Question Re. Currency Conversion Fees for Canadians
 

I have found lots on the Internet comparing the fees charged by US issued Visa and Mastercards, but little information on Canadian cards.
Visa and Mastercard each add 1% on each foreign transaction and the banks top that up. Royal Bank adds 1 and a half per cent making a total of 2 and a half per cent per foreign transacion. This same amount is added to ATM withdrawls (+ a transaction fee (or not)). Anyone do better than 2 and 1/2% ? How about PC cards or ING bank? I know Citibank in the US absorbs the fee but not sure if there is any way around it for us Canucks. Mastercard?

Two and a half percent? They want the same as the standard Canadian restaurant tip?

I was in Paris in November, and I used my CIBC visa and my Amex, just to see what the exchnage rates were like. I forgot to do an ATM to get a complete package.

Nov 20, bank of Canada exchange rate was 1 euro = 1.47 $CDN

Amex, bought 33,50, paid $50.44, so rate was 1 euro = 1.50

Visa, bought 35,30, paid $53.26, so rate was 1 euro = 1.51

Markup would seem to be ~2.3% over bank rate. I also bought some euro cash from CIBC, and it was in the 1.50 range.

Hope this helps,
fellow Canuck...Mike

Hi robjame,

I haven't looked too closely at what our CIBC Visa is charging, but I can add that Scotiabank has an agreement with BNP-Paribas that lets me get cash from one of their ATMs without an additional transaction fee. (Margriet banks at a credit union and pays a $2 fee for any ATM withdrawal abroad.) I've made six or seven withdrawals since arriving in Paris on the 8th, and will probably make one more tomorrow. The savings add up.

Anselm

CIBC has an agreement with Societe Generale, which I know since I have bought many bank drafts for France. There may be some arrangement in terms of ATM fees...something to research.

Hi R,

Amex charges 2% for foreign transactions.

((I))

Not in Canada - I think it is 2.75% for AMEX.

Michael - That seems to be the 2 1/2% rate with Amex being slightly cheaper. Still nothing like US Citibank that absorbs the fee.
Anselm - How is Paris. I'll bet you're cooking up a storm! Can't wait for the trip report and photos. Valentines Day in Paris - WOW.
My bank picks up the ATM transaction fee but it is that 2 1/2% currency exchange fee that I am wondering about.
ira - I thought for a minute that Amex might be a bit cheaper but Will seems to think they are dearer.
What about some of the trust company, credit union issued cards? Wondering about PC (Presidents Choice) or ING bank cards?

Checked my AmEx Air Miles card and it is 2.5%.

Any more feedback?

Hi WillTravel

>Not in Canada - I think it is 2.75% for AMEX.<

Thanks for the correction.

Maybe you folks need "Canadian Express". :)

((I))

robjame, Paris has been a treat. I've been keeping a few notes for the trip report, and Margriet has agreed to be our food reporter. We'll probably get something posted next month.

Anselm

Anymore Canadian information out there? I'm curious especially about CIBC Visa's deal with a French bank.

How about checking with the bank itself? Most Canadian banks have correspondent banks in other countries. We have Scotiabank, which has an agreement with BNP, so that there is no charge if we withdraw from their machines.

Carlux - I think that the problem is not with the withdrawal fees which are often waived by various banks but rather with the fixed, identical 2.5% conversion fee offered by every bank, charge card, trust company, in Canada. Much the same collusion as we see in gas prices.
Even Capital One who offer no conversion fess for foreign transactions in the US, do not offer that to their Canadian customers. It's that same 2.5%.

Citi (gold and Plat) AAdvantage MCs charge 3% over the 1% MC currency conversion fee in the US.
I use my USAA CCs overseas (only the V/MC 1% which is rebated at year end).
M (SMdA, Gto., Mexico)

I checked with my bank and, among other things, was told that I should ALWAYS use my credit card in Europe because there's a $3 charge for withdrawals - I politely told him that was ridiculous because of the 2.5% charged over the exchange rate and he still stressed the credit card! I'm new to CIBC but I'm already upset at them - thank goodness it's only one credit card and not all my finances. In any event, he said that there was no connection to any bank in France but I have no faith in his comment.

I just got back and we found the fees on Mastercard very comparible to cash withdrawals from our bank. American Express in comparsion was very high. I wouldn't use that card again for outside Canada.

Just to review... it seems that currency exchane fees (the amount over the exchange rate) is identical for Canadian banks, trust companies, MC, Visa, AmEx, ATM withdrawals ans bank withdrawals at home (Canada) and that amount is 2.5%. (collusion?)
You MAY have to pay a ATM withdrawal charge on top of that ($3+/-) Some bank plans will waive this charge.
Seems to be no way around that 2.5% currency conversion fee.

I'm not Canadian but am finding it very surprising from the above posts that it appears Canadian credit cards are used for ATM cash withdrawals. This is very expensive for almost all US credit cards, because that is a loan since it's on a credit card, and has a high interest rate from the date you take out the money until you pay the bill. It also usually has a much higher than normal flat fee (or "ATM" fee, if you will) just for doing it.

However, all the talk of Canadian credit cards above makes it sound like Canadians use their CCs like ATM cards for some reason. I actually don't understand why a credit card company wouldn't charge you some interest or extra fee for taking out money, as it is a loan. IN the US, we use bank ATM/debit cards to take out cash as it is taken directly from your bank account, it's not a loan.