Canadian Dollar to US - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Devils'Advocate · 04-01-2011, 02:47 PM

Today the Canadian dollar hit a 3 year high. It's at about 1.0384

I am taking a tour this summer and I owe the tour operator $2000. I'm thinking I'll pay off the bill now and not risk the dollar going down (even though projections are for the dollar to be 1.08 by year end). However, I was told by a co-worker that if I pay by credit card:
(1) it takes a few days for the banks to adjust to anything on the market
(2) Visa has an "exchange fee", so unless you have a US dollar credit card, you get dinged 2.5%. 2.5% of $2000 is $50...

Is there a better way to pay my bill rather than credit card to avoid the surcharge? Would a money order cost more? If I write a personal cheque, it would be in Canadian.... Perhaps I should open an US account, move money into it, write a personal cheque, then close the account once it clears?

Hack&Lube · 04-01-2011, 03:04 PM

A money order is cheap. I think under $7 per money order but anything over $1000 you need to have a bank draft. You could do one draft or two money orders.

There are US chequing accounts you can open that are very cheap or don't cost you annual fees so you don't need to close it.

SebC · 04-01-2011, 04:34 PM

Visa does not have an "exchange fee"... some banks have an "exchange fee" on their VISA credit cards. Which is the biggest reason why I switched from CIBC to TD.

Cecil Terwilliger · 04-01-2011, 04:50 PM

Draft is the cheapest but then there's the matter of getting it to the tour operator. Etransfers to the states aren't possible yet. Wiring is about $30 or so but there might be a charge on the other guys end.

Credit card is the best way to go. The fact that you have to pay 2.5% sucks. I'd suggest switching banks if they charge you that 2.5%. I can suggest a good financial institution if you need one...

All I pay is the exchange rate which favors the bank a bit (they make a bit of $$ off of it) but that's it.

I just bought something from the states and the difference in the US rate was negligible compared to the "real" rate.

sa226 · 04-01-2011, 06:18 PM

I just came back from Italy a couple of weeks ago and I paid mostly with VISA and cash withdrawn from ATM's over there.

Quickly looking at my statements, it looks like VISA (Royal Bank) just charged the exchange rate with no fees. (Without knowing the exchange rate at the time it is hard to tell but it is ballpark close to what I checked when I left)

You do have to be careful though because some VISA machines have an option to pay in the currency of the cards origin. In that case there is a fee. Just choose to pay in the local currency and let the bank do the conversion.

As for ATM withdrawls, It looks like the exchange rate was the going rate at the time, but then Royal slapped a 5$ fee on top of that for each transaction, regardless of amount.

Cecil Terwilliger · 04-01-2011, 07:04 PM

Quote:

Originally Posted by sa226

I just came back from Italy a couple of weeks ago and I paid mostly with VISA and cash withdrawn from ATM's over there.

Quickly looking at my statements, it looks like VISA (Royal Bank) just charged the exchange rate with no fees. (Without knowing the exchange rate at the time it is hard to tell but it is ballpark close to what I checked when I left)

You do have to be careful though because some VISA machines have an option to pay in the currency of the cards origin. In that case there is a fee. Just choose to pay in the local currency and let the bank do the conversion.

As for ATM withdrawls, It looks like the exchange rate was the going rate at the time, but then Royal slapped a 5$ fee on top of that for each transaction, regardless of amount.

While interesting, unfortunately your post doesn't help the OP at all. However I am curious about your experience.

What kind of fees did you pay on the ATM machines you used?

I mean on their end, not on the RBC end.

Ryan Coke · 04-01-2011, 07:43 PM

I do a lot of canadian to US money transfers, and unless you are doing a large amount (greater than 10k) I suggest just using your credit card. There is always a percentage added to the exchange rate however you do the exchange, and if you use a currency service (such as XE trade) it does get better the larger the amount you are moving. But for smaller amounts the credit card isn't really that bad, and if you factor is any rewards you may get it is very competitive.

I used to transfer money down to my US account and then use my US visa, but did some math and found that when you factor in the 1.5% I get in rewards, I am ahead just using my Canadian credit card.

sa226 · 04-01-2011, 11:40 PM

Quote:

Originally Posted by Cecil Terwilliger

While interesting, unfortunately your post doesn't help the OP at all. However I am curious about your experience.

What kind of fees did you pay on the ATM machines you used?

I mean on their end, not on the RBC end.

I wouldn't say it doesn't help at all, I was just giving a recent example of an out of country transactions. If he was with RBC he could pay the operator by VISA and pay no fee, or if the tour operator was local, make a cash withdrawal and take a big gangsta clip in of colorful fives and ten's...his choice.

As to your question, no "at the ATM" fee, just the RBC 5$ charge.

EDIT: Did some digging...yes there is about a 2ish percent charge on the Visa transactions, probably similar with ATM withdrawal rates. This probably doesn't help the OP either....

bluejays · 04-02-2011, 12:01 AM

Quote:

Originally Posted by Cecil Terwilliger

Credit card is the best way to go. The fact that you have to pay 2.5% sucks. I'd suggest switching banks if they charge you that 2.5%. I can suggest a good financial institution if you need one...

All I pay is the exchange rate which favors the bank a bit (they make a bit of $$ off of it) but that's it.

I just bought something from the states and the difference in the US rate was negligible compared to the "real" rate.

Just to clarify one thing, it's not the banks pocketing the money, it's actually Visa International. They charge I believe a 2.5% premium on the exchange rate at the time of purchase, and the banks don't see a penny of that. Switching banks isn't going to do anything.

OilKiller · 04-02-2011, 12:20 AM

Wow...I was amazed...surfing some Android phones and saw this....Really nice to see the Canadian price lower!

Temporary_User · 04-02-2011, 12:24 AM

nm

Acey · 04-02-2011, 01:38 AM

Quote:

Originally Posted by OilKiller

Wow...I was amazed...surfing some Android phones and saw this....Really nice to see the Canadian price lower!

The Desire HD is $499... not sure where that pic came from.

SebC · 04-02-2011, 02:11 AM

Quote:

Originally Posted by fleury

Just to clarify one thing, it's not the banks pocketing the money, it's actually Visa International. They charge I believe a 2.5% premium on the exchange rate at the time of purchase, and the banks don't see a penny of that. Switching banks isn't going to do anything.

Maybe my bank pays the 2.5% then, because I sure don't.

Ryan Coke · 04-02-2011, 09:05 AM

It doesn't show up as an extra charge, it is just built into the exchange rate on your bill. So unless you compare it to the pure exchange rate (that nobody really gets) then you wouldn't notice it.

OilKiller · 04-02-2011, 10:03 AM

Quote:

Originally Posted by Acey

The Desire HD is $499... not sure where that pic came from.

Well, that wasn't the point of me posting that, but it came from a site that sells "unlocked" phones. That's why it's more. If you are on Rogers for example, you can't just walk into Telus and buy an HTC Desire for $499.

Jing · 04-02-2011, 10:27 AM

Quote:

Originally Posted by OilKiller

Well, that wasn't the point of me posting that, but it came from a site that sells "unlocked" phones. That's why it's more. If you are on Rogers for example, you can't just walk into Telus and buy an HTC Desire for $499.

It costs 5-20$ to get one unlocked online, might be a better deal that way (you buy from telus, get a receipt so if anything happens you can send it in for warranty granted all you do to the phone is unlock it).

As for the OP, I guess it does depend on the credit card. I use a mastercard and I believe they tack on an extra 2% to the exchange rate, and yes the transaction does not go through right away, so the exchange rate used could be different from that when the purchase was made. Drafts shouldn't be too expensive, so that is a viable option.

OilKiller · 04-02-2011, 10:45 AM

I guess it depends on if you want a branded phone or not. My understanding is the phones from this site are not branded or do not contain any ties to any one network. Dunno, was just a link I found from someone on this site I think and it has just about every phone you could ever want...even those not available here in Canada:

Site

Edit: Again though...not really what my post was about...

fundmark19 · 04-02-2011, 10:59 AM

You guys do know that when you purchase cash at a bank you pay roughly 2.5% premium as well? All visa does is take the international exchange rate and add 2.5% it comes out to pretty close to what the bank offers as they add the 2.5% built into their rate. (depending on type of account and client you are) also. Banks don't sell you cash for free and that is why the rate you get at the bank is always different then the rate you see in the headlines

Ryan Coke · 04-02-2011, 01:54 PM

Quote:

Originally Posted by fundmark19

You guys do know that when you purchase cash at a bank you pay roughly 2.5% premium as well? All visa does is take the international exchange rate and add 2.5% it comes out to pretty close to what the bank offers as they add the 2.5% built into their rate. (depending on type of account and client you are) also. Banks don't sell you cash for free and that is why the rate you get at the bank is always different then the rate you see in the headlines

Thanks, that is what I was trying to say as well. Whether you use a bank draft, a money order, an FX service, or just a credit card, they add something onto the base exchange rate--it is how they make their money.

The credit card rate isn't bad, especially if you factor in your rewards program and the convenience.

calgaryrocks · 04-02-2011, 02:15 PM

Quote:

Originally Posted by OilKiller

Wow...I was amazed...surfing some Android phones and saw this....Really nice to see the Canadian price lower!

yea, finally! I hope this is a sign of things to come, now that our dollar has been stronger for awhile and the US isn't doing much. I saw a camera I want listed for $320 on amazon.com, but on amazon its $420, a $100 difference, when in reality I could buy the american one for $310, the problem is shipping. I need to get it shipped to the states and have someone mail it to me, without paying the tax on it crossing the border