Travelling to the U.S. - cash vs credit card

[Smartcar]

Originally Posted by calgaryblood

Wrong. My RBC card was locked because I used it overseas this past month.

Are you sure that's why it was locked? I've had mine locked a few times over the last few years and it's always been, without exception, because of a phone or online order, usually several in a row. I haven't had it locked because I used it overseas since about 2001.

[Ryan Coke]

Originally Posted by Enoch Root

The number one thing to remember (regardless of the specifics of your strategy) is to minimize the number of currency exchange transactions you need (which is why a USD card is useful)

I'll bite; why? Whatever the fee is, it is almost always a percentage as opposed to a per transaction, although airport money exchanges do have service charges as well. But using a credit card, multiple transactions aren't going to make it worse. Using an online exchange service you can get slight improvements in the rate with larger sums, but none of this really applies to relatively small amounts one would use while going on vacation once in a while.

[Huntingwhale]

Originally Posted by ben voyonsdonc

BTW, if you are looking to get American cash, I found that Canex Forex in Eau Claire has very good rates compared to banks.

My buddy owns that place! Great place, good service and he always charges a lower rate than big banks

[Enoch Root]

Originally Posted by Ryan Coke

I'll bite; why? Whatever the fee is, it is almost always a percentage as opposed to a per transaction, although airport money exchanges do have service charges as well. But using a credit card, multiple transactions aren't going to make it worse. Using an online exchange service you can get slight improvements in the rate with larger sums, but none of this really applies to relatively small amounts one would use while going on vacation once in a while.

With multiple transactions, you're almost certainly going to pay the full spread. If you reduce it to one transaction, conversion can be more easily managed and a good rate achieved.

If you use a Canadian dollar credit card, each transaction will be converted from USD to CAD on your card at 2.5% per.

With a USD card, you only need to convert once, and you can shop for a currency exchange that is more favourable.

[Wormius]

Originally Posted by Enoch Root

With multiple transactions, you're almost certainly going to pay the full spread. If you reduce it to one transaction, conversion can be more easily managed and a good rate achieved.

If you use a Canadian dollar credit card, each transaction will be converted from USD to CAD on your card at 2.5% per.

With a USD card, you only need to convert once, and you can shop for a currency exchange that is more favourable.

2.5% on multiple small transactions is the same as 2.5% on one large transaction. There isn't much reason to use cash unless cc isn't accepted. And the 2.5% is a lot more than the minor variations in the CAD-USD over the course of a week or two. Again, if your're using a points card, then you can likely balance out those transaction fees entirely, than if all you did was take a lump sum out of an ATM or forex type place.

[Ryan Coke]

Not to mention trying to time the forex market is difficult for a pro, never mind a retail exchanger changing a couple of grand when you go on vacation.

But whatever works for an individual is good for them. I just know after doing different types of currency exchange and transfer, and living and paying in the States for a good chunk of several years, I finally found that quite often just using my regular rewards CC was within 1% of my other methods typically.

I just feel for the OP looking for a definitive answer

[Enoch Root]

Originally Posted by Wormius

2.5% on multiple small transactions is the same as 2.5% on one large transaction. There isn't much reason to use cash unless cc isn't accepted. And the 2.5% is a lot more than the minor variations in the CAD-USD over the course of a week or two. Again, if your're using a points card, then you can likely balance out those transaction fees entirely, than if all you did was take a lump sum out of an ATM or forex type place.

If you read my post it clearly said to use a USD card - completely eliminates the 2.5% currency on every transaction.

If you don't have a USD card, use cash.

Either way, one currency transaction (instead of multiple) makes it easier to get that 2.5% down to a very manageable, small cost.

Does no one read anymore?

[Ryan Coke]

I did. Looks to me like wormius did too. I don't understand what would make you ask that. Unless you didn't read our responses correctly.

[DownhillGoat]

Originally Posted by squiggs96

I'm not wrong. Just because something happened to you, doesn't mean what I posted was wrong.

Hilariously, since that change, I've had my card locked twice, after purchasing hotels and flights, the 'industry-leading fraud detection system' couldn't figure out that I was making local purchases in the same place I booked said flights and hotels.

Even funnier, since that change, I've had my card number stolen twice, and this same 'industry-leading fraud detection system' didn't find it remotely odd that I was making purchases back and forth in both Calgary and Flint Michigan within the same hour.

[GGG]

Originally Posted by Enoch Root

If you read my post it clearly said to use a USD card - completely eliminates the 2.5% currency on every transaction.

If you don't have a USD card, use cash.

Either way, one currency transaction (instead of multiple) makes it easier to get that 2.5% down to a very manageable, small cost.

Does no one read anymore?

How much better do you do than 2.5% on your single transactions?

[bizaro86]

Originally Posted by GGG

How much better do you do than 2.5% on your single transactions?

Not Enoch, but I do about 2.49% better.

If you have an interactive brokers account for brokerage, you can get wholesale forex rates even on relatively small amounts (1k minimum I think).

Even if you don't, you could do Norberts Gambit with your regular brokerage account, which will be very close to the wholesale rate. (Buy an interlisted stock in Canada and sell it in the US, then withdraw the USD)

[calgaryblood]

Originally Posted by kunkstyle

Hilariously, since that change, I've had my card locked twice, after purchasing hotels and flights, the 'industry-leading fraud detection system' couldn't figure out that I was making local purchases in the same place I booked said flights and hotels.

Even funnier, since that change, I've had my card number stolen twice, and this same 'industry-leading fraud detection system' didn't find it remotely odd that I was making purchases back and forth in both Calgary and Flint Michigan within the same hour.

If only you "unnecessarily" called in and had them put a note on your account.

Apparently that's not necessary but they'll still block your account.

[DownhillGoat]

Originally Posted by calgaryblood

If only you "unnecessarily" called in and had them put a note on your account.

I did. And I was promptly told they no longer do that.

Already said that in my original post. But here it is again.

[calgaryblood]

Originally Posted by kunkstyle

I did. And I was promptly told they no longer do that.

That was the joke...

[DownhillGoat]

Originally Posted by calgaryblood

That was the joke...

Whoops.