Canadian Dollar to US

[corporatejay]

Originally Posted by Ryan Coke

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.

This. Visa's rates are probably the cheapest buying fx and the banks or even ca forex usually more expensive. Visa is usually at or below staff rate.

[getbak]

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

No, they tack a 2.5% surcharge on top of the bank exchange rate.

When I went to Europe a few years ago, I used a combination of cash withdrawals and credit card purchases. When I got home, I compared the exchange rate I was charged by the bank and by MasterCard on transactions processed on the same day, and the credit card rate was always 2-2.5% worse than the cash rate.

[SebC]

Originally Posted by Ryan Coke

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.

Well, when I've used my card internationally (on purchases) the exchange rate was never 2.5% off from what XE.com had.

[Shazam]

http://www.cibc.com/ca/faq/credit-cards.html#q6

[SebC]

Originally Posted by Shazam

http://www.cibc.com/ca/faq/credit-cards.html#q6

Precisely why I am no longer with CIBC.

[Ryan Coke]

Originally Posted by SebC

Well, when I've used my card internationally (on purchases) the exchange rate was never 2.5% off from what XE.com had.

So how far off was it?

I did some comparisons recently using both XEtrade, RBC MC, and amex. The credit cards were slightly more than what I was getting off XE, but when I added in the 1.5% rewards I am ahead using the credit card. On XE trade the larger the amount the better the rate, but I was just basing it off $1000. If you were doing 10 000, or 100 000, the gap would be wider, so at some point it is definitely better to use the FX service.

[Shazam]

Originally Posted by SebC

Precisely why I am no longer with CIBC.

TD's website is way more obtuse, so you'll need to find it for yourself.

http://www.tdcanadatrust.com/tdvisa/agreements.jsp

You need to start here and then find the appropriate disclosure statement.

[fundmark19]

Originally Posted by SebC

Precisely why I am no longer with CIBC.

That is the same with all cards! It is just telling you they put 2.5 ontop of exchange rate. They don't go off of the same rate as when you go into the bank and buy cash. That is what I am trying to tell you. They work out to being pretty close if not better then going into the bank

[squiggs96]

I have the TD USD VISA. This way I make all my purchases in the States on it and then pay the balance off each month in US cash at a TD bank. I am able to decide when and where I want to buy my US cash, so I always know and am comfortable with the rate. I don't have the 2.5% surcharge added on to any purchases and I earn interest on my US cash in my bank account.

I pay a $39 annual fee to TD, but it's more than worth it for the amount I go down to the US and how much stuff I buy online. BMO has a MasterCard with no annual fee if you were looking for a no fee option.