One of the most common questions asked about the exchange rates and travel is whether credit cards should be used when travelling outside of Canada. And the answer is… mostly no and sometimes yes!
Credit cards used outside of Canada typically incur two charges; one of them is explicit and the other is hidden.
- First, banks charge a “foreign transaction” fee of up to 5% for most charges incurred outside of Canada. This is the explicit charge and varies depending on your credit card and bank.
- Second, credit cards covert your expenses into Canadian Dollars but …