Should you pay in Local Currency or Canadian Dollars?

When you have a choice between the local currency and your currency, it is always better to pay in the local currency. This way, you'll get a better exchange rate for your purchase or withdrawal at the counter or exchange bureau.

What is a cash advance when withdrawing money from a Credit Card?

Unlike purchases of goods and services, when you withdraw cash from an ATM, the issuer advances you the money. Unlike credit card purchases, interest on cash advances is charged immediately.

What Is a Currency Conversion Fee?

When you make a transaction, your issuer will use an exchange rate to convert your foreign currency purchase into Canadian dollars. Then, most institutions will add a 2.5% conversion fee to this exchange rate. To get the best exchange rate, avoid these conversion fees.

Is it worth avoiding conversion fees on Exchange Rates?

Exchange rate conversion fees are 2.5% on most cards, so for every $1,000, you'll pay a $25 fee. For small amounts, the amount is negligible.

Where to get the best exchange rate for travel?

By paying for your purchases with a no-conversion-fee credit card, you'll get the best exchange rate for your trip.

Where can I withdraw foreign currency at the best exchange rate?

With a prepaid credit card, you can minimize transaction costs and obtain cash at the best exchange rate.

Where is the best place to exchange our money?

For currency exchanges, exchange rates are similar from one institution to another. You'll need to shop around for an exchange bureau that stands out for its rates and doesn't charge commission.

When is the best time to exchange currency?

When your trip is booked, do a little research on the rate trend. If the trend shows that the rate is falling against the Canadian dollar, go for it! Otherwise, wait until closer to your trip.

How much cash should I have when I travel?

To avoid theft and loss, it is suggested that you have no more than $300 in cash. This way, you can maximize your credit card purchases without conversion fees and only use cash when credit cards are not accepted.

What are the fees when withdrawing money abroad?

There are conversion and transaction fees from your bank and ATM withdrawal fees when travelling.

Should we exchange our money before leaving on a trip or while there?

It all depends on the amount, but exchange rates are generally similar. However, less common currencies are generally exchanged at a better rate locally than in Canada. Common currencies include the US dollar, Euro, British pound, yen and yuan.

Should we use our credit card or debit card to withdraw money while travelling?

In general, a withdrawal with a prepaid credit card with no conversion fees will give you the best exchange rate when travelling with the lowest fees.

How can I save on travel withdrawal fees?

With a no-conversion-fee credit card, you can get the best exchange rate on your purchases. Then, a prepaid credit card or a banking package with minimal transaction fees will be the winning combination for withdrawing money while traveling.