Credit Cards with No Foreign Exchange Fee

[phd1969]

My AMEX charges 2.2% for purchases made in foregin exchanges. Just wondering if there are cards that have no such fee.

[Prospero]

My AMEX charges 2.2% for purchases made in foregin exchanges. Just wondering if there are cards that have no such fee.

Not that I am aware of. The lowest commission fee I know of is Desjardins Visa at 1.8% for all their cards followed by Citibank at 2% and American Express at 2.2%. Most other lenders in Canada charge 2.5%.

[Aske001]

I've looked into it before as well, and didn't find any. FYI, the international debit card networks also charge you a similar exchange fee if you withdraw cash in another country from a local bank machine. This is quite a ripoff considering that they're already getting a bank exchange fee averaging 1.5%, and a merchant fee averaging 2.5 - 3 %.

Also take note that this year the major credit cards have also changed their policy so that they charge the exchange fee both ways on a cancelled transaction rather than fully refunding it. So let's say you put an advance deposit of US$100 on something on your credit card, then pay cash and have them reverse the original charge. Your credit card company will charge you $5 for the original transaction and the reversal.

Ways of getting around this:
1. Get a US$ credit card for US$ transactions. You pay a fixed annual fee of $45 - $90 per year, but it can save you about 4% - worth it if you travel a lot or buy a lot of stuff from the U.S.. Account payments can be incovenient though, since most Cdn banks have no mechanism to let you pay off your US$ credit card from a US$ account in the same bank!
2. Carry cash and pay cash. Riskier, and every country has varying silly restrictions on how much cash you can carry, designed to prevent "off the books" transactions like money laundering and drug dealing.

[st7860]

My AMEX charges 2.2% for purchases made in foregin exchanges. Just wondering if there are cards that have no such fee.

Get a US Dollar credit card from CIBC or TD Bank.


Also there is no restriction on the amount of cash you can carry to and from the USA. However, you do need to report the amount to the government if it is over $10,000.

[PC-stuff]

...
1. Get a US$ credit card for US$ transactions. You pay a fixed annual fee of $45 - $90 per year, but it can save you about 4% - worth it if you travel a lot or buy a lot of stuff from the U.S.. Account payments can be incovenient though, since most Cdn banks have no mechanism to let you pay off your US$ credit card from a US$ account in the same bank!
....

Both RBC (visa) and Citibank (mastercard) US $ credit cards can be paid automatically (or online) with a TD US $ bank account. I would guess TD's own $ US card would work just as well.

BTW : You may be able to get the annual fee waived in the 2nd year on if you are
a "good customer".

[st7860]

if you live near the US border, you can go to the Bank of America or USBank and get an ordinary checking account. Those two banks(border branches)(and most any bank, including small one) will EASILY open accounts for Canadians. a SOCIAL SECURITY NUMBER is not needed, you simply sign some 'W' forms stating you are not a US person. You can use your CANADIAN mailing address.

Within 1 or 2 weeks, they will courier you a VISA check card that you can use for online purchases. since its a USD card, there is no exchange fee.

WARNING: Bank of America does not do credit checks(they only check to see if you bounced a check anywhere), but SMALLER US banks do check your credit history.

[Aske001]

Both RBC (visa) and Citibank (mastercard) US $ credit cards can be paid automatically (or online) with a TD US $ bank account. I would guess TD's own $ US card would work just as well.

I asked TD that very question only a few months ago when I was looking for a new US$ card, and they said "No, you can't pay your US$ TD Visa card directly from your US$ TD bank account.", although they offered to do the transaction manually for me if I called them up and asked nicely.

So why on earth would they let you pay RBC and Citibank online, but not their own card?? Have you actually done this?

[tkyoshi]

if you live near the US border, you can go to the Bank of America or USBank and get an ordinary checking account. Those two banks(border branches)(and most any bank, including small one) will EASILY open accounts for Canadians. a SOCIAL SECURITY NUMBER is not needed, you simply sign some 'W' forms stating you are not a US person. You can use your CANADIAN mailing address.

Within 1 or 2 weeks, they will courier you a VISA check card that you can use for online purchases. since its a USD card, there is no exchange fee.

WARNING: Bank of America does not do credit checks(they only check to see if you bounced a check anywhere), but SMALLER US banks do check your credit history.

Just keep in mind that it's NOT a credit card, but works just like one. As long as you have money in your account you're good to go.

[ALsat]

I asked TD that very question only a few months ago when I was looking for a new US$ card, and they said "No, you can't pay your US$ TD Visa card directly from your US$ TD bank account.", although they offered to do the transaction manually for me if I called them up and asked nicely.

So why on earth would they let you pay RBC and Citibank online, but not their own card?? Have you actually done this?

I don't have a USD CC but I have 2 USD accounts.

I don't understand the principle behind their not allowing USD CC payments... :confused: If the USD account is a chequing account then theoretically it should work, no? :|

[faizalm]

if you live near the US border, you can go to the Bank of America or USBank and get an ordinary checking account. Those two banks(border branches)(and most any bank, including small one) will EASILY open accounts for Canadians. a SOCIAL SECURITY NUMBER is not needed, you simply sign some 'W' forms stating you are not a US person. You can use your CANADIAN mailing address.

Within 1 or 2 weeks, they will courier you a VISA check card that you can use for online purchases. since its a USD card, there is no exchange fee.

WARNING: Bank of America does not do credit checks(they only check to see if you bounced a check anywhere), but SMALLER US banks do check your credit history.

say if i live in far from the US border and i travel alot to US, will i still be able to get the checkcard from bank of america?

and i believe it works like normal cheqing account (what u put in is what u get)... correct?

[jerryhung]

I asked TD that very question only a few months ago when I was looking for a new US$ card, and they said "No, you can't pay your US$ TD Visa card directly from your US$ TD bank account.", although they offered to do the transaction manually for me if I called them up and asked nicely.

So why on earth would they let you pay RBC and Citibank online, but not their own card?? Have you actually done this?

That's what TD told me too, can't pay USD CC with TD USD Chequing account (which is stupid)

Yes, my question too, are you sure you can pay RBC/Citi USD CC from TD?
Or you were with REAL TD US Account (ie. TD Waterhouse US division), which is not open to new clients now?
That one is true USD account in USA (vs. USD account in Canada)

[st7860]

say if i live in far from the US border and i travel alot to US, will i still be able to get the checkcard from bank of america?

and i believe it works like normal cheqing account (what u put in is what u get)... correct?

,yes it works like a prepaid checking account. and if you use Bank of America, Scotiabank ATM's in Canada have FREE withdrawals because they joined an alliance with BoA.

You can live far from the US border too. the Bank of American or other border banks don't care. I just mentioned 'close to the border' because most people wouldnt want to drive so far just to go to their home branch. But basically border banks will open accounts for Canadians anywhere with a Canadian Address whether your mailing address is near the border or not. You just have to sign some "W Papers" to show the IRS you're not an American.

[PC-stuff]

I asked TD that very question only a few months ago when I was looking for a new US$ card, and they said "No, you can't pay your US$ TD Visa card directly from your US$ TD bank account.", although they offered to do the transaction manually for me if I called them up and asked nicely.

So why on earth would they let you pay RBC and Citibank online, but not their own card?? Have you actually done this?

Both cards are set up as autopay out of my TD bank US $ chequing account in Canada.

You may be right about online payment. It looks like if I paid each month online myself, then the $ will come out of my CDN $ chequing accnt.
I'll ask 'em next time I'm there.

Q: If one opens an account at a border bank in the US can one then get a credit card from the same bank?

[tkyoshi]

Both cards are set up as autopay out of my TD bank US $ chequing account in Canada.

You may be right about online payment. It looks like if I paid each month online myself, then the $ will come out of my CDN $ chequing accnt.
I'll ask 'em next time I'm there.

Q: If one opens an account at a border bank in the US can one then get a credit card from the same bank?

It's hard to say because to qualify for a US Credit card you really need to have a SSN. However it's not impossible, you just need to find the right person to do it.

[NoahVail]

say if i live in far from the US border and i travel alot to US, will i still be able to get the checkcard from bank of america?

I'm going to try and do exactly that the next time I'm in Blaine, Washington (in a couple of weeks). I'll post how it works out. The CSR from BofA said it would be no problems as long as I have a passport, driver's license and any current credit card, but must be done in person.

[HammerJoe]

That's what TD told me too, can't pay USD CC with TD USD Chequing account (which is stupid)

Yes, my question too, are you sure you can pay RBC/Citi USD CC from TD?
Or you were with REAL TD US Account (ie. TD Waterhouse US division), which is not open to new clients now?
That one is true USD account in USA (vs. USD account in Canada)

The reason is simply because the TD US Visa does not belong to TD at all but some American Company (Dont remember the name) and it is a hassle to send electronic payments to the States, that is why they have to do it manually.

[Jono]

I have a BMO US$ mastercard. Normally there is a $25 annual fee, but mine is waived because of the banking package I have with them. I just received a letter telling me that effective May 1/06, the US$ MC will become part of the Mosaic mastercard program at BMO. This allows you to choose options and rewards for the card that will impact the amount of annual fee. However, it appears that there are options that will end up having no annual fee. Check the BMO website after May 1 for more details, right now they haven't posted any information about it.

[nanirina]

How does ATM transactions overseas work? How much extra do they charge?
I know that in the US (from post at flyertalk.com), ATM cards carry the 1% fee charged by visa/MC, and no additional fee (like the 2%+ by credit card companies).

Is that true as well in Canada? Or in CAnada they charge you 1% + bank fees?

I went to my bank to ask, but those idiot CSRs don't know a thing and keep on telling me to phone up a foreign exchange office to ask. LOL

[HighFlyer]

BMO charges 2.5%. If the foreign ATM gives you the option of automatically converting the withdrawal to your home currency (CAD) .... decline. BMO will still gouge you 2.5% even though the withdrawal amount is already in CAD.

[gabbycup]

Correction: TD US Visa does belong to TD, but the service is handled by a US company. Card application and inquries are all handled by TD Visa but the actual financial dealings are done in the States (Nashville, Tennessee).

If you want to make a payment to TD US Visa, you'll have to mail a cheque in US funds. Or you can go to a TDCT branch, have the teller debit your US or Canadian account, issue a draft (free of charge) to TD Visa, and they will mail it for you.

Kinda dumb, but I haven't had problems so far.


The reason is simply because the TD US Visa does not belong to TD at all but some American Company (Dont remember the name) and it is a hassle to send electronic payments to the States, that is why they have to do it manually.

[gabbycup]

I have had mine for a year. No problems except the BoA Visa (credit card not checkcard) statement always comes 2 days before or sometimes later than statement due date.


I'm going to try and do exactly that the next time I'm in Blaine, Washington (in a couple of weeks). I'll post how it works out. The CSR from BofA said it would be no problems as long as I have a passport, driver's license and any current credit card, but must be done in person.

[gabbycup]

BoA did a credit check on my Canadian credit history, and issued me a Visa credit card without problems.


It's hard to say because to qualify for a US Credit card you really need to have a SSN. However it's not impossible, you just need to find the right person to do it.

[nanirina]

BoA did a credit check on my Canadian credit history, and issued me a Visa credit card without problems.
They gave you a US-based visa when you're living in Canada?
I thought the requirement is that you have to be a US resident.

[nanirina]

BMO charges 2.5%. If the foreign ATM gives you the option of automatically converting the withdrawal to your home currency (CAD) .... decline. BMO will still gouge you 2.5% even though the withdrawal amount is already in CAD.
BMO's 2.5% .. is that for ATM?
wow.. i was hoping that ATM wasn't charging as much as credit card!

[HighFlyer]

BMO's 2.5% .. is that for ATM?
Indeed. I had emailed them (via online banking) before a recent trip to Australia, and that's what they replied with.

So when I arrived in SYD, I withdrew cash at the first ATM after exiting customs and quarantine. The ATM gave me the option of having the $500AUD converted to CAD at a rate of 1.9%. The amount would then be taken from my account as a CAD withdrawal, which shouldn't have been surcharged. At least that's what I thought. When I came back, I noticed they added a 2.5% fee to it ($XXX.XXCAD at 1.025CAD) :mad:

[yyz2hkg]

BoA did a credit check on my Canadian credit history, and issued me a Visa credit card without problems.

What were the requirements? I also thought that you needed a SSN to qualify for a Visa Card?

[gabbycup]

What were the requirements? I also thought that you needed a SSN to qualify for a Visa Card?

They will ask for your authorization to check your Canadian credit report. That's it! You don't have to provide them with your SIN if you don't want to but it helps identifying you at the credit bureau.

Once approved, they will courier the card to you in Canada. You can have the statements sent to your Canadian address.

Can't be easier...

[yyz2hkg]

They will ask for your authorization to check your Canadian credit report. That's it! You don't have to provide them with your SIN if you don't want to but it helps identifying you at the credit bureau.

Once approved, they will courier the card to you in Canada. You can have the statements sent to your Canadian address.

Can't be easier...

cheers! forgot to ask you one thing though...how do you pay off any charges you make on the card? I mean...do they have an agreement with any other banks, or would I have to send the payment via the mail with a bank draft in USD? I mean...what happens if you don't get the statements or it get lost, and you miss a payment?

[nanirina]

cheers! forgot to ask you one thing though...how do you pay off any charges you make on the card? I mean...do they have an agreement with any other banks, or would I have to send the payment via the mail with a bank draft in USD? I mean...what happens if you don't get the statements or it get lost, and you miss a payment?
I think BoA also lets you open up a USD account with them (but have to do in person) at a border branch, if that's what I remember.

[nanirina]

They will ask for your authorization to check your Canadian credit report. That's it! You don't have to provide them with your SIN if you don't want to but it helps identifying you at the credit bureau.

Once approved, they will courier the card to you in Canada. You can have the statements sent to your Canadian address.

Can't be easier...

How does this whole process work. The application online doens't let you put anything other than a US address.

If you have to call, what is there a special number to call?

When I got my Citi CC in the US when I was interning there, I had to call speical office to get my Canadian credit checked.

[Aske001]

So when I arrived in SYD, I withdrew cash at the first ATM after exiting customs and quarantine. The ATM gave me the option of having the $500AUD converted to CAD at a rate of 1.9%. The amount would then be taken from my account as a CAD withdrawal, which shouldn't have been surcharged. At least that's what I thought. When I came back, I noticed they added a 2.5% fee to it ($XXX.XXCAD at 1.025CAD) :mad:

You actually pay about 4% total if you withdraw money in local currency anyway, because Mastercard add their 2.5% fee to the exchange rate fee of about 1.5% that they already charge. Plus $3 for foreign ATM transaction (going up to $5 now). Plus whatever fees the local ATM operator charges you. Plus a transaction fee if it falls outside your normal package. There is no end to the petty greed of the banks as long as the record profits pile up and there is little real competition.

[nanirina]

oh found out that the paypal debit card charges $1 per ATM transaction plus only 1% of Visa/MC charge. : )

Good for travelling.

[HighFlyer]

You actually pay about 4% total if you withdraw money in local currency anyway, because Mastercard add their 2.5% fee to the exchange rate fee of about 1.5% that they already charge. Plus $3 for foreign ATM transaction (going up to $5 now). Plus whatever fees the local ATM operator charges you. Plus a transaction fee if it falls outside your normal package. There is no end to the petty greed of the banks as long as the record profits pile up and there is little real competition.
Ok, your post prompted me to pull out the pile of bank statements pertaining to these transactions. Here's what I found:

Transaction 1 - ATM withdrawal accepting the auto conversion feature:
500AUD converted by the ATM @ .8721CAD = 436.05CAD
436.05CAD converted by bank @ 1.025CAD = 446.95 CAD withdrawn from bank account.
Net conversion rate = .8939CAD/AUD
Bank charges estimated according to xe.com = 5.138%

Transaction 2 - ATM withdrawal 5 days later without auto conversion:
500AUD converted by bank @ .8807CAD = 440.35 CAD withdrawn from bank account.
Bank charges estimated according to xe.com = 3.31%

My bank plan covers Interac/Plus transactions.

[nanirina]

BoA did a credit check on my Canadian credit history, and issued me a Visa credit card without problems.

bump for the following question. where did gabbycup go? lol

How does this whole process work. The application online doens't let you put anything other than a US address.

If you have to call, what is there a special number to call?

When I got my Citi CC in the US when I was interning there, I had to call speical office to get my Canadian credit checked.

[Aske001]

Both cards are set up as autopay out of my TD bank US $ chequing account in Canada.

You may be right about online payment. It looks like if I paid each month online myself, then the $ will come out of my CDN $ chequing accnt.
I'll ask 'em next time I'm there.


Follow-up note on this: I was talking to the TD Visa people again, and they confirmed that this is the case. You can set up autopay from your US$ chequing account to your US$ Visa, but there's no way for you to make an online payment from your US$ chequing account to your US$ Visa.

[Aske001]

I have a BMO US$ mastercard. Normally there is a $25 annual fee, but mine is waived because of the banking package I have with them. I just received a letter telling me that effective May 1/06, the US$ MC will become part of the Mosaic mastercard program at BMO. This allows you to choose options and rewards for the card that will impact the amount of annual fee. However, it appears that there are options that will end up having no annual fee. Check the BMO website after May 1 for more details, right now they haven't posted any information about it.

Follow up note on this:

It still isn't up on their web site, but this Mosaik US$ Mastercard is now available. They said the base annual fee is $0, and the options are the same as the Cdn$ Mosaik Mastercard, for example the travel insurance package, Air Miles, or 1% cash back option (but it actually costs a bit more, since the add-on fees are the same dollar amount in US$). Unfortunately you cannot apply online or by telephone, you have to mail in a paper application.

[jrnight]

What's Autopay? The full balance gets debited from your chequing acct each month?

I go to the TD branch and make the payment there and have a bank draft sent to TD US Visa. I remember when it was Canada Trust, you could view your US dollar card online and make payments online or inbranch directly. Since they merged a lot of stuff is much harder todo. If you were on good terms with your Canada Trust Manager, they could credit your chequing/savings account the annual fees for your credit card so that they have your business/loyalty.



Follow-up note on this: I was talking to the TD Visa people again, and they confirmed that this is the case. You can set up autopay from your US$ chequing account to your US$ Visa, but there's no way for you to make an online payment from your US$ chequing account to your US$ Visa.

[NoahVail]

I have had mine for a year. No problems except the BoA Visa (credit card not checkcard) statement always comes 2 days before or sometimes later than statement due date.

Everything is all set up, done in person at the Blaine WA branch. The CSR said about 75% of their business was with Canadians and he dispelled a number of rumours/misinfo about US accounts for Canadians.

I'll watch for the Visa statements to see how close the mailings are, thanks for the heads up. Visa is linked to my online banking so I can pay through there, and it acts as a credit line for overdrafts.

I do have to deposit by mail (no charge) using my US MICR cheques from my BMO USD Chequing account, so there is a delay in moving money. Anyone know of a more automated route for making deposits cross-border?

Thanks to all (many threads/posts) for the valuable info.

Cheers.

[Aske001]

What's Autopay? The full balance gets debited from your chequing acct each month?

Correct - but you do have a choice to set it up as either "full balance" or "minimum payment". Unfortunately that's all the flexibility you get. The money comes out of your account automatically on the due date of the credit card bill (not the billing date - I checked on that).

[hotfishy]

to my understanding, there's no such card so far..

[excel]

hm..how easy is it to get a mosaik US$ mastercard? do they have high requirements?

how would i pay it, can i use another bank's US$ checking account to pay it?

[Aske001]

hm..how easy is it to get a mosaik US$ mastercard? do they have high requirements?

Mosaik US$ Mastercard tends to start off with very low limits unless you specifically request more, even for existing customers with high limits on their Cdn$ Mosaik Mastercard.


how would i pay it, can i use another bank's US$ checking account to pay it?

Yes, even from another bank, but only by autopay (i.e., you give them pre-authorization to deduct either the full amount or the minimum payment from your US$ chequing account on the due date.). You can't just do your own online payments from a US$ account to your US$ credit card, as you can on the Cdn$ side.

[iamdman]

I have the Amex Gold card and the VISA Aerogold, both charge 2.5% foreign transaction fee which is nuts!

I am reopening this thread, does anyone know of a Canadian CC that charges a lower foreign transaction fee?

I plan on doing some US based internet shopping over the holidays and a card with a low fee would come in handy.

thx in advance.