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The Best Way to Exchange Currency in Canada

Posted by at 4:49 AM Read our previous post

Before You Go
1. Proceed to your own bank during business hours when the main lobby is open.
2. Inquire with the teller or appropriate official if Canadian funds are available for exchange. If you do not live near the border or in a big city, there may be none available. If there are funds available, ask about the exchange rate.
3. Exchange at least a small amount of American money, so you will have some Canadian cash when you cross the border. Chances are your bank will offer you a good rate, especially if you a regular customer, so feel free to exchange larger amounts.
In Canada
4. Prepay for your room or campsite before you go with a credit card. This action gives you a good exchange rate, a guaranteed place to stay and some recourse if the business tries to add extra surcharges.
5. Use your credit card to make large purchases. Even with the 1 percent to 3 percent charge per transaction a credit card is the safest and cheapest way to go.
6. Use your debit card to obtain cash from a ATM machine. Inquire at your American banking institution to see if there are any associate branches in Canada; if so, then you might want to use one of these locations and perhaps save on a transaction fee. Changing your money at an ATM should add on a 1 to 3 percent charge and usually involves a $3 to $5 transaction fee.
7. Make as few ATM cash withdrawals as possible. Take out money in larger sums to avoid making numerous small withdrawals, for even though an ATM offers a consistent exchange rate, there is also the fee for the transaction. Although relatively small, these can add up if they are frequently made.
8. Exchange American money directly at a bank. Money can be converted directly at a Canadian bank for a fair rate, but both Fodor's and Frommer's recommend using an ATM. Also note that most small (any many large) businesses will accept American cash, but will add a surcharge. Also avoid changing money at exchange bureaus and hotels, for they are likely to offer a higher rate as well.
9. Shop around for credit cards and debit cards that offer the best rates on foreign transactions. For instance, Fodor's reports that Capitol One cards can be used for foreign withdrawals without a transaction fee.

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