US dollars in Vancouver

[MATHA531]

I regularly shop and bank in both the U.S. and Canada, and know currency exchange pitfalls.

 

There are whopping exchange charges out there, on both sides of the border. Sometimes it's ATM's which have monster fees; sometimes it's "currency exchange offices" (often in airports) which don't charge anything close to the prevailing rate. Sometimes it's credit cards. (I don't doubt Brian, and neither should anyone else.)

 

Even a "3% premium" isn't the whole story. The "exchange rate" applied by the bank to the credit card transaction may bear no relation to the official spot rate on that day. Bank exchange rates vary for cash vs. traveller's cheques, cheques, credit cards, etc.

 

Few people find it worth the time after their vacation to check official spot rates for the dates of their credit card transactions. Ditto for ATM transactions. I'm obsessive, because for me exchange doesn't happen once a year. More like once a week!

 

Anyone planning on a major foreign purchase should check rates of exchange for different bank cards before they leave home, to find which one is lowest.

 

Anyone who just needs a few bucks shouldn't worry, and shrug over the knowledge they could lose up to 10% - for the convenience of using U.S.$ , or through ATM fees, or through their own bank's exchange rates.

 

Respectfully disagree with one part of your analysis.....mc/visa transactions are governed by the currency rules of mc/visa. The regus, to summarize, basically state that transactions in foreign currency will be exchanged at the prevailing interbank rate on the day the transaction enters the visa/mc system..to that mc/visa add 1% for converting the currency. At least in the USA, many near criminal banks now add an additinal 2% although they have nothing to do with the conversion. In this country, at least, the basic exchange should be the same for every mc/visa transaction. Where it differs is the additioinal fees banks might or might not add on. The large credit card banks here add 2% making a total of 3% (Chase, Citibank, Bank of America, Wachovia) Some banks only pass alog the 1% mc/visa fee (USAA). Two banks I know of, there may be more, eat the 1% fee and give you the exact interbank rate (Capital One and Charles Schwab which BTW also pays you 2% through your Schwab brokerage account for all charges making the net gain for me 5% on foreign charges!).... as I've read, there are no freebies on the part of the Canadian banks....but again it's not the mc/visa exchange rate that's different it's the additional fees they charge.

 

Finally, see my long rambling post that it is no longer a foreign currency exchange fee but a foreign transaction fee and the myriad of problems that these fees present to unsuspecting consumers.

[MATHA531]

HI,

 

No matter what country we are in we use our AMEX Card and have found that it gets us the best exchange rate. This also gives you a detailed listing (inventory) or your expenses when you get home.

 

Gary

 

All Amex cards charge 2.7% fees on foreign currency transactions....is better than the banks that charge 3% but not as good as Capital One and Charles Schwab which indeed charge 0.

[Ephraim]

Question...don't many Canadian banks offer accounts denominated in US$? Wouldn't the fees be less if you had such an account or are these accounts loaded with fees?

 

Sure they do. Same USD$2.50 to use the teller and USD$2.50 to deposit up to USD$1000. Or, I could pay USD$9 to $9.50 a month (fee waives if I leave USD$4000 in the account at all times, no earning interest) and be able to deposit USD$1000 per month in cash with just a 85¢ to 95¢ fee for using the teller. Notice that when your account is in USD they charge all the fees is USD as well. So the same transaction and monthly fee are actually more expensive when the US dollar is at a premium to the Canadian dollar.

 

And in the end, I would still want to convert it to CAD, in any case. The only use I have for USD is generally when I am on holiday in the US. (And as my signature shows, my next holiday is in Europe.)

 

Let's be realistic here... USD for Canadians is almost as useful as CAD is for Americans. And ask yourself the question... if Canadians insisted on using CAD to pay in the US, how would you feel about it?

[kazu]

Sure they do. Same USD$2.50 to use the teller and USD$2.50 to deposit up to USD$1000. Or, I could pay USD$9 to $9.50 a month (fee waives if I leave USD$4000 in the account at all times, no earning interest) and be able to deposit USD$1000 per month in cash with just a 85¢ to 95¢ fee for using the teller. Notice that when your account is in USD they charge all the fees is USD as well. So the same transaction and monthly fee are actually more expensive when the US dollar is at a premium to the Canadian dollar.

 

And in the end, I would still want to convert it to CAD, in any case. The only use I have for USD is generally when I am on holiday in the US. (And as my signature shows, my next holiday is in Europe.)

 

Let's be realistic here... USD for Canadians is almost as useful as CAD is for Americans. And ask yourself the question... if Canadians insisted on using CAD to pay in the US, how would you feel about it?

 

Canadian Banks do offer US $ accounts and there is NO FEE at the majority to deposit to it. You can transfer to your canadian account and convert and no charge if you do it on line. Most US $ accounts are permitted one withdrawal per month without service fees. Likewise, teller transactions are included in a package up to x per month.

 

So I don't know where you are banking, but I think you either better talk to someone there and get a better package or find another bank.

 

These fees being quoted are not common in Canada for personal banking. Business banking is another story and there are packages available for those too.

 

In any case, the op will have no problem with US$, but may not get the exchange rate they would like due to the time constraints these people have in getting to the bank and the currency exchange risk.

[Ephraim]

Since we were talking about commercial transactions, I was talking the fees associated with commercial accounts in Canada. You are paying a business in USD, then it goes into the business' commercial account.

 

I use HSBC and BMO, but just to show a counterpoint, I checked RBC. USD$9 per month unless you leave USD$2,500 in the account earning no interest. USD$0.95 per transaction. Deposits of cash up to USD$1,000 is USD$2.00 if done via the money chute and USD$2.50 if done at the teller. For every USD$2,500 in the account earning no interest, you get one free transaction, saving a whole USD$0.95. CIBC is USD$6 per account and USD$0.90 per transaction, 18¢ per cheque and USD$2.15 per $1,000. (And I have linked their fee pages, in case you need to see them. Would you like me to go through all the big banks?

 

Banks offer USD accounts to individuals for free, but other than the waiter getting a tip in USD, businesses have to deposit to their commercial accounts.

 

Canadian Banks do offer US $ accounts and there is NO FEE at the majority to deposit to it. You can transfer to your canadian account and convert and no charge if you do it on line. Most US $ accounts are permitted one withdrawal per month without service fees. Likewise, teller transactions are included in a package up to x per month.

 

So I don't know where you are banking, but I think you either better talk to someone there and get a better package or find another bank.

 

These fees being quoted are not common in Canada for personal banking. Business banking is another story and there are packages available for those too.

 

In any case, the op will have no problem with US$, but may not get the exchange rate they would like due to the time constraints these people have in getting to the bank and the currency exchange risk.

[TracieABD]

Every vendor, except one, was willing to take USD at a 1:1 exchange. Not a problem!

[MATHA531]

Every vendor, except one, was willing to take USD at a 1:1 exchange. Not a problem!

 

Just for the sake of conversation in an aimiable manner...

 

Here's my problem with this...if you owned a business in the USA and somebody from Canada came into your store, would you take Canadian currency at approximately what its rate is......(CAD right now is running 97¢ US so taking USD at par is in effect a 3% surcharge the same as many banks charge on credit cards).....sp using the same logic, a merchant should take CAD at 93¢ US.

 

My issue, and again it's just for the sake of conversation and understanding people's mentality on this, is that Americans (I am one so I can say it) tend to expect American currency to be accepted everywhere...I have seen people at a bull fight in Madrid trying to get seat cushions and holding out US currency...I once heard a woman in a boutique in Paris when told the price was 800 francs ask the salesperson how much that was in cash (as if 800 francs wasn't cash). It is always something I find embarassing myself. Can anybody tell me what I'm missing here (friendly like).

[TracieABD]

Just for the sake of conversation in an aimiable manner...

 

Here's my problem with this...if you owned a business in the USA and somebody from Canada came into your store, would you take Canadian currency at approximately what its rate is......(CAD right now is running 97¢ US so taking USD at par is in effect a 3% surcharge the same as many banks charge on credit cards).....sp using the same logic, a merchant should take CAD at 93¢ US.

 

My issue, and again it's just for the sake of conversation and understanding people's mentality on this, is that Americans (I am one so I can say it) tend to expect American currency to be accepted everywhere...I have seen people at a bull fight in Madrid trying to get seat cushions and holding out US currency...I once heard a woman in a boutique in Paris when told the price was 800 francs ask the salesperson how much that was in cash (as if 800 francs wasn't cash). It is always something I find embarassing myself. Can anybody tell me what I'm missing here (friendly like).

My husband and I had this same conversation. We were amazed at how kindly our "neighbors to the North" would accept our currency, knowing that we would not/could not reciprocate in the US. Hmmmmm....

 

I lived in Europe for 4 years. Your examples of the bullfight and the boutique are classic examples of what my mother used to call "clueless Americans". And before anyone flames me, I am American (and very proud, I might add)-- I am just appalled sometimes at our behavior!

[kazu]

Just for the sake of conversation in an aimiable manner...

 

Here's my problem with this...if you owned a business in the USA and somebody from Canada came into your store, would you take Canadian currency at approximately what its rate is......(CAD right now is running 97¢ US so taking USD at par is in effect a 3% surcharge the same as many banks charge on credit cards).....sp using the same logic, a merchant should take CAD at 93¢ US.

 

My issue, and again it's just for the sake of conversation and understanding people's mentality on this, is that Americans (I am one so I can say it) tend to expect American currency to be accepted everywhere...I have seen people at a bull fight in Madrid trying to get seat cushions and holding out US currency...I once heard a woman in a boutique in Paris when told the price was 800 francs ask the salesperson how much that was in cash (as if 800 francs wasn't cash). It is always something I find embarassing myself. Can anybody tell me what I'm missing here (friendly like).

 

You're not missing anything. If we go to Europe, we take euros, if we go to the U.S. we take American dollars. It's called honouring the country you are visiting with the currency they use. It makes it a lot easier for everyone including the people you are visiting. I would never dream of asking someone in Madrid to accept my loonie!:)

 

 

Sorry if I missed the commerical account thing, but as an aside, I would leave the $2,500 in a U.S. $ account. Interest rates are nothing anyways so when you weigh the transaction fees vs the interest rate I think you come out ahead.

 

I'm just grateful we can go to these glorious countries and cities while we are healthy and able to do it. :) I prefer to take their currency with me. Easier for everyone.:)

[Ephraim]

Sorry if I missed the commerical account thing, but as an aside, I would leave the $2,500 in a U.S. $ account. Interest rates are nothing anyways so when you weigh the transaction fees vs the interest rate I think you come out ahead.

 

I would too, considering that at 1% interest $4,000 represents about $3.33 in interest a month and less than the $6 to $9 a month charge that most banks charge.

 

But considering these charges, it's understandable why so many businesses discount US cash and people paying in USD should now have a better idea of what this issue looks like from the standpoint of a Canadian merchant.

[Ephraim]

Just for the sake of conversation in an aimiable manner...

 

Here's my problem with this...if you owned a business in the USA and somebody from Canada came into your store, would you take Canadian currency at approximately what its rate is......(CAD right now is running 97¢ US so taking USD at par is in effect a 3% surcharge the same as many banks charge on credit cards).....sp using the same logic, a merchant should take CAD at 93¢ US.

 

My issue, and again it's just for the sake of conversation and understanding people's mentality on this, is that Americans (I am one so I can say it) tend to expect American currency to be accepted everywhere...I have seen people at a bull fight in Madrid trying to get seat cushions and holding out US currency...I once heard a woman in a boutique in Paris when told the price was 800 francs ask the salesperson how much that was in cash (as if 800 francs wasn't cash). It is always something I find embarrassing myself. Can anybody tell me what I'm missing here (friendly like).

 

There are always some exceptions to the rule. I have seen merchants who have expressed their anger when presented with USD in foreign countries. Sometimes to the tourist and sometimes in a foreign language behind the tourist's back. The common use of credit cards (and ATM cards) has certainly limited those unfortunate interactions, but until people travel enough to realize the faux pas, it will continue to happen and reinforce the ugly traveller stereotype.

 

Personally, I wish it was easier for me to bank in foreign currencies.

[MisterBill99]

Excuse me - I have no idea who you are, but I think I know what my card charged me when I've made foreign purchases.

 

Perhaps not all Citi cards charge the same fees, and my card certainly did as you stated last year - but I recieved a notice earlier this year that the terms for Foreign transactions had changed, and sure enough after placing an order with a British company I was hit with the charge despite the fact that the transaction was in US Dollars.

I believe the "nonsense" comment was in response to your saying that there were Citi cards that charged $25 for a foreign transaction charge. No one is disputing the 3% charge, that is standard with almost everyone (Schwab Visa execpted).

[luvcruisn']

Personally, and I may be in the minority, I think it is almost insulting to use US money anywhere but in the USA (or Puerto Rico or Guam or the US Virgin Islands or Liberia).

 

Interestingly enough, though, even when I use Canadian currency in Canada, oftentimes I get many US coins back in the change...it's almost as if US coins and Canadian coins, at least in Canada, are indistinguishable.

 

Where I work in Vancouver, right now the US dollar is accepted at par with the Canadian dollar. We do not mind taking US dollars, but I tell customers that the exchange rate is better at a bank.

 

There are many American coins mixed in with our Canadian coins, as there has never been any money returned to the customer using American coins.

[MATHA531]

Where I work in Vancouver' date=' right now the US dollar is accepted at par with the Canadian dollar. We do not mind taking US dollars, but I tell customers that the exchange rate is better at a bank.

 

There are many American coins mixed in with our Canadian coins, as there has never been any money returned to the customer using American coins.[/quote']

 

 

Hi..question for you out of curiosity are Canadian coins still almost identical to American coins...pennies don't really matter too much...but are nickels dimes and quarters all basically the same size in the two currencies....I remember one time I was in Buffalo using a public phones (do you remember those relics? Haven't seen one in close to a decade now that every 10 year old kid walks around with a mobile phone) and there were signs saying Canadian coins would be rejected...seemed odd the phones could tell the difference!

[luvcruisn']

Hi..question for you out of curiosity are Canadian coins still almost identical to American coins...pennies don't really matter too much...but are nickels dimes and quarters all basically the same size in the two currencies.

 

Yes, nickels, dimes, and quarters are the same size. Our lockers at our swimming pools in Vancouver don't like the American quarters, so we try not to give those back to the customer in their change. There must be something about the quarters that the locker mechanism senses is different, but I don't know what it is. Possibly the thickness is different.

[luvcruisn']

I remember one time I was in Buffalo using a public phones (do you remember those relics? Haven't seen one in close to a decade now that every 10 year old kid walks around with a mobile phone) and there were signs saying Canadian coins would be rejected...seemed odd the phones could tell the difference!

 

We had 4 public phones in our lobby last summer, then the phone company came and took 3 of them away. This year they took the last one away. We now supply the customers with a courtesy phone, but they can't use it for long distance. They have to go outside and find a public phone - there are still a few around.

[luvcruisn']

Sorry, double post.

[bepsf]

All Amex cards charge 2.7% fees on foreign currency transactions....is better than the banks that charge 3% but not as good as Capital One and Charles Schwab which indeed charge 0.

 

...unless the CC company has sent a letter notifying a cardholder of a change in terms - and I don't know about you, but I have a tough enough time keeping track of the rest of my life that I can't remember which card has what new term and which doesn't.

 

Yes, the terms at outset with many creditcard companies do include a 3% foreign transaction fee - but they can and do change terms at-will: Interest rates, credit limits, cash advance fees, bonus-points terms and foreign transaction fees are amongst the changes I've seen over the past two years.

 

I'd encourage anyone to check and see what their current terms are - particularly for foreign purchases - before going abroad. Folks might be in for some surprises.

[fann1sh]

Agree, Brian. I was going to type: "Good advice"....but since I posted something similar myself...

 

Glad to see you back here. Missed your posts on this board lately.

[TheSecondSister]

Canada does accept US Dollars but they give the change in Canadian. When I am going to Canada I ususally do exchange money before I leave home so that I can pay in Canadian.

 

And one other thing - if the Canadian currency you receive is in coin (you'll end up with some coin, because in addition to pennies, nickels, dimes & quarters, the Canadians use $1 and $2 coins) you won't be able to exchange the coin for US dollars at the bank when you get home - the banks won't take it. Or at least they don't here in Seattle.

 

I usually just leave the coin as an extra tip for taking my USD :)

[soldham]

We always use the currency of the country as our primary cash but let's face it - lot's of places PREFER US greenbacks because thier money is so unstable. We saw this extensively in Turkey, Bulgaria, and the Ukraine.

 

So - we always have some US $1.00 bills handy..

 

(This if course is not applicable to Canada whose economy right now is more stable than the US's. And we used to love it when US bills were used - back when the rate was more like .65/1.00. Now it is more of an inconvenience.)

[jagsfan]

I remember when vending machines in Maine would take either CAD or USD...coins, that is.

This summer I noticed notices that they would reject CAD...seems like a lot of trouble

to have re-engineered the machines to feel the difference. We always got Canadian coins

mixed with US in change there.

I was thinking of getting what AAA calls tip packs in Canadian....$100 for taxi in Quebec City and lunch or souvenirs. Has anyone done that lately or would my SunTrust Bank give

me a better rate? I have a Capital One cc so any purchases with plastic will only cost

the exchange rate of the day, but don't know if Quebec cabs take CC's.

[kelmac]

We have a "stash" of Canadian and Mexican currency in our travel box here at home. We always leave these two countries with extra currency, as we know we will return again some day.

Always felt it was a bit disrespectful to offer a person American dollars when we are a guest in their country.

 

ATMs give a great rate and they are located everywhere!

 

Enjoy!

Kel:)