Canada exchange rate -- questions.
 

Wow, I find we're ignorant! We're trying to figure out how to take advantage of the Canada exchange rate. Questions ... <BR> <BR>1) Get Canadian money in the U.S.? <BR>2) Get Canadian money in Canada? <BR>3) Use US money in Canada? <BR>4) Effect of exchange rate on credit cards? <BR> <BR>Any more nitty-gritty advice for traveling in Canada?

Jud- Charge everything you can on a credit card. When you exchange money yourself whether in the U.S. or in Canada, you are charged a retail exchange rate. But when you charge on a credit card, the credit card company pools your charge wityh all of their other customers charges in the same currency. Then they go to a major bank to change the currency to $ and get a much better exchange rate, which they pass on to you. Its like buying wholesale vs. retail. So you should charge as much as you can in CAD and let your credit card company do the exchanging.

Number four was answered in the previous post. The answer to 1,2, and 3 is YES. As the previous respondant replied, it is best to charge as much as possible. You're assured of the best rate, and you don't have to carry loads of cash around. I've done this many times, and your bill shows exactly what you paid in both CAN$ and USD$. At worst, you'll pay a 1% charge. You'll discover that this is no hardship when you see how much cheaper everything is "north of the border". <BR> <BR>However, when travelling, it's always best to keep some cash on hand. Here's what I suggest. Are you a AAA member? If so, great. If not, go into an office w/a friend who is. You should be able to purchase no-fee travellers cheques in CAN$ currency. Cash them as you need them at your hotel. In general, I think AAA is pretty useless. This is a great service, though! <BR> <BR>I've never seen a cash register in Canada from coast to coast that won't accept US currency. This doesn't mean that you're getting a good rate, though. The rate is set by the individual who maintains the store. If you must get CAN$ in Canada, get it from a real bank, or an ATM- but beware of nasty transaction fees that your bank might charge. Never, never xcg. money at a "currency exchange". You're virtually guaranteed to get ripped off. <BR> <BR>One last thing- save all your receipts over $50 (meals and services excluded). You'll get every nickel of the oppressive GST tax back if you do... <BR> <BR>Happy travels! <BR>

My experiences include the following: We used to take traveler's checks in Canadian dollars which we purchased at AAA at a very favorable rate. At most hotels, you can cash them at the front desk for the face value with no fees or charges. When using your ATM card, it's best to find an ATM at a bank. If there's any sort of fee (no matter where you use it) you'll be advised during the withdrawal process. I've found that those in malls and lobbies of various establishements (hotels, restaurants) tend to have a fee, whereas those in bank lobbies do not. In Canada, folks are extremely polite and stand back from the person using the machine. If you notice anyone doing otherwise (such as trying to assist you), watch out! Be sure you know which "networks" your ATM card works with (see logos on the back of your card). Typically, throughout Canada, some take Cirrus, but not Plus, and vice versa. You can check websites for exact locations worldwide. Note that some local banks are not on international networks, so look for your logo(s) before attempting to conduct a transaction. In the larger cities and tourist areas, you can almost always use American dollars, but you may not receive a very favorable rate. Note that you will always receive change in Canadian. Some places, such as Niagara Falls, offer close to the best rates. The occasional place (taxi drivers) will take American money with no allowance for conversion. For purchasing with your credit cards (hotels, stores, restaurants, etc.), you will want to check with your credit card providers to determine how they handle international transactions. Most have a 1-5% combination of various charges. So, you'd want to use the card with the lowest charges. So far, Debit/ATM cards do not have extra fees, so that's what I use. Sorry, this information is not in the order of your questions. We visit Canada often and my current game plan is to go with just my ATM/debit card. There's almost no place that won't take American dollars (an unexpected - and there are very few - toll booth, for example). Once in Canada, ATM's are everywhere. Nearly everyplace accepts a VISA or Mastercard Debit Card. Note that you do not have quite the same "dispute" rights with an ATM card as with a credit card. I used to get a bit of Canadian currency at my local bank, for tipping immediately upon arrival at the hotel, or change a $20 at the hotel front desk (neither result in favorable rates), but now, I just tip in American and then find an ATM (usually in the hotel lobby - our favorite hotel in Montreal has just installed an ATM - with no fee!). It's a good idea to familiarize yourself with Customs (in each direction) and very advantageous to know the tax refund details (which depend upon the province you visit) and procedures (you can usually get a form and brochure at the front desk where you are staying).

Jud: <BR> <BR>Here are some suggestions: <BR> <BR>The first thing you should do is be aware of what the official rate of exchange is. That is published daily ( M-F ) in the business section of almost all newspapers in the US and Canada. Your goal is to get as close to this rate as possible. <BR> <BR>Your Questions: <BR> <BR>1. NO!! US banks will rip you off pretty badly. Typically 3-4% below official rate of exchange. <BR> <BR>2. YES!!. My experience has been that the Canadian Banks are not much below the official rate. Use this method for obtaining cash. <BR> <BR>3. NO!!. Even if they accept US money, which is not too likely, you will not receive a good rate of exchange. <BR> <BR>4. Using credit cards will result in the most favorable rate of exchange. However be certain that there is not a change for foreign conversion. In the last year or so credit card companies have started charging a fee for charging purchases in a foreign currency. This fee is generally hidden and may well be more than the benefit of the higher rate. Not all credit cards have this feee but they are all moving in that direction.

Being frequent visitor to Canada, I have converted and/or acquired Canadian money several times. The worst two ways are 1. purchasing Canadian dollars in the US and 2. cashing an American dollar denominated travelers check at a Canadian bank. In the first case, the cost of the dollars is 5% highter than it would be from an ATM machine Canada. In the second case, Canadian banks were charging a flat $3.50 per check regardless of the face value. <BR> <BR>Like the others who have responded, I use my credit card, most of the time. <BR>Between ATM's and my credit cards, I find that I don't need the American Express checks any more. The last time I bought some was to pay a bill at a back country chalet that did not accept credit cards. <BR> <BR>We usually rent a car for the visit to Canada. To get rid of extra Canadian currency, I wait until I cross the border to buy gas -- usually cheaper -- and use up the extra that way. I might have to throw in a few US bills to pay the total charges. <BR> <BR>At the tourist centers, like Banff and Waterton, I have found US dollars readily accepted. Sometimes, it actually pays to buy in US dollars because the store is giving a very favorable exchange rate!! As astounding as this may strike you, retail stores in many areas have a merchants' assocition. The members of the association agree to hold sales starting on a certain date. But, some places that want to start selling off their iventory before that date have found a way around the problem: offer a beneficial exchange rate! We were in Banff several years ago and two or three places were offering exchange rates that were almost 10% better than the official rate. The deal was, however, that you were asked to pay in US money!! <BR> <BR>Another way is to buy items at the duty free store. The cashiers there will use may a multi currency transaction. <BR>(The wildest one I ever saw was in Schipol Airport in Amsterdam. One chocolate shop had a big sign saying "All major currencies accepted." People would pay with mixtures of all kinds of currencies, even Japanese Yen. The cash registers were programmed to handle the exchanges. <BR>I gathered that the shop was making money several ways! <BR>

I lived in Canada for 5 years and am a frequent visitor. I left my Royal Bank account open when I left, so that I could pay my last several bills in CAN$. <BR>I ended up never closing the account. With only a few hundred $ in my Canadian account, I find it extremely handy (and Royal Bank is found all across Canada) when I'm back in the country (3-4 times a year). Just an idea for frequent travellers to Canada. <BR> <BR>Needless to say, I don't pay any fees for $US-$Can conversions...

One more thing to add about that nasty GST we've all grown to hate (I'm Canadian). Yes definately save all your receipts for puchases made but keep in mind you CANNOT collect GST back on the "sin" items like alcohol and tobacco products, gasoline purchases, etc. Best to pick up a brochure at your customs office to be sure what qualifies for a refund.

Does anyone know if there are any advantages or disadvantages in using a credit card vs. a debit card in a foreign transaction? <BR> <BR>Please excuse the anonymous address; I was bady spammed on this site recently. <BR> <BR>

On the queastion of debit versus credit card, I don't know of any major difference unless you were somewhere and the clerk or waiter did not know what a debit card was. <BR>I carry both because the debit card is useful in ATMs.I prefer to charge so that the payment is under my control when I write the check. If there are disputes, I can take them up then. <BR>Usually charges in cities are posted to my account quickly. The main difference is the time and form of payment.

General advice; don't worry about tiny percentage advantages and diadvantages. The exchange rate is so good that little amounts don't matter. <BR>I'm in Canada; often it's hard to even find Canadian money in the US, but there's no real need to arrive with Canadian dollars. <BR>But it's a good idea to chack with your US bank and credit card company, and find out what fees they charge on Canadian transactions. Then you can decide on whether you want to make lots of little transactions on your credit or debit card, or make larger ones less often. <BR>Canada has, in broad terms, three kinds of bank machines; 1/full service Bank-branded machines that take deposits and give money and are connected to both the Plus and Cirrus networks. These are found inside the lobbies or outside on the wall of real banks (of which there are only a few "chains" but a great many branches of each chain,)2/ bank-branded "cash counters" which will give you money, but not accept deposits. (But you don't want to make depaosits anyway) Most of these belong to the Royal Bank, and can be found in many big ESSO gas stations (think Exxon) with Tiger stores attached. Many variety stores, some grocery stores, many hotels, some gas stations, air ports, railway stations, bus stations, have cash counters. And finally thre are non-Bank-branded ATM machines (some owned by banks) that charge extra fees over top of what you think you'll be charged via the regular Cirrus - Plus machines with thebig bank names on them. These are usually physically smaller, and in restaurants and bars and donut shops, and there may be a couple of dollars extra charged. <BR>Debit cards, in addition to working in bank machines, can be used in a great many stores, including most grocery stores, book stores, and hotels. <BR>Big stores, hotels, good restaurants all take US money, and many post the exchange rate outside the door. <BR>To calculate prices in US dollars (or the other way around); <BR>If theprice is $cdn, and you want to know what it would be in US dollars, just cut one third off. <BR>Canadian dinner of $100; cut one third off and think you're paying about $65 in US money. <BR>Going the other way, add fifty percent to the US price to get it in Canadian dollars. <BR>Let say you set $100 US as the price you are willing to pay for a good souvenir of your trip. Add fifty percent, and look for a price tag of about $150 Canadian. <BR>And if you are driving, Canadian gas always costs significantly more than US, so fill up before you come to Canada, and wait until you're back in the US to fill up again. <BR>Other advice? Look carefully for towing notices when you park at meters. Drink Canadian brands of beer when here. 100 Km per hour is about 62 MPH, typical restaurant tip is 15 percent of the pre tax bill, and since in most provinces the tax is about 15 percent, look at the bill and double the tax. Swiss Chalet resturants serve good chicken, at low prices. Put your valuables in your trunk when youpark. Get on the water if there's water to get on (Toronto harbor, Vancouver harbor, Montrela harbor, lakes in Northern Ontario, etc.) <BR>Sometimes, don't think of the money you'll save on the exchange; instead, spend extra Canadian dollars so that you splurge, in American terms. <BR>BAK <BR>

Brian's advise in completely non-sense! It is highly unlikely that you'll need any Canadian currency until you've checked into the hotel. If you wish to tip the doorman, bellhop, parking garage attendant, you can just do this with American cash. You can convert to 2/3 or just not worry about it, whereupon you will be received accordingly upon your departure. To me, a 2% then plus 5%, transacation plus foreign exhange fee on one's credit card is NOT "tiny". I, too, have found that these excessive charges have not yet been applied to Debit/ATM card purchases. The ONLY way to "know before your go" is to check with your particular card providers. While it's definitely not worth it to get caught up in minute details, you'll just have to figure out for yourself, based upon the plastic you carry and the details regarding using them from the issuing providers. I would mention,however, that with all the extra charges the credit card providers are adding, it's probably best to use your ATM/debit card. Next best is traveler's checks.

If you plan to use credit cards in Canada, it would be prudent to check the the providers to determine (a) what rate they use, and (b) charges assessed to "foreign" transactions. As stated above, so far, extra charges do not apply (yet) to Debit Card transactions. Why would you want (or need) to use US money in Canada? With an ATM card, you can withdraw Canadian dollars. Sure, there are lots of places that will accept US dollars. But, this will definitely not be advantageous.

hope this is not to late but get the form at cdn customs so you can get you gst tax back when you get home . we canadians pay enough tax at least you can get yours back

Where you are travelling in Cnada makes a big difference in spending in $US. If you are in the heavily touristed areas close to the border, lots of places are used to american cash. Still you will likely get a lower exchange rat than you woul get at the bank. As a Canadian who travels frequently, I have found that spending in the local currency makes the most economic sebse. If you don't mind adding 10% to the cost of your trip, by all means spend in $US. Having been to the states several time I found the Canadian banks to give a better exchange rate both ways. If I were an american coming to Cananda I would probably try to get Canadian travelers cheques(if you have a bank package that includes them) and spend them like cash here. When I travel state side I find my credit cards give me the best rate of exchange there, but maybe the banks down there charge for exchange, mine hasn't yet. As for nitty gritty advice for travelling in Canada, it depends on what part of the country you are travelling in. Gas is more here. Smoking is limited a lot more here. Cigarettes and alcohol are quite a bit more expensive. Some food items , such as eggs and chicken are more expensive. By and large, we Canadians are quite a bit like you, so try to travel as a local rather than as a tourist and you will get by quite nicely. I live in the west, and can tell you quite a bit about travelling in Alberta and B.C. Repost if this is where you are going and I will try to help.