Michel_Paris

I'm a Canadian.

In my wallet I have two ATM cards, which are issued by two of the banks I do business with. They are NOT credit cards, there is no affiliation with VISA/MC...etc..

With these cards I can ONLY access my savings, chequing, and credit card account(only if I'm using machines of the bank that issued my CC, where I can get cash advance from my credit card account)

I can use this card all over the world for cash withdrawals.

In Canada there are BILLIONS of transactions where people are using their ATM cards to directly pay for items directly from their bank accounts. I use it at grocery store, Blockbuster, gas station, Starbucks, local convenience stores,etc...I have a PIN and must use for every transaction. It has nothing to do with any credit card company.

These cards are "free" to use, most people have a bank program that allows for a minimum of free transactions. There is no charge to use it on my banks machines.

I also have a VISA card from one of these banks, that I use for travel, phone purchases,etc...

robjame

No Christina we don't use CC for ATM withdrawals - same penalties apply as US. However, bank card (used for withrawing from ATM and debit charges in stores) and credit cards are often issued from the same bank. eg. my CC (Visa) and bank card are both issued by Royal Bank.
However the currency conversion fee on ATM and cc purchase are both 2.5%.

lmlweb

Oh, we do have ATM/debit cards too. If you havne't read the more recent posting, to use an ATM/debit card to withdraw, you pay a withdrawal fee, usualy something like $3.00; the exchange rate AND an additional 2.5% currency exchange fee over the exchange rate. It's the principal of it that most Canadians try not to use the ATM/debit needlessly while out of Canada, and something that the banks are receiving a bit of a backlash from consumers.

While how each person does it is different, if I use my credit card to withdraw, I usually transfer my cash from my cheuqing/savings account over to my credit card immediately. Some people don't do it right away, preferring to wait til it's time to pay or something like that.

I try to avoid this by withdrawing as much as I think is reasonlaby safe to carry around, exchanging it at a competititve exchange bureau (NOT the banks). If I need cash while there, I try to take out as much as I need to cover the rest of the trip in one withdrawal to reduce the number of times using the ATM.

Michel_Paris

"Competitive" exchange bureau? Is there such a beast?

robjame

<<While how each person does it is different, if I use my credit card to withdraw, I usually transfer my cash from my cheuqing/savings account over to my credit card immediately. Some people don't do it right away, preferring to wait til it's time to pay or something like that.>>

lmlweb- I think you should check that out very carefully (not just with a teller) cause I think you will find that you are incurring credit charges regardless until your next billing date. The charge will appear on your NEXT bill. I know of no way of withdrawing cash using Visa or MC that does not involve your being charged.
And putting the money in your Visa account ahead of the withdrawal has even more consequences. (credit charges still plus loss of card advantages)

lmlweb

Well, exchange bureaus that gives a better exchange rate, as they do have to make some sort of profit for exchanging. It varies around here.

WillTravel

I get exchange rates of approximately 2% over the interbank rate from this exchange bureau, with no extra fees (in Vancouver):
http://www.vbce.info/

This was also a very good place to go when I needed to send a cheque in US funds without incurring ridiculous bank charges.

robjame

This is interesting Will and not something I had considered. The spread seems to be about 3-4 cents on the conversion to/from Euro and Cad$. That is less than the banks by about half.
How do you "do" this with a currency exchange?
Does it depend on amount for that rate?

WillTravel

Robjame, so far I have converted only penny-ante amounts, relatively speaking - like several hundred dollars at a time or even less - and I still get these rates.

WillTravel

If you take today's interbank rate at www.xe.com and apply it to 100 Canadian dollars, that is 70.10 Euros.

If you take the rate VBCE is offering today and apply it to 100 Canadian dollars, you will get 68.78 Euros. By any measure, that's a pretty good rate, I think.

Michel_Paris

The rates are very good. I wonder where they make their profit?

WillTravel

From the FAQ:
"Why is VBCE's rate better than the banks?
The knowledge and experience of VBCE's foreign exchange traders gives VBCE an advantage over your bank. VBCE gives narrower spreads based on the current market conditions. VBCE can act quickly on a volatile market and up-date exchange rates whereas your bank cannot."

robjame

For me it is Mississauga/Toronto so do I go to an office downtown? Phone ahead? Use a cheque?

WillTravel

Maybe you can find a similar such service in Ontario? It must exist.

Realistically, if you have to drive more than about a minute, the monetary advantage of such a service is probably slight. But for me, I can incorporate a visit into my lunch hour, or into a bookstore visit.