Small fees don’t look like much at first, but when you’re traveling for months, they start to add up.
Most Canadians don’t realize how quickly ATM charges, FX fees, and bad conversion rates can eat into their travel budget.
This guide breaks down what those fees actually are, how to avoid them, and what tools are worth using if you’re planning to travel or live abroad for a while.
Understand How Foreign ATM Fees Work
Every withdrawal abroad can trigger a stack of charges.
- Local ATM operator fee: Typically $1–$10 (or equivalent), depending on the country.
- Canadian bank withdrawal fee: Often $2–$5 per withdrawal
- Foreign transaction fee: The standard 2.5 percent most banks charge.
- DCC (Dyanmic Currency Conversion) markup: The hidden one. If an ATM asks whether you want to be charged in CAD, always choose the local currency. DCC markups can be 3–10% worse than card-issuer rates.
Example: Withdrawing $200 CAD equivalent abroad might cost $5 (ATM fee) + $5 (bank fee) + $5 (2.5% FX fee) = $15 per transaction. Five withdrawals a month could cost $75, versus $25 for one larger withdrawal.
Choose a Bank Account That Minimizes ATM Fees
Some Canadian banks and fintechs offer accounts that reduce or eliminate foreign ATM and transaction fees. Examples include:
- Scotiabank: Part of the Global ATM Alliance, which waives ATM operator fees at partner banks in select countries. The Preferred Package or Ultimate Package may also waive bank fees.
- EQ Bank Card: A prepaid card with no 2.5% foreign transaction fees, though foreign ATM operator fees apply (no reimbursement).
- Wealthsimple Cash Card: A Visa debit with no 2.5% FX fees. Premium plans (e.g., Generation) refund some ATM fees, but the standard plan does not.
- Wise: A multi-currency account with free ATM withdrawals up to $350 CAD/month (two withdrawals). Conversions use near-mid-market rates (0.4–1% fee).
- Stack Prepaid Mastercard: No FX fees and widely accepted, ideal for budgeting.
Before you go: Ask your bank about travel-friendly accounts or fee waivers. For example, Scotiabank’s Ultimate Package offers unlimited no-fee withdrawals at Global ATM Alliance machines.
Use a Multi-Currency Account for Flexibility
Tools like Wise and Stack let you hold money in local currencies and avoid repeated conversions. This helps if you’re spending long periods in the same region, like Europe or Southeast Asia.
- Wise: Hold 40+ currencies, convert at near-mid-market rates, and withdraw (up to $350 CAD/month) fee-free from ATMs. Great for frequent travellers.
- Stack: A Canadian prepaid Mastercard with no FX fees. Load funds via an app and spend without conversion costs.
- Revolut (for non-Canadian residents): Offers similar features to Wise but is not fully available in Canada. If you’re a Canadian with a Revolut account from another country (e.g., UK), you can hold multiple currencies and withdraw up to £200/month (or equivalent) fee-free.
Tip: These accounts are ideal for extended stays in regions like Europe or Southeast Asia, where you can hold euros or Thai baht to avoid conversion losses.
Plan ATM Withdrawals to Reduce Fees
Instead of frequent small withdrawals, take out larger amounts less often to minimize fixed fees. For example, one $500 withdrawal costs less in fees than five $100 withdrawals.
Tips to know:
- Some countries (e.g., Thailand, Argentina) have low ATM limits ($100–$200 CAD equivalent), so check local restrictions via travel forums or apps like ATM Fee Saver.
- Store cash securely (e.g., in a hotel safe) and avoid carrying large sums. Use a money belt for daily needs.
Example Savings: Withdrawing $500 once (e.g., $5 ATM fee + $5 bank fee) saves $40 compared to five $100 withdrawals ($50 total fees).
Avoid Dynamic Currency Conversion Everywhere
At ATMs, restaurants, or shops, always select the local currency over CAD. Choosing CAD lets the local bank or merchant set a poor exchange rate, often 3–10% worse than your card issuer’s rate (e.g., Visa, Mastercard).
Tip: If the screen doesn’t offer a choice, ask the merchant to charge in the local currency before tapping or swiping.
Use Credit Cards With No Foreign Transaction Fees
For larger purchases, a no-FX-fee credit card saves money and often includes travel perks. Top Canadian options include:
- Scotiabank Passport Visa Infinite: No 2.5% FX fees, plus travel insurance and airport lounge access.
- Brim World Elite Mastercard: No FX fees, with rewards and insurance on premium plans.
- Home Trust Preferred Visa: No FX fees, though rewards are limited.
- Rogers World Elite Mastercard: Charges a 2.5% FX fee but offers 1.5% cash back (3% on USD purchases), partially offsetting costs.
- Stack Prepaid Mastercard: No FX fees and no annual fee, a prepaid alternative to credit cards.
Pro Tip: Carry two cards (e.g., a Visa and a Mastercard) as some regions prefer one over the other (e.g., Mastercard is less accepted in parts of Europe). Notify your bank of travel plans to avoid card blocks.
Example: Spending $1,000 abroad with a no-FX-fee card saves $25 compared to a standard card with a 2.5% fee.
Withdraw Cash From Trusted ATMs
Use ATMs in secure locations like banks, airports, or shopping malls to avoid high fees and skimming risks. Standalone ATMs in tourist areas or convenience stores often charge 5–10% fees and are more vulnerable to fraud.
Safety Tips:
- Check for tampering (e.g., wiggle the card reader or keypad for loose parts).
- Cover the keypad when entering your PIN.
- Ask hotel staff or locals for trusted ATM locations.
Keep a Backup Option for Emergencies
Carry a prepaid travel card or a debit card linked to a separate account as a backup.
If your primary card is lost, stolen, or blocked, you’ll still have access to funds.
Options include:
- Wise or Stack: Prepaid cards that can be loaded and paused via an app.
- Canadian bank debit card: Link to a secondary account with limited funds for safety.
- Emergency cash: Keep $50–$100 USD (or equivalent) in small bills for cash-only situations.
Tip: If a card is blocked abroad, use your bank’s app or call their international helpline (save the number before you go).
Research Destination-Specific Needs
Some regions have unique banking challenges:
- Low ATM limits: Countries like Vietnam or India may cap withdrawals at $100–$200 CAD, increasing fee frequency.
- Card acceptance: Visa is more common in Asia, while Mastercard dominates in parts of Europe.
- Cash-heavy economies: Places like Japan or rural Southeast Asia rely heavily on cash, so plan withdrawals accordingly.
Check travel forums (e.g., Reddit’s r/travel) or apps like Wise for country-specific ATM and card tips before departure.
Save Money for Better Travel Experiences
Avoiding ATM and banking fees can save you hundreds annually money better spent on experiences like local meals or tours.
For example, using a no-FX-fee card and limiting withdrawals could save $200–$400 a year for frequent travellers.
With the right accounts, a bit of planning, and smart choices, keeping fees low becomes effortless.
Just remember:
- Choosing CAD = worse exchange rate
- Always choose local currency
