Traveller’s Cheques?

[Gigi22]

Trying to decide whether to buy more TCs or to get a prepaid bank card in US dollars. I need something secure I can easily convert to cash without going to a bank. Right now an account in the US is not practical as I am not there often.

Suggestions?

 

[ottawamom]

Travellers cheques are not as widely accepted as they once were. If you are planning on cashing them at a Disney resort you should be fine. Stores may or may not know how to deal with them anymore. If you plan on using them to shop with, off Disney property, then I would get a prepaid US$ CC. If you will be staying onsite and shopping at Disney Springs and in the parks I would suggest you just put all those purchases on your MB and pay off your room balance with the travellers cheques if that's your preferred method of payment.

If you're staying onsite, there is a safe in your room. You enter the code you want when you put your valuables inside. You could just take cash with you. I often have $500 in the safe when we travel.

The thing to be careful about with a prepaid CC are the charges to activate and if there is a charge to keep the card active if you don''t use it all on your trip. Another thought, you could get TC and use those to purchase some Disney GC (or purchase Disney GC in Canada)for your other purchases.

More details about the nature of your trip would be useful in helping you with options available.

 

[efrant]

If you are already a TD Canada Trust customer, a U.S. bank account through TD's U.S. subsidiary (TD Bank) is actually very practical and convenient (in my opinion), even if you don't spend much time in the U.S. It can be set up online in less than 10 minutes (it's specifically geared to Canadians who want an account in the U.S.), and there are no monthly fees if you keep US$100 in the account. You get a U.S. Visa Debit card mailed to your Canadian address, and transfers to/from your U.S. bank account and your TD account in Canada are free.

 

[bankr63]

If your Canadian bank (ATM) card has the Visa symbol on it, you should be able to use it pretty much anywhere Visa is accepted now (i.e. everywhere). I use credit cards when travelling, but my kids use their bank cards and don't seem to have any of the problems we used to have with bank cards in the past.

 

[dvcdisney]

The last time I used TC was about 15 yrs ago and even then there was a lot of places who no longer accepted them. Not sure how it is now.

Since you don't feel that getting a US account is feasible, I would mirror some of the suggestions that Visa is accepted in a lot of places. We haven't found a place that only accepted cash. There are a lot of places that we did choose to pay cash, but they accepted both cc and cash.

I don't have any experience with prepaid US cards so I can't comment on that.

 

[mjhtvchick]

I just use my normal debit and credit cards (TD Debit and VISA, Scotia Mastercard) and have had very few issues.

 

[Deanie1]

If its only me, I usually take about $600 USD cash (trips about 10 days long) but mainly use my magicband. I also use my TD debit card if necessary. I take a bit of cash to the park every day for emergencies but rarely use it. For some reason, i am always afraid of running out of cash on vacation so I tend to use my Royal Bank Visa, mostly. We also go to Universal for a few days so I generally pay cash for my counter service food there. I haven’t used a Travellers cheque in probably 10 years, either. I understand some banks don’t even sell them anymore.

 

[Gigi22]

Thanks very much for all your suggestions. They were very helpful.
I’ll be staying 1/2 of my vacation in an area where there is never any problem cashing TCs. The remainder of my vacation I’ll be staying with a relative, at her house in Florida. The problem arises during my stay with relative. I will need US cash to repay them for items they have purchased on my behalf and also to pay my share of expenses.
I went to my bank yesterday to discuss the situation, they have suggested a prepaid US$ Visa card or a US$ Visa card, a US $ bank account, or a combined approach.

 

[bankr63]

Honestly, that just sounds like an attempt to get you to pay more fees; banks will ALWAYS do that, I didn't just make up my account name.

If all you need is cash, use your Canadian bank card. There is no advantage to having a US$ bank account unless you have a source of US$ income, you are trying to time the exchange market (a fool's game), or you want to employ dollar cost averaging for a longer range savings plan which is probably more complex than you need. This is especially true if you are with a Canadian bank with US presence in your area. TD has branches throughout FL and taking money out is just as easy as in Canada, with no additional fees after exchange. Scotia and Royal both have a significant US presence, but I do not know where their affiliate branches are located.

A Visa card is not going to help you pay your relative in cash.

 

[efrant]

Honestly, that just sounds like an attempt to get you to pay more fees; banks will ALWAYS do that, I didn't just make up my account name.

If all you need is cash, use your Canadian bank card. There is no advantage to having a US$ bank account unless you have a source of US$ income, you are trying to time the exchange market (a fool's game), or you want to employ dollar cost averaging for a longer range savings plan which is probably more complex than you need. This is especially true if you are with a Canadian bank with US presence in your area. TD has branches throughout FL and taking money out is just as easy as in Canada, with no additional fees after exchange. Scotia and Royal both have a significant US presence, but I do not know where their affiliate branches are located.

A Visa card is not going to help you pay your relative in cash.

I would disagree about using your Canadian bank card. For example, TD Canada Trust now charges a 3.5% fee for using for using your Visa debit card for non-CAD purchases or non-CAD cash withdrawals at TD ATMs in the U.S.. You are much better off converting your CAD at your local forex counter in Canada and depositing it in either your TD Canada Trust USD account or in your TD Bank U.S. account and withdrawing that using your bank card. Granted, if you are only talking small amounts, 3.5% is not that much, but money is money, and I personally would rather pay the ~0.5% fee that the forex counter charges rather than paying TD 3.5%.

 

[star72232]

How much money are you talking about? Because I'd just get out cash and take that, assuming your talking about a few hundred dollars. Don't pay crazy fees if you don't have to.

 

[bankr63]

I would disagree about using your Canadian bank card. For example, TD Canada Trust now charges a 3.5% fee for using for using your Visa debit card for non-CAD purchases or non-CAD cash withdrawals at TD ATMs in the U.S.. You are much better off converting your CAD at your local forex counter in Canada and depositing it in either your TD Canada Trust USD account or in your TD Bank U.S. account and withdrawing that using your bank card. Granted, if you are only talking small amounts, 3.5% is not that much, but money is money, and I personally would rather pay the ~0.5% fee that the forex counter charges rather than paying TD 3.5%.

To be clear, this is not an additional 3.5%, this is the same (or similar) fee that you pay when you take out dollars over the counter at the bank, or from most forex counters. Generally the fee, which is hidden in the rate spread, at forex counters is similar or higher. I just checked the current counter rate at TD and it is roughly 2.6% this afternoon (I have seen the spot rate spread over 3%). So yes, using your bank card in the US is going to cost about 1% more than getting cash at the bank today. But then what price for convenience and peace of mind not carrying a ton of money that you exchanged in Canada.

Note that the wording on the TD disclosure is that they charge 3.5% for Visa branded bank cards after Visa converts, and they still add the 0.035 to the exchange rate on non-Visa branded bank cards (which is also 3.5%) just like they always have. There is a subtle difference because of when the fee is calculated, and it is in the bank's favor, but it is a very small fraction of a percentage.

 

[efrant]

To be clear, this is not an additional 3.5%, this is the same (or similar) fee that you pay when you take out dollars over the counter at the bank, or from most forex counters. Generally the fee, which is hidden in the rate spread, at forex counters is similar or higher. I just checked the current counter rate at TD and it is roughly 2.6% this afternoon (I have seen the spot rate spread over 3%). So yes, using your bank card in the US is going to cost about 1% more than getting cash at the bank today. But then what price for convenience and peace of mind not carrying a ton of money that you exchanged in Canada.

Note that the wording on the TD disclosure is that they charge 3.5% for Visa branded bank cards after Visa converts, and they still add the 0.035 to the exchange rate on non-Visa branded bank cards (which is also 3.5%) just like they always have. There is a subtle difference because of when the fee is calculated, and it is in the bank's favor, but it is a very small fraction of a percentage.

It is mostly additional if you exchange at a forex counter (and by counter, I mean a third-party f/x counter, not the banks'). I can usually get USD at 0.5% over the mid-market rate. A savings of 3% vs. using your bank card.

 

[bankr63]

What exchange are you using?

Checking the CALFOREX exchange here in Ottawa (best rated on Google, in the heart of downtown), their US rate is 1.366500 vs. a current market rate of 1.3323 which is 3.42% difference, and then they tack their fee on top of that. It would be great to find one that gives market rate plus 0.5%. I know you're not Ottawa, but hoping they might have a branch here too.

 

[efrant]

What exchange are you using?

Checking the CALFOREX exchange here in Ottawa (best rated on Google, in the heart of downtown), their US rate is 1.366500 vs. a current market rate of 1.3323 which is 3.42% difference, and then they tack their fee on top of that. It would be great to find one that gives market rate plus 0.5%. I know you're not Ottawa, but hoping they might have a branch here too.

I visit a couple. I think they are independent shops, but am not sure. On is called "Cité Forex" the other is just called "Bureau de change". I don't always get ~0.5% -- it's a crap shoot (it is usually higher than that), but I threw that number out because I did manage to get that rate a couple of times, so it shows that you could technically save ~3% by not using your bank card (granted, it's a little less convenient).

What I usually use most of the time (as I am often too lazy to go to the forex shops to try and find a better deal), is to use my online brokerage. I get preferred rates of ~1.3% for amounts under $10k (and ~0.3% of amounts over $10k).

So, all that to say that my average cost is less than 1.3%, so a savings over 2.2% on fees vs. using my Canadian TD debt card.

Also, from what I hear, Transferwise and Knightsbridge also work out to less than 0.5%, though I haven't tried them yet.

 

[ottawamom]

What exchange are you using?

Checking the CALFOREX exchange here in Ottawa (best rated on Google, in the heart of downtown), their US rate is 1.366500 vs. a current market rate of 1.3323 which is 3.42% difference, and then they tack their fee on top of that. It would be great to find one that gives market rate plus 0.5%. I know you're not Ottawa, but hoping they might have a branch here too.

Ultimate Currency Exchange (near Lincoln Heights in Ottawa) is 1.3475. Better than the rate downtown. No fees on top of this rate 1.3475 is the rate all fees included. Another option anyway

They do online trading and have locations in Toronto for those interested.

 

[bankr63]

Ultimate Currency Exchange (near Lincoln Heights in Ottawa) is 1.3475. Better than the rate downtown. No fees on top of this rate 1.3475 is the rate all fees included. Another option anyway

They do online trading and have locations in Toronto for those interested.

Thanks,

They do offer a good rate on US$. Looked at some of their other currencies (we are buying Pesos this year) and it can be a higher percentage than Visa exchange. The Euro is about a break even. I'll remember them when we start travelling in the US again.

 

[BLAZEY]

I used to work for Custom House Global foreign exchange which did online forex trading and was the platform the XE.COM used. ( we did all the customer service for XE.COM. I used to get my money from Custom House as even after I left I still got the employee rate which was spot rate. when they were sold to Western Union I just use my bank card at the US banks that are affiliated with my Canadian Bank. I also used to use my Sears mastercard that had not foreign exchange fees bit that is gone now. So now I just get some cash at the bank or use a Bank of America machine with my Scotiabank if I need more cash as they have no ATM fee agreement.