Stop paying the 2.5% currency conversion fees.
One thing you might not realize is that every time you make a purchase on your credit card that isn’t in Canadian Dollars, you are charged a foreign transaction fee.
That fee is almost universally 2.5% of the total transaction. If you are making a lot of purchases that are in foreign currencies, whether online or on vacation, these fees can add up quickly.
There used to be a few Canadian cards backed by Chase Canada that had 0% foreign transaction fees, but the last of those publically available cards disappeared in the summer of 2017.
Thankfully, we haven’t been left high and dry, due to the fact that Scotiabank has stepped up and started offering a premium travel card that gives cardholders valuable rewards, a great insurance package, travel perks like 6 lounge visits and most importantly – 0% foreign transactions.
Between Scotiabank and Home Trust, they have continued to carry the no FX fee torch by offering three different cards with no foreign transaction fees – a very strong travel credit card, a great cash back visa, and a home equityline visa.
Also, some cards allow you to earn extra rewards on foreign transactions, up to a high of 3%, which means that even after you are charged a fee, you still end up coming out ahead.
If you do the majority of your shopping, vacationing, or business traveling in the United States especially, it is definitely worth carrying a card with reduced foreign transaction fees or increased bonuses.