Smart spending abroad: help Canadians plan beyond the beach

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How understanding travel behaviour can uncover deeper client needs, from managing foreign fees to planning property and retirement abroad

CANADIANS ARE travelling more freely than ever, hopping on planes to the Caribbean, Mexico, and Europe, and some still to the US for short getaways. Yet many frequent travellers are still surprised to discover how much foreign transaction fees can quietly erode their spending abroad. These charges, typically two to three percent of each purchase, apply when a transaction is done with a merchant based outside the card’s country of issue, completed in a foreign currency, or processed through an international payment network. While the percentage may seem minor, the cumulative impact can be significant, especially over multiple trips each year. With Canadian residents taking more than 34 million trips abroad annually and spending an average of $2,012 per visit over 13.1 nights, understanding how to minimize such costs has become an increasingly relevant part of financial planning for globally active clients.

RBC Bank is a US bank dedicated to serving Canadians in the US. Whether our clients need a US bank account, credit card, loan, or mortgage, our solutions are available anytime, anywhere through online, mobile, and telephone banking – making it easy and convenient to bank with us in all 50 states. As a wholly owned subsidiary of RBC Royal Bank, we simplify banking in the US for Canadians working, living, or travelling across the border. To learn more about RBC Bank, visit rbcbank.com

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A US credit card with no global foreign transaction fees helps travellers save money anywhere they go

Foreign transaction fees and currency markups can quietly add 4–6% to total travel costs

“We take your relationship with the Canadian division and use that to credit-score you for a US product. It’s why we say we ‘speak Canadian’”

Chris Bessant, RBC

According to Chris Bessant, regional advisor of cross-border solutions for western Canada at RBC, these seemingly small fees are among the most overlooked aspects of travel spending. “Most Canadians assume banking works the same everywhere,” he says. “When you use your Canadian credit card abroad, you may be charged twice. First, for the currency exchange, which covers converting the local currency into Canadian dollars, and then for the foreign transaction fee, which your card issuer applies for processing the purchase through a foreign merchant or network.”

For financial advisors, travel is often an untapped entry point into deeper client discussions. A simple two-part question − how often do you travel, and where? − can reveal broader lifestyle and financial goals. “When you start by asking about travel habits, it naturally leads to bigger questions,” Bessant says. “Do they own property there? Are they thinking about buying? Is this an annual trip or the start of something more permanent?” That shift in mindset, from travel expense to financial behaviour, is where opportunity lies. Bessant notes that many Canadians are not just visiting destinations but maintaining a presence

− working remotely, purchasing vacation homes, or planning for future retirement. “We use the term ‘snowbird’ mostly for US travel, but more clients are exploring Central America, Mexico, and the Caribbean. The conversation becomes less about tourism and more about how they live, invest, and bank abroad.” RBC’s cross-border solutions are structured to make those conversations easier. Canadians can access US banking products using their Canadian credit history, eliminating the barrier of having to establish a separate American credit profile. “We take your relationship with the Canadian division and use that to credit-score you for a US product,” Bessant explains. “It’s why we say we ‘speak Canadian’.” This connection allows advisors to help clients navigate both sides of the border with a unified approach. This includes streamlining transactions, improving convenience, and avoiding unnecessary costs. For clients who winter in Florida or invest in rental properties abroad, the ability to hold both Canadian and US accounts under one umbrella provides flexibility and control that traditional banking often lacks.

He also highlights the importance of diversifying payment methods. RBC’s cross-border packages provide debit, credit, and ATM options, giving travellers safer and more cost-effective ways to access funds. “The first question to ask clients is simple,” Bessant says. “How are you paying for this trip? That’s where the financial planning starts.” Carrying cash can expose travellers to theft or loss, while using Canadian credit cards abroad adds costs that could be avoided. Having a dedicated cross-border setup allows clients to pay in the local currency, manage cash flow efficiently, and maintain continuity in their banking relationships.

Small details can make a big difference in cross-border spending. Bessant points out that many travellers are unknowingly paying more by selecting “Canadian dollars” at the checkout when offered the option. “It feels like the safer choice, but it allows the merchant to set the exchange rate,” he says. “That can add another 2.5 to 5 percent markup to each transaction.” This practice, known as dynamic currency conversion, can quietly inflate total costs on a trip. For clients who travel multiple times a year, these markups can easily exceed the cost of a no-foreign-transaction-fee credit card. Many countries also price goods and services in US dollars. Having a US credit card with no global foreign transaction fees can help travellers stretch their dollars further almost anywhere they go. RBC’s Signature Black Plus card, for instance, eliminates those fees entirely and offers global acceptance for US$75 annually. “For someone who travels a few times a year, it pays for itself very quickly,” Bessant says.

They reflect how Canadians are redefining lifestyle choices and how financial institutions must respond. “The opportunity hasn’t peaked,” he says. “Travel is not going away. It’s simply taking new forms.” As borders feel closer and financial behaviour becomes more fluid, advisors have a role to play in helping clients think ahead. The question is no longer whether Canadians will travel, but how well prepared they are to do it wisely. For advisors, that means seeing travel not as an expense to be managed, but as a window into how clients live, work, and plan their financial future.

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Published December 9, 2025

“When you use your Canadian credit card abroad, you may be charged twice. First, for the currency exchange, which covers converting the local currency into Canadian dollars, and then for the foreign transaction fee”

Chris Bessant, RBC

Paying in local currency helps avoid merchant-set exchange rates that inflate expenses

Cross-border credit cards with 0% foreign transaction fees can save hundreds of dollars each year

Asking about clients’ travel frequency can reveal hidden financial needs and opportunities

For advisors: turning travel into strategy

Frequent travel often signals interest in property, retirement, or hybrid work abroad

Cross-border banking aligns global spending with broader wealth and liquidity planning

Integrating travel costs into financial advice builds trust and delivers measurable value

The way Canadians travel has changed in both pace and purpose. Hybrid work and digital flexibility have made it possible to combine leisure and business travel more seamlessly. “Clients might go to the US for work and then extend their stay,” Bessant says. “They’re not just traveling for leisure anymore. They’re living more globally.” Economic factors are also shaping where Canadians go. “We haven’t seen a decline in travel, just a change in destinations,” he notes. “The Caribbean, Mexico, and Florida remain popular for their proximity and value. Europe has become more affordable too, with airfares and accommodations stabilizing.”

Why cross-border banking matters for Canadian clients who travel frequently

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