I think i got ripped off

[Kurby]

is there a fee for converting CDN to USD?

when i was at the bank the guy told me todays rate was 1.1195 ($1.12) so i said oh that's great - i've got $485 Canadian what will that give me in USD

$425

perfect - i'll take it

then i get home and calculate it - ok it's not off by much but still if i was doing a huge transaction like we were going to do (we had planned on exchanging over $5000 at one time but i suggested we just do a couple of hundred each pay period to make it less painful ) we'd be out quite a bit of money.

turns out buying $425 USD cost us 1.1475.

what we actually should have gotten paid was $475 - ya ya only $10 off but like i said for $5000 we would have gotten

$4464 at $1.12
$4375 at $1.1475

difference of over $100.

i'm a bit ticked off right now and we're heading down to Niagara Falls tonight so...... i must shop to easy my anger

 

[adamsloco]

Banks generally charge a service fee of 2.5 % on currency exchanges. Yours appears to charge 2.75 %. There is no really easy way to avoid this, although I have heard that CAA provides this service free for its members.

Hope that helps,

 

[mickeywho?]

Check the rates again.There should not be a fee involved if you have purchased it at the bank where you have an account. To sell US to convert to Cnd might have been $1.1195 and to buy US with Cnd would have been $1.1475. He may have just gotten his wires crossed...

 

[briar_rose_59]

I was told in my finance math class this past semester that banks charge you a fee on currency exchange. I've never exchanged large amounts of money myself so I don't speak from personal experience.

 

[misslissa]

There are 2 rates, the buying rate and the selling rate. Usually when you are asking what the exchange is... they give the buying rate, when they give you cheques, they use the selling rate.

It is a really common mistake. I've seen that happen here. Because customers don't really care about the buying rates at all!

I work at CAA where we have no fees and today the buying rate is 1.0962 and the selling rate is 1.1366. So, I'm assuming this is what happened to you.

 

[mom_rules]

RBC bank rate right now is also 1.13

 

[hockey mom]

I bought yesterday at 1.143. So you were not ripped off but quoted the wrong rate.

 

[OntFamily]

Check the rates again.There should not be a fee involved if you have purchased it at the bank where you have an account. To sell US to convert to Cnd might have been $1.1195 and to buy US with Cnd would have been $1.1475. He may have just gotten his wires crossed...

Nothing in life is free. The bank will charge a commission on currency exchange -- the rate you pay will never be the same as the one quoted in the newspaper.

 

[KINGBOBOFTHENORTH]

You were thinking of converting $5000 cash.....why? Certainly you need American cash for your visit but the best exchange rate is usually with your credit card. Charge as much of your purchases as you can and let your credit card company convert it and bill you in Canadian dollars at a more favorable rate. If you're a CAA member you can also purchase U.S. dollar traveler's cheques at decent, already converted rates. And if you're bank does not charge you for the use of ATM's in other countries, get your American cash from ATM's during your visit, converted by your bank out of your checking account at usually better exchange rates. The worst rates are when you convert money as you did.

BobK/Orlando

 

[TreesyB]

You were thinking of converting $5000 cash.....why? Certainly you need American cash for your visit but the best exchange rate is usually with your credit card. Charge as much of your purchases as you can and let your credit card company convert it and bill you in Canadian dollars at a more favorable rate. If you're a CAA member you can also purchase U.S. dollar traveler's cheques at decent, already converted rates. And if you're bank does not charge you for the use of ATM's in other countries, get your American cash from ATM's during your visit, converted by your bank out of your checking account at usually better exchange rates. The worst rates are when you convert money as you did.

BobK/Orlando

Are you talking about Canadian banks? Because that hasn't been my experience and I deal with currency exchange everyday.

 

[NancyK]

You were thinking of converting $5000 cash.....why? Certainly you need American cash for your visit but the best exchange rate is usually with your credit card. Charge as much of your purchases as you can and let your credit card company convert it and bill you in Canadian dollars at a more favorable rate. If you're a CAA member you can also purchase U.S. dollar traveler's cheques at decent, already converted rates. And if you're bank does not charge you for the use of ATM's in other countries, get your American cash from ATM's during your visit, converted by your bank out of your checking account at usually better exchange rates. The worst rates are when you convert money as you did.

BobK/Orlando

Our exchange with a credit card is actually higher than converting money at the bank. They put through the U.S. purchase at the exchange rate for that day, then ADD another fee on top of that (about 1.8 to 2.0%) I've taken money from an ATM in the States in a pinch, but the service charge was ridiculous. I usually take a combination of cash & traveller's cheques and use the credit card if necessary. Your best bet is getting your travellers cheques at CAA where there is no fee involved.

 

[eleanor]

I buy US cash over the internet and put it in my US acct. and you save the 2.5 cent difference. At TDCT the rate yesterday was $1 =$1.119 on the easyweb.

 

[DutchsMommy]

Nothing in life is free. The bank will charge a commission on currency exchange -- the rate you pay will never be the same as the one quoted in the newspaper.

The rate in the paper is the Bank of Canada exchange rate. Yes, banks do have to make some commission on the exchange and therefore there is a difference. However all exchange services will add a commission to some degree. If you happen to be buying and selling millions of dollars as are large institutional corporations then yes you will be closer to the Bank of Canada rate, however every step away from the source adds a cost to the end consumer - like in every aspect of life.

I buy US cash over the internet and put it in my US acct. and you save the 2.5 cent difference. At TDCT the rate yesterday was $1 =$1.119 on the easyweb.

This is a really good idea. The reason why the exchange is lower is there is no assoicated cost to storing the actual currency - no overhead if you will - and therefore the savings is passed along to the customer.

 

[mickeywho?]

Nothing in life is free. The bank will charge a commission on currency exchange -- the rate you pay will never be the same as the one quoted in the newspaper.

No - the rate the bank ie Royal Bank quotes will be higher than what you read in the newspaper but there is no additional fee added on top of that to sell you cash if you have an account with them. CAA is the same - if you are a member there is no fee to convert but you pay the rate they quote. What the teller quotes should be the bank's rate not what the TSE is exchanging at. duh - i think we've all done this before!
If you use your credit card on top of this to make US purchases you are charged the bank ie Royal Bank selling rate plus 2.5% by Visa.

 

[OntFamily]

No - the rate the bank ie Royal Bank quotes will be higher than what you read in the newspaper but there is no additional fee added on top of that to sell you cash if you have an account with them.

The "fee" is included in the higher rate". That's why it is higher.

CAA is the same - if you are a member there is no fee to convert but you pay the rate they quote. What the teller quotes should be the bank's rate not what the TSE is exchanging at. duh - i think we've all done this before!
If you use your credit card on top of this to make US purchases you are charged the bank ie Royal Bank selling rate plus 2.5% by Visa.

It's not Visa that adds the 2.5%, but your bank. Each bank sets their own Visa fees.

 

[nokidz]

Banks generally charge a service fee of 2.5 % on currency exchanges. Yours appears to charge 2.75 %. There is no really easy way to avoid this, although I have heard that CAA provides this service free for its members.

Hope that helps,

CAA exchanges money?

 

[hcortesis]

I always check most of the big banks for exchange rates on U.S. money before I convert. I consistently find the Scotia Bank has the best coversion rate. You can check all of the banks rates on line and when you actually go to the branch, that rate will be exactly what the tellers are charging. 1.129 as of Friday April 27 to buy U.S. funds.

 

[mom_rules]

CAA exchanges money?

CAA does exchange money-you have to order your currency and they get it for you next day or so EXCEPT US dollars-they can sell you US travellers cheques but not cash. Not sure why.

 

[drag n' fly]

The good news is we have a 90 cent dollar today!

 

[mom_rules]

1.127 @ RBC this morning