Introducing the TD US Credit Card
TD Bank is not only one of the largest banks in Canada but also one of the largest banks in the United States. This is especially relevant when it comes to credit cards that you can use in both Canada and the United States without incurring charges. The TD US Credit Card that offers this functionality is the TD US Dollar Visa Card. This credit card is specifically designed for consumers that expect to use their credit card for US Dollar transactions. With the TD US Dollar Visa Card you can make purchases in US Dollars and not incur any foreign currency conversion fees. Typically when you make a purchase in a foreign currency using your Canadian debit or credit card, you are charged a fee as a percentage of the transaction value after it is converted back to Canadian dollars. This fee varies but generally ranges from 2-4% of the transaction value. The TD US Credit Card option eliminates this fee and is the main feature of the credit card.
Key Features of The TD US Credit Card
The primary feature of the TD US Dollar Visa Card is the fact that cardholders that make purchases in US Dollars will not be charged foreign transaction fees. These fees can add up as if over the course of a year you spend $10,000 on goods and services that are priced in US Dollars, you could incur $250 in fees. However, an important detail in how this TD US credit card works is that you can only use the card for US dollar purchases. If you make a purchase in a currency other than the US dollar, you will be charged foreign transaction fees. This is a summary of the card’s other key features:
- Travel Benefits
- Cardholders receive trip interruption insurance of up to $5,000 per person and up to $25,000 for all insured people on the same trip
- Travel insurance coverage for common carrier accidents up to $500,000
- Delayed or lost bagged insurance up to $1,000 coverage per insured person
- Rental Benefits
- Save a minimum of 10% off the lowest available base rates on Avis and Budget Car rentals when you book with your TD US Credit Card in the U.S. and Canada.
- Discount of 5% or more when you book the car rentals internationally.
- Car Rental Collision/Loss Damage Insurance is automatically added when you book a car rental with your credit card, at not additional cost.
- Purchase Security and Extended Warranty Protection is available on purchases made with the credit card, for up to 90 days after the purchase was made.
- Apple Pay and Samsung Pay compatibility
- Emergency Cash Advance of up to $5,000
In addition, with the TD US Credit Card you can add up to 3 additional cardholders at no cost.
TD US Dollar Visa Card Account Fees
- Annual Fee: $39 US Dollars
- Interest Rate on Purchases: 19.99%
- Interest Rate on Cash Advances: 22.99%
- Cost to add an additional user to your account: $0
- Foreign Exchange Fee: $0 on US Dollar Transactions. For transactions in currencies other than the US Dollar, TD Bank will assess a fee of 2.5% of the converted amount of the transaction in US Dollars.
TD US Credit Card Comparison vs. Other Credit Cards
TD US Dollar Visa Card vs. RBC US Dollar Visa Gold
The RBC US Dollar Visa Gold card also has the feature of waiving any foreign currency fees when you make transactions in US Dollars. In addition to this, with the RBC card, cardholders can earn reward points at a rate of 1 reward point for every US Dollar spent. This is a clear benefit that the RBC US Dollar Visa Gold card has over the TD US Credit Card option. However, the annual fee on the RBC US Dollar Visa card is notably higher at $65 (US Dollars), and it costs $30 for an additional card compared with the TD US Dollar Visa at $0. In addition, the RBC US Dollar credit card option has a maximum of $2,500 for all covered persons for trip cancellation insurance and $2,500 per covered person per trip, for trip interruption insurance; this is substantially lower than what TD US Dollar Visa Card offers cardholders. Overall, we think the TD US Credit Card option is better value for consumers, with the caveat that if you are an especially heavy spender then you might benefit more from using the RBC US Dollar Visa card.
Bottom Line: Straightforward Option for US Spenders
The TD US Credit Card offering, the TD US Dollar Visa Card, is a functional credit card option for consumers that expect to transact in US Dollars in decent quantities each year. Because the credit card does not have rewards point, choosing the use the card comes down purely to the volume of US Dollar purchases you expect to make each year. For example, if you expect to only make $500 of US Dollar purchases each year, this credit card might not make sense given the $39 US Dollar annual fee as if you made those purchases with any other TD Credit Card, you would only incur $12.50 in foreign transaction fees. As a reminder the card can only be used for US Dollar purchases and for other currencies TD Bank will assess the same foreign transaction fee.