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No foreign transaction fee credit card in Canada: what to use at U.S. Costcos and abroad
Most Canadian credit cards, including the CIBC Costco Mastercard, add 2.5% to every foreign currency purchase, more than they pay back. A no foreign transaction fee credit card avoids it, and for U.S. Costco runs it has to be a Visa, since U.S. warehouses only take the CIBC Costco Mastercard among Mastercards.
By Flatcart Editorial · Last reviewed Oct 4, 2026 · 3 min read
A no foreign transaction fee credit card in Canada saves you the 2.5% most cards add to purchases in U.S. dollars or other currencies, and the CIBC Costco Mastercard is one of the cards that charges it. That's more than its 1% warehouse cash back, so at a U.S. Costco you lose about 1.5% on every purchase. For U.S. Costco runs the card has to be a Visa: south of the border Costco accepts Visa plus a single Mastercard, the CIBC Costco one. Use the Costco card at home, where it shines; see our best cards for Costco.
Calculator
What the Costco card earns you at home
Keep the CIBC Costco Mastercard for Canadian spending. Enter your monthly spending to see its yearly cash back, caps included.
Estimate your yearly cash back
Sample dataEstimated cash back per year
$258.00
Rates are CIBC’s published rates and are editable, as is the spending. Includes CIBC’s yearly category caps (spending above a cap earns 1%); there’s no limit on total cash back. Check current terms before you apply.
What does a foreign transaction fee cost at a U.S. Costco?
Example only: U.S. Costco spending a year, converted to Canadian dollars, on the CIBC Costco Mastercard (2.5% fee, 1% back):
| U.S. Costco spending (CAD) | Fee at 2.5% | Cash back at 1% | Net cost |
|---|---|---|---|
| $1,000 | $25 | $10 | $15 |
| $3,000 | $75 | $30 | $45 |
| $6,000 | $150 | $60 | $90 |
The fee is a percentage of the converted amount, charged on purchases and refunds alike, per CIBC's rates summary. Debit cards and other credit cards usually convert at a similar markup, so check your bank's terms.
Which cards work at a U.S. Costco?
U.S. Costco warehouses and gas stations take Visa, debit and Shop Cards, and the only Mastercard on their list is the CIBC Costco Mastercard. American Express isn't listed. So for a no-fee-abroad option at a U.S. Costco, you need a Visa; a Mastercard without foreign fees is useful everywhere else, but not there. Details: what Canadians can pay with at a U.S. Costco.
One card pays a bonus on U.S. dollar spending, but U.S. Costcos won't take it; see the Rogers Red World Elite. Wondering about Costco's U.S. Visa? See the Citi Costco Visa.
Which Canadian cards have no foreign transaction fee?
What each issuer's page said on October 4, 2026:
| Card | Network | Foreign transaction fee | Annual fee | At a U.S. Costco |
|---|---|---|---|---|
| Scotiabank Passport Visa Infinite | Visa | None | $150 (rebated in full with the Ultimate Package) | Yes |
| Tangerine Money-Back Mastercard | Mastercard | 2.5%, but Foreign Currency Spend can be a 2% category | $0 | No |
| Brim Mastercard cards | Mastercard | 1.5% | Varies by card | No |
| CIBC Costco Mastercard | Mastercard | 2.5% | $0 | Yes |
Home Trust advertises its Preferred Visa as a no-annual-fee card with no foreign exchange fees, which would make it a fit for U.S. Costco trips; its site blocked our check on October 4, so confirm the terms on Home Trust's page before you apply.
What about Tangerine's foreign currency category?
Tangerine's Money-Back Mastercard lets you choose Foreign Currency Spend as one of its 2% categories. You still pay its 2.5% conversion fee, so the net cost drops to about 0.5%: $5.00 on $1,000, $15.00 on $3,000, $30.00 on $6,000. It's a Mastercard, so it won't work in U.S. Costco warehouses, but it helps at U.S. gas stations, restaurants and online stores that charge in U.S. dollars.
Is a no-FX card worth it for Costco shoppers?
It depends on how much you spend in other currencies:
- A few hundred dollars a year: not worth a new card; the CIBC card's net cost is small.
- Regular U.S. Costco runs or winters south: a Visa with no foreign transaction fee pays for itself quickly, and a $150 card only makes sense if the fee is rebated or you'd use its travel perks.
- Online shopping in U.S. dollars: a no-FX card or Tangerine's 2% category works; the network doesn't matter online.
Back in Canada, keep the CIBC Costco Mastercard for Costco gas, restaurants and the warehouse.
Frequently asked questions
- Does the CIBC Costco Mastercard have a foreign transaction fee?
- Yes: 2.5% on anything charged in a foreign currency, refunds included.
- What card should Canadians use at a U.S. Costco?
- A Visa with no foreign transaction fee, if you have one. U.S. Costcos take Visa; the one Mastercard they accept, CIBC's Costco card, charges 2.5%.
- Is there a no-fee credit card with no foreign transaction fee in Canada?
- Yes, Home Trust advertises its Preferred Visa that way; confirm the current terms on Home Trust's page before applying, as we couldn't recheck it on October 4, 2026.
- Does Scotiabank Passport charge foreign transaction fees?
- No. Scotiabank says the Passport Visa Infinite has no foreign transaction fees; its annual fee is $150, fully rebated with the Ultimate Package and $40 off with the Preferred Package.
- Can I use a no-FX Mastercard at a U.S. Costco?
- No, not in the warehouse: the only Mastercard U.S. Costcos list is the CIBC Costco Mastercard. It still works online and elsewhere in the U.S.
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