Credit Card Tip While in Canada

[Crazy For Cats]

We just completed our 14 day cruise to Canada/New England and learned something new while in Canada. Some credit card terminals will give you the option of having the purchase converted to US dollars. A nice shop keeper let us know that there is a 4% fee tacked onto the charge for the conversion. If you are using a credit card that has no foreign fees, like the HAL card, the recommendation is to choose the Canadian dollar option instead of the US option. In my case the CAD was 31.74 the credit card machine option for US was 25.32 I opted for CAD and my credit card charge was 24.25.

[Chitown Sandy]

We just completed our 14 day cruise to Canada/New England and learned something new while in Canada. Some credit card terminals will give you the option of having the purchase converted to US dollars. A nice shop keeper let us know that there is a 4% fee tacked onto the charge for the conversion. If you are using a credit card that has no foreign fees, like the HAL card, the recommendation is to choose the Canadian dollar option instead of the US option. In my case the CAD was 31.74 the credit card machine option for US was 25.32 I opted for CAD and my credit card charge was 24.25.

 

 

Thanks

[sail7seas]

Good info you shared. :)

 

We have not ever had to pay conversion rate while in Canada... sometimes it depends upon what cerdit card you re using.

Edited September 9, 2018 by sail7seas

[CruiserBruce]

This is frequently discussed around the travel world. There is almost NEVER a good reason to allow the vendor (we have seen it offered in hotels, stores and on Princess Australia) to do the conversion. The best conversion rate is almost always the credit card bank to bank arrangement. It is never the vendor's rate.

[kazu]

Absolutely correct Crazy for Cats :)

 

The reverse is true for we Canadians visiting the US (or anywhere else in the world). We always choose the local currency and let our CC convert it.

 

I've made note of the rate that we are offered and what I actually pay and we always come out ahead ;)

[sail7seas]

Varies depending upon how strong U.S. dollar and same for Canadian dollar.

 

 

That is a Variable.

Edited September 9, 2018 by sail7seas

[Fouremco]

Wherever you travel, have the charge made in the local currency.

 

It's particularly an issue in the Caribbean, where if you don't ask to be charged in the local currency, they'll convert it to USD (at an unfavourable rate), and if you aren't an American, the inflated USD amount has to be converted yet again by your CC to your home currency, resulting in a further loss.

[Krazy Kruizers]

Never had to pay a fee when we cruised to Canada or vacationed there (quite a few times in Toronto).

[iancal]

Definitely an increasingly common issue for people using non US credit cards in Florida.

 

From the merchant's perspective, the higher exchange rates that they charge add another 3 percent to the bottom line profit. It adds up.

[sail7seas]

Compound interest is a beautiful thing :) All those extras from exchange rates can ad up after yyears.

[CruiserBruce]

Compound interest is a beautiful thing :) All those extras from exchange rates can ad up after yyears.

 

Not sure that is really the definition for compound interest you want to cite. Compound interest usually refers to leaving money in an investment for years. Interest builds on interest already accumulated, over a number of years.

 

Not on fees for single, one time transactions.

[caribill]

Varies depending upon how strong U.S. dollar and same for Canadian dollar.

 

 

That is a Variable.

 

No. 100% of the time not letting your credit card company do the conversion will cost you more.

[Gail & Marty sailing away]

Thanks for sharing the info

 

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[iancal]

The one exception to this appears to be US airlines. When I buy a flight on a US website of some of the major carriers I have been given the option to have my credit card charged in Canadian dollars. They tell me the total in CAD before I hit the buy button and their exchange rate is usually better than the ex.com rate.

[sail7seas]

Not sure that is really the definition for compound interest you want to cite. Compound interest usually refers to leaving money in an investment for years. Interest builds on interest already accumulated, over a number of years.

 

Not on fees for single, one time transactions.

 

 

If the merchant deposits all those excahnge rate ''benefis andleaves them to earn, , month after month, year fter year,compound interest ----- interest earned on prior interest earnings. HappY now?

 

 

 

 

 

Whew

[Sopwith]

A few things to be aware of when using credit cards for foreign transactions:

 

• The exchange rate used by the credit card issuer is typically 2-3% higher than what you can get at a legitimate currency exchange;
  
• On top of that, they add another 2-3% commission on foreign transactions (unless you have a "no fee" card, but read the fine print to see what the deal actually is), for a total of close to 5%;
  
• Then, if you choose to have the transactions converted at the point of sale, there is another few % tacked on.
  

As a Canadian who frequently travels to the US (less frequently these days!), I carry a Visa card issued by a Canadian bank in US$. So I'm billed in US$ without any markup. I go to a local currency exchange where I get a competitive rate and pay the Visa bill in US$, saving 4-5%. That adds up when you're paying for a cruise.

[daisy-mae]

Something else to bear in mind. If you make a credit card purchase in a currency other than your own and then decide to reverse the charge (by returning an item that was purchased, for example) the refund will not reflect the full amount because of the "swing" difference in buy/sell rate.

[Fouremco]

A few things to be aware of when using credit cards for foreign transactions:

 

• The exchange rate used by the credit card issuer is typically 2-3% higher than what you can get at a legitimate currency exchange;
  
• On top of that, they add another 2-3% commission on foreign transactions (unless you have a "no fee" card, but read the fine print to see what the deal actually is), for a total of close to 5%;
  
• Then, if you choose to have the transactions converted at the point of sale, there is another few % tacked on.
  

As a Canadian who frequently travels to the US (less frequently these days!), I carry a Visa card issued by a Canadian bank in US$. So I'm billed in US$ without any markup. I go to a local currency exchange where I get a competitive rate and pay the Visa bill in US$, saving 4-5%. That adds up when you're paying for a cruise.

I’d love to know which currency exchange outlet you are using that offers you a rate 4-5% better than the official Visa or MasterCard rates.

[Cruise Junky]

I’d love to know which currency exchange outlet you are using that offers you a rate 4-5% better than the official Visa or MasterCard rates.

 

I don't think it's the straight exchange rate that is 4 - 5% better it's the not paying the 2.5% fee on top of the exchange rate that they're saving. And since he's in Vancouver, he probably uses the same exchange place I do, which is excellent.

[Fouremco]

I don't think it's the straight exchange rate that is 4 - 5% better it's the not paying the 2.5% fee on top of the exchange rate that they're saving. And since he's in Vancouver, he probably uses the same exchange place I do, which is excellent.

As I have both a Visa card and a MasterCard that don’t charge a conversion fee, it’s only the exchange rate that is of concern to me. I’ve found no currency exchange outlets in Ottawa that can beat the cards’ rates by 1.5-2.5%, but maybe Vancouver’s financial institutions are more generous.

[Cruise Junky]

As I have both a Visa card and a MasterCard that don’t charge a conversion fee, it’s only the exchange rate that is of concern to me. I’ve found no currency exchange outlets in Ottawa that can beat the cards’ rates by 1.5-2.5%, but maybe Vancouver’s financial institutions are more generous.

 

which cards do you use? I thought most of the non-conversion credit cards had disappeared from Canada. I use Vancouver Bullion..xe rate is 1.316 right now and their rate is 1.326.

[Fouremco]

which cards do you use? I thought most of the non-conversion credit cards had disappeared from Canada. I use Vancouver Bullion..xe rate is 1.316 right now and their rate is 1.326.

That’s a bit better than MasterCard, currently 1.319, but not significantly. Nowhere near the earlier percentage suggested by Sopwith.

 

I’m using the Home Trust Preferred Visa and the Rogers World Elite MasterCard. The latter isn’t a true transaction-fee free card: it charges a 2.5% fee, but you get 4% cash back for a 1.5% net gain, which more than offsets any difference with exchange rates.

[cruisebie]

We just completed our 14 day cruise to Canada/New England and learned something new while in Canada. Some credit card terminals will give you the option of having the purchase converted to US dollars. A nice shop keeper let us know that there is a 4% fee tacked onto the charge for the conversion. If you are using a credit card that has no foreign fees, like the HAL card, the recommendation is to choose the Canadian dollar option instead of the US option. In my case the CAD was 31.74 the credit card machine option for US was 25.32 I opted for CAD and my credit card charge was 24.25.

I just booked a Canada/New England cruise on the Veendam for Oct 6, so this information is very timely for me as were many other posts on this thread. Not a lot of research time between now and departure day! [emoji4] Thanks for starting the discussion.

 

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[rkacruiser]

Well, I think this is an interesting thread. I did learn my lesson when I was in New Zealand a few years ago about which currency to use when I used a credit card.

 

I purchased a beautiful New Zealand woolen scarf for a friend at a very good price. When the clerk asked me which currency I wished to use when I presented my credit card, I said my own. Wrong answer as it turned out. When my credit card bill arrived with that transaction, my scarf became more expensive than I expected.

 

No regrets at my purchase. But, I did learn a lesson.

[Crazy For Cats]

I just booked a Canada/New England cruise on the Veendam for Oct 6, so this information is very timely for me as were many other posts on this thread. Not a lot of research time between now and departure day! [emoji4] Thanks for starting the discussion.

 

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Glad you found it helpful. The Canada/New England itinerary is wonderful. If you do excursions through HAL check out Fun with Falcons it was one of the better ones we have done.

 

 

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