jacquesrules

Hi,
I'm about to book several hotels and car rentals in US$, should I use my Amex Aeroplan gold or Cibc Aerogold Infinite??

thanks for your help!

getaround

I have tried looking on the Amex site for the daily rate but have never been successful; I made a large purchase the other day on my Amex and I fell I was screwed but the rate; however if I used my Avion probably would Dave been the same also.

bibu

I have both and found it that 1.5 cent charge is less with CIBC Infinite than AMEX Plat

getaround

Wouldn't it fluctuate daily?

YEG USER

I tried an expirament with this the last time I was in the US by making 2 back-to-back purchases with either card at a few locations. After checking my statements, it was farily consistent that my Amex Aeroplan gold exchange rate was lower that the Visa by about 1% (although the Visa wasn't a gold, so that could have made a difference).

margarita girl

Call both credit card companies, and ask what their fee is!

I did that in the past, and I seem to remember that Amex was 0.5% lower add-on than Visa or M/C. But call to make sure!

getaround

Bibu where do you get the figure 1.5 cent?

jacquesrules

thanks for all your help, but does anyone know for a fact if one bank has a better exchange rate??

getaround

As I said I would assume they would change the rates every day; & unless they are listed on the website I would image you would have to call them about it.

If you are spend thousands on one purchase it might be worth it.

Then I also dont know if the rate is at purchase or at posting to account.

margarita girl

They all use the bank rate plus a surcharge which is around 2%. The surcharge is what varies.

g7mcmug

CIBC visa exchange:

exchange rate for the day transaction is incurred + 2.5% transaction fee on your base currency.

This calculation applies to all visa in canada

B1

Financial Consumer Agency of Canada

www.fcac-acfc.gc.ca

"Conversion fee charged to consumers
Financial institutions that issue credit cards typically charge you a conversion fee that ranges from 1.8 to 2.5 percent. Financial institutions apply this fee to the wholesale exchange rate they receive from Visa or MasterCard. This means that consumers typically pay 1.8 to 2.5 percent more than Visa or MasterCard's wholesale exchange rate.

It is important to note that currency rates fluctuate on a daily basis. For more details, ask your card issuer about their practice."

ft2u

If you're purchasing significant amounts in US currency you should use a US$ credit card based in Canada or in the US (preferable). Pay for it with a bank account in the US that you can instantly move money to from Canada for free. RBC used to offer this but now charges for their US chequeing account. TD offers this if you keep $100 in the US account. Other banks will offer it for free if you shop around (Alliant Credit Unions is one). Convert your money with VBCE or XE which always beat the banks, often by 2%. If you sell to Americans keep that money in US$ either in Canada or the US and use it to pay off your US$ credit card. Always refrain from changing currency. Its a lose - lose proposition. Convert only when absolutely necessary. As the US dollar is high, the time is ripe to sell your stuff online to Americans. Ebay is your very dear friend.

B1

Before you book anything, get the Amazon.ca Visa card (no annual fee) and the only currency cost will be the bank rate, no exchange fee. You also get credit toward a purchase or a cash-back deal. There are no insurance benefits, however. The Marriott Visa card (which has an annual fee) also gives this benefit.

Jono

I use a BMO US$ Mastercard. It has $35 annual fee but it is waived if you spend a minimum of $1000 per year. I also have a BMO US$ bank account and they can arrange automatic payment of the credit card balance from the US$ bank account. My bank plan includes other accounts at BMO, and as long as I maintain a minimum balance in my primary chequing account, there are no fees for any of my accounts, including US$.

If you are reserving hotels in US$, especially in places like Vegas where most casino hotels require a refundable deposit, you are best off charging to a US$ card so that in case you cancel and refund your deposit, you aren't exposed to currency rate fluctuations.