Canadian card points vs foreign transaction fees

What is a foreign transaction fee on a Canadian card?

CIBC's credit card page includes a section headed foreign currency transactions with your credit card, warning that cardholders travelling abroad may be charged additional fees when they use their card [4]. In the card terms themselves, charges for foreign currencies sit with the items that are not treated as purchases: American Express lists funds advances, interest, balance transfers, Amex cheques, annual fees, other fees and charges for travellers cheques and foreign currencies as items that do not qualify for points on the Marriott Bonvoy American Express Card [1]. TD's cash back terms also exclude fees, cash advances (including balance transfers and cash-like transactions), interest charges and optional services from earning Cash Back Dollars [3].

Do you still earn points on spending in a foreign currency?

Several of the cards described in these sources set earn rates by merchant category or by named exclusions. The American Express Cobalt Card earns 5 points per $1 at restaurants, quick service restaurants, coffee shops and drinking establishments in Canada, at stand-alone grocery stores in Canada and on food and grocery delivery in Canada, up to a combined $2,500 in net purchases a month, then 1 point per $1, and it earns 3 points per $1 on eligible streaming subscriptions at select providers in Canada [1]. The American Express Aeroplan Reserve Card earns 3 points per $1 on eligible purchases made directly with Air Canada, 2 points per $1 at restaurant, quick service restaurant, coffee shop and drinking establishments in Canada and on food delivery in Canada as a primary business, excluding groceries, and 1.25 points per $1 where the merchant code is not in an eligible category or the merchant category is otherwise not identified [1].

Other issuers tie the programme to the product. RBC cards earn Avion points, WestJet points or Avios depending on the card, with Avion points redeemed through Avion Rewards and WestJet dollars, Avios and Asia Miles redeemed directly with the airline programme [2]. BMO Blue Rewards cards earn 10 times the points per $1 on travel booked through Blue Rewards Travel, powered by Expedia, and 2 times the points per $1 on groceries, gas, electric vehicle charging, wholesale and alcohol purchases [5].

Where a purchase falls outside a bonus category, the base rate applies — the Aeroplan Reserve terms assign 1.25 points per $1 to merchant codes that are not in an eligible category or are otherwise not identified [1].

When does avoiding the fee beat the extra points?

Two numbers decide it: the fee the card adds and the value of the points the same purchase would earn.

Check that the purchase earns points at all. On the Marriott Bonvoy American Express Card, charges for foreign currencies do not qualify for points [1], so on that card the fee is the only side of the comparison carrying a number.

Value the points at the redemption you would use. Membership Rewards points redeemed through Use Points for Purchases convert at 1,000 points for a $10 statement credit, with a minimum of 1,000 points per redemption [1]. TD Rewards Points redeemed through Expedia For TD convert at 200 points for $1 in travel savings [3]. Membership Rewards transfers to frequent flyer and other loyalty programmes run at ratios that vary by participant and can take up to five days [1].

Compare the fee percentage with the points value percentage. The calculation applies only where the card's terms confirm that the purchase earns points. On a card whose terms do confirm an earn rate, multiply the spend by that rate to get the points, then value those points at the redemption rate you would use. On the Marriott Bonvoy American Express Card, foreign-currency charges do not earn points [1], so there is nothing on the points side to set against the fee, and the fee is a straight cost.

Where the alternative is a card whose terms do not add the fee, the same test runs in reverse: what you give up is the difference between the two cards' earn rates on that purchase. Because annual fees on the selected RBC, CIBC and TD cards below start at $0 [2] [4], a second card only pays if the fees it avoids, or the rewards it adds, exceed what it costs to hold.

What does it cost to hold a Canadian points card?

Annual fees on the selected RBC, CIBC and TD cards below run from $0 to $139 [2] [3] [4].

Interest is quoted separately from the annual fee. RBC lists a 20.99% purchase interest rate and a 22.99% cash advance rate on the RBC ION Visa, RBC ION+ Visa, RBC Avion Visa Infinite and WestJet RBC World Elite Mastercard [2], while TD lists 21.99% on purchases and 22.99% on cash advances for its TD Aeroplan Visa Infinite, TD First Class Travel Visa Infinite and TD Cash Back Visa Infinite cards [3]. TD states that its annual interest rates, fees and features are current as of September 1, 2026 and are subject to change [3].

Exceptions and limits

• Some cards award nothing on foreign currency charges. The Marriott Bonvoy American Express Card awards no points on charges for foreign currencies, funds advances, interest, balance transfers, Amex cheques, annual fees or other fees [1].
• Fees and interest do not earn rewards. TD's cash back terms exclude fees, cash advances, balance transfers, cash-like transactions, interest charges and optional services from earning Cash Back Dollars [3].
• Redemption rules cap the value. Use Points for Purchases needs a minimum of 1,000 points per redemption, covers eligible purchases only, and displays only purchases from the last three months, up to the 150 most recent, for redemption online [1]. The 200-points-to-$1 TD Rewards rate applies through Expedia For TD [3].
• Earning caps apply. The Cobalt Card's 5-point rate is capped at a combined $2,500 in net purchases a month, after which it earns 1 point per $1 [1].
• Terms and offers change. TD's rates, fees and features are current as of September 1, 2026 and subject to change [3], and RBC's featured offers carry deadlines, such as applying by November 4, 2026 for the RBC ION+ Visa offer [2].
• Scope. This page covers Canada-issued cards from American Express, RBC, TD, CIBC and BMO, as listed in the sources. Check the current terms for the card you hold before deciding.

Frequently asked questions

Do Canadian credit cards charge extra when you spend abroad?

CIBC's credit card page includes a section headed foreign currency transactions with your credit card, warning that cardholders travelling abroad may be charged additional fees when they use their card [4].

Can you earn points on purchases in a foreign currency?

On the Marriott Bonvoy American Express Card, charges for foreign currencies are not purchases and do not qualify for points [1]. Its base rate of two points per $1 applies when the merchant code is not in an eligible category or the merchant category is otherwise not identified [1].

How do you work out whether points are worth a foreign transaction fee?

First confirm the purchase earns points at all. If it does, value the points at the redemption you would use: 1,000 Membership Rewards points are worth a $10 statement credit against an eligible purchase [1], and 200 TD Rewards Points are worth $1 through Expedia For TD [3]. Compare that value percentage with the fee percentage on the same purchase. If the purchase earns no points on that card, there is no points value to weigh against the fee.

Does paying an annual fee or a transaction fee earn points?

Not on the cards whose terms exclude them. American Express lists annual fees, other fees and charges for foreign currencies among the items that do not qualify for points on the Marriott Bonvoy card [1], and TD's cash back terms exclude fees, cash advances and interest charges from earning Cash Back Dollars [3].

Related pages

See how the programmes behind these cards differ in Canadian card points programmes compared, and weigh an annual fee against expected rewards with the card selection framework. For the underlying term, read foreign transaction fee, or browse the rest of the frequent flyer glossary.

Sources

Sources checked on 18 October 2026. Cards from Canadian issuers other than American Express, RBC, TD, CIBC and BMO are not covered here; see Canadian card points programmes compared for the programmes behind these cards.

1. American Express Canada credit cards, checked 18 October 2026
2. RBC Royal Bank credit cards, checked 18 October 2026
3. TD Canada Trust credit cards, checked 18 October 2026
4. CIBC credit cards, checked 18 October 2026
5. BMO credit cards, checked 18 October 2026