List of credit cards for foreign currency transactions
Here is a list of credit cards that will, at the least, not ding you on purchases made in a foreign currency.
Cards with no conversion markup (0% over payment network's rate):
Cards with 2.5% conversion markup (that you earn back in points/cashback):
Cards suitable for buying things only at certain places:
Prepaid (not credit) cards:
Prepaid gift and store cards:
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MASTERCARD ADVANTAGE
RFDer @mech9t5 sampled Visa's and Mastercard's daily foreign exchange rates for 364 days and averaged them. He found that Mastercard's average markup over XE.com's reported mid-market rate was 0.188%, while Visa's was 0.392%. No statistics were available for American Express. The ~0.2% advantage that Mastercard has over Visa has NOT been included in the net rewards listed above.
† AMERICAN EXPRESS WARNING
If you use your Canadian American Express card (including Scotiabank Amex) to make purchases in a currency other than CAD or USD, your purchases will be converted to USD first, before being converted again to CAD for billing purposes. This dual conversion will result in less net reward than described above.
Cards with no conversion markup (0% over payment network's rate):
- Home Trust Preferred Visa: 1% (cash back statement credit 1x/year). $0 annual fee. 10 transaction limit per day. Unavailable to Quebec residents.
- Brim Financial Mastercard Basic/World/World Elite: 1%/1.5%/2% (cash back statement credit redeemed any time). $0/$99/$199 annual fee.
- Scotiabank Passport Visa Infinite Consumer version: 1-2% depending on merchant category, $139 annual fee, and Business version: 1.5% on all spend, $199 annual fee. Earned in Scotia Rewards points redeemed on travel stuff.
- †Scotiabank American Express Gold (new 0% conversion benefit coming August 2019): 1% in Scotia Rewards points (redeem for statement credit against travel expense). $120 annual fee.
- HSBC World Elite, Premier World Elite and Jade World Elite Mastercard: 3% on travel and 1.5% on other purchases. Earned in travel points. $149/$149/$299 annual fee. Premier and Jade require very large deposits/investments with HSBC.
Cards with 2.5% conversion markup (that you earn back in points/cashback):
- Rogers World Elite Mastercard: Net rewards: 1.5% (cash back statement credit 1x/year, 4% earned on foreign currency - 2.5% conversion fee). $0 annual fee.
- Fido and Rogers Platinum Mastercard: Net rewards: 0.5% (cash back statement credit 1x/year, 3% earned on foreign currency - 2.5% conversion fee). $0 annual fee.
- Meridian Credit Union Visa Infinite Business Cash Back Plus Card: Net rewards: 0.5% (3% on foreign currency transactions minus 2.5% conversion fee, redeem for statement credit anytime ($50 minimum) $110 annual fee.
- Meridian Credit Union Travel Rewards Visa Infinite: Net rewards: ~0.0%-0.5% (Earned in travel points, 3 points—not exactly worth 1¢ each—minus 2.5% conversion fee.) $99 annual fee.
- MBNA Amazon Prime Mastercard: Net rewards: 0% (earned in Amazon.ca store credit. 2.5% minus 2.5% conversion fee. Amazon Prime membership required. $0 annual fee.
Cards suitable for buying things only at certain places:
- †American Express Cobalt (Grocery stores, restaurants, bars ONLY): Net rewards: 2.6% (American Express Membership Rewards Select points redeemed for travel stuff, 5% - 2.5% conversion fee). $10 monthly fee.
- †Scotiabank American Express Gold and Platinum (Gas stations, grocery stores, restaurants, movies/tickets ONLY): Net rewards: 1.6% (Scotia points redeemed for travel stuff, 4% - 2.5% conversion fee). $99 annual fee for Gold, $399 for Platinum.
- Meridian Credit Union Cash Back Visa Infinite (Gas stations and grocery stores ONLY): Net rewards: 1.6% (4% - 2.5% conversion fee). Redeem for minimum $50 statement credit any time. $99 annual fee.
- Scotiabank Momentum Visa Infinite (Gas stations and grocery stores ONLY): Net rewards: 1.6% (cash back statement credit 1x/year, 4% - 2.5% conversion fee). $99 annual fee.
- CIBC Dividend Visa Platinum and Visa Infinite (Gas stations and grocery stores ONLY): Net rewards: 1.5% (cash back paid annually as statement credit, 4% - 2.5% conversion fee). $99 annual fee for each.
- Capital One Platinum (Costco) Mastercard (Restaurants ONLY): Net rewards: 0.5% (cash back paid annually as a cheque cashable at Costco, 3% - 2.5% conversion fee). $0 annual fee.
- Canadian Tire Triangle World Elite (Grocery stores ONLY): Net rewards: 0.5% (earned in Canadian Tire Money, 3% - 2.5% conversion fee). $0 annual fee.
- TD Cash Back Visa Infinite (Gas stations, grocery stores, recurring bill payments ONLY): Net rewards: 0.5% (redeem for statement credit anytime in $25 increments, 3% - 2.5% conversion fee). $120 annual fee.
Prepaid (not credit) cards:
- STACK Prepaid Mastercard: Net rewards: None. 0% conversion fee. No fees except for ATM operator's fee. Unavailable to Quebec residents. Restricted countries list
- MOGO prepaid Visa: Net rewards: 0.5%. (3% cashback on foreign spend - 2.5% conversion fee. $0 annual fee. $10 replacement card fee. After you select your PIN, $10 fee to change it. Unavailable to residents of Yukon, NWT, Nunavut, Saskatchewan, Quebec, and Nova Scotia. Load the card by transferring money from your bank account. Restricted countries list
Prepaid gift and store cards:
- Costco cash card: Buy at Costco in Canada, spend at Costco in the US or Puerto Rico. Foreign exchange rate matches mid-market rate, beating any other payment method.
- Disney gift card: Buy at supermarkets in Canada, spend at Disney theme parks in the US or on other Disney stuff. No currency conversion markup.
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MASTERCARD ADVANTAGE
RFDer @mech9t5 sampled Visa's and Mastercard's daily foreign exchange rates for 364 days and averaged them. He found that Mastercard's average markup over XE.com's reported mid-market rate was 0.188%, while Visa's was 0.392%. No statistics were available for American Express. The ~0.2% advantage that Mastercard has over Visa has NOT been included in the net rewards listed above.
† AMERICAN EXPRESS WARNING
If you use your Canadian American Express card (including Scotiabank Amex) to make purchases in a currency other than CAD or USD, your purchases will be converted to USD first, before being converted again to CAD for billing purposes. This dual conversion will result in less net reward than described above.
Last edited by Kiraly on Jun 18th, 2019 9:20 am, edited 101 times in total.
18% = GTA residents as a proportion of Canada's total population
97% = chance that an RFDer lives in the GTA when he posts something location specific, without giving a location
Were you hit with surprise customs/import fees on an Amazon.ca purchase?
97% = chance that an RFDer lives in the GTA when he posts something location specific, without giving a location
Were you hit with surprise customs/import fees on an Amazon.ca purchase?
Amex Cobalt & Business Platinum - the golden combo for life