Going to US for vacation - cash or credit card?

[lazypucker]

Hi, just curious as to what you think is the best strategy on whether using cash or credit card in the US.

Credit card - exchange rate + 2.5% transaction fee
Cash - should I just take it out from a bank machine here in Canada or exchange with a teller at a bank or use a forex company at the mall? How does the exchange rate compare?

I am not going to spend a whole lot of money in the US (less than $1000), so I am here just to ask for general opinion.

[Weitz]

With the points or cash back you get with a credit card you will be hard pressed to beat that. Assuming you have no US bank account or credit card.

Sub $1000 it’s credit card all day. Maybe grab $100 to have on you if you want.

[ikaris]

I would suggest getting a Rogers Bank World elite MasterCard if you have time. It has a standard MC forex conversation rate +2.5% forex fee but provided a 4% cash back on all forex transactions so net 1.5% return and no annual fee for the card.

[Jimmy Stang]

Originally Posted by ikaris

I would suggest getting a Rogers Bank World elite MasterCard if you have time. It has a standard MC forex conversation rate +2.5% forex fee but provided a 4% cash back on all forex transactions so net 1.5% return and no annual fee for the card.

I've got that one, and although I haven't travelled with it yet, I have made a few USD transactions. The 4% cashback offsets the forex charge, for sure. And you can now redeem your points whenever you want, whereas before it used to be only redeemable agains Rogers products (like my Fido bill). Plus 1.75% cashback on your regular CAD transactions is actually pretty decent for a no fee card.

[Strange Brew]

Cash is just a pain in the ass IMO. 2.5% on $1,000 is &25 so well worth the convenience without factoring in points, rewards etc.

[Dan02]

Always take petty cash with you even if you plan on using the card.

[Husky]

Originally Posted by ikaris

I would suggest getting a Rogers Bank World elite MasterCard if you have time. It has a standard MC forex conversation rate +2.5% forex fee but provided a 4% cash back on all forex transactions so net 1.5% return and no annual fee for the card.

Any idea what the standard mc conversion rate is? Like it just converts at a daily fx rate or is there some built in fee that makes it expensive compared to visa, amex, etc?

[DuffMan]

I use cc, but most of my friends prefer cash.
I hate cash.

[Sidney Crosby's Hat]

Hometrust Visa is a good option, too. No foreign exchange fees and 1% cash back. Also, no annual fees which is probably the best selling point.

https://www.hometrust.ca/

[Weitz]

Getting a whole new credit card for a vacation to the USA seems like overkill.

[troutman]

Remember these?

[brocoli]

Originally Posted by troutman

Remember these?

Remember them? I just had to destroy a ton of them last year as we no longer sell them. Good riddance to those POS

[manwiches]

I went to HK a few years ago with my wife, cousin and a few friends. One of my friends has been so sheltered his whole life, that he doesn't have a credit card, and his mom insisted he bring traveller's cheques. We had to run around HK to find banks to cash them when he ran out of money. He was, and still is, the butt of our jokes. haha

Back to OP question. My wife and I try to use cash whenever we go to the States. Usually we bring $1000, and anything we spend over and above we put on card, or if we make big purchases (like Disney passes or something)

[DuffMan]

Guess it depends where you are going and what you are doing too.

go to NYC, bring cash, lots of cash because you seem to be handing it out everywhere.

go to Palm Springs, need some cash to tip the jerks that wipe your clubs with a wet towel and expect some money.

But otherwise CC for golf courses, dinners, car rental, condo, flights, groceries, booze etc. and then we cost split everything, so etransfer after to friends to pay everything off.

[JD]

Yeah, that's a good point DuffMan. It seems like in the States you have to tip someone every time you turn around. You need cash for that. If you take taxis, you might run into the one that won't take credit cards.

Traveller's Cheques... haha. I was the guy in our group that rolled with those years ago. Seemed like Vegas was the only good place to have them since you could cash them at the casino but anywhere else? Good luck. You only serve to frustrate your travel companions (and yourself).

Slowly but surely society seems to be transitioning to cashless. Even here in the UAE, I can go weeks without spending any of the cash I habitually keep in my wallet.

[Sidney Crosby's Hat]

Originally Posted by JD

Slowly but surely society seems to be transitioning to cashless. Even here in the UAE, I can go weeks without spending any of the cash I habitually keep in my wallet.

That is true. I was in Sweden back in September/October for a week and never touched a cent of cash. I wouldn't even be able to tell you what a Kroner looked like.

[Sidney Crosby's Hat]

Originally Posted by Weitz

Getting a whole new credit card for a vacation to the USA seems like overkill.

I don't think so. For a few reasons:

(1) It probably won't be your only U.S. vacation ever
(2) No annual fees so no downside
(3) Most importantly, even if you're taking out cash you're paying a foreign exchange fee (usually 1.5%) so if you can find a card with no ForEx, that's going to save you a ton of money, especially when you consider hotels, etc.

[Ryan Coke]

I’ll have to look into that card, but I ran the numbers several years ago with my Canadian reward card, I mostly stopped using my US account and associated card. The rewards pretty much cancelled out my forex fee, and even the better forex fee I got through my money transfer service didn’t make it worth it.

So I’d just use my credit card in the states, and only bring the cash I think I’d need for tips and things, which vary by destination and type of activities.

[Jimmy Stang]

Originally Posted by Sidney Crosby's Hat

I don't think so. For a few reasons:



(1) It probably won't be your only U.S. vacation ever

(2) No annual fees so no downside

(3) Most importantly, even if you're taking out cash you're paying a foreign exchange fee (usually 1.5%) so if you can find a card with no ForEx, that's going to save you a ton of money, especially when you consider hotels, etc.

4) Online purchases in USD will also benefit from 4% cash back to cancel out (and then some) the 2.5% forex fee.

I don’t buy a lot from the US, but when I do on occasion, why not be 1.5% up instead of 2.5% down?

[Strange Brew]

Originally Posted by Dan02

Always take petty cash with you even if you plan on using the card.

Good advice for any vacation. But don’t bring too much as you can use any bank machine too.