Best credit card to use in Canada: Top 6 UK picks

Planning a trip to Canada from the UK? Whether you’re heading there for a holiday, work trip or perhaps a longer stay, you’re going to need a way to spend in Canadian dollars.

Your options include cash of course, but you may also want to look into using a debit or credit card for greater convenience.

In this guide, we’ll run through some of the best UK credit cards to use in Canada. This includes top picks from providers like Halifax, Barclays, Bip and Zopa, looking at foreign transaction fees, interest rates and more.

We’ll also show you a travel-friendly alternative - the Wise card. It’s not a credit card but an international debit card linked to your Wise account. You can use it for spending in 150+ countries including Canada, automatically converting your pounds to the local currency at the great mid-market exchange rate, only adding a tiny, transparent conversion fee*.

Learn more about the Wise card 💳

Table of contents
Top picks compared: The best UK credit cards to use in Canada Halifax Clarity Credit Card Barclaycard Rewards Card Bip Credit Card NatWest Travel Reward Credit Card Zopa Credit Card Santander All in One Credit Card How do credit cards work in Canada? Is it best to use a credit card in Canada? What to look for in a good credit card to use while travelling to Canada FAQ

Top picks compared: The best UK credit cards to use in Canada

To help you find the best way to spend abroad, here’s our top picks for travel-friendly UK credit cards you can use in Canada:

Card name	FX rate	Foreign currency transaction fees	ATM fees	Interest rate (APR)	Best feature
Halifax Clarity Credit Card¹	Mastercard	None	None	Check eligibility to find out	No ATM fees
Barclaycard Rewards Card²	Visa	None	None	28.9% Interest-free for 56 days³	No ATM fees
Bip Credit Card⁴	Mastercard	None	None	29.9% Interest-free for 48 days	Cardless credit
NatWest Travel Reward Credit Card⁵	Visa	None	3% (min. £3)	27.9% Interest-free for 56 days	Cashback on travel spending
Zopa Credit Card⁶	Visa	None	£3	34.9% Interest-free for 56 days	Easy in-app management
Santander All in One Credit Card⁷	Mastercard	None	3% (min. £3)	29.8% Interest-free for 56 days	Cashback for everyday spending

Halifax Clarity Credit Card - Best for withdrawing cash in Canada

The Halifax Clarity Credit Card is a popular choice for overseas travel, as it has no foreign transaction fees for spending or cash withdrawals. And there’s no annual fee to worry about either.¹

Interest rates for the card aren’t available online, so you’ll need to check your eligibility on the Halifax website to see the specific rate you’ll be offered - along with your personal credit limit and interest-free period on purchases.

It’s likely though that there’ll be no interest-free period on cash withdrawals, which means that interest starts accruing from the moment you withdraw cash.

For converting currency between GBP and CAD, the Halifax Clarity card uses the Mastercard exchange rate.

Barclaycard Rewards Card - Best for withdrawing cash and cashback on spending

Another card with no foreign transaction fees, the Barclaycard Rewards Card won’t charge you for spending or withdrawing cash in other currencies - including Canadian dollars.

It has no annual fees, a representative APR of 28.9% (variable)² and a 56-day interest-free period on purchases.³ Just remember that interest on cash transactions like ATM withdrawals will start accruing right away.

As an additional perk, you’ll get 0.25% cashback on all your everyday spending with this card.²

It uses Visa’s exchange rates for converting currency.

Bip Credit Card - Best for cardless credit

Prefer using mobile wallets over physical cards? The Bip Credit Card could be a good fit for you, as it’s a digital-only credit card that lives on your phone. You can add it to your digital wallet and then use your phone to spend.

The only snag is that contactless ATMs aren’t widely available in Canada, so you may only be able to use the card for spending. You might need a backup card if you want to withdraw cash.

But the great news is that there are no annual fees, or foreign transaction fees for spending or cash withdrawals overseas. The card uses the Mastercard exchange rate for converting currency.⁴

It has a representative APR of 29.9% (variable) and a 48-day interest-free period for purchases (none for cash withdrawals).

NatWest Travel Reward Credit Card - Best for cashback on travel spending

The NatWest Travel Reward Credit Card is specifically designed for overseas use, with no foreign transaction fees on spending. It charges a fee of 3% (£3 min.) fee for cash withdrawals.⁵ There are no monthly or annual fees though.

The card uses the Visa exchange rate for converting currency between GBP and CAD.

You’ll get a 56-day interest-free period on purchases, but interest on cash withdrawals will start accruing right away. The representative APR for the card is 27.9% (variable).⁵

As an added bonus, you’ll also get cashback at the following rates on eligible travel-related purchases:⁸

• 1% on flights, trains, car rental, ferries, buses, hotel accommodation, travel agents, cruises, campsites and more.
• 1% to 15% at selected partner retailers.

Zopa Credit Card - Best for in-app money management

With the Zopa Credit Card, you’ll pay no annual fees and can spend in Canadian dollars and other currencies without any foreign transaction charges. Just be aware though that there’s a £3 charge for cash withdrawals.⁶

Currency conversions are carried out using Visa exchange rates.

The card has a representative APR of 34.9%and offers a 56-day interest-free period on purchases (none for cash transactions).

You’ll manage your card in the Zopa app, which boasts money management tools such as instant spending notifications and real-time balance updates. There’s also a Credit Cushion feature which lets you set aside credit for when you really need it.

Also good to know - Zopa was also named Best Credit Card Provider at the British Bank Awards 2024.⁹

Santander All in One Credit Card - best for cashback on everyday spending

Lastly, we have the Santander All in One Credit Card. It’s the only card on our list with a fee, which is £3 a month. However, this may be offset by the cashback you can earn on everyday spending, as the card offers 0.5% cashback (up to £10 a month) on all your purchases.¹⁰

You can spend fee-free in Canada or other countries worldwide, and there’s a 56-day interest-free period on purchases. Overseas cash withdrawals are charged at 3% (min. £3) per transaction, and interest on these will start accruing right away.⁷

The card has a representative APR of 29.8% (variable) ⁷ and uses Mastercard’s exchange rates for currency conversions.

How do credit cards work in Canada?

Credit cards in Canada work in pretty much the same way as in the UK.

You can use yours for spending and cash withdrawals (although this usually comes with a fee, so is best avoided) anywhere that accepts Visa/Mastercard. In many places, you can make contactless payments with your credit card.

Anything you spend will be added to your balance, and you need to pay off the minimum amount required before the interest-free period ends or you’ll be charged interest.

Can I use my UK credit card in Canada?

Yes, you should be fine to use your UK credit card in Canada, as both locally-issued and international cards are accepted.

Visa and Mastercard are widely accepted, although American Express credit cards have limited acceptance outside of large hotels, luxury shops, big chains and fine dining restaurants.

As you’ll be spending in Canadian dollars during your trip, you’ll just need to check whether your UK credit card charges any foreign currency transaction fees (also known as non-sterling transaction fees).

If it does, you may be best switching to a travel-friendly credit card, or even a debit card which has no foreign currency transaction fees.

Another option is a prepaid travel card which you top up with your chosen currency before you travel.

Is it best to use a credit card in Canada?

Debit and credit cards are widely used and accepted in Canada, especially in bigger towns and cities. But whether a credit card is the best choice depends on what fees your card charges for spending and cash withdrawals in foreign currencies.

You may also find you need some Canadian dollars in cash when shopping at smaller shops and cafes, especially in more remote or rural parts of the country. It can also be handy for tipping, public transport and shopping at markets.

Read more on if you should use cash or card to spend in Canada.

What to look for in a good credit card to use while travelling to Canada

Here’s a quick checklist of things to look for when choosing a credit card for your trip to Canada:

• No foreign transaction fees
• No overseas cash withdrawal fees
• A generous interest-free period for purchases - this gives you plenty of time to make repayments after your trip
• Cashback or rewards on travel or everyday spending
• Decent currency exchange rates - most credit cards use Visa or Mastercard rates, which are known to be pretty good.

FAQ

Do you get charged for using a credit card in Canada?

Your credit card provider may charge you for spending or withdrawing cash in Canadian dollars during your trip. You’ll need to check the list of fees for your specific card.

It’s also likely that the business or vendor will add a credit card surcharge to cover the costs of processing the payment. The only exception is Quebec, where the rules are different.¹¹ If unsure, ask about surcharges before you pay.

How do I avoid credit card foreign transaction fees?

To avoid or minimise fees when using a credit card abroad, follow these tips:

• Choose a credit card with no foreign transaction fees
• Avoid cash withdrawals overseas - these usually come with fees
• Always pay in the local currency
• Remember to make minimum repayments before the interest-free period ends.

Is it better to pay in local or foreign currency on a credit card?

It’s usually best to pay in the local currency when spending overseas.

This will mean that Visa or Mastercard exchange rates will be used, which are usually much better than those applied by the vendor, retailer or ATM.

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That concludes our guide to the best credit card for spending in Canada. Hopefully, this helps you find the one that suits your needs best.

And if you want another option for spending abroad without worrying about exchange rate markups and hidden fees, the Wise card could be a great solution.

Open a Wise account online and you can order the Wise card for a one-time fee of £7. You can use this clever card in 150+ countries, including Canada. It automatically converts your pounds to local currency whenever you spend using the mid-market exchange rate, only adding a tiny, transparent conversion fee* – or it’s free if you already have the local currency in your Wise account.

You also get two free ATM withdrawals for up to 200 GBP (or currency equivalent) each month. Wise will not charge you for these withdrawals, but additional charges may occur from independent ATM networks.

Sign up with Wise for free 🚀

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Sources used:

1. Halifax - Clarity Card
2. Barclays - Barclays Rewards
3. Barclaycard Rewards - Summary Box
4. Bip - Summary box
5. NatWest - Summary box for Travel Reward credit card
6. Zopa - Summary box
7. Santander - Summary Box - All in One Credit Card
8. NatWest - Travel Reward Credit Card
9. Zopa - Credit card
10. Santander - All in One Credit Card
11. Government of Canada - Merchant surcharges, service and convenience fees, and discounts

Sources last checked on date: 26-Feb-2024