The best US dollar credit cards in Canada
October 11, 2024 | Fact checked by: Natasha Macmillan, Business Unit Director - Everyday Banking
If you frequently make purchases in US dollars on your credit card, you might have noticed that on every transaction, your credit card charges you a fee to convert the currency from US dollars to Canadian dollars. The fee is about 2.5% in addition to the foreign exchange rate.
Any thrifty Canadian who makes frequent purchases in US dollars should want to minimize these fees. One strategy to minimize foreign transaction fees is to apply for a US dollar credit card.
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Best US dollar credit cards in Canada by category
Let's shed some light on US dollar credit cards issued by some of Canada’s biggest banks and credit unions.
|
US dollar credit card |
Best for |
Annual fee |
|---|---|---|
| RBC U.S. Dollar Visa Gold | Best overall | $65 USD |
| BMO U.S. Dollar Mastercard | Shopping and entertainment | $49 USD |
| Meridian Visa US Dollar Card | Travel protection | $65 USD (waived for 1st year) |
| CIBC U.S. Dollar Aventura Gold Visa Card | Travel rewards | $35 USD |
| TD U.S. Dollar Visa Card | Low fees | $39 USD |
| Scotiabank US Dollar Visa Card | US car rentals | $35 |
Best overall US dollar credit card: RBC U.S. Dollar Visa Gold
This travel rewards credit card lets you earn 1 Avion Rewards point for every dollar you spend, to be redeemed for flights, hotels, event tickets, and merchandise. There is a $65 USD annual fee for this credit card, and supplementary cards are $30 USD each. When you make purchases with this RBC US dollar credit card, you’re covered by an extensive insurance package including purchase assurance. You’ll also get trip cancellation insurance and travel assistance for peace of mind - but you’ll have to pay out of pocket for travel medical, rental car insurance or accident coverage as those options are not offered with this card.
Best US dollar credit card for shopping: BMO U.S. Dollar Mastercard
Purchase interest rate
- Pay $9/mo
Based on a credit balance of $500
- Annual fee
$49
Perks of the BMO U.S. Dollar Mastercard®*
| Perks | Details | |
|---|---|---|
| Purchase assurance | Included | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Included | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
Other perks
- The ideal way to travel and shop – or buy online – from U.S. retailers
- Shop with no exchange rate surprises.
- Fee Rebate offer: Spend just $3,000 USD in one year on your card, and the annual fee for the following year is on us*
- Extended Warranty*
- Purchase Protection*
- BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information
- *Terms and conditions apply
Eligibility requirements
Minimum credit score: 725
Minimum income: N/A
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Balance transfer: 22.99%
This BMO US dollar credit card has an annual fee of $49 USD, but when you spend $3,000 US in the first year, the following year’s fee is rebated back to your credit card. The interest rate is 20.99% for purchases and 22.99% for cash advances. This credit card comes with extended warranty coverage, purchase protection, and is accepted at over 30 million locations in the US and worldwide. Other than that, this card doesn’t have much in terms of perks, and doesn’t offer travel insurance.
Best US dollar credit card for travel protection: Meridian Visa US Dollar Card
The Meridian Visa US Dollar Card lets you earn rewards for your US dollar spending. This credit card lets you earn 1 point per dollar spent, with no restrictions on the purchases you make. The annual fee is fairly high at $65 USD, but it’s waived in the first year. Additional cards cost $30 USD per user, and your travel is covered by a suite of insurance products - excluding travel medical coverage.
Best USD credit card for travel rewards: CIBC U.S. Dollar Aventura Gold Visa Card
With this credit card, you’ll pay an annual fee of $35 USD, but that fee will be rebated in the first year if you also have a CIBC USD bank account. The CIBC U.S. Dollar Aventura Gold Visa Card is a rewards card that lets you earn 1 point per dollar spent at the CIBC Rewards Center, and 1 point per $2 spent on all other purchases. This is a decent earn rate, but most regular travel and rewards credit cards have higher points earnings than this card. You can also earn an extra 2,500 bonus points (a $25 travel value) by completing a series of activities with CIBC like setting up your email address and signing up for eStatements.
Best low-fee USD credit card: TD U.S. Dollar Visa Card
Finally, the TD U.S. Dollar Visa Card has a $39 USD annual fee and free cards for additional card users (maximum three users). The interest rate on this credit card is 19.99% for purchases and 22.99% for cash advances. This TD U.S. Dollar credit card is contactless payment-enabled for a seamless shopping experience. Purchases made with the TD U.S. Dollar Visa Card are covered by trip interruption insurance, baggage insurance, and emergency travel assistance - but travel medical coverage is not offered with the card.
Also consider: Scotiabank US Dollar Visa Card
The Scotiabank US Dollar Visa Card boasts no US currency conversion fees, and free supplementary cards for extra users. There is a $35 annual fee, however. This credit card offers purchase security and extended warranty protection, and secure online shopping via Visa Checkout. You’ll also get discounts of up to 25% on rental cars at Avis and Budget when you book with this Scotiabank USD credit card.
Can a Canadian apply for a US dollar credit card?
Yes, as a Canadian, you can apply for a US dollar credit card through one of Canada’s major banks. Since the credit card is a US dollar card, you won’t be charged a foreign transaction fee when you make purchases in US dollars.
NOTE: In order to make your monthly payments however, you’ll need a source of US dollars, or you may be charged transaction fees from your bank. This may require opening a USD chequing account for pre-authorized payments, or converting your Canadian dollars into USD through online banking (which can be costly because of the exchange rate and transaction fees.)
You may be charged a foreign transaction fee if you pay off your credit card using Canadian dollars.
Why get a US dollar credit card?
- A US dollar credit card is useful if you frequently travel to the US or make purchases in US dollars. If you live in the US for part of the year, frequently travel there for work, or buy things from the US for work or personal reasons, a USD credit card might make sense. You’ll have to weigh the benefits of using a USD credit card against simply using a credit card that doesn’t charge foreign transaction fees, though.
- Instead of withdrawing cash for spending or making purchases on your Canadian credit card (and paying foreign transaction fees) you can make purchases with a US dollar credit card and avoid those fees - if you have access to US dollars and have the funds to pay off your credit card without converting currency. For example, if you’re a freelancer and some of your clients pay you in US dollars, you could use that money to pay off your credit card without converting currency and incurring fees.
Tips for managing a US currency credit card
In order to get the most out of your USD card, you’ll want to make sure you avoid paying extra fees or interest. The benefit of a USD card is you avoid paying foreign transaction fees and the cost of the currency exchange rate on USD purchases, so if you don’t have a source of U.S. cash to pay off your credit card bills, this might not be the best choice for you.
It’s important to monitor your credit card statements for accuracy to avoid any credit card fraud. If you’re not regularly using the card, it is also important to ensure that you check payment deadlines to avoid interest charges on your unpaid balance.
What is the difference between US dollar credit cards and no foreign transaction fee credit cards?
US dollar credit cards and no foreign transaction fee credit cards are not the same, but it’s easy to get confused about the difference.
US dollar credit cards charge you for purchases in US dollars, and you pay off the balance in US dollars.
No foreign transaction fee credit cards, on the other hand, charge your US purchases (and any other foreign purchases) in Canadian dollars, and they don’t charge a foreign transaction fee to make the conversion. With most Canadian credit cards, converting purchases made in US dollars to Canadian dollars will typically cost a few percentage points (2.5% of the purchase) on top of the currency exchange rate, but with a no foreign transaction fee credit card, you won’t be charged that extra fee.
No foreign transaction fee credit cards in Canada
If you don’t have access to US dollars to pay off a US dollar credit card, a no foreign transaction fee credit card is a simple and straightforward way to save money on purchases made in US dollars. You can pay off your balance with Canadian dollars, and you don’t have to worry about converting currency. Plus, in many cases, your rewards points or cash back earnings can be higher with these cards. With that in mind, here are some of the best no foreign transaction fee credit cards in Canada.
Best for Travel perks
based on spending $2,200/mo after $150 annual fee
- Earn rewards
1pt – 3pts / dollar spent
- Welcome bonus
25,000 points (a $250 value)
- Annual fee
$150
Perks of the Scotiabank Passport™ Visa Infinite* Card
| Perks | Details | |
|---|---|---|
| Lounge access | Includes 6 visits per year | You’ll gain complimentary passes to airport lounges. The number of passes and lounges you have access to will vary. |
| Waived foreign transaction fees | Included | A surcharge that credit card holders pay for purchases made in a foreign currency (typically 2.5%). |
| Travel accident insurance | $500,000 per person ($1 million total) | If you suffer a loss as a result of an accidental bodily injury sustained while occupying a common carrier, you are eligible for this coverage. |
| Travel emergency medical | $2,000,000 for 25 days (under 65) | If you require urgent medical care while on a trip outside of your home province, you will be covered for any eligible medical expenses incurred. |
| Car rental insurance | MSRP of up to $65,000, for 48 days | Credit card rental car insurance usually covers theft, loss and damage to your rental car in the case of an accidental collision. |
| Trip cancellation | Up to $1,500 per person | If you have to cancel your trip before it’s even started, your prepaid travel costs will be covered up to a maximum amount if the cause of cancellation is eligible for the insurance. |
| Trip interruption | Up to $2,500 per person | If your trip has to be cut short or is delayed after the scheduled departure date, you will be covered up to a maximum amount for an eligible cause of interruption or delay. |
| Flight delay insurance | Up to $500 coverage per person | If your flight departure is delayed by a certain number of hours, you’ll be reimbursed a certain amount for necessary and reasonable expenses. |
| Baggage loss insurance | Combined maximum $1,000 | If your checked bag cannot be located by a common carrier, you’ll be reimbursed for a portion of the replacement cost of lost personal property. |
| Baggage delay insurance | Up to $1,000; delays over 4 hours | If your checked bag is not delivered within a specified time upon your arrival, you’ll be reimbursed for the cost to replace essential items. |
| Hotel/motel burglary | Included | Provides protection, while you’re checked in, for your personal belongings when left unattended in your room up to a certain dollar amount. |
| Mobile insurance | Not included | Reimburses a portion of your cell phone in the event it’s damaged or lost. Device coverage is limited to a certain period of time after purchasing with your credit card. |
| Purchase assurance | $60,000 lifetime limit | Automatically protects new purchases by insuring them for 90 days from the date of purchase in the event of loss, theft or damage. |
| Extended warranty | Up to one additional year | Either doubles the length of the item’s manufacturer’s warranty coverage or extends it by 1 year, whichever is less. |
| Price protection | Included | If, within a certain amount of time of purchasing an item, its price drops or you find an identical item offered for a lower retail price than what you paid, you will be reimbursed for the difference. |
Other perks
Ratehub.ca’s 2024 Credit Card Award Winner
- Earn up to $1,100* in value in the first 12 months, including up to 35,000 bonus Scene+ points
- Earn 3x Scene+ points¹ on every $1 you spend at Sobeys, Safeway, IGA, Foodland and participating
Co-ops and more - Earn 2x Scene+ points¹ for every $1 you spend on other eligible grocery stores, dining, eligible entertainment purchases and eligible daily transit options (including rideshares, buses, subways taxis and more)
- Plus earn 1 Scene+ point for every $1 spent on all other eligible everyday purchases
- No Foreign Transaction Fee
- 6 Complimentary Airport Lounge Access
- Comprehensive Travel Insurance coverage
- Visa Infinite* Concierge Services
- Visa Infinite* Hotel Collection
- Visa Infinite* Dining and Wine Country program
- Rates, fees and other information are effective as of July 02, 2024. Subject to change.
Ratehub’s take
The Scotiabank Passport Visa Infinite card makes a great vacation companion, designed for Canadians who travel abroad and explore the world. It is one of the few cards that covers foreign transaction fees, and also includes valuable travel benefits like airport lounge access.
Pros
- No foreign transaction fee: Save 2.5% on all non-Canadian currency purchases
- Scene+ points: Earn three Scene+ points per $1 spent at participating grocery stores (e.g., Sobey’s, IGA, and FreshCo) and two Scene+ points per $1 spent on eligible grocery, dining, entertainment, and daily transit purchases
- Flexible redemption: Enjoy flexible point redemption options including for travel, groceries, statement credits, gift cards, and movie tickets
- Airport lounge access: Access airport lounges with six free visits per year to over 1,200 lounges worldwide
- Visa Infinite benefits: Benefit from the Visa Infinite Luxury Hotel Collection, Visa Infinite Dining series, and complimentary Avis Preferred Plus membership
- Comprehensive travel insurance: Enjoy coverage for emergency medical, trip cancellation/interruption, flight delays, and more
Cons
- Annual fee: The annual fee of $150 is higher than some comparable cards
- Low point return: The earn rate for certain spending categories like dining and entertainment is lower compared to other cards
- Consistent point values: Travel points are always worth one cent per point and you can’t transfer your points to other airline rewards programs like you can with some Amex cards
Eligibility requirements
Minimum credit score: 725
Minimum income: $60,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Balance transfer: 22.99%
FAQ
Is it better to convert CAD to USD or use a credit card?
When making a purchase in US dollars, you can either use your regular credit card (which may charge a foreign transaction fee) or a USD credit card (which eliminates the need for a currency conversion during purchase, but requires you to pay your bill in US dollars).
If you don't have a source of US currency, you'll still need to convert CAD to USD to pay off a USD credit card. If that's the case, your best option might be a credit card with no foreign transaction fees.
Which banks offer US credit cards for Canadians?
There are several Canadian credit cards that offer US benefits. These cards are issued by reputable financial institutions and come with a variety of features and perks.
Some of the top options include:
- TD U.S. Dollar Visa Card
- RBC U.S. Dollar Visa Gold
- BMO U.S. Dollar Mastercard
- Scotiabank U.S. Dollar VISA Card
- CIBC U.S. Dollar Aventura Gold Visa Card
Is there a US dollar credit card with no annual fee?
Many USD credit cards waive the first year annual fee, but it would be difficult to find a USD credit card that does not charge an annual fee. The and the Meridian Visa US Dollar Card waives the first year annual fee, while the CIBC U.S. Dollar Aventura Gold Visa Card gives a rebate on the first year annual fee.