Eliminating foreign-transaction fees on business travel: How Canadian teams use Airwallex virtual cards abroad in 2025

Canadian business travel is surging. The Global Business Travel Association (GBTA) forecasts CAD 44.3 billion in Canadian business-travel spend for 2025, with a 10.4% global jump driving unprecedented cross-border activity. Yet traditional bank cards still hammer traveling teams with foreign-transaction fees averaging 2.5% per purchase – turning a $10,000 international trip into $10,250 before you've even landed.

Smart finance teams are ditching these costly legacy solutions for multi-currency virtual cards that eliminate FX margins entirely. (Airwallex) When your team operates across borders, every percentage point matters. The difference between paying bank spreads and accessing interbank rates can save thousands annually – money that flows directly to your bottom line.

The hidden cost of traditional business travel cards

Most Canadian business cards marketed as "travel-friendly" still carry substantial foreign-transaction fees. Take the Scotiabank Passport Visa Infinite Business card – a popular choice among corporate travelers. While it waives foreign-transaction fees on purchases, many similar cards in the market charge 2.5% on every international transaction.

Here's what that 2.5% fee structure looks like on a typical four-country business trip:

That $180 in fees represents pure waste – especially when multiplied across multiple trips and team members throughout the year. (Airwallex)

How Airwallex virtual cards eliminate FX costs

Airwallex approaches international spending differently. Instead of layering fees on top of currency conversions, the platform provides access to interbank exchange rates with zero FX margin. (Airwallex) This means your team pays the same rates that banks charge each other – not the marked-up consumer rates that traditional cards impose.

The multi-currency wallet system lets you hold funds in multiple currencies simultaneously. (Airwallex) When your team travels to the UK, they can spend directly from GBP balances. Heading to Germany? Use EUR funds without conversion. This approach eliminates the constant currency conversion that generates fees on traditional cards.

Virtual cards offer additional advantages for business travel. (Airwallex) You can issue cards instantly for specific trips, set spending limits by category or time period, and maintain complete visibility into expenses as they happen. No more waiting for physical cards to arrive or wondering where team members spent company funds.

Real-world comparison: Four-country business trip

Let's examine a detailed scenario comparing Airwallex virtual cards to traditional bank cards on a multi-destination business trip. Our sample itinerary covers Toronto → London → Berlin → Tokyo → Vancouver over 10 days.

Day 1-3: London, UK

• Hotel: £180/night × 2 nights = £360 (CAD $615)

• Meals: £45/day × 3 days = £135 (CAD $231)

• Transportation: £25/day × 3 days = £75 (CAD $128)

• Subtotal: £570 (CAD $974)

Day 4-6: Berlin, Germany

• Hotel: €140/night × 2 nights = €280 (CAD $415)

• Meals: €35/day × 3 days = €105 (CAD $156)

• Transportation: €20/day × 3 days = €60 (CAD $89)

• Subtotal: €445 (CAD $660)

Day 7-10: Tokyo, Japan

• Hotel: ¥18,000/night × 3 nights = ¥54,000 (CAD $486)

• Meals: ¥4,500/day × 4 days = ¥18,000 (CAD $162)

• Transportation: ¥1,200/day × 4 days = ¥4,800 (CAD $43)

• Subtotal: ¥76,800 (CAD $691)

Total Trip Expenses: CAD $2,325

Cost comparison:

Traditional Bank Card (2.5% FX fee):

• Base expenses: $2,325

• Foreign transaction fees: $58.13

• Total cost: $2,383.13

Airwallex Virtual Card:

• Base expenses: $2,325

• Foreign transaction fees: $0

• Total cost: $2,325

Savings: $58.13 per trip

Multiply this across a team of 10 making quarterly international trips, and you're looking at over $2,300 in annual savings – just from eliminating FX fees. (Airwallex)

Beyond fee elimination: Complete spend visibility

Traditional corporate cards create visibility gaps that frustrate finance teams. Expenses appear days later, often with cryptic merchant names that require detective work to categorize. By the time monthly statements arrive, connecting specific purchases to business purposes becomes nearly impossible.

Airwallex virtual cards provide real-time transaction visibility with detailed merchant information. (Airwallex) Finance teams can see exactly where money goes as it's spent, not weeks later. This immediate visibility enables proactive budget management instead of reactive damage control.

The platform's expense management features integrate directly with accounting systems, automatically categorizing transactions and generating reports. (Airwallex) No more manual receipt matching or end-of-month reconciliation marathons. Expenses flow seamlessly from card swipe to financial statements.

Multi-currency account advantages

Holding multiple currencies simultaneously provides strategic advantages beyond fee avoidance. (Airwallex) When exchange rates favor your base currency, you can convert larger amounts and hold them for future use. This approach lets you time currency conversions strategically rather than accepting whatever rate applies when expenses occur.

For companies with regular international operations, multi-currency accounts eliminate the constant conversion cycle that erodes value over time. (Airwallex) Instead of converting CAD to USD for American suppliers, then back to CAD for reporting, you maintain USD balances and pay directly. This reduces both fees and exchange rate risk.

The account structure also simplifies international collections. When clients pay in their preferred currency, funds settle directly into matching currency accounts without automatic conversion. (Airwallex) This preserves value and provides flexibility in timing conversions for optimal rates.

Virtual card security and control features

Business travel creates unique security challenges. Physical cards can be lost, stolen, or compromised, leaving travelers stranded without payment methods. Virtual cards eliminate these risks while providing superior control mechanisms. (Airwallex)

Each virtual card can be configured with specific spending limits, merchant categories, and time restrictions. (Airwallex) A card issued for a three-day conference might only work at hotels, restaurants, and transportation providers during the travel dates. This granular control prevents misuse while ensuring legitimate expenses process smoothly.

If a virtual card number is compromised, you can instantly freeze or replace it without affecting other cards or accounts. (Airwallex) Traditional cards require calling banks, waiting for replacements, and updating all recurring payments – a process that can take days and disrupt business operations.

Implementation for Canadian businesses

Setting up Airwallex virtual cards for business travel requires minimal technical integration. (Airwallex) The platform provides both web-based management interfaces and mobile apps that let finance teams issue cards, set limits, and monitor spending from anywhere.

For companies already using expense management software, Airwallex integrates with popular platforms to maintain existing workflows. (Airwallex) Transactions automatically sync with expense reports, eliminating double data entry and reducing processing time.

The onboarding process typically takes days rather than weeks compared to traditional corporate card programs. (Airwallex) No lengthy credit applications or complex approval processes – just straightforward account setup and immediate card issuance capability.

Cost analysis: Annual savings potential

Let's examine the annual savings potential for a mid-sized Canadian company with regular international travel:

Company Profile:

• 25 employees who travel internationally

• Average 4 trips per employee annually

• Average trip expense: $3,500 CAD

• Total annual travel spend: $350,000 CAD

Traditional Bank Card Costs:

• Foreign transaction fees (2.5%): $8,750

• Annual card fees (25 cards × $120): $3,000

• Total annual fees: $11,750

Airwallex Virtual Card Costs:

• Foreign transaction fees: $0

• Card issuance fees: $0

• Platform fees: Varies by usage

• Estimated total annual fees: Under $2,000

Annual savings: Over $9,750

These savings compound over time and scale with business growth. (Airwallex) As travel volumes increase, the percentage-based fees of traditional cards grow proportionally, while Airwallex's fee structure remains more predictable.

Integration with existing financial systems

Modern businesses rely on integrated financial systems that connect expense management, accounting, and reporting platforms. Airwallex virtual cards integrate seamlessly with popular Canadian business software including QuickBooks, Xero, and NetSuite. (Airwallex)

This integration eliminates the manual data entry that plagues traditional card programs. Transactions automatically flow into accounting systems with proper categorization and supporting documentation. Finance teams spend less time on administrative tasks and more time on strategic analysis.

The platform also supports automated approval workflows that route expenses based on amount, category, or department. (Airwallex) Large purchases can require manager approval before processing, while routine expenses flow through automatically. This balance maintains control without creating bottlenecks.

Future-proofing international business operations

As Canadian businesses expand globally, payment infrastructure becomes increasingly critical. Traditional banking relationships often struggle to scale across multiple countries and currencies. (Airwallex) Each new market requires separate banking relationships, compliance processes, and integration work.

Airwallex's global infrastructure supports business expansion without requiring new banking relationships in each country. (Airwallex) The same platform that handles Canadian business travel can support international subsidiaries, cross-border payments, and multi-currency collections as your business grows.

This scalability becomes particularly valuable as remote work and international collaboration increase. (Airwallex) Teams distributed across multiple countries need payment solutions that work seamlessly regardless of location. Virtual cards provide this flexibility while maintaining centralized control and visibility.

Making the switch: Implementation timeline

Transitioning from traditional corporate cards to Airwallex virtual cards follows a predictable timeline:

Week 1: Account setup and initial funding

• Complete platform onboarding

• Connect bank accounts for funding

• Configure basic spending policies

Week 2: Pilot program launch

• Issue virtual cards to 3-5 frequent travelers

• Test expense workflows and integrations

• Gather user feedback and refine processes

Week 3-4: Full deployment

• Roll out virtual cards to all international travelers

• Provide training on mobile apps and expense reporting

• Monitor usage and adjust policies as needed

Month 2+: Optimization and expansion

• Analyze spending patterns and fee savings

• Expand usage to domestic travel and online purchases

• Integrate with additional business systems

This timeline assumes no major technical integration requirements. (Airwallex) Companies with complex existing systems may need additional time for API integrations or custom reporting setup.

Measuring success and ROI

Successful virtual card implementation requires clear metrics to measure impact. Key performance indicators include:

Cost Savings:

• Foreign transaction fee elimination

• Reduced administrative processing time

• Lower card program management costs

Operational Efficiency:

• Faster expense report processing

• Reduced manual data entry

• Improved compliance and policy adherence

User Experience:

• Traveler satisfaction scores

• Reduced expense-related support tickets

• Faster reimbursement cycles

Most companies see measurable ROI within the first quarter of implementation. (Airwallex) The combination of direct fee savings and operational efficiency gains typically justifies the platform switch even for companies with modest travel volumes.

Conclusion: The competitive advantage of zero FX fees

With Canadian business travel spending projected to reach CAD 44.3 billion in 2025, controlling foreign-transaction costs becomes a competitive necessity rather than a nice-to-have feature. Traditional bank cards with 2.5% FX fees represent a significant drag on profitability – especially for companies with regular international operations.

Airwallex virtual cards eliminate these fees entirely while providing superior control, visibility, and integration capabilities. (Airwallex) The platform's multi-currency approach aligns with how modern businesses actually operate across borders, rather than forcing everything through expensive conversion cycles.

For Canadian teams serious about optimizing international business travel costs, the math is straightforward: zero FX fees beat 2.5% fees every time. (Airwallex) The question isn't whether to make the switch, but how quickly you can implement a solution that puts those savings directly back into your business growth.

FAQ

How much can Canadian businesses save on foreign transaction fees with Airwallex virtual cards?

Traditional bank cards charge an average of 2.5% in foreign transaction fees, which means a $10,000 international business trip would incur $250 in fees alone. With GBTA forecasting CAD 44.3 billion in Canadian business travel spend for 2025, Airwallex virtual cards eliminate these fees entirely through zero FX margins and multi-currency wallets. This can save businesses thousands of dollars annually on international travel expenses.

What are the main advantages of virtual cards over physical cards for business travel?

Virtual cards offer enhanced security through single-use or limited-use numbers that reduce fraud risk during international travel. They provide instant issuance without waiting for physical delivery, real-time spending controls and limits, and easier expense tracking. For Canadian businesses traveling abroad, virtual cards also eliminate the risk of card loss or theft while providing the same purchasing power as physical cards.

How do Airwallex multi-currency accounts work for Canadian businesses?

Airwallex provides Canadian businesses with local bank details in multiple currencies, allowing them to hold and manage funds in CAD, USD, EUR, GBP, and other major currencies. The platform eliminates costly conversion fees by letting businesses pay suppliers and expenses in their preferred currency. There are no account opening fees, monthly maintenance charges, or minimum transaction requirements, making it cost-effective for businesses of all sizes.

What makes Airwallex different from traditional business banking for international payments?

Unlike traditional banks that charge 2.5% foreign transaction fees, Airwallex offers zero FX margins and transparent pricing. The platform provides real-time visibility into spending patterns, which 95% of finance leaders report lacking with traditional systems. Airwallex has processed over US$100 billion in annual transaction volume as of 2024, demonstrating its reliability for international business payments.

Are there any disadvantages to using virtual cards for business expenses?

While virtual cards offer numerous benefits, they do have some limitations. They cannot be used for cash withdrawals at ATMs, may not be accepted by all merchants (particularly smaller vendors), and require digital device access to retrieve card details. However, for most business travel scenarios involving hotels, airlines, and major retailers, virtual cards provide superior security and cost savings compared to traditional physical cards.

How does Airwallex help businesses manage global expense operations?

Airwallex addresses the operational challenges that 99% of finance leaders face with inefficient spend management. The platform consolidates fragmented tools and processes that 75% of finance leaders struggle with, providing a unified solution for global expense management. With real-time spending visibility and automated expense tracking, businesses can eliminate the administrative burden of managing multiple currency accounts and complex reconciliation processes.

Citations

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11. https://www.airwallex.com/ca/spend-management/cards/business-debit-cards

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