Traveling to the USA and foreign exchange

[Finger Cookin]

It'll be almost 4 years to the day since I've stepped foot in the USA when I travel in a couple of weeks. What's my best bet for purchases south of the border? Just use my debit/credit card and let my bank charge the fx? Should I make an exchange for USA cash here before I leave? Withdraw US cash south of the border? Does it matter a whole heck of a lot?

[Fuzz]

Check your credit card exchange rates, but I found them to be pretty decent, and the convenience makes it all a non-issue. CC was better than using debit last I looked.

[PepsiFree]

I’ve always just used my cards as-normal and I travel back and forth a lot. Depends on what your bank/credit card charges for foreign transactions, I guess, but I wouldn’t bother hitting ATMs if you don’t have to, and would never exchange a bunch of money and bring a wad of cash with me.

[nfotiu]

Not sure if it is the same as using US cards in Canada, but there should be credit cards without foreign exchange fees. The ones associated with airlines/hotels usually are the best bet.

[MoneyGuy]

We use a U.S.-dollar credit card.

[DoubleF]

What is "doesn't matter a whole heck of a lot" to you? Personally I'd do something like 80:20 CC in USD + cash at good FX rate. If I can't get a good rate, CC only. Typically I aim for around $250-500 cash.

I like to have cash for things like tips/$20 trick at hotel, some parking or buying something cool like art on the street.

I think on a post trip autopsy, the worst spread I saw was like 3-4% from card rates vs locking in the rate by exchanging cash. Let's round it to 5% for rough calculation purposes, that's around $50 per $1,000 spent and doesn't include a reduction via rewards points (ie: 1%). This not including some alternative bizarro scenario where you somehow have a bigger FX savings via Norberts Gambit. I rarely exceed around $1,500 for an entire trip for funds charged in USD for all of the food, attractions, gas etc. (Approximately $200-250 USD a day). Typically car rentals, hotels, some tickets etc. are charged in CAD on the website.

So it depends. Do you want to save $50 per $1,000 spent at a fundamental level? or is the convenience of carding things a ton of times to reach $1,000 worth it to you? (ie: 20 transactions at approximately $50 CAD average = $1,000 or an approximate convenience fee of $2.50 per $50 transaction). $2-3K of spending would come out to something like $100-150 for an entire trip. Plus you get to delay payment vs having to have the cash up front.

Don't use debit. Not none, but less fraud protection than a CC. I also wouldn't suggest ATM for cash due to the additional convenience fee. Forex or banks are better for cash. I always keep a few hundred bucks in cash on hand in the US in case a credit card machine goes down, or a run into a cash only deal or convenience that you hope you don't miss.

Personally:
1. CC + emergency cash at good exchange rate
2. CC only (charged in USD, converted to CAD by credit card company)
3. Cash only (good exchange rate)

----- Don't recommend
4. CC at International store with a "we can charge in CAD$ on our machine" (typically a few percent more than the raw exchange rate on a credit card)
5. Debit card (desperation only)
6. Cash (ATM bad exchange rate + unnecessary fees)

[Sidney Crosby's Hat]

It's hard these days to find a Canadian credit card that doesn't have foreign exchange rate fees, but this is one that does (and no annual fee):

https://hometrust.ca/

[bizaro86]

Originally Posted by DoubleF

alternative bizarro scenario where you somehow have a bigger FX savings via Norberts Gambit.

That is actually what I do.

Transfer money using Norberts Gambit to my USD bank account, and then spend using my USD credit card.

One other note - you mentioned hotel/car rental often bill in CAD from the website, but if you're in the US those are natively priced in USD and you're paying a currency exchange to Expedia or whomever, and it's often not competitive.

To check, find the price on their US site, and divide them to get the exchange rate. Then Google "500 USD to CAD" (or whatever the amount is) and compare to see how much effective spread you're paying.

[Finger Cookin]

Really appreciate the insights and suggestions here. Thanks CP!

[pseudoreality]

I'm going to Europe in a couple months and am thinking about getting the CIBC pre paid foreign currency card

https://www.cibc.com/en/personal-ban...sion-card.html

You get competitive exchange rates and can load it on your phone. You also get one free bank machine withdrawal a month.

[EldrickOnIce]

Hurts coming this way.
When back in Canada I just use no fee CC, just for convenience, and it's great to see those charges pop up at exchange.
Welcome back!

[Kiran403]

Any advice on getting Euros at a good rate in Calgary? I'm going to Europe soon and will be using my CC mostly but I have read that it's handy to keep some cash as well.

[Wormius]

Check if your credit card points will at least surpass the tacked upon foreign exchange fee of 2.5% for certain purchases and then you won’t have to worry too much. Like if you get 4% back on groceries/restaurants/daily transit, just use that the majority of the time.

[craigwd]

Originally Posted by Kiran403

Any advice on getting Euros at a good rate in Calgary? I'm going to Europe soon and will be using my CC mostly but I have read that it's handy to keep some cash as well.

I always get the best rate at the Canex Forex at Eau Claire market.
But the rate at the Calforex in places like Chinook at decent as well.


Quick, easy, no need to call ahead.

[Bagor]

I used to have a Revolut card until they pulled out of Canada

Now use a Wise card for international travel.

Pretty much most people I know have one in UK and Ireland for jumping back and forward between currencies.

https://wise.com/ca/

[Jimmy Stang]

Originally Posted by Bagor

I used to have a Revolut card until they pulled out of Canada

Now use a Wise card for international travel.

Pretty much most people I know have one in UK and Ireland for jumping back and forward between currencies.

https://wise.com/ca/

Another vote for Wise. The exchange rates are better than the other options and you get a Visa Debit card to use. You can even withdraw cash with it.

It is important to remember that when you let the credit card companies and/or the banks do the exchange rate, they are offering their exchange rate, which includes a markup. Even if you're not explicitly paying fees, you actually are because they are built into the exchange rate.

Wise gives you the mid-market rate plus a small, transparent fee. And it always works out to cheaper than what the banks/cards offer.

I have used it in Scotland, Ireland, and Italy in the past year and it has worked everywhere I attempted it.

[Bagor]

Yup.

And you also avoid paying multiple transaction fees as y you load up in whatever currencies you want.

Going to the states? Just load it up with $US to what you think you're going to spend and you have a $US visa debit card. Heading on to UK and Europe? Load the same card up with sterling and euros.

You're basically from there on paying in that currency.

As mentioned between that and Revolut it's pretty much a given to have one in Europe if you're currency hopping.

Also if you have family abroad. Great for sending money.

[Jimmy Stang]

And... if travelling in a group, if you can convince the others to get Wise, it is way easier to split things and settle up. If I owe someone 15 Euros, I just send them 15 Euros on Wise and they get that exact amount. No exchange or fees when sending the same currency.

My dad also wants to buy my leftover Euros, so I'll send him Euro to Euro on Wise with no fees/exchange, and he'll send me an e-transfer in CAD at the mid-market rate with no fees/exchange. Of course you wouldn't do that with people that you don't know well, but with family and friends you can avoid converting back and forth and losing a little each time.