Should I 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 office.

What is a cash advance when withdrawing money from a credit card?

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

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 conversion fee of 2.5% to this exchange rate. To get the best exchange rate, avoid these conversion charges.

Is it worth it to avoid conversion fees on exchange rates?

The exchange rate conversion fee is 2.5% on most cards, so for every $1,000 spent, you will pay a $25 fee. For small amounts, the fee is negligible.

Where to get the best exchange rate for travel?

By paying for your purchases with a credit card without conversion fees, you will get the best exchange rate for your trip.

Where to withdraw foreign currency at the best exchange rate?

With a prepaid credit card, you can minimize transaction fees and get 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 will need to shop around for a currency exchange that has a difference in rates and does not charge a commission.

When is the best time to exchange currency?

When your trip is booked, do a little research on the rate trends. If the trends show 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 the credit card is 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 will depend on the amount, but generally, the exchange rates are similar. However, less common currencies are generally exchanged at a better rate locally than in Canada. The common currencies are the US dollar, the euro, the British pound, the yen, and the 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 fee will give you the best exchange rate when travelling.

How can I save on travel withdrawal fees?

With a credit card without conversion fees, 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 travelling.