A closer look at Rogers bank's foreign transaction fees for Canadians

Rogers Bank® is known for its range of spending solutions, including credit cards like the World Elite Mastercard®.

We take a look at Rogers Bank’s foreign transaction fees, including how much it’ll cost to use your credit card in different currencies.

We’ll also consider Wise as an alternative for all your international spending! Spend money at the mid-market exchange rate, with a simplified pricing structure for every transaction.

What are the foreign transaction fees for Rogers Red World Elite Mastercard?

Rogers Bank's Red World Elite Mastercard does not have annual fees. However, it charges an additional 2.5% of the transaction amount for foreign currency purchases. The exchange rate used in this case is the one set by Mastercard.

You may not know exactly how much you’ll need to pay to convert your money from USD to CAD, as it won’t necessarily be the exchange rate you see on the day you send your transaction.

This is because your rate can change depending on factors like transaction speed and the posting date of the transaction - which is the date the amount is deducted from your account.²

Here's what their cash back rewards system looks like, for purchases in USD and other currencies:

Cash back rewards with Rogers Red World Elite Mastercard
For USD purchases: You get 2% unlimited cash back if you are actively subscribed to a qualifying service provided by Rogers, Shaw or Fido. You get an additional 1.5x redemption bonus for any Rogers, Shaw or Fido purchases.
For non-USD purchases: You get 2% unlimited cash back if you're actively subscribed to a qualifying service provided by Rogers, Shaw or Fido. If not, you get 1.5% unlimited cash back for purchases in other currencies.

Note: Transactions such as cash advances, balance transfers, cash-like transactions, interest fees, insurance premiums and payments do not qualify as purchases eligible for cash back. Also, the minimum redemption amount for cash back would be 10 CAD.

What is the exchange rate set by Mastercard?

Mastercard sets an exchange rate for all foreign transactions, including payments with Rogers Bank’s Elite Mastercard.

You can use Mastercard’s currency converter to work out how much your transaction will cost. You’ll need:

• your transaction currency
• the transaction amount
• your card currency
• your bank fee as a percentage

However, it’s important to note that the exchange rate and converted FX amount are indicative only – and the rate on the day of your transaction may differ depending on how and when you send your transfer.³

When making payments in foreign currencies, you want to look out for the mid-market rate. This is the rate you usually see on Google. Banks use this for trading large amounts of money, which gives it another name - interbank rate.

However, many banks and money transfer providers add a markup to this rate – meaning you may end up spending more than expected for your foreign transfer.

Money service businesses such as Wise want to make international payments as accessible as possible. This is why Wise only charges the mid market rate on all transfers, including personal and business finance requirements.

Mastercard exchange rate vs mid-market rate

Let’s take a closer look at how much you’ll pay to spend money in currencies other than CAD with Rogers Bank World Elite Mastercard, including a direct comparison of the Mastercard exchange rate vs the mid-market rate.

Assuming a bank fee of 0%, the exchange rate between CAD and USD made on April 15 2024 at 10:51 EDT is shown to be as follows:

Currency exchange	Mastercard exchange rate	Mid-market exchange rate
CAD to USD	1 CAD = 0.7314754 USD	1 CAD = 0.726243 USD
USD to CAD	1 USD = 1.3775⁴ CAD	1 USD = 1.37675 CAD⁵

It’s important to note that these figures will change depending on your banking provider – and when you send your money. You can select the date of your transaction to check how much you paid for past transfers, too.

Rogers Bank’s credit card foreign transaction fee comes in at 2.5% of the transaction amount. You’ll need to include this fee in your Mastercard conversion to get the exact information for your payment.

Save on international transactions with the Wise Card

Save on all your foreign transactions with Wise.

Wise uses the standard mid-market exchange rate for every transaction. You won’t pay a markup for converting your money into a different currency, whether you’re travelling overseas or sending an international transfer online.

Your Wise card isn’t a credit card, meaning you won’t pay interest rates, overdraft fees or inactivity fees. You can even use your card virtually to make payments with Google Pay or Apple Pay.

Use your Wise card in over 40 currencies to:

• spend while you travel
• pay your employees abroad with Wise Business
• track and manage your spending from your phone
• receive payments from your clients

Send, spend and receive your money in CAD, USD, GBP, EUR, SGD and more!

Wise uses a simple pay-as-you-go fee structure to help you understand how much you’ll pay for international transactions. Wise doesn’t charge monthly fees – and you’ll never pay to open or close your account, either.

You can even use Wise’s fee calculator to work out exactly how much your transaction will cost before you send it.

To sum it up

Rogers Bank’s Red World Elite Mastercard is a popular option for Canadians, including unlimited cashback rewards on eligible purchases and no annual fees.

However, you’ll need to think about how much you’ll pay in foreign transaction fees when making a purchase with Rogers Bank.

To start spending your money at the mid-market rate, check out Wise.

---

Sources

1. Rogers Bank
2. Rogers Bank
3. Mastercard
4. Mastercard
5. Wise
   Sources verified on 11 June 2024