Exchanging Money

[Pumpkin1172]

So I got a message from the dd this morning. We leave on Saturday for our Disney/Universal then cruise trip. She went to the bank to exchange her money, and the customer service person told her to not exchange through the bank, but use the ATM's down in Orlando and Miami as the rates on the machines are better than what the bank can give her. What is everyone's take on this? This is the first big trip of any kind for us, and we are trying to be as cost effective as possible.

 

[bankr63]

I'd say the teller is probably mistaken in general, but it might be true for your specific bank if they offer some special rate. The actual money exchange still occurs at your Canadian bank using their current rate (for the banks I know, it's the same as the counter rate for ATM network withdrawals), and banks charge an additional forex fee on top of the conversion. When using ATM's in the US you will ALSO pay an additional fee to the ATM host bank, and if you use a non-bank affiliated money machine (like the ones in malls or convenience stores), you might pay some very hefty fees. If your bank has branches in the US (like TD) there are no additional fees for using the US ATM, but you will still pay exchange rate and forex fee. Of course you have the inconvenience of trying to find your bank in the US. The closest TD ATM I've found to Disney is at a TD branch on Kirkmann just past Universal. There was a branch on Irlo Bronson that I used to hit, but apparently it has closed or moved.

Another trick for avoiding ATM fees is to ask for cash back when making purchases at stores that allow this (like WalMart).

By far the best deal I have found is using a Credit Card that does not charge forex fees. Current list includes Amazon Visa, Marriott and Sears MasterCard, and the Premium Rogers card. All of these cards offer percent cash back or points a well, so it adds up saving the (usually) 2.5% forex fees, plus getting another 1% or valuable points back.

 

[pigletto]

I agree completely with Bankr. It sounds like misinformation. You will pay those extra fees every time you hit a machine and they will add up quick. We took cash on our trip two weeks ago and only had to use a bank machine once. It was not a better rate, and it cost us more in machine fees as well. I wouldn't want to be doing that over and over. Unless using the credit cards mentioned in the previous post, we always find the best method is to estimate our expenses to the best of our ability, pad that amount by 10 to 15 % and take it all in cash. It forces us to stick to a budget, but we have the cards if something pops up.
While nerve racking to carry that much cash down, it stays ON our person and then goes immediately into our room safe. YMMV with how comfortable you are with that. We split the amount in to daily envelopes and just bring the envelope and one credit card to the parks with us.
Since we've switched to this method we've never come home with vacation spending regret, and almost always come home with leftover money which starts off the next vacation fund .

 

[mab2012]

Depending on your bank, it might not be so hard to find an ATM that doesn't charge fees. Our primary accounts are with Scotia, and they have major partnership banks around the world (called Global ATM Alliance). For example, in the US, they partner with Bank of America, and there seems to be one of those on every corner. In mainland Europe I've used Deutsche Bank, and Barclays in the UK. I pay the same crappy foreign exchange rate you'd get at the counter, but no additional fees. I love, love, love my no-forex-markup Amazon Visa, and use it whenever possible for foreign currency transactions, but for small amounts of cash, the partner ATMs are convenient and the cost is reasonable.

Not sure if this is specifically a Scotiabank thing, or if other Canadian banks have similar networks.

 

[Pumpkin1172]

Thanks for the info. I agree that she either misunderstood or the csr was mistaken with the information she gave her. If the daughter wants to use her debit card. She can go right ahead. But I won't be making extra trips somewhere. She is convinced that she will get a better rate than what her bank would give her. Oh well...she is a grown *** woman at 22 lol. She can deal with it all when she gets home lol. And yes...I have a budget for each day for us for meals/drinks etc and will be sticking to it. I want to start saving for the next trip...which will be a family one for the hubby and 2 ds who are still home yet.

 

[alc571]

By far the best deal I have found is using a Credit Card that does not charge forex fees. Current list includes Amazon Visa, Marriott and Sears MasterCard, and the Premium Rogers card. All of these cards offer percent cash back or points a well, so it adds up saving the (usually) 2.5% forex fees, plus getting another 1% or valuable points back.

Just as an FYI, Sears couldn't reach a deal two years ago with Chase bank, so there no longer is a Sears Mastercard. They sold their credit to Scotiabank, and the Mastercard they replaced it with does charge the Forex fees.

 

[bankr63]

Just as an FYI, Sears couldn't reach a deal two years ago with Chase bank, so there no longer is a Sears Mastercard. They sold their credit to Scotiabank, and the Mastercard they replaced it with does charge the Forex fees.

Thanks for the update. I knew that the Sears card had transferred, but understood from their communications that they were leaving benefits intact (initially). I am not really surprised to hear that the no forex benefit has now been dropped.

 

[Average Joes]

Off topic a bit but from what I researched Rogers Mastercard has the best exchange. 4% cash back on foreign purchases (-) 2.5% = 1.5% cash back. Plus Mastercard is usually marginally better on the exchange rate than Visa.

 

[bankr63]

Off topic a bit but from what I researched Rogers Mastercard has the best exchange. 4% cash back on foreign purchases (-) 2.5% = 1.5% cash back. Plus Mastercard is usually marginally better on the exchange rate than Visa.

Yes, but if I understand the fine print correctly, the cash back can only be used to buy stuff from Rogers, or pay off your Rogers balance (if you have an account). I also think that saying they are giving you back 4% (while charging you 2.5%) is a bit misleading, but I usually feel that way about Rogers.
I prefer the 1-2% cash back from Amazon that appears immediately as a rebate on my statement every time you hit $20. No tricks or gimmicks, and I don't have to buy something else to get my credit.

 

[chimo2u]

Just as an FYI, Sears couldn't reach a deal two years ago with Chase bank, so there no longer is a Sears Mastercard. They sold their credit to Scotiabank, and the Mastercard they replaced it with does charge the Forex fees.

Actually I was in this predicament, my Sears MasterCard got given over to Chase/ Scotia bank mastercard. They Do not charge foreign transaction fee (the terms where grandfather'ed over to the new scotia momentum mastercard) I use my card for all my US balances and have not had to pay any foreign fee, only the exchange rate of the day.... it's been great!

 

[chimo2u]

Thanks for the update. I knew that the Sears card had transferred, but understood from their communications that they were leaving benefits intact (initially). I am not really surprised to hear that the no forex benefit has now been dropped.

No, they kept the benefits intact ..... I got switched over and my card still has no forex fees -- it's a great card and I use it to pay all my US balances on our trip!

 

[BLAZEY]

I have the Scotia Momentum Mastercard that was once a Sears Mastercard. Still no foreign exchange fees. Scotia Bank keeps sending me offers for their Momentum VISA but I don't want to lose this benefit. US it for all my US or UK transactions.