Leading Virtual Credit Cards With Low Foreign Transaction Fees

A leading virtual card for international spending should offer low or no foreign transaction fees, broad acceptance and clear currency conversion terms.

KOHO provides a virtual prepaid Mastercard that can be used for international online purchases. KOHO Extra and Everything members do not pay foreign transaction fees.

KOHO Virtual Card: Best Pick (Virtual Credit Card Alternative)

With the KOHO Virtual Card, you can:

• Open an account and get your card instantly

• Earn 3.5% interest on your entire balance

• Earn up to 6.5% cash back on select merchants

• Lock and unlock your card instantly in the app

What Is a Foreign Transaction Fee?

A foreign transaction fee is an additional charge applied when you make a purchase in another currency or through a non-Canadian merchant.

This fee is separate from the exchange rate used to convert the purchase into Canadian dollars.

Can You Use a Virtual Card Internationally?

A virtual card can be used internationally for:

• Online shopping

• Hotel and flight bookings

• Foreign subscriptions

• In-app purchases

• Contactless payments through a mobile wallet

Some merchants may not accept prepaid cards. Hotels, car rental companies and gas stations may also place temporary authorization holds on your available balance.

What Should You Look for in a Low-Fee Virtual Card?

Before choosing a virtual card for international spending, check:

• The foreign transaction fee

• The currency conversion rate

• Monthly plan costs

• International merchant acceptance

• Digital wallet compatibility

• In-app security controls

• ATM access and withdrawal fees

A card with no foreign transaction fee may still have a monthly plan cost, so compare how often you shop or travel internationally against the amount you could save.

Is KOHO a Good Option for Foreign Purchases?

KOHO may be suitable for Canadians who want a virtual card for international online and mobile payments without using borrowed credit.

Extra and Everything members pay no foreign transaction fees on non-Canadian purchases.