How much is Rogers World Elite mastercard foreign transaction fee? When traveling abroad or shopping online from international stores, you may face foreign transaction fees. These fees can add up quickly and affect your overall costs. If you have the Rogers World Elite Mastercard, it’s important to understand how these fees work.
What is a Foreign Transaction Fee?
A foreign transaction fee, also known as an FX fee, is a charge you pay when you make a purchase in a currency other than Canadian dollars (CAD). This fee is usually a percentage of the total purchase amount. The fee covers the cost of converting the foreign currency into CAD.
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Rogers World Elite Mastercard Overview
The Rogers World Elite Mastercard is a popular credit card in Canada. It offers many benefits, such as cash back on purchases, travel insurance, and no annual fee. However, like most credit cards, it also has foreign transaction fees.
Rogers World Elite Mastercard Foreign Transaction Fee?
With the Rogers World Elite Mastercard, the foreign transaction fee is 2.5% of the total amount. This means if you spend $100 in a foreign currency, you will be charged an additional $2.50 in fees. While this may not seem like much, it can add up, especially if you travel often or make large purchases.
Cash Back on Foreign Transactions
One of the attractive features of the Rogers World Elite Mastercard is the cash back reward. You earn 1.5% cash back on all eligible purchases, including those made in foreign currencies. This means that even though you are charged a 2.5% fee, you get 1.5% back. The net cost of the foreign transaction fee is effectively reduced to 1%.
How to Avoid Foreign Transaction Fees
If you want to avoid paying foreign transaction fees altogether, you have a few options:
- Use a No-Fee Card: Some credit cards don’t charge foreign transaction fees. If you frequently make purchases in foreign currencies, you might consider getting a no-fee card.
- Use Local Currency: When traveling, use cash in the local currency. You can withdraw cash from ATMs or exchange money at local banks. However, be aware of ATM withdrawal fees and exchange rates.
- Pay in Canadian Dollars: Some merchants abroad offer the option to pay in CAD. This might seem convenient, but it often comes with a poor exchange rate. It’s usually better to pay in the local currency and let your credit card handle the conversion.
Pros and Cons of the Rogers World Elite Mastercard
The Rogers World Elite Mastercard has many benefits, but it also has some drawbacks. Here’s a quick overview:
Pros:
- Cash Back Rewards: Earn 1.5% cash back on all purchases, including foreign transactions.
- No Annual Fee: You don’t have to pay an annual fee to enjoy the benefits of this card.
- Travel Insurance: Includes travel insurance coverage, which can be helpful during trips.
- Purchase Protection: Protects your purchases against theft and damage.
Cons:
- Foreign Transaction Fee: The 2.5% fee on foreign purchases can add up, especially if you travel often.
- Minimum Income Requirement: To qualify for this card, you need a personal income of $80,000 or a household income of $150,000.
- Limited Travel Perks: While it offers some travel insurance, it lacks other premium travel benefits like lounge access.
Is the Rogers World Elite Mastercard Right for You?
The Rogers World Elite Mastercard is a solid option for people who want a no-annual-fee card with decent cash back rewards. However, if you frequently travel or make purchases in foreign currencies, the 2.5% foreign transaction fee could be a downside.
If you don’t travel often, the cash back rewards can outweigh the cost of the foreign transaction fee. For frequent travelers, you might want to consider a card that doesn’t charge this fee.
Conclusion
The Rogers World Elite Mastercard offers good value for everyday purchases and occasional foreign transactions. The 2.5% foreign transaction fee is standard for most credit cards, but the 1.5% cash back reduces its impact. If you’re a frequent traveler, exploring other options might save you more in the long run.
Understanding how foreign transaction fees work can help you make informed decisions and avoid unnecessary costs. With the right strategy, you can maximize your rewards and minimize fees.
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