Traveling abroad or shopping online from international stores is exciting. But using your credit card overseas can come with extra costs. If you have the Rogers Red World Elite Mastercard, you might wonder about its foreign transaction fees.
What Is a Foreign Transaction Fee?
A foreign transaction fee is a charge added when you use your credit card in a currency other than Canadian dollars (CAD). This can happen when you travel abroad or buy something online from a non-Canadian retailer.
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Most Canadian credit cards, including the Rogers Red World Elite Mastercard, charge a fee of around 2.5% on these transactions. This fee is added on top of the exchange rate applied by Mastercard.
For example, if you spend $100 USD on your card, the transaction is converted to CAD using Mastercard’s exchange rate. Then, a 2.5% fee is added to the converted amount.
This can make international purchases slightly more expensive than you might expect.
How Does the Rogers Red World Elite Mastercard Handle Foreign Transaction Fees?
The Rogers Red World Elite Mastercard is a popular no-annual-fee credit card in Canada. It offers great cash back rewards, especially for Rogers, Fido, or Shaw customers.
But when it comes to foreign transactions, here’s what you need to know:
- Standard Fee: The card charges a 2.5% foreign transaction fee on all purchases made in a currency other than CAD. This is standard for most Canadian credit cards.
- U.S. Dollar Advantage: You earn 3% cash back on purchases made in U.S. dollars (USD). This offsets the 2.5% fee, leaving you with a net gain of 0.5% cash back on USD transactions.
- Other Currencies: For non-USD currencies, like euros or pounds, you earn 1.5% cash back (or 2% if you’re a Rogers, Fido, or Shaw customer). This doesn’t fully offset the 2.5% fee, so you lose a bit on these transactions.
Here’s a quick table to show how it works:
| Currency | Cash Back Earned | Foreign Transaction Fee | Net Result |
|---|---|---|---|
| USD | 3% | 2.5% | +0.5% |
| Non-USD | 1.5% (or 2%*) | 2.5% | -1% (or -0.5%*) |
*2% cash back applies if you have a qualifying Rogers, Fido, or Shaw service.
Why the USD Cash Back Matters
The 3% cash back on USD purchases makes the Rogers Red World Elite Mastercard a solid choice for Canadians who often travel to the U.S. or shop online with U.S. retailers.
For example, if you’re a snowbird spending winters in Florida or buying from American websites, the cash back helps cancel out the foreign transaction fee.
You even come out slightly ahead with 0.5% net rewards.
However, for other currencies, the card is less rewarding. If you’re traveling to Europe or Asia, the 2.5% fee outweighs the cash back.
You might want to consider other cards for those trips, which we’ll discuss later.
Comparing the Rogers Card to No-Fee Alternatives
Not all credit cards charge foreign transaction fees. Some cards waive these fees entirely, which can save you money on international purchases.
Let’s compare the Rogers Red World Elite Mastercard to a few no-foreign-transaction-fee cards:
- EQ Bank Card: This prepaid Mastercard has no foreign transaction fees and earns 0.5% cash back on all purchases. It’s great for avoiding fees but offers lower rewards than the Rogers card on USD purchases.
- Wealthsimple Cash Card: Another prepaid Mastercard with no extra foreign transaction fees. It earns 1% cash back for premium clients, making it a good option for non-USD transactions.
- Scotiabank Passport Visa Infinite: This card has no foreign transaction fees and earns 1-2% rewards on purchases. However, it comes with a $150 annual fee, unlike the Rogers card’s no-fee structure.
Here’s a comparison table:
| Card | Annual Fee | Foreign Transaction Fee | Cash Back (USD) | Cash Back (Non-USD) |
|---|---|---|---|---|
| Rogers Red World Elite | $0 | 2.5% | 3% | 1.5% (or 2%*) |
| EQ Bank Card | $0 | 0% | 0.5% | 0.5% |
| Wealthsimple Cash | $0 | 0% | 1% | 1% |
| Scotiabank Passport | $150 | 0% | 1-2% | 1-2% |
*2% for Rogers, Fido, or Shaw customers.
Tips to Save on Foreign Transaction Fees
Want to make the most of your Rogers Red World Elite Mastercard or avoid extra costs?
Here are some practical tips:
- Use the Card for USD Purchases: The 3% cash back makes it a great choice for U.S. travel or online shopping in USD.
- Avoid Dynamic Currency Conversion: Some merchants offer to charge you in CAD instead of the local currency. This often comes with a high exchange rate, so always choose the local currency to benefit from Mastercard’s rate.
- Pair with a No-Fee Card: For non-USD transactions, use a card like the EQ Bank Card to avoid the 2.5% fee.
- Redeem Cash Back Wisely: If you’re a Rogers, Fido, or Shaw customer, redeem your cash back for eligible purchases to get a 1.5x bonus. For example, $100 in cash back becomes $150 when applied to a Rogers bill.
- Check the Exchange Rate: Use Mastercard’s currency converter tool to estimate costs before making a purchase. The rate can vary slightly from the mid-market rate you see on Google.
Benefits of the Rogers Red World Elite Mastercard
Beyond foreign transactions, this card offers other perks that make it worth considering:
- No Annual Fee: Unlike many World Elite cards, this one is free, saving you $100-$150 a year.
- High Cash Back Rates: Earn 2% on non-USD purchases (if you’re a Rogers, Fido, or Shaw customer) and 1.5% otherwise. This is better than most no-fee cards.
- Travel Perks: Get a DragonPass membership for lounge access (though visits cost $32 USD each) and travel insurance like emergency medical and trip cancellation coverage.
- Roam Like Home: Rogers mobile customers get five free Roam Like Home days annually, worth up to $80.
These benefits make the card a strong choice for Canadians, especially those already with Rogers, Fido, or Shaw services.
Who Should Get This Card?
The Rogers Red World Elite Mastercard is best for:
- Canadians who frequently shop in USD, either in the U.S. or online.
- Rogers, Fido, or Shaw customers who can maximize the 2% cash back and 1.5x redemption bonus.
- People looking for a no-annual-fee card with solid rewards and travel perks.
However, if you travel often to non-U.S. destinations, a card with no foreign transaction fees might be better for those purchases.
FAQs: Rogers World Elite Mastercard Foreign Transaction Fee
Q. Does the Rogers Red World Elite Mastercard waive foreign transaction fees?
A. No, it charges a 2.5% foreign transaction fee on all non-CAD purchases. However, the 3% cash back on USD purchases offsets this fee, giving you a net gain of 0.5%.
Q. Can I avoid the foreign transaction fee on this card?
A. You can’t avoid the 2.5% fee, but using the card for USD purchases effectively cancels it out with the 3% cash back. For other currencies, consider a no-fee card like the EQ Bank Card.
Q. How does the 1.5x redemption bonus work for foreign transactions?
A. If you redeem cash back for Rogers, Fido, or Shaw purchases, you get 1.5x the value. For example, $100 in cash back becomes $150 toward a Rogers bill, boosting the effective cash back rate to 3% for non-USD purchases (if you’re a qualifying customer).
Conclusion
The Rogers Red World Elite Mastercard is a fantastic no-annual-fee card for Canadians, especially those who spend in U.S. dollars or are Rogers, Fido, or Shaw customers.
Its 3% cash back on USD purchases offsets the 2.5% foreign transaction fee, making it a great choice for U.S. travel or online shopping.
However, for non-USD currencies, the fee can outweigh the rewards, so pairing it with a no-fee card is smart. By understanding how the fees work and using the card strategically, you can maximize your rewards and save money.
Disclaimer: The information in this blog is for general informational purposes only and does not constitute financial advice. Always check with Rogers Bank or a financial advisor for the most up-to-date terms and conditions before making decisions.
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