Currency exchange for Canadian Snowbirds

[ramsaymike]

As a Canadian wintering in Texas, converting $CAN to $US is an ongoing issue. It is just very difficult to escape the markup premium all financial institutions put on currency exchanges. We have tried many approaches but now use what I think is the best available. All purchases that can be put on a credit card go on the Amazon.ca VISA. This card offers conversions at no markup so you end up paying based on the actual exchange rate (or very close to it) in $CAN. We have used this for a couple of years and it works very well. For cash, we use a direct deposit of a CPP (Canada Pension Plan) into our US bank. The Canadian government does this at what appears to be very close to the current exchange rate and at no charge at either end. I believe this is available for any government program such as the OAS. Always interested in other approaches...

[naysmitj]

almcc wrote:

samandtheduck wrote:
I applied and was accepted for the Amazon.ca Visa card. I tried to use a my US address but that was declined. It would be nice to find a card like this that allows a person to use their US address as a billing address so it could be used at gas stations. The best I have done is opening a bank account in the US and getting a credit/debit Visa card. This is called a credit card but works like a debit (no money - no sale). It does allow you to get gas using a zip code.
Brian

To get around the zip code hassle, use the work around that has been available for a couple of years (use the 3 numbers from your postal code billing address and add 2 zeroes. It's worked for us all across the US (except for one place in Texas) for the past two years.

If you have an investment advisor who can do the exchange on their currency trading floor you can beat a Canadian bank rate by 1 to 2 %

For zip code at the pump I use 99999 this has worked over 90% of the time I have used it.

[almcc]

Falcon35 wrote:
We just returned from to US and I was able to use the postal code #s + 00 with a TD bank US $ visa card.
For the last few years I have not been able to do the 00 thing with our Canadian Master Card.
I hope this keeps working.

I think that you may have hit it on the head! Our CC's from a major bank have worked almost 100% of the time using the work around for he last 2-3 years. Perhaps using a second tier bank or a credit union makes a difference.

[Falcon35]

We just returned from to US and I was able to use the postal code #s + 00 with a TD bank US $ visa card.
For the last few years I have not been able to do the 00 thing with our Canadian Master Card.
I hope this keeps working.

[moisheh]

We have a Wells Fargo bank account, debit card and credit card. Can be used at any gas station with out all that nonsense that often does not work. Can also be used with a US address to buy things on Ebay from those that will not sell to Canadians. Been doing this for 20+ years. I rarely use any credit card outside of Canada.

Moisheh

[ramsaymike]

Is there really any reason for Canadian snowbirds NOT to try one of these Chase cards? They cost nothing to get or use and if don't like it or have problems just cancel it. It really is a perfect fit unless I'm missing something. You don't have to stop your current practice just add to it and see what works best for you.

[bjbear]

I have a RBC US account that I can transfer funds directly from my Canadian Account. The exchange rate is not great, but way better than previous when I used my Scotia Bank debit card and credit card down south.

My RBC US account has a debit card so once the money is in that account and I have taken the hit on the exchange, there are no other fees. I can also transfer funds directly from RBC to my Chase account (with debit card) without any fees. Just takes a couple of days to clear. In other words, I only pay a reasonable exchange rate once, then after that, I have 2 separate debit cards to use without any additional fees. I am pretty happy with the way it is working.

[samandtheduck]

I have had no luck with the zip code workarounds.
I read the reviews on Amazon and it seemed like half of the negative ones concerned having to mail your payment because there was no way to pay online. I went to my Credit Union website online payment page and typed in Amazon and it popped up as one that I could send electronic payments. That's the way I pay all my bills so it should be good.
My Credit Union also offers a discount if I exchange more than $1,000. This means I end up paying about 1.2% on top of the exchange rate instead of the usual 1.7%. I don't know if these are actual rates as I just check the Bank of Canada exchange rate and then exchange $100 to see what it costs me at the Credit Union. 1.2% of what I spend in 5 1/2 months in the US is a good saving.
Brian

[ramsaymike]

I have had little - ie no - success with any of the popular zip code workarounds. It is an inconvenience but we really don't need gas that often other than the drive down and back and I can use a bit of a walk. It would be nice though and I will keep trying.

For normal US/CAN exchange take a look at Tangerine (ING). You do need more time as you just can't walk in and do it. Electronic transfers make it very easy by do take time. I find the rates close to 1% better but you have to check and see.

[almcc]

samandtheduck wrote:
I applied and was accepted for the Amazon.ca Visa card. I tried to use a my US address but that was declined. It would be nice to find a card like this that allows a person to use their US address as a billing address so it could be used at gas stations. The best I have done is opening a bank account in the US and getting a credit/debit Visa card. This is called a credit card but works like a debit (no money - no sale). It does allow you to get gas using a zip code.
Brian

To get around the zip code hassle, use the work around that has been available for a couple of years (use the 3 numbers from your postal code billing address and add 2 zeroes. It's worked for us all across the US (except for one place in Texas) for the past two years.

If you have an investment advisor who can do the exchange on their currency trading floor you can beat a Canadian bank rate by 1 to 2 %

[samandtheduck]

I applied and was accepted for the Amazon.ca Visa card. I tried to use a my US address but that was declined. It would be nice to find a card like this that allows a person to use their US address as a billing address so it could be used at gas stations. The best I have done is opening a bank account in the US and getting a credit/debit Visa card. This is called a credit card but works like a debit (no money - no sale). It does allow you to get gas using a zip code.
Brian

[ramsaymike]

Interesting reading on the merits of the Chase cards. I can only comment based on my experience over 2+ years of constant use. Never had a billing issue or been declined - I take that back. It was declined a couple of times but it was fixed with a quick call and I did have the card canceled once - that's why we have 2. But unlike the bank, you are in control of the credit card. On balance, I'll take the 3.5% discount on everything I buy with the card any day....never mind the convenience of all charges in $CAN.

[quartzster]

ramsaymike wrote:
The Amazon card is also offered through Chase - a great deal. We have a CPP payment deposited directly into our Bank of America account. I think it is an all or nothing thing but not really sure. You just fill out a form in Service Canada - try http://www.tpsgc-pwgsc.gc.ca/recgen/dd/etranger-abroad-eng.html. It works just fine although it takes some time to get started.

I would urge everyone to know exactly what you are paying for conversion of your $CAN especially if it is at a bank. Banks do not do this for nothing even if they say you are getting a discounted rate. I know of no way to beat these Chase credit cards.

I realize that banks do not do this for nothing, but I do save a small amount on the exchange. They...including the credit card companies always make their money one way or another.

Some people might want to read some of the negative posts here http://goo.gl/J5LMDgso they are well informed before trying to save on the markup. In fairness there are also lots of positive posts.

[ramsaymike]

The Amazon card is also offered through Chase - a great deal. We have a CPP payment deposited directly into our Bank of America account. I think it is an all or nothing thing but not really sure. You just fill out a form in Service Canada - try http://www.tpsgc-pwgsc.gc.ca/recgen/dd/etranger-abroad-eng.html. It works just fine although it takes some time to get started.

I would urge everyone to know exactly what you are paying for conversion of your $CAN especially if it is at a bank. Banks do not do this for nothing even if they say you are getting a discounted rate. I know of no way to beat these Chase credit cards.

[samandtheduck]

We do the credit card thing also with the Sears-Chase mastercard which doesn't charge the 2.5% conversion fee. The only downside is they will only send a replacement card to our Canadian address and it has been compromised 2 years in a row (Bashas grocery first year and Target last year).
I'm very interested in the CPP direct deposit to a US bank. Is this a US account in a Canadian bank or a US bank account? How did you set this up as I have both types of account?
Brian