It’s summertime, and many Canadians are taking a break. If you used a credit card to book your trip or to cover expenses while away, you could be paying more than you realize. Travel credit cards often promise perks and rewards, but they frequently come with high fees and other hidden costs that add up fast.
Below is a clear look at how credit card fees can inflate the cost of your trip and practical ways to avoid those charges—using, for example, the EQ Bank Card.
How fees add up when you use a travel credit card
Travel credit cards can offer convenience and valuable benefits, but those advantages are rarely free. Fees start piling up even before you leave home, and foreign purchases bring additional charges that many travellers overlook.
Before you travel
Many travel cards carry annual fees that range from roughly $120 to several hundred dollars for premium cards. That’s a recurring expense simply for maintaining the card, whether or not you use it heavily.
When you book flights, accommodation or tours online, you can also incur foreign transaction (FX) fees. If you buy a service or product priced in another currency, most cards add a surcharge—commonly around 2.5%—on top of the converted amount.
Tip: Some merchants offer to charge you in Canadian dollars at checkout. That option is called dynamic currency conversion, and it usually includes a markup in the exchange rate, which effectively increases the price. It’s generally cheaper to pay in the local currency and let your card’s issuer apply the conversion.
At your destination
The costs continue after you land. Getting local cash can be surprisingly expensive. Withdrawals from foreign ATMs often incur both a conversion fee and an ATM operator fee. Some debit cards charge as much as 3.5% for currency conversion, and airport currency exchange kiosks tend to offer poor rates and additional commissions.
Everyday purchases—taxi fares, restaurant meals, souvenirs—are usually processed in the local currency. If your credit card applies an FX fee, you’re paying extra on each transaction. Over a multi-day trip, those small percentages quickly become a significant portion of your spending.
Travel should be about enjoying new experiences, not paying needless premiums on every purchase.
Save on travel fees with a prepaid EQ Bank Card
Canadian travellers seeking to cut annual fees, avoid extra FX charges and reduce ATM costs may find a prepaid reloadable Mastercard like the EQ Bank Card a practical alternative. It’s designed to be simple to use abroad while minimizing common travel-related fees. Key benefits include:
- No extra foreign exchange fees
Purchases in foreign currencies use Mastercard’s conversion rate with no added FX surcharge—potentially saving you the 2–3% many cards charge. - No monthly or annual fees
The EQ Bank Card does not carry recurring monthly or annual charges. - No added international ATM withdrawal fee from EQ Bank
EQ Bank does not add its own international ATM withdrawal fee, though local ATMs may still charge a provider fee. When you withdraw from ATMs in Canada, third-party fees are reimbursed.
In addition to fee savings, the card offers small rewards and interest benefits:
- Cash back
0.5% cash back on purchases. - Interest on balances
Money loaded onto the card earns the same interest rate as an EQ Bank Personal Account: a base rate of 1.25% per annum. Customers who set up qualifying recurring direct deposits of at least $2,000 per month may be eligible for a higher rate (the example shown is 3.50% under qualifying conditions). Rates are subject to change and conditions apply.
Interest is calculated daily on the total closing balance and paid monthly. For the EQ Bank Card, interest is paid into the linked Personal Account. Rates are per annum and subject to change without notice. Customers who add and maintain qualifying recurring direct deposits of at least $2,000/month to a Personal Account or Joint Account may be eligible for a bonus interest rate. Conditions apply. Please consult EQ Bank’s official terms for full details.
The EQ Bank Card functions wherever Mastercard is accepted, making it a convenient choice for everyday spending on the road.
To use the EQ Bank Card on your next trip:
- Open and fund an EQ Bank Personal Account.
- Order the free EQ Bank Card through your account.
- When you receive and activate the card, load funds from your Personal Account.
- Use the card for purchases and ATM withdrawals while travelling to limit FX and ATM fees.
Open an EQ Bank Personal Account to order the EQ Bank Card and reduce the cost of spending abroad.
EQ Bank Personal Account
- Monthly fee: $0
- Transactions: Free, unlimited transactions
- Interest earned on balance: Up to 2.75%
- Welcome offer: None at this time
This article is sponsored.
This is a paid post that highlights a client’s product or service. Content was written, edited and produced by the publisher with client approval.
More travel tips
- Compare cards and prepaid options for FX fees and annual charges before you travel.
- Avoid dynamic currency conversion at checkout; opt to pay in the local currency whenever possible.
- Check ATM operator fees before you withdraw cash and withdraw larger amounts less frequently to reduce fixed fees.
- Consider prepaid cards that reimburse domestic ATM fees and don’t add FX surcharges for everyday purchases abroad.