Cash & Foreign transaction fee in Canada?
 

If I am traveling to Canada from California, what are the best tips to manage my money for 4 days there?

Should I use US cash?
I have Credit cards with 1% Foreign transaction fee.
Also debit cards from Credit Unions? Is taking cash out on the ATMs, for Canadian $s is a good idea? I forgot to say these Credit Unions don't charge a fee. I would use a Credit Union in Toronto that is surcharge free.

Also, I am visiting Niagara falls from Toronto. Is there an entrance fee?

Thanks

Depends what exchange rate is offered. If the same as you're going to get using your ATM card or credit card, you could. If not, don't. I never use U.S. dollars when I'm in Canada. You can check the exchange rate each day before deciding. I would not expect every merchant to take U.S. currency.

That's a pretty decent rate as most cards are 3%. I have a zero % card but there's not many of those out there.

That's what I typically do for smaller purchases, but I have an ATM card that does not charge a fee and rebates ATM fees charged. Do you know what your ATM card will charge per transaction? Some charge a fixed fee as high as $5 while others charge a fee and percentage of transaction. If you're going to pay a lot to get your money out, you'd want to limit your transactions and take out larger amounts each time. Also, you may have to pay separate ATM fees at the Canadian bank you draw cash from.

I forgot to say my Credit Unions don't charge a fee. I would use a Credit Union in Toronto that is surcharge free.

Umm... No. However, there will be plenty of souvenir shops around that will try to take your money in lieu.

tom911's suggestions are bang-on IMO. ^

ATM fees aside (and our Canadian credit union doesn't print its fees separately but just includes it into the exchange rate), it's unlikely you'll get a great exchange rate withdrawing Canadian cash from your US-based account. Maybe it's not worth worrying about for one small transaction that will result in the convenience of having some loonies and toonies in your pocket.

Like tom911, we now carry a couple of foreign-fee-free credit cards, but your 1% fee is a lot better than the typical 3%.

I would plan to use my credit card and withdraw only the cash I think I'll need for small purchases. Having a significant amount left over that you have to convert back is a double whammy that you want to avoid.

Other than using the 1% CC AMEX (2% reward Fidelity), should I use my Credit Union debit cards (Visa - again 1%) for my purchases?

When would you need Canadian cash in Canada? Or who won't take Visa or Amex?

Thanks everyone for your help.

I don't have a debit card as I get much better consumer protection rights with a credit card, so can't help with the fine points of debit cards. I just can't imagine not having some local currency for things like tips, a soft drink somewhere, or even a hot dog from a street vendor. You an always use your leftover cash the last day towards your hotel bill or souveniers/gifts.

Agreed. I think it's embarrassing to pay for anything under $10-20 with a credit card, and the ATM cards charge the merchant a fee (at least they do in the US - something in the news lately) and again you might not get as good an exchange rate as you would with your credit card.

Like Tom, we've found merchants at the end of our stay quite willing to take part payment in cash and part in credit card.

Depending on one's spending habits, it would be helpful to have $50 or more in cash with you for incidentals.

sciconf,

as this does not really involve budget travel I'm moving the thread to Canada forum. [/mod hat off]

I go to Canadian west coast a couple times a year, and find changing cash to be a pain. Banks don't want to deal with it and money exchange places are a rip off - not as bad as airports, but a lousy exchange rate anyways.

I use ATMs, get a decent rate, but my credit union does not rebate me the charge by the bank - used to be a buck, but may now be more.

Many tourist places take US dollars, but many give a very lousy exchange fee.

Oh, and IIRC AmEx isn't as widely accepted in Canada - of course I speak of British Columbia, as it's been years since I've been to Toronto or Montreal.

Yes, there is an entrance fee to Niagara Falls, but if you can PayPal me some money I can get you a discount :D

The ride on the Maid of the Mist does cost a few dollars, but you get to get up close and personal with the falls.

[mod hat on]
EmailKid
Budget Travel moderator

I would take out cash from an ATM, that's the easiest and simplest option. Some places will take US cash, especially at Niagara Falls, but the further you go from the border and tourist areas I would doubt it. Certainly the exchange rate will be a lot worse that what you'd get from taking Canadian cash from an ATM, usually by a significant percentage.

A simple way of putting it in perspective is if you went to a store in California and tried to pay with Canadian dollars or British Pounds, how far would you get and what sort of exchange rate would you get? Not great I expect.

I'd use a debit card, but not a credit card. My card treats that as a cash advance and interest at 19.5% is payable immediately until the cash is repaid. It's a very expensive way to get money. Withdrawing from your US account using an ATM is the cheapest option.

You can use credit cards almost everywhere however not necessarily AMEX.

Amex is still not as popular as VISA and MC. Many of the mom and pop stores will not take credit but only cash and debit.

I have been told that "exotic dancers" only accept cash as well. :p

Amex merchant fees are nearly triple visa and MC, plus they are slower to pay the merchant, 90-120 days I think, versus visa's 45-60 days.

Mainly for those reasons Amex is not a widely accepted card in Canada.

You misunderstood my point or else I didn't explain it well. I would never suggest using a credit card to get a cash advance. I was suggesting using a credit card with a 1% foreign transaction fee and a generally good exchange rate to make purchases as a credit card rather than using an ATM card to make purchases. tom911 has outlined good reasons for that above.

I agree with you that the ATM card is probably the most practical way for a visitor to withdraw a modest amount of cash for purchases too small, or otherwise impractical or impossible to make with a credit card. That's been true in most countries we've visited.

I see you're Canada-based. Can you clarify which card (debit, credit) hits you with the 19.5% interest? Is it, like Fredd suggests, a cash advance on a credit card? I've only done that once in the last 20 years in Sweden when the ATM network was down and I needed immediate cash. Strictly for emergencies.