Getting around exchange rate

[Greenfield1984]

As per the title. Exchange rates and bank exchange fees are killer.

Are there any tips or tricks to minimize the pain?

For example could I purchase a disney gift card online at the disney site with my credit card. Then use the card in the parks for food. To save of the exchange fee the banks would charge?

Any other advice is highly welcome.

 

[Aladora]

I have a HomeTrust Visa that does not charge the extra foreign exchange fee (around 4% ish) that most credit cards charge. All purchases that are not in Canadian funds are done on that card.

 

[efrant]

Buy Disney gift cards at grocery stores in Canada (if you can find them) using a credit card that has a high earn rate on grocery purchases (such as the the ScotiaBank Gold Amex, or the American Express Cobalt, or the MBNA Rewards World Elite, all of which give essentially 5% cashback). That way, you get a 5% savings, plus you don't pay any fees when you use your Disney gift cards at the parks, because they use the mid-market rate for converting the CAD balance to USD.

A less favourable alternative would be to use a Canadian credit card without foreign transaction fees. (There are several of them, including the HSBC World Elite, ScotiaBank Passport Infinite, ScotiaBank Amex Gold, the Brim cards). I would personally not use the Home Trust Visa or any Canadian issued USD credit card: while they has no foreign transaction fees, they also don't pay out any rewards (compared to the cards I mentioned, which pay anywhere from 1% to 3%, depending on the category).

 

[Greenfield1984]

Buy Disney gift cards at grocery stores in Canada (if you can find them) using a credit card that has a high earn rate on grocery purchases (such as the the ScotiaBank Gold Amex, or the American Express Cobalt, or the MBNA Rewards World Elite, all of which give essentially 5% cashback). That way, you get a 5% savings, plus you don't pay any fees when you use your Disney gift cards at the parks, because they use the mid-market rate for converting the CAD balance to USD.

A less favourable alternative would be to use a Canadian credit card without foreign transaction fees. (There are several of them, including the HSBC World Elite, ScotiaBank Passport Infinite, ScotiaBank Amex Gold, the Brim cards). I would personally not use the Home Trust Visa or any Canadian issued USD credit card: while they has no foreign transaction fees, they also don't pay out any rewards (compared to the cards I mentioned, which pay anywhere from 1% to 3%, depending on the category).

Interesting. Can i also use those gift cards to purchase park tickets?

 

[efrant]

Interesting. Can i also use those gift cards to purchase park tickets?

I haven't done it myself yet, but I remember others here saying that they have done so.

 

[hdrolfe]

Interesting. Can i also use those gift cards to purchase park tickets?

You can use them for anything at Disney, tickets, hotel, package, meals (even mobile order), on site in stores, photopass.

 

[ilovetotravel1977]

There is a big thread on the gift cards and strategies in this forum. Just search WDW Gift Cards and it will come up.

 

[Greenfield1984]

There is a big thread on the gift cards and strategies in this forum. Just search WDW Gift Cards and it will come up.

Excelent. Will do thanks.

 

[2Lunds]

Our family friend has a USD savings account, and he transfers funds into it when the exchange rate is favourable. Then he withdraws US cash to take with him. I'm not big on cash, but it seems like a pretty good strategy.

 

[samsteele]

A warning about the Home Trust Visa. I had it for 4 plus years, never actually used it, and it was breached 8+ times. A huge hassle each time fraudulent charges were made and easily ate up one or two hours of my time per episode. A time consuming hassle to close my account completely. Home Trust canceled the Visa multiple times and issued a new one but fraud charges continued regardless. Suggests data issues with the company. IMO not worth the problems. While any credit card can be breached, I've never had that many problems with one company after decades of credit card use.

I have a US $ dollar savings account with Tangerine paired with one at TD Bank. I pay the annual fee for the TD US dollar visa and use it. I buy US $ when the exchange rate is a bit better and keep it in the Tangerine account to earn modest interest. Then transfer it to pay the TD visa balance when needed. Not the best or least expensive set up, but works for me. If you believe you can get your money's worth out of the annual visa card fee through multiple trips to the US, then may be reasonable for you.

Like others, I find it very difficult to find Disney gift cards in my area. I've searched Walmart, No Frills, Shoppers, etc and just not available here.

 

[samsteele]

LOL just found Disney gift cards at my local Dollarama.

 

[CanucksRock]

I saw them at Walmart the other day.

I have the Scotiabank Passport Visa that has no exchange fees so I use that for most everything when I travel. I get a better rate than exchanging for cash. The perks of 6 lounge passes and applying scene+ points to travel off-set the annual fee.

 

[kuhltiffany]

I have a no yearly fee, no Forex fees Brim Mastercard. It has been great for travel the past few years and the points it gives can be applied directly to your balance!

 

[Aladora]

A warning about the Home Trust Visa. I had it for 4 plus years, never actually used it, and it was breached 8+ times. A huge hassle each time fraudulent charges were made and easily ate up one or two hours of my time per episode. A time consuming hassle to close my account completely. Home Trust canceled the Visa multiple times and issued a new one but fraud charges continued regardless. Suggests data issues with the company. IMO not worth the problems. While any credit card can be breached, I've never had that many problems with one company after decades of credit card use.

I have a US $ dollar savings account with Tangerine paired with one at TD Bank. I pay the annual fee for the TD US dollar visa and use it. I buy US $ when the exchange rate is a bit better and keep it in the Tangerine account to earn modest interest. Then transfer it to pay the TD visa balance when needed. Not the best or least expensive set up, but works for me. If you believe you can get your money's worth out of the annual visa card fee through multiple trips to the US, then may be reasonable for you.

Like others, I find it very difficult to find Disney gift cards in my area. I've searched Walmart, No Frills, Shoppers, etc and just not available here.

I have had the opposite experience. In all the time we have had a Home Trust Visa, I have had zero fraudulent charges on it but DH's Mastercard through CIBC has had issues a few times.

 

[tinkerone]

Lots of good thoughts here but I'm going to add a few comments. Using Disney gift cards is great. The one BIG issue you will have is that you will not know the exchange rate until you use it. You may get an exchange rate of $1.35 today but you may get an exchange rate of $1.40 tomorrow. You may also get an exchange rate of $1.10, it's all a gamble. Are you okay with that? Not knowing how much you will actually have to spend when the time comes? If you are buying these and saving for a vacation next year you are putting your exchange at risk and using a Canadian credit card may have worked out way better even with the added fees. Again, you just don't know. It's a guess at best.
Opening a US bank account, as someone mentioned before, and putting in funds when you get it (as you would Disney GCs) is a great way to save and you get dollar cost averaging (google it) which most of the time works out to your advantage. You know how much money you have, no guessing of what the rate might get you, and you will be ready with the needed funds ahead of time. Using a US credit card will also help and if you have that US bank account open with funds in it from your small purchases, then you will not have to worry about exchange rates and funds will be there ready to pay your bill when it comes in. My US MC gives me AMs, which I collect. It is grandfathered in from my having it for so long, I don't believe it offers AMs anymore. Shop around, see what is out there.
My point to this whole post is that you probably want to know how much you will have to spend. While it may work for you as it does for many, gift cards may not be the best option. Think it out before you decide. Saving 3% now might cost you 10% later.
What ever you decide will work for you, have a great trip and enjoy planning. Vacations don't come often enough,