Tips on exchange rate--Also ??? credit card gift cards.

[mommymanda]

Any one have tips on how to get the most out of my Canadian to US exchange? Are there tips?

This trip is going to be 99% cash to avoid tons of added fees. I have a good portion of it already so thought I'd start exchanging it bit by bit up until we leave. Just wondering if there are tips to get the best rate.

Also curious. I have a number of points from various places that I can exchange for Visa or MasterCard gift cards. If I exchange locally and cross the boarder with them does anyone know if they are still valid? Would I be charged the same extra fees on top of exchange using them like with a regular credit card?

Thanks

 

[shpirks]

We have a usd credit card we always use in the states (I work for a Canadian bank) I have found that I get the best exchange this way as you save appox 2.5% on the exchange and if you open a usd account you also save a little as you get a better rate when you transfer between usd and Canadian accounts °o° if you have any questions I can answer let me know

 

[minnie mum]

We thought about getting a USD credit card, but our bank charges an annual fee for it. We do have a USD account, though, and transfer funds into it whenever the exchange rate is decent. As for cash, our bank gives a better exchange rate for larger amounts of cash. So rather than convert smaller amounts at intervals, we do it all at once.

I don't like using gift cards. In addition to the exchange rates, you are also losing activation and other fees with some of them. We just use our regular credit card for most things. And carry a lot of cash (the bulk of it kept secured in our resort safe) to avoid ATM fees from foreign banks. We never travel with our debit cards anymore.

 

[5Dreamers DH]

We thought about getting a USD credit card, but our bank charges an annual fee for it. We do have a USD account, though, and transfer funds into it whenever the exchange rate is decent. As for cash, our bank gives a better exchange rate for larger amounts of cash. So rather than convert smaller amounts at intervals, we do it all at once.

I don't like using gift cards. In addition to the exchange rates, you are also losing activation and other fees with some of them. We just use our regular credit card for most things. And carry a lot of cash (the bulk of it kept secured in our resort safe) to avoid ATM fees from foreign banks. We never travel with our debit cards anymore.

I have found if you are doing smaller amounts of currency exchange, which is what my wife and I do for our trips, we go to the currency exchange booth at our local mall. The rates are about 1-1.5% less than the Banks for regular exchange.

I know people with the US $ CC and they like it as a form of protection while in the states. They also travel at least once a year so that the annual fee offsets the amount of money the exchange would have cost them, and then some. I still cannot justify it yet as I only travel once every 18 months.

 

[bankr63]

There are 3 Canadian cards that I know of that charge no fee on US exchange. This saves you 2.5-3% over bank exchange on every transaction. Chase Canada offers the Amazon.ca, Sears, and Marriott MasterCards. Just knowing that I'm saving 3% over my bank's counter exchange takes a lot of the sting out of the fluctuating exchange rates.

 

[mithuri]

There are 3 Canadian cards that I know of that charge no fee on US exchange. This saves you 2.5-3% over bank exchange on every transaction. Chase Canada offers the Amazon.ca, Sears, and Marriott MasterCards. Just knowing that I'm saving 3% over my bank's counter exchange takes a lot of the sting out of the fluctuating exchange rates.

Hi;

Just to chime in agreement with bankr63...

We too use amazon.ca Visa card - No annual fees, no foreign exchange fees (2.5%) and there is a cash back component to it (I think 2% on amazon.ca purchases and 1% purchases on other purchases).

We also use this card for our US online shopping and 'Buffalo shopping'...

Thanks,

 

[mommymanda]

There are 3 Canadian cards that I know of that charge no fee on US exchange. This saves you 2.5-3% over bank exchange on every transaction. Chase Canada offers the Amazon.ca, Sears, and Marriott MasterCards. Just knowing that I'm saving 3% over my bank's counter exchange takes a lot of the sting out of the fluctuating exchange rates.

Hi;

Just to chime in agreement with bankr63...

We too use amazon.ca Visa card - No annual fees, no foreign exchange fees (2.5%) and there is a cash back component to it (I think 2% on amazon.ca purchases and 1% purchases on other purchases).

We also use this card for our US online shopping and 'Buffalo shopping'...

Thanks,

Will these cards hold a balance? I have a good portion of our funds saved in cash already. Am I able to simply deposit it all onto the credit card to shop ahead? I guess with no fees it would not be hard to put all the cash on it upon returning. I will have to look into the interest rates etc. at the options. So I am only charged current exchange prices on say the amazon card, not an added fee for shopping in the US?

I wanted to avoid another card, we opened an Airmiles card to book/pay for the trip and earn the miles towards gas/food during it. It will be zeroed shortly than I guess we could close it and open the other doing the same for the travel portion.

 

[bankr63]

Will these cards hold a balance? I have a good portion of our funds saved in cash already. Am I able to simply deposit it all onto the credit card to shop ahead? I guess with no fees it would not be hard to put all the cash on it upon returning. I will have to look into the interest rates etc. at the options. So I am only charged current exchange prices on say the amazon card, not an added fee for shopping in the US?

I wanted to avoid another card, we opened an Airmiles card to book/pay for the trip and earn the miles towards gas/food during it. It will be zeroed shortly than I guess we could close it and open the other doing the same for the travel portion.

You can prepay pretty much any card if you want, but the CC companies don't really like this. Especially if it is a large pre-payment, the card will get flagged for review under anti-money laundering legislation. But pre-payment is not generally necessary; as long as you pay the balance in full by the due date you will incur no interest charges unless it is a cash advance or cash-like transaction (casino charges are considered cash-like transactions) in which case interest starts accruing from the date of the transaction. The interest is competitive with other cards (i.e. outrageously high)

I have a fairly low limit on my Amazon card, so if we are "big spending" while travelling, I'll log into my TD account and make an early payment. Takes a couple of business days to register the payment and increase your spending room again.

There are no added fees for the Amazon card, so it is like saving 2.5 to 3 percent on every transaction, plus the additional 1% cash back that the PP mentioned. The cash back is applied on your next statement after you trigger a minimum $20 payback ($2000 spend). The exchange rate charged has always been very close to the Bank of Canada noon rate for any transaction of I've checked.

 

[Alliecat and Rabbit]

We go to a place called Kantor (in and around Toronto). You can look them up online too kantor.ca.
I find they have a much more favourable rate compared to the banks. Also, if you exchange more than $1000, you get an even better rate, although, you may need to ask them about it to make sure they give it to you.