The cost framework: exchange rates and foreign transaction fees
Two distinct elements determine the outlay when a Canadian uses a card in the United States. The payment network applies an exchange rate; the issuer may add a foreign-transaction fee on top, commonly around 2–2.5 percent. Ratehub explains the common magnitude plainly: “Most people don’t realize it, but just about every credit card out there charges foreign transaction fees. Whenever you buy something in a non-Canadian currency, you end up paying an additional 2.5% on top of the exchange rate.” Ratehub — Foreign transaction fees
A card that waives the issuer surcharge reduces the effective price of every purchase. Scotiabank’s product language for its Passport cards is explicit: “You will not pay the 2.5% foreign transaction fees on any foreign currency purchases, including online shopping and when travelling abroad. Only the exchange rate applies.” Scotiabank
For frequent short trips across the border, eliminating the issuer markup is often the simplest and most effective saving strategy. Travelers who plan many small purchases — meals, rideshares, small retail purchases — accumulate the saving quickly.
Acceptance, networks, and merchant-level friction
U.S. merchant acceptance varies by card network. Visa and Mastercard exhibit broader acceptance at smaller merchants and regional retailers than American Express. A practical approach pairs a no-foreign-fee Visa or Mastercard as the primary spending instrument and retains an Amex product for benefits where accepted.
A second merchant-level issue is dynamic currency conversion (DCC). When a merchant offers to charge in Canadian dollars at checkout, the terminal often applies a marked-up conversion rate. Ratehub warns that paying in local currency is typically cheaper because network rates are better than merchant-converted amounts. Ratehub — Foreign transaction fees
Which cards remove the issuer surcharge
A short list of issuer products repeatedly appears in independent comparisons and issuer documentation as waiving foreign-transaction fees. Representative items and issuer language:
- Scotiabank Passport Visa Infinite and Passport Visa Infinite Privilege. Scotiabank states cardholders will not be charged the typical 2.5% foreign transaction fee; only the exchange rate applies. These cards also include travel benefits such as Priority Pass lounge access. Scotiabank
- Home Trust Preferred Visa. Marketed explicitly as a no-foreign-transaction-fee card — a zero-annual-fee option for cost-focused travellers. Home Trust promotes the product as “Your No Foreign Transaction Fee Credit Card Solution.” Home Trust — Preferred Visa
- BMO travel products (examples include BMO Premium Rewards and BMO Escape). BMO product pages and promotional materials list certain premium cards that advertise no foreign transaction fees. Consumers should verify the specific card terms. BMO — Credit Cards
Aggregators and reviewers compile these examples and provide comparison tables that place no-FX cards alongside benefits, annual fees, and acceptance considerations. Ratehub’s roundup and MoneySense’s travel-card guides are two frequently referenced comparison sources. MoneySense, Ratehub
Reward structures and travel value
A second axis of comparison is rewards. Cards differ across reward currencies (bank points, co-brand miles, cash back) and category earn rates. Which reward structure is preferable depends on travel goals:
- If the goal is minimal friction and lowest out-of-pocket cost for everyday US purchases, a no-FX, low-fee card that earns straightforward rewards will typically produce the best net outcome.
- If the objective is frequent-flyer redemptions or hotel awards, co-branded cards and transferable rewards products may deliver more value through bonuses, free checked bags, and award availability.
MoneySense identified the Scotiabank Gold American Express as “our pick for Canada’s best all-round travel credit card,” citing its strong rewards on groceries and dining and broad benefit package; the Gold Amex also waives foreign transaction fees, which makes it competitive on US spend where Amex is accepted. MoneySense — travel card reviews
Card recommendations by traveler profile
The following guidance maps traveler profiles to card types and concrete products.
- Frequent short trips, many small purchases (commuter-style cross-border travel). Priority attributes: no foreign transaction fee, Visa/Mastercard network, low friction acceptance. Suggested options include the Scotiabank Passport Visa Infinite (no FX; Visa network) or Home Trust Preferred Visa (no FX; no annual fee). Confirm acceptance at targeted merchants. Scotiabank, Home Trust — Preferred Visa
- Occasional US leisure travel with interest in lounges and insurance. Priority attributes: no foreign transaction fee, travel insurance, lounge access. Scotiabank Passport and Scotiabank Gold American Express are practical candidates because they combine waived FX fees with travel protections and lounge access where applicable. Scotiabank
- Points maximizers who want transfer flexibility. Priority attributes: strong transferable-earn rates for long-term award redemptions. Consider pairing a transferable-earn card (for Canadian collectors, options include Amex Membership Rewards earners) with a no-FX Visa/Mastercard for day-to-day US purchases to avoid acceptance gaps. Use the transferable program for strategic redemptions rather than routine spending. American Express Membership Rewards (Canada)
- Budget-conscious travelers who want no annual fee. Priority attributes: zero FX fees and no annual fee. The Home Trust Preferred Visa is notable: it advertises zero foreign-transaction fees and no annual fee, making it a useful pocket card for online US purchases and small trips. Aggregators list Home Trust as an efficient no-fee option. Home Trust — Preferred Visa
How to operationalize the choice
A short checklist before travel reduces cost surprises:
- Confirm the card’s foreign-transaction policy in issuer documentation and the product disclosure (promotional pages and PDF welcome kits often quote the exact warranty language). Scotiabank and Home Trust publish explicit no-FX language. Scotiabank, Home Trust — Preferred Visa
- Carry a primary no-FX Visa or Mastercard for broad acceptance and a secondary network card as a fallback.
- Decline dynamic currency conversion at merchant checkout; choose to pay in USD. Ratehub’s guidance stresses that paying in the local currency usually yields a better exchange rate than accepting a merchant’s CAD conversion. Ratehub — Foreign transaction fees
- Use large, consolidated ATM withdrawals when necessary and prefer in-network ATMs or products that reimburse ATM fees. If withdrawing cash, check any ATM-owner surcharge before authorizing a withdrawal.
- Verify travel insurance coverage limits and preconditions on the chosen card if relying on issuer insurance for medical or trip interruptions.
Evidence-based benchmarks
Two practical numerical anchors help compare choices:
- FX surcharge magnitude. Industry summaries place typical issuer foreign transaction fees at about 2–2.5% of the converted amount. Saving that percentage on every non-CAD purchase compounds rapidly during multi-day trips. Ratehub — Foreign transaction fees
- Point valuation baseline. When comparing cards that earn points, use conservative point valuations to monetize sign-up bonuses and ongoing returns. Independent guides such as MoneySense and Ratehub publish working estimates that can be used to convert bonus points into equivalent dollar value during comparison. MoneySense — travel card reviews, Ratehub — Foreign transaction fees
Final Considerations
For Canadians visiting the US, card selection should prioritize two linked outcomes: reduction of per-transaction FX leakage and access to the reward currency that best supports the traveler’s goals. A paired approach often outperforms a single-card solution: carry a no-foreign-transaction-fee Visa or Mastercard for routine purchases, and retain a benefits-rich or transferable-earn card for large bookings and award-focused activity. Scotiabank’s Passport products and Home Trust’s Preferred Visa are consistent, documented options that remove the typical 2.5% issuer surcharge; premium travel cards such as the Scotiabank Gold American Express add rewards and protections where acceptance permits. Use issuer disclosures and independent comparisons from Ratehub and MoneySense when validating promotional claims and for the latest product terms. Scotiabank, Home Trust — Preferred Visa, Ratehub — Foreign transaction fees, MoneySense — travel card reviews