Purchasing extra On-Board credit on NCL. The exchange rate from CAD is very good!

[PapaGoose]

Just crunching some numbers before our Panama Canal cruise on Norwegian Jewel in February and I see we can purchase on-board credit in US dollars at an exchange rate of roughly 1.265. The going rate right now is closer to 1.365 here in Toronto. I believe all purchases before the cruise are locked in at the rate we had in May 2022 when we booked the cruise. We could purchase $500 refundable OBC in USD for approximately $632 CAD. If we don’t use all of it, my understanding is we will get US cash refunded to us. This can only be done during the last two days of the cruise. I’m pretty sure we will get a better return if we exchange those US greenbacks back here in Toronto once we get home. 
 

Does anyone have experience with this kind of transaction? Is it a reasonable plan? I’m old enough to remember road-trips to Buffalo in the back of the family station wagon because our dollar was worth more than the US dollar. Oh, those were good times….

[Fouremco]

Cruise line conversion rates vary from being quite generous to unacceptable. When they have been favourable, I've frequently bought OBC. The difference between my approach and yours is that when I have the OBC refunded to me at the end of the cruise, I bring it home and tuck it away in a USD account instead of converting it back to CAD.

[PapaGoose]

43 minutes ago, Fouremco said:

Cruise line conversion rates vary from being quite generous to unacceptable. When they have been favourable, I've frequently bought OBC. The difference between my approach and yours is that when I have the OBC refunded to me at the end of the cruise, I bring it home and tuck it away in a USD account instead of converting it back to CAD.

My business minded wife has suggested that strategy as well. I guess great minds think alike. Let’s assume that you and my brilliant wife are going to win this debate! I will humbly acquiesce. 
 

All I know is I’m looking forward to enjoying some warmer weather and a fruity cocktail or two in February… 

[LHT28]

2 hours ago, PapaGoose said:

Just crunching some numbers before our Panama Canal cruise on Norwegian Jewel in February and I see we can purchase on-board credit in US dollars at an exchange rate of roughly 1.265. The going rate right now is closer to 1.365 here in Toronto. I believe all purchases before the cruise are locked in at the rate we had in May 2022 when we booked the cruise. We could purchase $500 refundable OBC in USD for approximately $632 CAD. If we don’t use all of it, my understanding is we will get US cash refunded to us. This can only be done during the last two days of the cruise. I’m pretty sure we will get a better return if we exchange those US greenbacks back here in Toronto once we get home. 
 

Does anyone have experience with this kind of transaction? Is it a reasonable plan? I’m old enough to remember road-trips to Buffalo in the back of the family station wagon because our dollar was worth more than the US dollar. Oh, those were good times….

LOL  I am that old as well

 Sounds like a good plan  but maybe save the left over cash for another trip  in case the exchange rates are higher  next trip

I bought  a bunch of USD  when the exchange rate was close to par   they are in my USD account   now I need  a trip to spend them on 😉

 

[SilvertoGold]

Can you also pre-pay your gratuities in USD now at this rate?  We have done that on HAL.

[PapaGoose]

I would assume you can. We paid for our gratuities when we booked the cruise in late May 2022 at an exchange rate of approximately 1.265. As I mentioned in the original post, this rate of exchange seems to be the rate for all purchases we can or will make before the cruise. I believe this opportunity will end 3 days before our ship sets sail. 
 

We are now contemplating purchasing OBC to cover expenses on the ship because this exchange rate is so much better than the going rates of exchange here in the Toronto area. I reached out, through the chat function on the NCL app, asking about how the unspent OBC would be refunded and surprisingly the rep stated it would go back to our credit card 7-10 days after the cruise. I have heard in a few different Cruise Critic posts that it is usually returned as US cash from the Service desks on the ship on the last two days of a cruise. Now we are a bit confused. 

[LHT28]

1 hour ago, PapaGoose said:

 I have heard in a few different Cruise Critic posts that it is usually returned as US cash from the Service desks on the ship on the last two days of a cruise. Now we are a bit confused. 

On their sister line  we got cash on the last full day of the cruise

 

They sent a letter saying we had a refundable OBC balance to stop by  to pick up the cash (basically) 😉

 

[DirtyDawg]

On 1/24/2023 at 10:51 AM, PapaGoose said:

Just crunching some numbers before our Panama Canal cruise on Norwegian Jewel in February and I see we can purchase on-board credit in US dollars at an exchange rate of roughly 1.265. The going rate right now is closer to 1.365 here in Toronto. I believe all purchases before the cruise are locked in at the rate we had in May 2022 when we booked the cruise. We could purchase $500 refundable OBC in USD for approximately $632 CAD. If we don’t use all of it, my understanding is we will get US cash refunded to us. This can only be done during the last two days of the cruise. I’m pretty sure we will get a better return if we exchange those US greenbacks back here in Toronto once we get home. 
 

Does anyone have experience with this kind of transaction? Is it a reasonable plan? I’m old enough to remember road-trips to Buffalo in the back of the family station wagon because our dollar was worth more than the US dollar. Oh, those were good times….

@PapaGoose welcome to CC!

It's sure nice to have young people joining cruising and us here at cruise critic. Most outsiders believe cruising is just for Oldtimers like  @Fouremco and me.  But your daddy's station wagon must have been a classic by the time you were shopping at par in Buffalo in 2011.  😁

 

Yep, it wasn't that long ago we were at par with the greenback. But I must agree with @Fouremco that if you get a geed exchange rate on the USD through a cruise line keep it in USD  in a USD bank account for future travels.  

 

Enjoy your future cruising, kid! 😉

 

Edited January 27, 2023 by DirtyDawg

[*Miss G*]

Not that I’ve ever run into a situation where I’ve had excess OBC 🙃 but on HAL I can get cash by downloading it to a slot, playing a few games, then cashing out on the last night.  No experience doing this with other lines though.

[PapaGoose]

4 hours ago, DirtyDawg said:

@PapaGoose welcome to CC!

It's sure nice to have young people joining cruising and us here at cruise critic. Most outsiders believe cruising is just for Oldtimers like  @Fouremco and me.  But your daddy's station wagon must have been a classic by the time you were shopping at par in Buffalo in 2011.  😁

 

Yep, it wasn't that long ago we were at par with the greenback. But I must agree with @Fouremco that if you get a geed exchange rate on the USD through a cruise line keep it in USD  in a USD bank account for future travels.  

 

Enjoy your future cruising, kid! 😉

 

I appreciate your misjudgement of my maturity DirtyDawg but I’ve been around CC and the planet a little longer than you are suggesting. I hit the 60 yr mark last year and this cruise we are going on quietly celebrates my retirement from 34 years of teaching. Quietly because my DW has little interest in acknowledging her partner is an old retired dude.
 

Thise car rides to Buffalo took place in the 60s and 70s and my pops primary goal was to smuggle back contraband like cigars and cheap hooch. Nothing pushes you through customs like 3 whiny brats…

 

Our first cruise was a good 20 years ago and included chasing a 2 1/2 year old down the jogging track of a Carnival cruise ship after dinner. He’s now in his 3rd year of Mechanical Engineering up here in Ontario. This will be our 12th cruise and only our second without the boy.
 

Looking forward to lounging in a bar after dinner instead of scampering down the outside decks. My knees are too…

[PapaGoose]

FWIW, the US dollar was worth a paltry 97 cents in Canadian money in August of 1972. Prime smuggling time for my pops so he could smoke a celebratory cigar later that year as Canada ekes out a victory against the USSR. Yay Paul Henderson!

[DirtyDawg]

38 minutes ago, PapaGoose said:

I appreciate your misjudgement of my maturity DirtyDawg but I’ve been around CC and the planet a little longer than you are suggesting. I hit the 60 yr mark last year and this cruise we are going on quietly celebrates my retirement from 34 years of teaching. Quietly because my DW has little interest in acknowledging her partner is an old retired dude.

Only 60ish? Heck you really are a kid! 😁

I 'retired' several years ago from the investment industry and now I'm teaching at University part-time too keep me busy.  Mrs. Dawg has no plans to retire anytime soon and there's just so much golf a guy can play. 🏌️‍♂️

 

[PapaGoose]

1 hour ago, DirtyDawg said:

Only 60ish? Heck you really are a kid! 😁

I 'retired' several years ago from the investment industry and now I'm teaching at University part-time too keep me busy.  Mrs. Dawg has no plans to retire anytime soon and there's just so much golf a guy can play. 🏌️‍♂️

 

In Ontario retired teachers can supply teach a set amount of days without forfeiting their pension payments. I’m a couple of days shy of the limit. My wife likes to see me leave the house in the morning when she works from home. 🤷‍♂️ 

 

I restarted my golf game after a 25 year hiatus and my wife has joined me as a novice golfer. 6 rounds together in the fall and we’re still married. 🤞

 

Maybe there is a golf themed cruise in our future…

[gmbhardy]

On 1/24/2023 at 10:51 AM, PapaGoose said:

Just crunching some numbers before our Panama Canal cruise on Norwegian Jewel in February and I see we can purchase on-board credit in US dollars at an exchange rate of roughly 1.265. The going rate right now is closer to 1.365 here in Toronto. I believe all purchases before the cruise are locked in at the rate we had in May 2022 when we booked the cruise. We could purchase $500 refundable OBC in USD for approximately $632 CAD. If we don’t use all of it, my understanding is we will get US cash refunded to us. This can only be done during the last two days of the cruise. I’m pretty sure we will get a better return if we exchange those US greenbacks back here in Toronto once we get home. 
 

Does anyone have experience with this kind of transaction? Is it a reasonable plan? I’m old enough to remember road-trips to Buffalo in the back of the family station wagon because our dollar was worth more than the US dollar. Oh, those were good times….

Don’t know where you got those numbers (I realize exchange rates fluctuate daily). Today at a Canadian bank it would cost you about $133 CA to buy $100. If you purchase OBC through your NCL account,  it would cost you about $131 or about a 2% saving . Am I missing something?

[PapaGoose]

18 minutes ago, gmbhardy said:

Don’t know where you got those numbers (I realize exchange rates fluctuate daily). Today at a Canadian bank it would cost you about $133 CA to buy $100. If you purchase OBC through your NCL account,  it would cost you about $131 or about a 2% saving . Am I missing something?

I realize rates here in Ontario fluctuate but my NCL app offers me a $500 US OBC for $632 CAD. That rate of exchange hasn’t changed since we booked back in May of 2022. If my calculator ain’t broken that comes to 26.50 cents on the dollar. Even at your nice rate of 33 cents on the dollar that would mean $33 CAD saved on a $500 US OBC. Your rate costs me $665 while the NCL rate costs me $632. That’s what my dad would say is “better than a kick in the pants!”

Edited January 28, 2023 by PapaGoose

[gmbhardy]

28 minutes ago, PapaGoose said:

I realize rates here in Ontario fluctuate but my NCL app offers me a $500 US OBC for $632 CAD. That rate of exchange hasn’t changed since we booked back in May of 2022. If my calculator ain’t broken that comes to 26.50 cents on the dollar. Even at your nice rate of 33 cents on the dollar that would mean $33 CAD saved on a $500 US OBC. Your rate costs me $665 while the NCL rate costs me $632. That’s what my dad would say is “better than a kick in the pants!”

When I go into my account, a $500 US OBC costs $656.51 CA. Check it again.

[DirtyDawg]

46 minutes ago, PapaGoose said:

 That’s what my dad would say is “better than a kick in the pants!”

My dad used to say it a bit differently. "better than a puck in the n*ts." 🏒 🥜 😱

 

 

Edited January 28, 2023 by DirtyDawg

[PapaGoose]

7 minutes ago, DirtyDawg said:

My dad used to say it a bit differently. "better than a puck in the n*ts." 🏒 🥜 😱

 

 

I might have been cutting my dad some slack language wise… 😉. 

[PapaGoose]

23 minutes ago, gmbhardy said:

When I go into my account, a $500 US OBC costs $656.51 CA. Check it again.

Help me out with the math on this @gmbhardy… I was only a teacher for 34 years so I may be missing something… 😉. 

 

[gmbhardy]

13 minutes ago, PapaGoose said:

Help me out with the math on this @gmbhardy… I was only a teacher for 34 years so I may be missing something… 😉. 

 

 

[DirtyDawg]

Just now, PapaGoose said:

I might have been cutting my dad some slack language wise… 😉. 

😁 My Dad grew in Montreal and he was taught lots of interesting 'language' back growing up. Of course being Montreal, his interesting 'language' was in both official languages! 😱

[DirtyDawg]

7 minutes ago, gmbhardy said:

 

Well there you go, obviously the Cruise Line likes @PapaGoose way more than they like you!

 

Criminy, I just tried it and they wanted to charge me $6,565.10 for USD $500.  

 

Edited January 28, 2023 by DirtyDawg

[gmbhardy]

Obviously, lol.

[ShopperfiendTO]

As OP stated in his/her initial post:

 

"I believe all purchases before the cruise are locked in at the rate we had in May 2022 when we booked the cruise."

 

This is generally consistent with our OBC on Azamara, where our USD OBC is locked in at the prevailing rate when we make our first pre-cruise purchase using the OBC.

[PapaGoose]

I’m going to assume the rate they give is based on what it is when you book the cruise.