Foreign Transaction Fee

A foreign transaction fee is a fee charged by a bank or credit card company when you use your card to make purchases in a foreign currency or when you travel outside of Canada.

Foreign transaction fees are typically a percentage of the transaction amount, often around 2.5% to 3%. To avoid foreign transaction fees, consider using a credit card that doesn’t charge them or using cash when traveling internationally.

Some Canadian credit cards are specifically designed for international travel and offer no foreign transaction fees. Always check the fine print before using a card in a foreign country.

• Related Terms: Credit Card, Currency, Fee, Transaction, International Travel