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Understanding Credit Card Foreign Transaction Fees

By PointsExplainedLast reviewed

Find your card's conversion charge

Look in your credit card agreement or the disclosure statement that came with the card, or ask your issuer.

Add up your foreign-currency spending

Include online purchases and subscriptions billed in another currency, not just travel.

Pay in the local currency

Decline offers to convert to Canadian dollars at the till or the ATM.

Avoid cash advances abroad

Use a debit card at bank-affiliated ATMs instead, as the Government of Canada suggests, and check your own bank's fees first.

Where this comes from

Sources

The documents this guide relies on. If one has changed since we read it, the document is right and this guide is out of date.

  1. FCAC - How credit cards work (page dated 2025-10-15)

    Exchange rate plus foreign currency conversion charge outside Canada; issuers convert directly or via U.S. dollars and apply the charge after converting to CAD; worked example (EUR 1,000 x 1.45 = $1,450, 2.5% = $36.25, total $1,486.25); refunds may differ because exchange rates change; foreign cash advance fees typically higher, conversion charge may apply, interest from withdrawal date.

    canada.ca · Accessed
  2. CIBC - Foreign currency transactions with your credit card

    Conversion fee applies to transactions (purchases and refunds) in a currency other than the card's; fees of 1% to 3% common; some cards charge none and may not offer everyday rewards or benefits; refunds converted at the rate on the refund date and subject to the fee; U.S. dollar card charges a conversion fee on non-USD transactions.

    cibc.com · Accessed
  3. Travel.gc.ca - Travelling and money (modified 2024-06-19)

    Don't use a credit card to withdraw cash from ATMs abroad (high fees and interest); use bank-affiliated ATMs; dynamic currency conversion - always choose the local currency; prepaid travel cards may have higher fees and may not be accepted by some hotels and car rental companies.

    travel.gc.ca · Accessed
  4. FCAC - Choosing a credit card (page dated 2025-10-15)

    A U.S. dollar credit card may suit frequent U.S.-dollar purchases and may avoid foreign currency conversion rates.

    canada.ca · Accessed
Questions

About this guide

What is a foreign transaction fee?

It's the foreign currency conversion charge your issuer adds when you make a transaction in a currency other than your card's. FCAC's worked example uses 2.5%; CIBC says 1% to 3% of the transaction is common, and some cards charge none.

Do foreign transaction fees apply to online purchases?

Yes, if the purchase is in a foreign currency. CIBC explains that the fee applies to any transaction in a currency other than your card's currency, and to refunds as well.

Which Canadian credit cards have no foreign transaction fees?

They change as issuers revise their cards, so we list them with verified figures at /ca/credit-cards/no-foreign-transaction-fee instead of naming them here.

Should I get a U.S. dollar credit card?

FCAC says one may suit you if you often buy in U.S. dollars, because you may avoid conversion charges on those purchases. It won't help with other currencies: CIBC says its U.S. dollar card charges a conversion fee on transactions in any currency other than U.S. dollars.

What is dynamic currency conversion?

It's when a shop, restaurant or ATM abroad offers to charge you in Canadian dollars instead of the local currency. The Government of Canada advises always choosing the local currency, because the conversion to Canadian dollars comes with high conversion rates and fees.
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