DVC Payment - Canadians

[who's ur daddy?]

Okay, I just signed up for DVC.

I thought I could get a free bump of Airmiles points by charging the cost on the Airmiles card, but I just realized that the credit card company (BMO in this case) charges a 2.5% premium on the exchange rate.

So, their current rate is 1.1001. If I go to my bank to do a bank draft, the rate would be 1.0823. For argument's sake, for a USD$20,000 purchase, the spread is Cdn$356. For that purchase, I would get about 1,082 airmiles ($20 per airmile). I've always used a rough rule of thumb of 10 airmiles for a dollar worth of goods, so that gets me about Cdn$108 value.

It's better to pay by cash then, no?

Kinda bummed that I don't get the airmiles uptick (unless you tell me I'm wrong with my calculations!!!).

 

[cslittle999]

That's the conclusion we reached too (with the same bummed out feeling). As an FYI you should be able to do better than the posted rate when purchasing $20K USD.

 

[DutchsMommy]

Agreed. Too bad about the spread on MC - at least you realized before the purchase. We put it onto the card only to realize after the fact - oh well, the airmiles went to a MYW which we upgraded to an AP so I can't complain!

RE: the rate on $20K....the rates are preprogrammed into the system and I don't think the CSRs have any discretion on the rate - just so you don't think they are trying to not give you the best rate...but it is true the rates are 'tiered' so you should get a slightly better rate.

Congrats on joining DVC!!!!!!!!!

 

[cslittle999]

RE: the rate on $20K....the rates are preprogrammed into the system and I don't think the CSRs have any discretion on the rate - just so you don't think they are trying to not give you the best rate...but it is true the rates are 'tiered' so you should get a slightly better rate.

Which is what I meant but did say very well at all. The tiered rate just emphasizes that for Canadians trying to get credit card points just doesn't work out.

 

[sean-1966]

We put a deposit down using our card while we were there and than Fed-Exed a bank draft down once we got home.

 

[MECH8T7]

Okay, I just signed up for DVC.

I thought I could get a free bump of Airmiles points by charging the cost on the Airmiles card, but I just realized that the credit card company (BMO in this case) charges a 2.5% premium on the exchange rate.

So, their current rate is 1.1001. If I go to my bank to do a bank draft, the rate would be 1.0823. For argument's sake, for a USD$20,000 purchase, the spread is Cdn$356. For that purchase, I would get about 1,082 airmiles ($20 per airmile). I've always used a rough rule of thumb of 10 airmiles for a dollar worth of goods, so that gets me about Cdn$108 value.

It's better to pay by cash then, no?

Kinda bummed that I don't get the airmiles uptick (unless you tell me I'm wrong with my calculations!!!).

I have a USD BMO Mosaik Mastercard. Depending on the options you pick, it can be a no-annual-fee card. I picked the cashback option but I think I could have selected Airmiles. Seems that if you went this route, you could still get airmiles and not have to pay the CC exchange rate premium. I don't think you can apply over the phone or on-line. So, I think you have to go into a BMO branch to get an application.

 

[surfer_ed]

I bought my add-on with the RBC USD Visa Gold. It has a $60 fee since I have another card. got a whopping 10,000 points.

I did the math and the fee was worth since we are going on the cruise this year, notwithstanding the DVC purchase. About $2,500 was the break even point for us.