rewards glossary.