Using US Cards for Canadian Purchases: Nice Price or No Dice?

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If you’ve been active in the world of Miles & Points for a while, then you know that there’s the tempting possibility of getting into the US credit card game as a Canadian.

While US credit cards offer stellar welcome bonuses, earn rates often unseen in Canada, and a plethora of transfer partners not available north of the border or with better transfer rates, ultimately all charges on these credit cards are denominated in USD.

This begs the obvious question: Is it worth using US credit cards in Canada for daily spending? How do US credit cards compare to their most obvious Canadian counterparts, accounting for the currency exchange? 

Let’s take a leap into finding out if it makes sense to use US credit cards for purchases in Canadian dollars while keeping in mind that we are seeing higher-than-average volatility in the foreign exchange market between USD and CAD.

Welcome Bonuses: The Best Reason to Get US Credit Cards

Before we start off, I wish to address the glaring question: why should I daily drive credit cards? Aren’t welcome bonuses usually the most enticing option for Canadians entering the credit card game?

I agree with much of this logic. The largest amounts of points you can earn will usually be front-loaded into welcome bonuses. Similarly, the US credit card market has a huge number of different credit cards that you can apply to, thus receiving different welcome bonuses over your lifetime in the Miles & Points hobby.

This article isn’t to take away from welcome bonuses; it’s to understand that not everyone is working toward a welcome bonus at all times. Many of us have different appetites for managing our points, and sometimes it can be easier on the brain to only have to manage a few cards maximum on both sides of the border. 

Therefore, we will only calculate the cost of using credit cards for their posted regular earn rates and multiplier categories without considering welcome bonuses as part of the calculation.

Using US Credit Cards for Canadian Purchases: Ground Rules for Comparison

Now that we’ve established that the primary reason for you to acquire US credit cards is their welcome bonuses, we can take a look at calculating the cost of using your US credit cards on day-to-day purchases

To do this, we need to make a series of assumptions. The first is that the greatest value you will ever get from your US card is its welcome bonus; thereafter you’ll have to do the math to determine if using it on a day-to-day basis is worth it. 

In the below comparisons, we are discounting additional benefits each card may grant, such as complimentary airport lounge access, as this article is purely about earning rates.

person taking notes in a notebook

The second guess we will make is that you are using these cards with the mindset of maximizing your rewards. How you use those rewards is up to you; whether you wish to transfer them, redeem them as cashback, etc. Regardless I will assume that you, like me, want to get maximum points from every dollar spent, whatever that dollar’s country of origin.

The third assumption is that it is always best to use US-denominated cards on foreign currency transactions or transactions outside Canada. This is because almost all Canadian cards charge 2.5% foreign transaction fees, and the Canadian credit cards that have no foreign transaction fees are few and far between. No fees are always preferable.

The last assumption we will make is regarding the US Dollar and Canadian Dollar foreign exchange rates. This can fluctuate greatly, and in the past few years, the Canadian dollar has significantly weakened against its American counterpart.

It is likely that volatility will continue; however, for the purposes of this article written in Fall 2024, I am taking the 12-month average exchange rate wherein 1 CAD = 0.73 USD, so 1 USD = $1.37 CAD. 

This is the baseline calculation to approximate what you will achieve on the market; please adjust the numbers seen below as exchange rates between the loonie and greenback change. These are an approximation rather than guaranteed 100% precise.

Using Canadian Credit Cards vs. US Credit Cards for Canadian Purchases

To illustrate when, if ever, it is worth using US credit cards for Canadian purchases, I’ve pulled together a few pairs of comparable credit cards, each on either side of the border. Let’s explore the most popular pairings for comparison.

American Express Marriott Bonvoy Business Card vs. American Express Marriott Bonvoy Business Card (US)

Our first Canadian and United States credit card comparison focuses on a loyalty program we all know and love: Marriott Bonvoy. These points can be used at Marriott Bonvoy hotels, as well as on Bonvoy’s experiences, and even as a cash credit (albeit a bad rate) on the Ritz-Carlton yachts.

ritz carlton building exterior

Let’s take a look at two fairly similar cards: the American Express Marriott Bonvoy Business credit card that is offered both in Canada and the United States.

The American Express Marriott Bonvoy Business card has a $150 CAD annual fee, while the American Express Marriott Bonvoy Business card (US) charges an annual fee of $125 USD, thus meaning the US version costs approximately an effective $22 CAD more than its northern cousin.

Credit Card Welcome Bonus Net Value
American Express Marriott Bonvoy Business Card (US) 150,000 Marriott Bonvoy $1,225 Apply
American Express Marriott Bonvoy Business Card 60,000 Marriott Bonvoy $390 Apply

The Canadian card earns 5x Bonvoy points on purchases at Marriott hotels, 3x at restaurants, and 2x on all other purchases. On the other hand, the American version receives 6x Bonvoy points per dollar spent at Marriott hotels, 4x on restaurants, US gas stations, and US phone services, and then 2x on all other eligible purchases.

Therefore, in the “all other purchases” category, the Canadian card wins. This is because it requires spending $1.37 CAD to get 2x Bonvoy on the US version of the card, but only $1 CAD to earn the same on the Canadian version.

On the other hand, restaurant spending is a closer comparison: it’s approximately 34 cents CAD per 1 Bonvoy earned (calculated by dividing our average exchange rate of 1.37/4) for an average of about 2.95 Bonvoy per CAD spent; putting it roughly in line with the Canadian card that earns 3 points per $1 CAD spent. 

If the CAD significantly weakens, then the Canadian version becomes stronger, and vice versa.

In the area of hotels, once again the cards are about in line: it’s about 22.9 cents CAD per 1 Bonvoy earned (1.37/6), or 4.4 Bonvoy per 1 CAD spent, whereas the maple syrup-flavoured card earns at an effective rate of 1 point per 20 cents CAD spent at a Marriott property, coming ahead at an even 5 per CAD.

Therefore, we can reasonably conclude that it’s better to use the Canadian American Express Marriott Bonvoy Business card when making purchases in Canadian Dollars.

CIBC Aeroplan Visa Infinite Card vs. Chase Aeroplan Card

Next, let’s take a look at two cards that earn in our favorite points currency: Air Canada Aeroplan. As one of the best and most easily accessible frequent flyer programs available to Canadians, it can really improve your personal frugal flying all over the globe. 

First up is the CIBC Aeroplan Visa Infinite card. This earns a straightforward 1.5 Aeroplan per dollar spent on gas, groceries, EV charging, and purchases made at Air Canada. It then earns 1 Aeroplan per CAD spent. Its $139 CAD normal annual fee is usually waived in the first year as part of the welcome offer and can be further waived with CIBC’s SmartPlus account.

CIBC Aeroplan Visa Infinite Card
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CIBC Aeroplan Visa Infinite Card

The CIBC Aeroplan Visa Infinite card earns Aeroplan points and offers cardholders benefits including an Air Canada Buddy Pass and free first checked bag on Air Canada flights.

BONUS
40,000 Aeroplan
MINSPEND
$10,000
NET VALUE
$840+
ANNUAL FEE
$139 (FYF)
FOREX FEES
Yes
EXPIRY

On the other hand, the Chase Aeroplan card commands a $95 USD annual fee and earns 3x Aeroplan points on groceries and dining, 3x on all purchases at Air Canada, as well as 1x on all other purchases per USD spent.

Chase Aeroplan Card
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Chase Aeroplan Card

The Chase Aeroplan Card earns Aeroplan points and offers cardholders a variety of Air Canada benefits including instant 25k Elite status and a first free checked bag.

BONUS
100,000 Aeroplan
MINSPEND
$20,000
NET VALUE
$2,005+
ANNUAL FEE
$95
FOREX FEES
No
EXPIRY

This offers us some straightforward math: the CIBC product is better on uncategorized purchases as well as gas.

On every one of its 3x multiplier categories, however, Chase is the easy winner. Whereas CIBC’s Visa has no dining multiplier, Chase’s card earns almost 2.2 Aeroplan per CAD spent (3/1.37), or about 46 cents CAD needed to be spent per Aeroplan point. The CIBC card only maxes out at 1.5 Aeroplan per CAD, or 75 cents spent per point.

However, we must also realize that the Chase card has a benefit no Canadian one does. If you spend $15,000 USD annually, you automatically get Air Canada Aeroplan 25k Elite status. If you spend $50,000 USD in a single year, then your status gets bumped up a level, giving a 75k cardholder the potential of immediately hitting Super Elite. If you want to know what Aeroplan status can get you, check out our guide to Air Canada Aeroplan Elite Status.

Therefore, while the math concludes that it’s often better to use the Canadian card on uncategorized spending, it could be worthwhile using the Chase Aeroplan card if you’re doing an awful lot of it and value Air Canada status.

American Express Cobalt Card vs. American Express Gold Card (US)

Next up is our comparison between the American Express Cobalt card, one of the best cards on the Canadian market, with its nearest equivalent: the American Express Gold card (US). Both cards earn American Express Membership Rewards points, with US Membership Rewards points being a bit more valuable thanks to additional transfer partners and more favorable transfer rates.

These cards have a disparity in annual fees, with the Cobalt costing $12.99 CAD monthly, or $156 CAD a year. The American Express Gold card (US) costs $325 USD flat per year.

The American Express Cobalt card earns 5x Membership Rewards on eats, drinks, and groceries, 3x on select services, and 2x on transit such as Uber and public transportation as well as 1 point per dollar spent on all other categories. It formerly included travel, though that’s being phased out.

American Express Cobalt Card
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American Express Cobalt Card

The American Express Cobalt card earns Membership Rewards points and gives cardholders the opportunity to earn 5x Membership Rewards on eligible restaurant, food delivery, and grocery store purchases.

In 2024, we selected this card to receive the award Best Credit Card for Grocery Purchases.

Check out our American Express Cobalt card review for more details.

BONUS
15,000 Membership Rewards
MINSPEND
$9,000
NET VALUE
$174+
ANNUAL FEE
$156
FOREX FEES
Yes
EXPIRY

Conversely, the American Express Gold card (US) earn rate is 4x Membership Rewards on worldwide restaurants, 4x on US supermarkets, 3x on flights, 2x on prepaid hotels or travel through amextravel.com, and 1x on all other purchases.

American Express Gold Card (US)
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American Express Gold Card (US)

The American Express Gold card (US) earns 4x Membership Rewards on restaurant and grocery purchases and offers cardholders an annual $120 Uber cash credit, plus other benefits.

BONUS
60,000 Membership Rewards
MINSPEND
$6,000
NET VALUE
$995+
ANNUAL FEE
$325
FOREX FEES
No
EXPIRY
Nov 6, 2024

Just by looking at the approximate rates of exchange, we can see that the Cobalt outstrips the Gold because of its 5x earn rate. However, the Cobalt is largely superior because of its ability to be used at Canadian grocery stores whilst the American Express Gold card (US) only earns its increased earning rate at US grocery stores exclusively.

The more precise math is that the American Express Gold card (US) earns only about 2.9 Membership Rewards points per $1 CAD spent at restaurants (4/1.37), meaning each MR costs approximately 34 cents Canadian. It further can’t be used at grocery stores.

The only place where the American product is an obvious winner is in booking flights directly, where the gain is only marginal at 2.19 MR points per $1 CAD spent. This is barely better than the now-sunset 2x on travel on the Amex Cobalt.

This is an example of where the Canadian offer is superior to the American product. The next closest equivalent product might be the American Express Green card (US), which has 3x on all transit and transport but still doesn’t enjoy the 3x earning rate on grocery stores.

Therefore, if your goal is to acquire American Express Membership Rewards through regular daily purchases, the Amex Cobalt is the apex predator.

Not Available in Canada: Chase Ultimate Rewards, Capital One Miles, World of Hyatt, & Hilton Honors

Before we continue onto our summary table of earning rates, I want to point out that several families of points are unavailable to easily be earned in the Canadian market.

The first two are powerful convertible currencies: Chase Ultimate Rewards and Capital One Miles. Both of these can be turned into points familiar to Canadians, such as Air Canada Aeroplan or Marriott Bonvoy.

However, they also have unique partners, for example, Capital One can be sent to Cathay Pacific Asia Miles, while Chase Ultimate Rewards can be turned into points in the rare and lucrative World of Hyatt program.

Products that earn these currencies, such as the Chase Sapphire Preferred card, have few direct Canadian equivalencies; however, it might be rated as somewhat similar to the American Expres Cobalt card and so its earn rate is somewhat similar to the American Express Green card (US) seen above.

park hyatt tokyo exterior

There are also the World of Hyatt credit cards issued by Chase and Hilton Honors credit cards issued by American Express available, both of which are hotel currencies Canadians can’t earn at a decent rate anywhere. 

In such a case, using these cards may be worthwhile for daily use only if you intend to routinely avail yourself of those hotel chains. Otherwise, your time may be better spent accruing convertible points currencies.

Summary Table: US Credit Card Earn Rate on Canadian Purchases

The numbers and math used in this article are based on the USD/CAD exchange rate at the time of writing. However as the exchange rate fluctuates over time, the earn rates per Canadian dollar spent will also change frequently.

To capture these changes, we have compiled a table below which lists the ‘Earn Rate per CAD’ for several US credit cards with notable category spending multipliers. These rates are updated live to follow the current USD/CAD exchange rate, so they will always be current.

Credit CardSpend CategoryEarn Rate Per USDEarn Rate Per CAD
American Express Business Gold CardTop 2 Categories Per Billing Period4x2.89x
American Express Gold CardRestaurants4x2.89x
American Express Green CardRestaurant, Transit, & Travel3x2.17x
American Express Marriott Bonvoy CardMarriott Hotels6x4.34x
Chase Aeroplan CardGroceries & Dining3x2.17x
Chase Ink Business CashOffice supply stores & Internet, cable and phone services 5x3.61x
Chase Sapphire PreferredDining3x2.17x
Chase Sapphire PreferredTravel2x1.45x
Chase Sapphire ReserveDining & Travel3x2.17x

Hopefully, these numbers will be useful in deciding whether it makes sense to daily drive any US credit cards depending on your personal situation and points goals.

Conclusion

Deciding on which card to keep in your wallet can be one of the hardest things to do in the miles & points space. It can become doubly confusing when dealing with foreign rates of exchange.

While it’s important to maintain a balance between the credit card products available in both the United States and Canada, we feel that you can make informed decisions on which cards have the ideal earning rates when you’ve seen the math.

We hope that we’ve demonstrated today that, in general, as a Canadian it’s best to daily drive your Canadian credit cards when you’re not working toward a welcome bonus. That doesn’t mean you should stop your forays into the US credit card market and never forget to use your US credit cards with joy either abroad or on foreign currency transactions, or when you are interested in earning a US credit card exclusive currency.

Until next time, stack those points.

Kirin Tsang

Kirin Tsang

Contributor at Frugal Flyer
Kirin is a man of twists and turns, who enjoys learning every detail of a points program or credit card product and then using its own rules to his advantage. An avid student of the miles and points community since 2019, he loves meeting other enthusiasts because he views the hobby as a real way to enhance and better his life as much as a hobby in and of itself.

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