Most Canadian credit cards add about 2.5% to every purchase you make in another currency - that’s what’s known as the foreign exchange (FX) fee. Wealthsimple has two 2% cash back cards that don't charge you FX fees. Pay in the local currency, keep your credit card out of ATMs, and use the Wealthsimple Visa Platinum* prepaid card linked to your chequing account when you need cash.
You plan the flights, the hotel, the day trips. What you don't plan for is the quiet surcharge on all of it.
On a $3,000 converted CAD trip, that's $75 you only notice once you're home. It rides along on every coffee, every taxi, every hotel night, and it applies to anything you buy online that's not in Canadian dollars too.
You don't need a drawer full of specialty cards to avoid it, just one or two. This guide covers how our credit cards work abroad, how to handle cash, and what a real trip looks like on a single card.
Do Wealthsimple credit cards charge foreign transaction fees?
No.Wealthsimple's two 2% cash back credit cards, the Visa Infinite +* and the Visa Infinite Privilege*, don't charge foreign transaction fees.
On every card, Visa* converts a foreign purchase to Canadian dollars at its own exchange rate, so the amount on your statement reflects that rate. What we don't do is add a percentage on top. That surcharge is what the "foreign transaction fee" on most Canadian cards actually is.
One thing no card can protect you from is dynamic currency conversion (DCC). That's when a terminal, ATM or hotel desk offers to charge you in Canadian dollars instead of the local currency. Say no. If you accept, the merchant converts the purchase at its own rate, with its own markup, and that markup applies even on a card with no FX fees. Paying in the local currency is what lets your card's no-FX benefit do its job.
How the 2% card works as a travel card
The 2% cash back credit card was built to earn you cash back for everyday spending, and it happens to cover almost everything a traveller needs. You earn unlimited 2% cash back on everything, with no categories to track. You pay no FX fees from Wealthsimple on purchases in other currencies, and travel insurance (excludes residents of Quebec) comes built into the card, so you're not buying a fresh policy for every trip.
The two versions differ in how much coverage you get (Note that some benefits aren't available to Quebec residents):
Visa Infinite + includes travel medical coverage of up to $1,000,000, trip cancellation and interruption coverage of up to $3,000 per trip, delayed and lost baggage coverage of up to $1,000, and flight delay coverage.
Visa Infinite Privilege raises those limits, to up to $2,000,000 in travel medical and up to $5,000 per trip in trip cancellation and interruption. It adds car rental collision and loss damage coverage for rentals of up to 31 days, plus access to more than 1,200 airport lounges worldwide. Lounge access comes only with the Visa Infinite Privilege.
Both cards cost $20 a month (or $240 a year). We waive the annual fee if you have $100,000 or more in individual assets with Wealthsimple, or a qualifying direct deposit of $4,000 or more a month into your Wealthsimple chequing account. You can apply if you’re a Canadian resident, are the age of majority in your province or territory and have an active Wealthsimple chequing account. To qualify, the Visa Infinite + requires a personal income of $80,000 or a household income of $150,000. The Visa Infinite Privilege requires one of: a personal income of $150,000, a household income of $200,000, $50,000 in annual card spending, or $400,000 in assets with Wealthsimple. A full credit check will be run after you apply.
Insurance always comes with conditions: eligibility rules, trip-length limits, and exclusions. Read your certificate of insurance before you go, especially for a longer trip or one with the whole family.
Beyond insurance coverage, there’s also other travel benefits:
A complimentary 15-day 10GB eSIM from GigSky (plus additional offers depending on which card you have)
Access to 900+ luxury hotels through Visa Infinite Luxury Hotels (Infinite Privilege cardholders get an additional $100 credit per stay)
Enrollment in Visa RSVP Rewards for Platinum status and perks like upgrades and early check-in at 60+ Sandman, Sandman Signature, and Sutton Place hotels
Up to 8% in travel credits for qualifying accommodations booked through Booking.com.
Wealthsimple Visa Infinite Privilege cardholders also get:
Car rental collision/loss damage insurance up to 31 days
Access to over 1,200 airport lounges worldwide
Priority security, parking, and exclusive offers at select airports
How do I avoid ATM fees abroad?
Don't take cash out of an ATM with a credit card, abroad or at home. With any credit card, including ours, an ATM withdrawal is a cash advance: interest starts the day you take the money out, with no grace period like there is on purchases.
For cash abroad, use your Wealthsimple payment card, the Visa Platinum* prepaid card linked to your Wealthsimple chequing account. You already have one if you hold a Wealthsimple credit card, because the credit card requires an active Wealthsimple chequing account (which has no account minimum or monthly fee). We don't charge a fee to withdraw cash at an ATM, in Canada or internationally, and if the ATM operator charges you, we reimburse eligible fees. The Wealthsimple card also carries no FX fees on foreign-currency purchases.
Two habits help everywhere: decline the ATM's offer to convert your withdrawal to Canadian dollars (that's dynamic currency conversion again, and it happens at ATMs too), and keep your receipts, in case you ever need to dispute a charge.
One trip, start to finish
Here's what a week and a half in Lisbon looks like with your Wealthsimple cards. The numbers are illustrative, and Visa's exchange rate applies on the day of each purchase.
You book your flight with a Canadian airline and pay in Canadian dollars on your Wealthsimple credit card, so there's no foreign currency involved yet. Because you paid for the trip on the card, your trip cancellation coverage can apply if you have to cancel for a covered reason. You book an apartment in euros, also on the card. That's the first purchase where a typical Canadian credit card would tack on its 2.5% fee, and where yours doesn't.
On the ground, you tap your credit card for everything: coffee, the tram, dinner, a day trip to Sintra. When a restaurant payment terminal asks whether you want to pay in euros or Canadian dollars, you choose euros. Over the trip, apartment included, you spend euros worth about CAD $3,000 (Visa’s rate on the day of each purchase applies). You take cash out twice for a market and a few tips, using your Wealthsimple payment card, and we reimburse the eligible ATM operator fees.
On the way home, your connecting flight is delayed five hours. You buy dinner at the airport and keep the receipt for a flight delay claim.
When the statement arrives, the difference is easy to see:
A typical card with a 2.5% FX fee: about CAD $75 in fees on that CAD $3,000.
The 2% card: no FX fees from us, and about CAD $60 in cash back earned (2% of the CAD-converted amount).
You can redeem the cash back into your chequing account or your investment accounts whenever you like.
Is cash back or travel points better for travel?
It depends how much effort you want to put in. Travel points can be worth more than cash back if you redeem them carefully, usually for flights, when seats are available, and worth much less if you don't. Many travel rewards cards also charge an annual fee and a foreign transaction fee, which quietly eats into what you earn on the trip itself.
Cash back is simpler. A dollar of cash back is always worth a dollar, it works for any part of a trip, and there's no points program to learn. With a card that has no FX fees, you're also not paying a fee on the very purchases you're earning cash back on. If you enjoy optimizing points and travel often enough to redeem them well, a points card can make sense. If you'd rather not think about it, flat cash back on a no-FX card is the easier way to come out ahead.
Foreign transaction (FX) fee is a surcharge typically charged on foreign currency transactions. Wealthsimple does not charge FX fees, but transactions are still subject to currency conversion from credit card networks, or fees from merchants or financial institutions involved in the transaction.
The 2% earn rate applies to purchases, excluding cash-like transactions, refunds, any applicable fees and adjustments. See Terms and Conditions for full details.
Waived Annual Fee: Clients with at least $100,000 in individual net deposits or assets under management, including joint accounts, automatically qualify for the Annual Fee (charged monthly, except in QC) to be waived. Clients who do not meet this threshold may qualify for the waived fee by completing an eligible direct deposit of at least {{dd_cc_fee_waive_minimum}} per month into their personal chequing account within a 30 day period. Direct deposits into business chequing accounts are not eligible. Only direct deposits classified by Payments Canada as pre-authorized transactions with transaction codes ranging from 200 to 207, 230, 300, 310, 311, 315, 318, 330, and 600 would be considered eligible. See Terms and Conditions for details.
While Wealthsimple does not charge additional ATM fees, withdrawals may be subject to a fee charged by ATM providers. Wealthsimple will reimburse chequing clients an unlimited number of ATM fee reimbursements. Reimbursements will be made to the account linked to the Visa Platinum Prepaid Card within 4 business days after the ATM transaction settles. Click here / https://wsim.co/atm-reimbursement for details.
Wealthsimple Credit Cards are issued under license by Wealthsimple Payments Inc.
* Trademark of Visa Int., used under license.
