CanadaCan my bank charge me hidden foreign currency conversion fees on my credit card without disclosing them?
No, Canadian banks cannot charge hidden foreign currency conversion fees on credit cards without clear disclosure — they must disclose all charges in the cardholder agreement and comply with consumer protection rules.
What the Law Says
Canadian law requires financial institutions to clearly disclose all fees — including foreign currency conversion charges — before a consumer agrees to a credit card contract.
Under the Financial Consumer Agency of Canada Act, the Commissioner has authority to supervise financial institutions and ensure they comply with consumer protection provisions. This includes reviewing how fees are disclosed to consumers.
While the Act itself does not list specific fee disclosure requirements for credit cards, it empowers the FCAC to enforce federal consumer protection rules that apply to credit agreements — including those found in provincial consumer protection legislation and common law principles upheld by courts.
Importantly, the Supreme Court of Canada has confirmed that undisclosed or inadequately disclosed foreign exchange conversion charges breach the duty of honesty and transparency owed to credit cardholders.
Statutory TextThe Commissioner supervises financial institutions to ensure compliance with consumer protection provisions.
— Financial Consumer Agency of Canada Act, s. 5 — Commissioner powers
What Courts Have Said
The Supreme Court of Canada ruled that failing to clearly disclose foreign currency conversion fees violates consumer rights and may entitle cardholders to restitution — and even punitive damages.
The Court held that conversion charges imposed on foreign transactions were not properly disclosed in credit card agreements, breaching consumer protection laws; affected cardholders were entitled to restitution, and punitive damages were justified due to the banks’ persistent failure to disclose.
What to Do
Review your credit card agreement and monthly statements for any foreign currency conversion fees — they must be clearly described there.
If you see unexpected or unexplained charges for foreign transactions, contact your bank in writing to request clarification and ask for a refund if disclosure was inadequate.
File a complaint with the Financial Consumer Agency of Canada (FCAC) at fcac-acfc.gc.ca if the bank does not resolve the issue.
Consider consulting a lawyer if multiple undisclosed fees have been charged — you may be eligible for restitution under the precedent set in Marcotte.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.