Disney Gift Card Question

[esdras]

I posted this in the USD - Credit Card - Bank Account topic that is stickied, but haven't seen a reply - but, of course, they sometimes go unnoticed for a while...

I'm copying the post here, since my question is related, but is a little different than going the U.S. credit card/ USD Account route.
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Here's a bit of a crazy question regarding exchanging currency for the best deal, and I'm wondering if anyone has tried this...

First, what is the most economical method of exchanging currency:

1. Straight exchange at your bank/exchange house, etc. - call around for the rate of the day type deal and go there.
2. Open up a U.S. Dollar account and electronically transfer Canadian dollars into that account - later, withdraw the cash in U.S. funds from that account.

After doing the cheapest of the above options, we have the advantage of living close enough to the border that we drive into the U.S. every once and a while. We are close enough to a Disney Store to go there and purchase Disney Gift Cards.

Apparently, the Disney Gift Card can be used virtually everywhere on property except some of the "carts" - no big deal for us. Also, you can call Disney and use a Gift Card to pay off your vacation package.

So, since we are planning to go, use Magical Express and never leave Disney property while we are there (although I know we'll need a little U.S. Cash), would it make sense for us to go the Gift Card route? It seems to have the added benefit of budgeting how much you will spend - and while I realize that you can't get cash back off the card, I'm sure we could get close enough to make this worthwhile.

 

[CanadianGuy]

See.. The exchange rate now is pretty much at par.. you pay a couple of cents to exchange either way..

As such, I just use the Disney room-key and watch my balance each night by stopping at the front desk on the way back to my roomn for a print out of transactions.

And then when I check out, I charge the balance to my Capital One card which does not charge the 2.5 % "extra" on top of the exchange rate. I figure that's 'good enough'.

All the other running around and getting rates and crossing the border.. I guess for me I figure by the time I factor in my time, gas etc... I'd be losing money with that.
..
The savings (if any) per 1000$ spent at Disney might be $10 or $15... I'd lose that in gas personally... not mention whatever I might leave on the card.

Your mileage may vary.

Knox

 

[dancin Disney style]

Cash is probably the only option with no extra fees attached to it. If you can get 'no charge' travellers checks that would be equivalent.

I have heard that some banks give a better exchange rate when you transfer money into a US$$ account on-line but I don't know which bank or even if this is true.

What about getting a US $$ credit card and paying your charges from a US$$ account.

 

[esdras]

Thanks.

Unfortunately, we already have two credit cards, and with our family status (my wife works part time, and I'm a grad student), it just doesn't look good for applying for more credit - although the debt we hold now (other than student loans) is not bad at all - none on our credit cards themselves, and only a little on a line of credit bank account - and our mortgage is more than half paid off.

We'll likely either be going over to the U.S. ourselves before July, and we have family that goes over fairly regularly - it won't be hard for us to get the Gift Card after exchanging for U.S. funds directly at the bank.

Seems like that will be the best option for us since we don't want to apply for more credit.

 

[dancin Disney style]

Forgive me if I'm missing something(as I often do ) but why do you need a gift card?

 

[esdras]

Forgive me if I'm missing something(as I often do ) but why do you need a gift card?

Ah, basically I have credit cards that gouge me on the exchange - in addition to the small percentage (around 1% - I think) that you get hit with on any exchange, even going through your own branch, both of my credit cards hit me with another 2% in "service fees" for each transaction. Considering that the whole Disney Vacation we are planning will eventually wind up giving the mouse about $4,000, I would rather save the $80 for myself. It doesn't seem like much, but - in the long run - that's a nice dinner out without the kids night that my wife and I could have.

The Disney Gift Card can be used for purchases virtually anywhere on site, except for some of the "snack carts". Additionally, you can even use a Disney Gift Card to pay for your vacation if you call them to make a payment.

Since we live close enough to the U.S. that either us or friends/family go to Michigan fairly regularly, we can go to a Disney Store in the U.S. and not have it be a special trip. If we exchange our funds at a bank, we won't get hit with the credit card service fee, we can go and buy the gift card and use that rather than the credit card.

It does seem a little complicated, but we aren't in a position to get the Capital One credit card at this time, so this seemed like the best solution - all things considered.

 

[dancin Disney style]

Ah..Ha.....Sounds just like me. That $80 is better spent elsewhere when possible.