How to get the best exchange rate conversion?

[MaryannF]

It is common for banks to sell traveller's cheques "commission free" to their customers. The commission, where it is charged, is usually 1% of the total face value sold so ask questions before you buy.

 

[mom_rules]

Are travelers checks easy to use on the Disney properties. We are going to take some cash and also our visas but don't like the exchange rate on the visas. Is travelers checks in US funds the way to go?

Never had a problem using Amex Travellors checks anywhere in Florida.

 

[OntFamily]

So at 2.5% $1,000 US would cost me $1,025 CAN if the dollar was on perfect par. On another thread someone stated that it cost him about 8% from a CC?

This has been my experience, plus what I was quoted from my credit card holder (MBNA). Not sure what credit card that user has, but my exchange rate has for the past few years been 2.5% different than the bank of canada rate.

 

[mom_rules]

Called our Visa and Amex Card offices-the charge the going exchange rate on the date the transaction is posted plus 2.5% "transaction fee".

 

[Tiger926]

banker here. someone said earlier that their bank manager told them the rate is always better in the am. i say, run and find a new bank manager! if you think about it, that would be logisticlly imposible. the us rate picks up where it left off the day before and them moves up or down, depending on what the economy is doing. if it was always lowest in the morning it would have to keep going up and up, never being able to come down again. hope i said that clear. sounds ok to me, but i'm in my own mind.
the main reason there is a difference between bank of canada exchange rates and bank rates is that when the banks purchase money from the bank of canada they charge a premium. they have to have it shipped in and then we have to have it shipped to us so you pay security for this twice.
i say, get yourself a us mastercard (or visa if they have one) and do not pay the 2.5% difference that is charged when you use your canadian card. get yourself a NO FEE us acct. bmo offers both a chequing and savings us acct that has no fees as long as you have a package plan on your main acct and 95% of the banking population has a pacakage plan on their accts. paying a dollar to get my money out would just piss me off. if your bank doesn't offer you a no fee option, switch banks. money is better in your pocket then a banks!
anyway, just be smart with the money. its yours and whether that means saving the dollar shopping across boarder or swithching banks to save it, do it.

My hubby is a bank manager as well, and he said the same thing! Good info you posted here.

Tiger

 

[Wazzo]

If anyone is interested in comparing US Dollar credit cards, I found this interesting PDF:

http://www.fcac-acfc.gc.ca/eng/publications/CreditCardsYou/pdfs/USDollar-e.pdf

Looks like BMO is the winner!


Oh, and here is one that shows the service fees on all the different credit cards:

http://www.fcac-acfc.gc.ca/eng/publications/CreditCardsYou/PDFs/ServiceFees-e.pdf

Most seem to be a 2.5% conversion fee.

 

[matsterrocks]

Called our Visa and Amex Card offices-the charge the going exchange rate on the date the transaction is posted plus 2.5% "transaction fee".

So if a Bank charges you 2.5% transaction fee to convert then it should be no more expensive to use your credit card right.

 

[tinkerone]

So if a Bank charges you 2.5% transaction fee to convert then it should be no more expensive to use your credit card right.

only if you use your canadian credit card. and to be honest, most people will not notice this charge because it is built into the exchange rate, meaning, if the actual rate you pay at the bank is 1% then you will see the exchange rate of 3.5% on your cc statement. it will not show 1% and a 2.5% premium. they try to trick you and for most it works.
if you us a US cc there is no 2.5 premium. you pay dollar for dollar us.
hope this is clear.

 

[OntFamily]

So if a Bank charges you 2.5% transaction fee to convert then it should be no more expensive to use your credit card right.

You are correct. However, most banks will charge less than 2.5% commission for a cash conversion. But, you must go into a bank to get the cash.....

We have to balance convenience (plastic credit card that is always available) vs lower cost (US Cash, but that means going into a bank).


One other option, is getting US Cash from a USA banking machine. You'll have to pay your bank a commission, and potentially a service charge to both your home bank, and the owner of the US banking machine.

 

[RedRuby]

I didn't expect to get the money for free, but the exchange rate was significantly worse than the real rate.

What do you guys do?

We just use our President's Choice Mastercard for as much as possible, and a relative's bank employee rate for large cash 'purchases' if we plan ahead enough. (If it's last minute, whatever the cash exchange rate is at CIBC, over the counter....)

 

[sk8jdgca]

Here's a couple helpful hints- If you need cash while in the states, don't use an ATM machine instead go to a walmart/grocery store, purchase something on debit and get cash back- way cheaper on the service charge. One thing in the states there is only chequing- no choice of savings or chequing so make sure your account is coded chequing on your card

You can usually get a better exchange rate by doing an online transfer from your canadian account to your US account and do it after the markets have closed

 

[sk8jdgca]

last week I got 100.50 USD for 100 CAD. this week 17USD for 17CAD-yahoo!

 

[ChisJo]

Here's what I don't understand....I just exchanged $450 canadian and only got $440.71 back from CIBC....I put that right into my USD account and they said that was the best exchange I was going to get....But when I read these boards, everyone else is getting a WAY better exchange than me....Is CIBC robbing me???

 

[tinkerone]

Here's what I don't understand....I just exchanged $450 canadian and only got $440.71 back from CIBC....I put that right into my USD account and they said that was the best exchange I was going to get....But when I read these boards, everyone else is getting a WAY better exchange than me....Is CIBC robbing me???

thats close, but i know that bmo's rate at least on friday, was better than that. and if you know anyone who works for a bank, talk with them. i paid 196.98 cnd and got 200 us. this is what i paid on friday. each day brings a new exchange rate so just watch it.

 

[OntFamily]

I was in Niagara Falls, ON this weekend. The currency exchange booths were buying US dollars @ $0.94 Cdn (4 basis points lower than the going rate). I'm sure any bank in the area would have given a slightly better rate, but the exchange booths are conveniently located (so you pay a premium...).