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

[stampsx2]

I'll be travelling to the u.s. for the first time in a long time and I'm wondering what frequent travellers are using down there nowadays, cash or credit card?

Any advantages to one or the other?

[Weitz]

Last time I was down there I got a better rate by just using my credit card than taking money out of the bank in USD.

This was about a year ago though, ymmv.

Try and see what sort of rate you get on your credit card. I find it so much easier to just use it and pull out cash while down there if needed.

[ben voyonsdonc]

Originally Posted by stampsx2

I'll be travelling to the u.s. for the first time in a long time and I'm wondering what frequent travellers are using down there nowadays, cash or credit card?

Any advantages to one or the other?

Credit card companies usually charge a foreign transaction charge of around 2.5% on top of any exchange rate. Not all though. You should see what you credit card company charges.

An advantage to using a credit card is that some companies offer trip insurance/health insurance if you book flights on their card and some offer rental insurance on rental cars.

Also, it sucks to drop or lose money. If you lose a credit card, they can send you a replacement super quickly.

[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.

[jeffporfirio]

If you have time, get a USD credit card.
I got mine from TD in no time.

[Weitz]

Originally Posted by ben voyonsdonc

Credit card companies usually charge a foreign transaction charge of around 2.5% on top of any exchange rate. Not all though. You should see what you credit card company charges.

An advantage to using a credit card is that some companies offer trip insurance/health insurance if you book flights on their card and some offer rental insurance on rental cars.

Also, it sucks to drop or lose money. If you lose a credit card, they can send you a replacement super quickly.

Your not getting the spot rate from the bank either - don't forget that.

[stampsx2]

Originally Posted by ben voyonsdonc

Credit card companies usually charge a foreign transaction charge of around 2.5% on top of any exchange rate. Not all though. You should see what you credit card company charges.

An advantage to using a credit card is that some companies offer trip insurance/health insurance if you book flights on their card and some offer rental insurance on rental cars.

Also, it sucks to drop or lose money. If you lose a credit card, they can send you a replacement super quickly.

So if you spend $1000 in the u.s. you get charged $25. Doesn't seem too bad considering you get insurance and extended warranties and the peace of mind of not carrying loads of cash around with you.

Problem is, if you return with $150 u.s. you get dinged again when you exchange back to Canadian. If you're short cash you'll get dinged $5 at the ATM machine.

Sounds like I might be answering my own question.

[BigNumbers]

For all the reasons you mention, I use a USD credit card with no fees, and pay off the USD card balance with a USD/CAD transaction myself, using a bullion exchange to pay off the card at market FX rates.

But to avoid that headache if that's not your thing, just using your CC is the 2nd best option. The second you have to exchange cash back to CAD after taking out too much USD for the trip, you're behind the eight ball.

[Wormius]

If you have a credit card with some points, it sometimes offsets the 2.5% extra they tack on to the exchange rate.

[firebug]

Some credit cards waive the exchange surcharge. It's cheaper for me to use my CC (Amazon Visa) that to get cash from the bank.

Plus I don't end up with a bunch of extra US funds at the end of my trip.

Your other option for looking for cash, depending on how much you need, is to post something in the power ring looking for a private transaction.

[Rathji]

If you do use a credit card, which I tend to do, call your credit card company in advance and inform them of the dates and location of travel, so there is a better chance that it won't be rejected the first time you use it.

Do not rely on bank cards to make point of sale purchases. If you do have to use bank card, either pull cash here or make a smaller number of larger sized cash withdrawals at the ATM down there to reduce service charges. If the maximum you can pull is $400, but you only want $200, probably better to pull all $400 unless you are really sure you don't need the extra.

[stampsx2]

Originally Posted by jeffporfirio

If you have time, get a USD credit card.
I got mine from TD in no time.

Except for the annual $65 usd charge

[squiggs96]

Originally Posted by Rathji

If you do use a credit card, which I tend to do, call your credit card company in advance and inform them of the dates and location of travel, so there is a better chance that it won't be rejected the first time you use it.

This hasn't been required in at least two years by almost all the big banks. It's neither necessary, nor wanted by the banks.

[Rathji]

Originally Posted by squiggs96

This hasn't been required in at least two years by almost all the big banks. It's neither necessary, nor wanted by the banks.

I guess I was just unlucky in August then

[Cecil Terwilliger]

I think only Scotia still encourages notification when traveling but no banks really require it anymore.

However that doesn't guarantee your card won't get blocked. But if it does, you just need to call them and they'll unblock it.

[tvp2003]

Originally Posted by firebug

Some credit cards waive the exchange surcharge. It's cheaper for me to use my CC (Amazon Visa) that to get cash from the bank.

I also got the Amazon Visa (issued by Chase) for this very reason -- I'd be curious to know if there are any others out there. Won't help the OP in this case but FYI there is no annual fee.

[GGG]

I like to have a few hundred in cash just for convenience. The US still has more cash only things depending where you are. So I'll bring 200 for a weekend and 500 for a longer trip. Then the last few days you spend it on food to burn through it before you get home.

[DownhillGoat]

Originally Posted by Cecil Terwilliger

But if it does, you just need to call them and they'll unblock it.

Fun fact! On my last trip I found out if you're not on a phone contract, due to some goofy regulation, wireless carriers block your ability to make overseas calls.

To answer the OP, personally I'll take ~$100 local currency for emergencies and initial spending, use CC for most things, and take out cash there if I need it via an ATM. That way it gives me a gauge of how much I'm spending a day.
US however I rarely take out cash anymore outside of a bit of walking around money, unless it's Vegas.

[ben voyonsdonc]

Originally Posted by tvp2003

I also got the Amazon Visa (issued by Chase) for this very reason -- I'd be curious to know if there are any others out there. Won't help the OP in this case but FYI there is no annual fee.

I also have the Amazon card. It is great.

[Wormius]

I don’t think the Amazon Visa has any additional perks. It just waived the foreign exchange fee. If you’re going to a restaurant you would be better off using a Costco capital one with 3% cash back, or for gas/groceries use the Scotia momentum infinite visa for 4% back.