Money in Canada

[FlGaCpl]

I am roughing out plans for a trip from Florida to Alaska in mid 2015. What is the best way to pay your way thought Canada? Are debit cards widely accepted? Should I convert green backs into Canadian dollars or just pay in green backs? Where can you get the best exchange rate?

[jimbunting]

The Bahamas has it's own dollar, but they also accept the US dollar at the same rate, so you can use EITHER currency there. The Bahamas dollar is one to one with the US dollar, since 1973 when The Bahamas gained independence from the UK.

Please remember that in Canada, no business is required to accept any currency, except that which is Canadian. If they accept any other currency, it is as a favour to the customer, and they can set the exchange rate that they wish to offer, and the change MUST be given in Canadian funds, by law.

Jim B.

Toronto.

[AKsilvereagle]

The other suggestion to get a better exchange rate is to have your investment person (if they have a connection to a currency trading desk at their institution) buy currency for you. I get a better conversion rate than the bank rate (by about 1 to 2%) converting C$ to US$ this way, it would be the same going from US$ to C$.

I also have a great suggestion to obtain the best exchange rate by leaving the middleman out of it.....THE BANK !

I also like buying Canadian dollars from private individuals at the current true exchange (0.00% bank rate) when the opportunity rises, while at the same time more than happy selling my US dollars to the same private individuals that are just as happy getting a much better true exchange (0.00% bank rate), a win-win situation for both parties while saving 3% to 4% that a bank would gain.

I am always in the market for Canadian cash with a 0.00% foreign exchange rate with US dollars for sale.

[AKsilvereagle]

That is correct Joe, my Canadian bank account in particular is actually setup upon two different accounts, one is US funds and the other is Canadian funds as I can buy or sell each currency balance and transfer funds from one account to the other at their current bank rate (typically 3 percent converting USD to the Canadian account) which I do when it is favorable to do so in which stretches Canadian dollar value for me !

[AKsilvereagle]

I went to Vancouver island to see Borchard Gardens (great) but when I spent USD there they always gave me change in Canadian coins. Refused to give me US coins, saying is was a rule or law, I forget which. Kind of a funny thing, not a big deal, but I wonder what little trick that is all for.

The rule or law in Canada that was referred to you (by the way in this case it is "law"), which the law states Canadian coinage and dollar banknotes issued by the Bank of Canada are "legal tender" in Canada, although transactions may legally be settled in any manner agreed by the parties involved....in which the US Dollar is the most traded currency (world reserve currency), and is also widely accepted in many places throughout Canada, however any business or merchant in Canada does reserve the right not to accept US coins, dollars or any other foreign currency.

Another thing to highly consider why businesses in Canada are reluctant to provide change back with the same foreign currency is :

The sale price of goods or services are quoted in Canada Dollars.

Not only would it put an additional task or strain on a business to again having to convert giving back correct change upon a foreign currency based on a sale price in Canada dollars, you also have a potential deflation value of being stuck with a foreign coin and currency that is not legal tender while to my understanding no bank in Canada will insure foreign currency deposits for that matter either until those funds are converted to Canada dollars.

The four foreign countries that I am aware of that utilize the US Dollar as legal tender are :

East Timor, Ecuador, El Salvador, and Panama.

[joe_b_]

RBC, Royal Bank of Canada, operates here in the SE part of the US. My understanding is that some of my Canadian snowbird acquaintances bank with them on both sides of the border. They can withdraw funds from their accounts in either currency from what I was told.

This May or may not still be a viable option. PNC Bank bought out the US devision of RBC in 2012 and renamed the 439 branches as PNC. RBC established a new division in Georgia for their Canadian customers. PNC reportedly paid roughly $3.5 billion for the US assets of RBC.

[almcc]

oilslick wrote:
When we travel to the USA we only use a Canadian Visa that is in only US funds which I then pay for from a Canadian account in only US funds, if you come to Canada often you could do the same only in Canadian funds, no user fees or conversion charges.

That would seem to be the ideal solution. Not sure if there is enough demand for the US banks to offer a "Canadian dollar" Visa card although it may be worthwhile checking the US branches of Canadian banks (say like TD).

The other suggestion to get a better exchange rate is to have your investment person (if they have a connection to a currency trading desk at their institution) buy currency for you. I get a better conversion rate than the bank rate (by about 1 to 2%) converting C$ to US$ this way, it would be the same going from US$ to C$.

[oilslick]

When we travel to the USA we only use a Canadian Visa that is in only US funds which I then pay for from a Canadian account in only US funds, if you come to Canada often you could do the same only in Canadian funds, no user fees or conversion charges.

[joe_b_]

I normally stop at the first bank I come to in Canada and take out $400 at their ATM machine. This will normally last me till I get to the Alaska border and can start using Alaska money to pay with. Then on the return trip I will do the same. On my last day or two, southbound, I will start using any remaining Canadian currency to buy fuel, food, etc. Cash is just handy to have and the transaction fee I get charged, to me is just part of the trip costs. For fuel I use a credit card, for a few trips I used a debit card but then the card companies started to add the foreign transaction fee to the charge.

One way or the other, they the financial institutions, are going to get their share of our money. Whether it is up front or under the table a bit. You can be told their is no fee to use certain cards, but make sure you are getting the most favorable rate for that day and that they haven't raised your rate to cover the "no" fee. I don't believe the banks and money sellers are trying to save us money personally.

I also carry personal checks to use if needed. There are less and less of the provincial parks and territorial parks being run on the, drop your money in the pipe" honor system as more and more of the parks are being run by concessioners, just as in the lower 48. Only the tax payers lose in the arrangements it seems to me. If I am short of cash at one of the honor system places I will often drop a personal check made out to the park and for enough more than the camping price to cover the agency having to run the check through their bank and pay the foreign transaction fee. Right now the conversion rate is about $1cnd is equal to $.90usd, which is neither a buying or selling price but just the listed price on one of my phone apps. The two dollars vary all the time, and at one time I remember the Canadian dollar costing about $1.30usd to buy a Canadian dollar. Made it tough to travel up there at that time. Probably why the Canadians make the big bucks at work. LOL

I use cash for lots of things while traveling, ice cream shops, gas station snacks at times, emergency fuel and I never pass up a kid's lemonade stand, even if I have to circle the block to come back around. If I stop at a bar for a beer, I use cash, and some of the micro brews made in Canada, especially Whitehorse, are worth making the trip for, if you enjoy a fine brew.

The best advice about money, to me anyways, is to take plenty of it with you, in one form or another. Traveler's checks are a thing of the past, don't mess with, IMHO.

[sue_t]

I have an unchipped debit card and it works at all the pay at the pump stations in Yukon. At some gas stations you have to go inside to pay, regardless.

A couple of stations have the tap'n'go payment at the pump but the pumps still take the good old unchipped card too.

In B.C., it is law that payment must be made before pumping. So the pay at the pump is popular but some stations are still old-fashioned and you'll need to leave cash or credit card with the cashier before they activate the pump. Although Toad River on the Alaska Highway still lets folks pump fuel without pre-paying. Also, our last time through Toad River the internet service was down so they were taking cash only, no cards of any type.

Always have enough cash to buy a tank of fuel. It isn't uncommon for the machines to go down for a few hours or a day or two here.

[atreis]

We go to Canada fairly often, and always use bank cards to get cash in Canadian (minimal), and mostly pay with with debit and credit cards. I've never encountered a location that doesn't take unchipped cards, although sometimes you'll have to go inside to do it. (Some gas stations will take chipped cards at the pump, but unchipped cards have to be run through a machine inside.)

There are credit cards that don't have foreign transaction fees, but you have to hunt around a bit.

Once you get away from the border, not everyone will take US cash. Most often this seems to be because they don't have it on hand for making change, and figuring out the conversion is a pain for them. (Sometimes they'll offer to do straight cost and give change in Canadian, but this is generally not in your favor.) It's far simpler to just use Canadian cash and debit/credit.

[canadafan]

You can check typical exchange rates here:

http://www.vbce.ca/rates/major-currencies

Trevor

[oilslick]

With all the counterfeit bills going around it would be almost impossible for merchants to except foreign bills without knowing what to check for.

[EEWally]

Congrats on the gold!

I just hope those submarines get fixed so we don't some day have to worry about Russian-US exchange rates if we go far enough north from Montana.

[BigDaddyHfx]

Well today in Sochi, Russia the exchange rate is 1 Canadian Gold medal to 1 USA (possible) Bronze medal. 🙂