The Best Currency Exchange Options for Canadian Travellers
If you’re a Canadian heading abroad. the way you pay for things on your trip can quietly cost you more than you realize. This guide is written specifically for Canadians, so every option below assumes you’re starting with Canadian dollars and a Canadian bank account.
I’ve been travelling for years, and I’ve made just about every currency exchange mistake you can make. The good news is that it’s never been easier to avoid fees. These days, I almost never pay a foreign transaction fee, and with the right cards in your wallet, you won’t either.
Quick answer: The best way for Canadians to exchange currency is to pay with a no foreign transaction fee credit card and get cash from a no-FX prepaid card like Wealthsimple, EQ Bank or Wise. Always pay in the local currency to avoid dynamic currency conversion.
How currency exchange works for Canadians
Every currency has a value relative to the Canadian dollar, and that number moves every day. The rate you see on Google or XE is called the mid-market rate. Think of it as the “real” rate, before anyone takes their cut.
Here’s the catch: almost nobody gives you the mid-market rate. Banks, exchange counters and card issuers make money in two ways:
- A markup on the rate. They quietly give you a worse rate than the mid-market rate and pocket the difference (this is called the spread).
- A foreign transaction fee. Most Canadian credit cards add about 2.5% on top of the exchange rate whenever you pay in a currency other than Canadian dollars.
That 2.5% doesn’t sound like much, but it adds up fast. For instance, spending $4,000 abroad means you’re paying an extra $100. That’s a nice dinner, or a day pass at a theme park. Your goal is simple: get as close to the real exchange rate as possible, with as few fees as possible.
Best no foreign transaction fee prepaid cards in Canada
If you only take one thing away from this article, make it this: get a no-FX prepaid card before your next trip. They’re free, they don’t require a credit check, and they’re the easiest way to get cash abroad without those extra fees.
These cards work like a debit card. You load money from your bank account, then spend it anywhere the card is accepted or pull cash from an ATM. When you pay in a foreign currency, you get the Visa or Mastercard exchange rate with no 2.5% fee stacked on top. Here are the best options:
| Card | Network | FX fee | Foreign ATM fees | Best for |
|---|---|---|---|---|
| Wealthsimple prepaid card | Visa (switching from Mastercard) | None | Wealthsimple reimburses ATM operator fees worldwide | Getting cash abroad |
| EQ Bank Card | Mastercard | None | No EQ fee, but foreign ATM operator fees aren’t reimbursed | Spending abroad + earning interest |
| Wise card | Visa | No FX fee; small conversion fee unless you already hold the currency | $100 CAD free per month, then fees apply | Holding multiple currencies |
Wealthsimple
This is the card I’d hand a friend for cash withdrawals. Wealthsimple doesn’t charge a foreign exchange fee, and it reimburses fees charged by ATM operators anywhere in the world, with no cap on how many withdrawals it’ll cover. Reimbursements typically land within about four business days.
Wealthsimple is moving its prepaid card from Mastercard to Visa, rolling it out in phases starting in fall 2026. The no-FX and ATM reimbursement perks carry over, but your card number will change, so make sure you’ve switched over before you fly.
EQ Bank
The EQ Bank Card is a prepaid Mastercard linked to your EQ Bank account, and it’s a great everyday card that also happens to be excellent for travel. EQ Bank doesn’t charge a foreign currency conversion fee, so you just pay Mastercard’s exchange rate. Your balance also earns interest until you spend it.
At home, EQ reimburses ATM fees anywhere in Canada. Abroad, EQ won’t charge you to withdraw, but it won’t reimburse the fee the foreign ATM operator charges. Also note the daily ATM limit is $500, which matters if you’re somewhere cash-heavy.
Wise
Wise is the one to get if you’re hopping between countries or want to hold foreign currency ahead of time. You can hold 40+ currencies in your Wise account and convert at the mid-market rate whenever the rate looks good. If you already hold the currency you’re spending, there’s no fee at all. If you don’t, Wise converts it for you with a small, transparent fee (starting from 0.19%, depending on the currency).
The trade-off is ATMs. Wise’s Canadian pricing currently gives you 100 CAD in free withdrawals per month; after that it’s 2.69 CAD plus 2.69% of the amount over 100 CAD. You also can’t use the Wise card at ATMs in Canada.
Wise appeals to people who want to pre-purchase currencies at a reasonable rate.
Best no foreign transaction fee credit cards in Canada
For most of your actual spending on a trip (hotels, restaurants, attractions, car rentals), a no-FX credit card is the way to go. You skip the 2.5% fee, you still earn points or cash back, and many of them include travel insurance, which a prepaid card won’t.
There aren’t a ton of these in Canada, but the main ones to know are:
- Scotiabank Passport Visa Infinite – a travel card with lounge passes and solid insurance.
- Scotiabank Gold American Express – strong earn rates with no FX fee. Just remember Amex isn’t accepted everywhere abroad, so carry a Visa or Mastercard as backup.
- Wealthsimple Visa Infinite – has a $240 annual fee and pairs nicely with the Wealthsimple prepaid card.
- Home Trust Preferred Visa – no annual fee and no FX fee, which makes it a great starter or backup card.
For a full breakdown with current welcome bonuses and annual fees, check out my list of the best no foreign transaction fee credit cards in Canada.
What is dynamic currency conversion (and why you should avoid it)?
Here’s the sneaky one that catches even experienced travellers. You’re paying at a shop in Paris, and the card machine asks: “Pay in EUR or CAD?” Paying in Canadian dollars feels safer because you know exactly what you’re spending. Don’t do it.
That offer is called dynamic currency conversion (DCC). When you choose CAD, the merchant’s payment provider does the conversion instead of Visa or Mastercard, and they set their own exchange rate. That rate is almost always padded, often by several percent. Worse, it can wipe out the savings from your no-FX card, because the conversion has already happened before your card ever sees the transaction.
You’ll run into DCC at:
- Card terminals in shops, restaurants and hotels
- ATMs abroad, which may offer to “lock in” your rate in CAD
- Duty free checkout counters
- Online checkouts on foreign websites and booking platforms
Always pay in the local currency. In Paris, choose euros. At an ATM in Tokyo, decline the conversion and take yen. If a cashier converts it without asking, you can politely ask them to rerun it in the local currency.
Using your Canadian debit card at foreign ATMs
Your everyday bank card will work at most ATMs abroad, and it’s a fine backup. It’s just not cheap. Most Canadian banks add a foreign currency conversion fee (often around 2.5% – 3.5%) on top of the network exchange rate, plus a flat fee per withdrawal, plus whatever the local ATM operator charges.
If you do use your regular debit card, a few tips:
- Withdraw larger amounts less often, so flat fees hit you fewer times.
- Check whether your bank belongs to an alliance with partner banks abroad that waive some fees.
- Use the Visa or Mastercard ATM locator before you go so you’re not hunting for a machine.
With free no-FX prepaid cards available, there’s not much reason to make your bank card your main cash source anymore.
Exchanging money at your bank or a currency exchange office
Sometimes you just want cash in your pocket before you land, and that’s totally fair. Your bank and currency exchange offices are the two places to get it.
Your bank is convenient, and the rates for US dollars are usually reasonable since it’s such a common swap. Other currencies are a different story. Most branches only keep US dollars on hand, so anything else may need to be ordered a few days ahead, and the markup can be steep. I once got quoted a rate for Brazilian reais that was 12% worse than the official rate. I swapped $50 to cover my taxi and used an ATM when I landed instead.
Foreign exchange offices usually carry just about every currency, and some offer better rates than the banks. The trick is to compare. Look up the mid-market rate on your phone and check how far off the posted rate is. If it’s within a couple of percent, that’s decent. Airport counters are usually the worst offenders, so avoid them unless you’re stuck.
Converting large amounts: online services and Norbert’s Gambit
If you’re a snowbird, buying property abroad, or sending money to family in another country, you’re in a different league. Shaving even 1% off a $20,000 conversion is a ton of money.
Online exchange companies like Wise, OFX and Knightsbridge FX usually beat the banks by a wide margin. You send Canadian dollars, they convert at a much tighter rate, and the money lands in a bank account in the other currency. The catch is that you need an account to receive the funds, so this works best for transfers, not pocket cash. Generally, the bigger the amount, the better the rate.
Norbert’s Gambit is the go-to trick for converting between Canadian and US dollars at close to the real exchange rate. You buy a security that trades in both CAD and USD (such as the Global X U.S. Dollar Currency ETF, DLR) through your discount brokerage, ask your brokerage to journal it to the US side, then sell it in USD. Your only costs are trading commissions (if any) and the small gap between the bid and ask prices. It takes a few days, so I’d only bother if you’re converting $5,000 or more. My Norbert’s Gambit guide walks you through it step by step.
Final Thoughts
You don’t need to overthink this. If you were my friend asking what to pack in your wallet, here’s what I’d tell you:
- A no-FX credit card for most purchases, so you earn rewards and get travel insurance.
- A no-FX prepaid card for cash. Wealthsimple is my pick for ATMs, with EQ Bank and Wise as great alternatives.
- A small amount of local cash from home, just enough to get you out of the airport.
- Always pay in the local currency. Say no to dynamic currency conversion every single time.
Set this up once and you’ll stop leaving money on the table every time you travel. That’s more cash for the fun stuff.
Currency exchange FAQ for Canadians
What is the cheapest way for Canadians to exchange currency?
For travel spending, it’s using a no foreign transaction fee credit card or a no-FX prepaid card, since you get the Visa or Mastercard exchange rate with no 2.5% fee. For converting large amounts between CAD and USD, Norbert’s Gambit is usually the cheapest option.
Should I exchange money before I leave Canada?
Only a small amount, enough for a taxi or a snack when you land. Rates at banks and exchange counters are usually worse than what you’ll get with a no-FX card abroad.
Is it better to pay in Canadian dollars or the local currency abroad?
Always pay in the local currency. Choosing Canadian dollars triggers dynamic currency conversion, which almost always comes with a worse exchange rate.
Do prepaid cards charge foreign transaction fees?
Many do, but the Wealthsimple prepaid card and the EQ Bank Card don’t. Wise doesn’t charge a foreign transaction fee, but there’s a small conversion fee if you don’t already hold the currency.
Can I use my credit card at an ATM abroad?
You can, but you shouldn’t. It’s treated as a cash advance, so you’ll pay a fee plus interest from the day you withdraw. Use a no-FX prepaid card for cash instead.
When we travel, we use our credit card whenever possible. We like it because we don’t encourage ourselves to spend all the money we’ve converted. We made it two weeks in Iceland without having to use cash once. We have a travel card, but I think we still got charged for the exchange. I’m interested in that Amazon card now…
Emily, I also use credit a lot when travelling so as you can imagine having a forex free card has saved me quite a bit of money over the years. Definitely get the Amazon one for foreign currency purchases and use your regular travel card for benefits/rewards. Oddly enough I’m considering Iceland this year.
Great post Barry. I will definitely check out Amazon card as those forex fees do add up.
Virna, yes definitely pick it up!
We typically use credit cards when we travel but also carry some foreign cash.
Tawcan, having some cash is a must hence why I’ll use ATMs when i need it.
So technically speaking, the Amazon credit card with no foreign exchange fee is actually the cheapest method of payment while travelling, as you pay only the spot rate of the day. When you use your bank card at an ATM you still have to pay the 1-2% fee in addition to the spot rate.
DanaDavid, technically yes assuming the spot rate is indeed charged. With ATMs is usually near the spot rate but some do charge that extra 1-2%. Of course cash is needed sometimes but I do try to charge to credit when I can.
The Credit Card is typically the best. And do not under-estimate the ability to buy things with the good ol’ USD. Many merchants will take it, but often their exchange rate is a real rip-off.
No Nonsense Landlord, yes generally speaking I prefer to charge most things since credit cards also give you price protection.
My advice (for what it’s worth) is to use a credit card for hotel and restaurant payments, i.e., large payments, but take cash as ‘pocket money’. Use a debit card at the ATM but, definitely, not a credit card. It’s just a matter of planning.
It’s like someone who uses a credit card to buy groceries … if you don’t have it, don’t use it.
Sorry to spoil your vacation.
B. Causeiknow,
That’s a fair point, many people can get carried away with using credit. Using cash to make payments will encourage us to spend less since we’ll physically see the money disappearing.
I’ve been using Amazon Visa for the last 6 months as my go to foreign transaction credit card. Exchange fees do add up as I recently received a letter from other credit card indicating they were crediting my M/C 600 dollars as they had made an error on their pre-recorded call center messages indicating their was no conversion fees for foreign transactions, but going forward they would charge me 2.5 percent.
David,
Nice of them to honour their mistake. I’ve had bank employees tell me information in person that I knew was incorrect, had I been someone else I may have ended up paying a ton of extra charges and there would be no record to back up my claim.
If you want to exchange a larger amount of money either use a discount broker or use some called Norbert’s gambit .I recently used Norbert’s gambit in my investment account to exchange $5,000 with a .5 % cost.
Brin,
Yes brokers are probably best if you need to change a massive amount. Norbert’s gambit is great for investing purposes but I suppose you could do the Gambit and then withdraw the money if you have the time.
Can’t emphasize not exchanging at a bank enough, some will charge a delivery fee in addition to the horrible exchange rate for any currency they don’t have in stock, the XE app is a very handy one to have at all times. I vote for the Amazon Visa as the most convenient way to pay when travelling as you’re not carrying around a large amount of cash. ATM’s are second but the drawback is carrying large amounts of cash,as every withdrawal will cost you so you may want to withdraw a large amount depending on your length of stay. That also means paying attention to your withdrawal limit as it can be low “for your protection” and that will mean multiple trips to the ATM depending on where you’re travelling. The best option would be to use the money exchangers that can be found in many countries in the market areas or on busy streets, I find them to have rates equal to or better than the xe.com exchange rates and this will add up to significant savings and knock on wood, I haven’t had a problem using so far.
Smartwatch,
Maxing out your ATM withdrawal limit is ideal but yes be sure to head back to your hotel to drop off your excess cash. I have also found some foreign exchange offices in some countries to be quite competitive but this was only in Jordan and Egypt.
Great comments people. Maybe someone can answer my question. When I travel to the US I usually buy some US cash from a local , at home, exchange outlet ( leaves the banks in the dust ) and head south with my credit cards and debit card. When I need US cash I go to Walmart , or some other large retail chain , buy some small needed item , and on paying , us my debit card to get cash back. The cash back is a ” purchase ” and no fee is charged. The rate does not seem unreasonable and it’s very convenient.
My question is , is it possible to do this type of transaction in other , say European countries ?
Local traveller,
In my own experience I’ve never seen cash back options in Europe and Asia. I suppose it would work but I wonder how much Wal-Mart or any merchant changes on their spreads.
As an emergency protection, as well as using some foreign cash for arrival and ATMs and credit cards, I usually take some cdn travellers cheques. At my bank there is no charge (there is for US, plus exchange), and I don’t usually use them, and can cash them back on return at zero cost.
David,
If you can cash them back at zero cost that’s a pretty solid idea.
It’s worth noting that you can’t be sure your ATM card will work in foreign countries. Our CIBC cards worked consistently in Guatemala in 2013 but our friends TD cards didn’t so we gave them money and they paid us back later. Many places didn’t take Visa and some of the banks were for customers only and would not allow cash advances against a Visa card so it would have been a hassle if we had not been successful. Most of the ATMs there had a really small daily max withdrawal limit so our bank fees really added up. Maybe it’s better now.
In Puerto Escondido, Oaxaca Mexico the HSBC has many times, over a number of years, taken the funds from the Cdn bank account but not advanced the funds at the machine. It happened twice to me and several times to another CIBC card user. It takes at least two months to get the CIBC to put the money back -a big problem if you don’t have a decent cash reserve and expensive if on overdraft. In 2012 the Bancomer ATM would not accept a CIBC card but it had for the several previous years and went back to accepting them in 2013. Bancomer said it had been an agreement issue between the banks and the CIBC said it was a problem with the foreign bank, not them. This month I tried to help someone with a Credit Union card from Winnipeg and another with a TD card and Bancomer would not accept either but minutes later the HSBC ATM on the next steeet did. If you’re in an area with poor phone / Internet connectivity the ATMs may not accept your foreign card as the transaction won’t go through so patience is required.
Thanks for the tip about the Chase Amazon card.
Laurie,
Excellent points, odd that your friends TD cards didn’t work. Assuming they had a 4 digit pin and they used an ATM on the Plus network it should have worked. Oddly enough I have always found HSBC to be the most reliable ATM. I tend to carry some emergency Canadian cash with me. If I get into a jam I just change it at a foreign exchange office.
Barrie, that isn’t odd.
Happens REALLY often.
Yikes that’s unfortunate. I’ve only come across minor issues when using partner ATMs. I did lose my debit card in Buenos Aires, that was a huge pain.
I agree about HSBC. I bank with TD and my banking plan allows for withdrawals without an ATM surcharge. I use the Visa ATM locator in advance to find out if there are ATMs in the Plus network in the airport and near where I will be. I also figure out how I am getting from the airport to determine if I will need cash immediately or not. Eg. metro or train tickets can be bought with credit card. Depending on the country, if credit cards are widely accepted I take out only $50 or $100. Watch out for ATM surcharges from the local bank though, they should be stated on the machine before you finalize the transaction. In Euro zone I take out more and keep it from trip to trip, but in countries with their own currency I use it up or donate to charity in the airport. For credit card I use the Scotia Passport Visa which doesn’t charge the 2.5%.
Hey Deborah,
Yes, I also took advantage of the no foreign ATM fees with my TD all-inclusive account. Before no foreign transaction credit cards were a thing, I almost always used debit. The Scotiabank Passport Visa Infinite card is excellent since it has so many great perks.
When going to a country regularly worth setting up an account with a local bank in that country.
In parts of I convert $cdn to Euro for a Euro1.50 fee regardless of amount. Plus local merchants offer amazing discounts when paying with cash.
The trade off is the monthly acct fees but all in it is worth it. I have heard of similar options for snow birds that go to Florida – just keep the transaction under the mandatory reporting amount.
For credit card lovers get one in the local currency (US$ or Euro) and keep an acct in those currency and top up when currency exchange is more favorable – there are many no fee cards for this.
John,
Yes if you’re making regular visits it might be totally worth setting up an account that holds the foreign currency.
I recently converted some cash at foreign currency shop called Calforex. Funny thing is that I originally went to the bank and they were the ones that told me Id be able to get a better rate by going there. I’m all for saving money so I went there and got a slightly better rate
Dan,
Yeah banks charge some crazy spreads and they usually need to order the currency. ATMs and credit are my preferred choices.
I find this article is full of misleading information. Way too simplistic.
Everything discussed MIGHT be correct, or could easily be wrong, it all depends.
For instance, please tell me one Canadian bank that only takes a 1 percent spread off the interbank rate for foreign currency withdrawals. And exchange houses I have checked charge way more for converting currency than one of my banks does. Traveller’s cheques can be commission free, depending. ATMs can have major problems from running out of cash, not working with your card (very common) and fraud.
The only thing I agree is correct, is about the amazon ca credit card!
Everyone’s personal experience is different so it’s important to do your due diligence to figure out what the best option is for you.
Sure ATMs can give you problems but they also offer incredible convenience. There’s no way to predict in advance. Some traveller’s cheques may offer no fees but they still aren’t widely accepted.
In the end travellers should just pick the option that they are most comfortable with.
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I am interested in getting money back when I make a purchase at Wal-Mart
is there any chagprg for this
how well does work
Hi Judy,
Any cash-back credit card will allow you to earn money back while shopping at Wal-Mart. Some cards have annual fees while others don’t.
Thanks for this post! Picked up the Fido MasterCard after reviewing your other post featuring the credit card options!
I am having trouble cashing my Visa travellers cheques which were bought 13 years ago, in Euros, from CAA. The CIBC will not cash them and CAA says they are no longer with Visa, and they are too old to cash.
I’m leaving for the UK soon and I was struggling with whether to change money in Canada or take it out of the ATM. The Canadian dollar has dropped so much that it’s tougher now to spend in the UK! Every bit helps. I’ve decided to withdraw once I arrive as I don’t believe I am charged an ATM fee due to the card I have presently (TD Inclusive Chequings Account)!
Hi Lisa,
With the TD All-inclusive account, you won’t be charged the one time fee from TD when using one of their partner banks.
https://www.visa.com/atmlocator/
That being said, as of May 1st, the foreign exchange fee when using ATMs abroad are going up to 3.5% (was 2.5%)
Hi Barry, I also have the TD all inclusive account andTD first class travel visa and will be traveling to Chile this month, I wonder if you think it’s best to use visa in foreign country, or get cash from ATM in foreign country, or get cash in home country and bring abroad? thanks
Hi Ran,
TD Has announced that they’re upping their fee to 3.5% (up from 2.5%) when using an ATM in a foreign country as of May 1st. Technically speaking, the best deal is to use a credit card with no foreign transaction fees.
https://www.moneywehave.com/canadian-credit-cards-without-foreign-transaction-fees/
That being said, of course you’ll still need cash. In this case, I would still use local ATMs as that 3.5% fee is likely still lower than using an exchange office at home.
[…] currency to buy before you leave, I would have told you not to bother. Fact is, when it comes to currency exchange, withdrawing from a local ATM in the country you are travelling to will give you a better rate than […]
[…] you plan on using cash primarily throughout your trip, research the best currency exchange rates at your disposal. While banks often provide the cheapest rates, you may be unable to find a branch […]
Hello Barry,
(1) How much is the typical spread from the midmaket rate for ATM withdrawals? You indicate 2.5% to 3.5% from the “spot rate” in this article but 1% to 2% in your Huff Post article. (2) Also, does the spot rate mean the interbank rate, the midmarket rate or something else? (3) How is the exchange rate actually determined for a withdrawal at a foreign ATM using a typical Canadian debit card such as Tangerine (NOT branded Visa or Mastercard/Maestro)? Does Cirrus or Plus provide a reference exchange rate for the card issuing bank to use? Let’s assume the cardholder does not use dynamic currency conversion (DCC).
Hi Guillaume,
WIth ATMs it depends on the network. Mastercard (Cirrus) typically has a better rate compared to Visa (PLUS), but both are very close to the midmarket rate. The reason why I list 2.5% – 3.5% in my article is because fees have slowly crept up over the years. TD now charges 3% while some other banks (not in Canada) charge 3.5%.
So the rate would be whatever the rate is for Visa or Mastercard + what your bank charges you to withdraw cash from a foreign ATM + any one time fees that ATM charges.
https://www.mastercard.us/en-us/consumers/get-support/convert-currency.html
https://usa.visa.com/support/consumer/travel-support/exchange-rate-calculator.html/
Thank you for your quick reply. Based on your answer, I infer that banks issuing debit cards NOT branded Visa or Mastercard/Maestro still use Visa and Mastercard exchange rates as base rates for their clients’ withdrawals at foreign ATMs because such transactions are processed through Plus or Cirrus. The banks then add their own undisclosed spread. Did I understand correctly?
All the banks disclose the additional fee. It’s never hidden (as far as I know)
I will hang your photo in my living room if you can find Tangerine’s public disclosure of its currency conversion fees (spread calculation) on foreign ATM withdrawals by clients using a Tangerine debit card.
Tangerine Fee Schedule: https://www.tangerine.ca/file_source/fberoot/pdf/en/en_fair_fees_schedule.pdf
Tangerine Client Card Agreement (see Section 5 – Foreign Currency Transactions): https://www.tangerine.ca/en/legal/cardholder-agreement/index.html
It seems other banks’ approach is similar.
The spread would be set by Visa or Mastercard. Banks would then just charge X% on top of that + any one time fees
What is the best way to exchange $86.00 Canadian money back to US money before leaving Canada? or wait until I get to the states?
Hi Sandra,
For such a small amount, you’re better off changing whatever you have left when you get back home at your regular bank.
Hi,
My Canadian fiance wants to send me money to purchase a house, in Florida USA. what would be the least expensive way, I know of bank wires, PayPal as options, Also, for a smaller amount like $5000 in USA funds. thanks and God bless!
Hi Nancy,
To minimize fees you want to look at a company such as https://transferwise.com/ca/ or https://www.knightsbridgefx.com/
Just a point of interest…and this is from a Canadian perspective so may be of interest to Canadians reading this…most banks’ ATM rates are competitive, however there things people should be aware of. For example, CIBC charges a premium on top of their “competitive” exchange rate. They call it an “admin fee” and it amounts to 2.5% of the amount withdrawn. So you pay exchange, based on the rate that day as well as a service fee. Plus, virtually all Canadian banks charge an international ATM fee, BMO is $3, one of the lowest. CIBC is $5. Plus I have yet to travel to a country (except Thailand, I think) where you didn’t also pay a local ATM fee as well. We are travelling this year and the exchange rate to purchase currency from my bank turns out to be considerably less than what it would cost me to WD the same amount at ATMs in that country using my CIBC debit card. So…as you mention. buyer beware…do your research. ATMs aren’t always the best choice.
Second point and not really mentioned above regards credit cards and another good way to use them while you travel, particularly if you are going to countries where credit cards are not widely accepted. If you have a credit balance on your credit card and withdraw cash from that credit, there are no fees or charges (as long as you keep a credit balance). This holds true for two I researched…CIBC and Hometrust, a no FX fee card. (Home Trust will charge you a few cents interest based on the time it takes them to process, I am told it is 24-48 hours.) So, another viable option you might want to include.
Thank you for your tips Claudia.
Indeed, credit cards with no forex markup (Brim Mastercard, HSBC World Elite Mastercard, Home Trust Preferred Visa, etc.) above the Visa, Mastercard or Amex rate can be a good option for ATM withdrawals abroad. Do you mean that the cash advance fee is not charged if there is a credit balance on the credit card account? It almost sounds too good to be true.
As for non-credit card options, I recommend the Global ATM Alliance to avoid fees. Tangerine and Scotiabank are the participating Canadian financial institutions. In countries without a participating bank, Tangerine only charges 2.00 CAD per withdrawal. The TransferWise debit Mastercard (not yet available in Canada) is great for withdrawing up to 200 GBP (or equivalent) per month without fess. The AC Conversion Visa has horrible exchange rates but loading the prepaid card with a high rewards credit card can compensate for the poor exchange rates. It offers one free international ATM withdrawal per month.
The worst option for ATM withdrawals abroad is probably TD Canada Trust Visa Debit at 5.00 CAD (fixed TD charge) + variable foreign ATM charge + 0.95% (average Visa forex markup) + 3.50% (TD forex surcharge).
I thought it sounded too good to be true also! So I called both credit card companies: VISA, (mine is through CIBC but I dealt direct with VISA) and Home Trust, which is one of those places with no actual banking place but you can call them. It took some talking to get what I was looking for and eventually I made each of them walk through a scenario of taking out cash when I had a credit balance. Home Trust kept saying they charge interest from Day 1 and I kept saying interest on WHAT specifically? Finally the lightbulb went on and she told me there would be interest charged but only for the 24-48 hours it took for the computer to process my withdrawal and realize I still had a credit balance, and that would amount to pennies. So still a decent option. VISA guy said, “No fees, No charges.” I do suspect they might still charge an ATM fee and there would definitely be a local ATM fee. I will check on this and report back. Either way, it is still a decent option if you have the cash to front load your card.
I live in a town that has only CIBC and BMO but a visit to a nearby town plus electronic banking might make Scotiabank an option if they are VISA based. Thanks for the suggestion.
I am travelling to Guatemala where MC based cards generally don’t work so my BMO debit and credit cards are useless and CIBC debit fees are almost as bad as TD VISA…as I mentioned above. Plus the daily max withdrawal is only about $350 so more withdrawals required and more ATM fees. I checked the cost of buying Quetzales through my bank and while the exchange rate looked high, it worked out to less than using ATMs…and likey safer considering their problems with rampant ATM cloning.
Cash advance fees (typically 5.00 CAD per withdrawal abroad) are normally charged by the credit card issuer (not Visa or Mastercard) so the issuing financial institution should answer this question.
Global ATM Alliance Canadian members Scotiabank and Tangerine are part of the Cirrus network for international ATM withdrawals using one’s bank card (not credit card). It should work at all ATMs on the Cirrus network.
Please let us know if you are charged a cash advance fee after testing. Thank you.
When I asked the question of the bank that issued my VISA, they told me that I would have to contact VISA to answer that question, that they had nothing to do with it.The woman in the bank told me this is how she travels and has never been charged. I will test this with Home Trust this week and let you know. Have to wait until I get a zero balance on my VISA!
Is Tangerine VISA or MC based?
Tangerine offers Mastercard credit cards only. Scotiabank has Visa, Mastercard and Amex credit cards. Based on my understanding, Scotiabank and Tangerine credit cards are not covered by the Global ATM Alliance, only bank cards (aka client cards) are.
The Home Trust Preferred Visa disclosure statement (https://www.hometrust.ca/documents/PreferredDisclosureStatement1999.pdf) indicates cash advance fees between 2.50 CAD and a 45.00 CAD (yes, forty five) depending on location and amount. I can’t find any information about a fee waiver in case of a credit balance. You should be able to look up the cash advance fee for your other credit card in the disclore statement on the issuing financial institution’s website.
The information I provided about the Tangerine bank card is correct but Scotiabank now issues 4 different Visa debit cards (no ordinary bank card shown on website) so the Scotiabank offering is actually a lot more complicated. I suggest Tangerine if minimizing fees is the objective.
Follow up…So I ended up talking to a second person at Home Trust who explained cash advances and was very clear about it. If you WD in Canada, you are charged whatever the local ATM fee is plus 1% of what you WD, minimum charge $2.50, maximum $15. International fee is 1.5% with a minimum fee of $5 and a max of $45…yes $45!! There is no other charge, ie no interesting you WD from a credit balance. I tried it out. Put on a balance of $30 and took out $20. Total withdrawal showing is $23, including the ATM fee. No sign of the $2.50 Home Trust fee…yet…but I expect it will show up at months end.
So far I have been unable to try the same process for my CIBC VISA…darn Christmas and pretrip charges…maybe tomorrow! I will let you know.
And no sign of my $50 from Tangerine. Did you get yours? Haven’t been able to try that card out that card yet either. Seems they put a LONG hold on EFTs. Despite a substantial balance that has been there for a week it tells me I have insufficient funds to WD anything…impossible to chat with anyone there. Calls are so backed up you can even get on HOLD! No impressed with their lack of customer support.
Hello Claudia,
Thank you for sharing the information about Home Trust.
I believe holds on incoming EFTs normally depend on encoding. For example, payroll and pension ETFs are released immediately but personal ETFs aren’t. However, you might have access to a certain amount of any deposit based on your credit score and overdraft limit (even if you don’t actually go into overdraft).
No, I haven’t received the $50 from Tangerine yet. You have to be sure to use the Orange Key (42198592S1) when registering and deposit at least $100 within 60 days of registration. You also need a regular (not TFSA or RRSP) chequing or savings account with Tangerine to receive the $50 bonus. The terms and conditions stipulate the $50 bonus is deposited within 30 days after fulfilling the aforementioned requirements.
If you forgot to enter the Orange Key or if it has been more than 30 days, you should contact Tangerine (+1 888 826-4374) as soon as possible to seek a rectification. Maybe try calling very late or very early and have your client number on hand.
If you email me at zdaic5oxt55k [at sign] opayq.com, I can inform you when I receive the $50. You should receive it around the same time.
Hello Claudia, In case you’re interested in Tangerine, I have received a promotional offer whereby we both get a 50.00 CAD reward when you (the new account holder) open a Tangerine bank account and deposit at least 100.00 CAD by 2019-01-31. It may be possible to open an account online within minutes but it can take several days if they need to check your ID or signature so I suggest you give yourself plenty of time. The Orange Key to enter for the promotion is 42198592S1. It must be entered when applying for your first bank account with Tangerine. There is no obligation but this promotion is better than the usual 25.00 CAD reward so if you plan to open a Tangerine account, it pays to do it before the end of January 2019.
Thanks. Unfortunate I already opened it…and I didn’t get ANY special offer! This account likely won’t work in Guatemala as apparently only VISA based cards work n most machines.
Hi Roy. Unfortunately I already applied for my Tangerins card (and didn’t get ANY special!) I doubt this card will work n Guatemala as most machines won’t accept MC based cards. But I should be able to use it in the rest of our travels.
Just contacted them again and they said they would add your number.
Hi Claudia,
I’ve just discovered an even cheaper way to get cash while abroad now. STACK is a prepaid Mastercard that doesn’t charge any fees. I’ve updated the post if you want to read more about it.
Thanks! I will keep it in mind for next trip!
Hi there…im leaving for the Philippines on Sunday and still have not exchanged.my money to Pesos. I read many of the comments about using a credit.card however thats an problem in itself as #1 I domt have a credit.card and #2 where.im staying, im sure they take.cash only. I deal with RBC….do you suggest exchanging the full amt im planning to being or exchange half and use ATM for the other half if needed? Your advice would be greatly appreciated
Hi Michelle,
Since you’re leaving so soon, it may make sense to just exchange money at the bank. If you have an exchange office near where you live, just check if they have better rates. If you need money while abroad, use local ATMs and withdraw the maximum amount every time to reduce the amount of fees you pay.
My issue is where in Canada is it best to Buy US dollars ,or Mexican Pesos in Cash?
The discussion is about ATM machines and use abroad.
Rogers Mastercard reduces charges when used abroad but how doe it affect to withdraw Cash on it.
Hi Slim,
When it comes to US dollars, most banks have a pretty decent rate. If you want Mexican Pesos, you’d likely have to go to an exchange office.
For getting cash abroad use your bank’s debit card or the STACK mastercard. Don’t use the Rogers Mastercard at ATMs as that would be considered a cash advance and you’d pay 22%+ interest
Hi Slim, if you are looking for US Dollars and Mexican Pesos, I recommend you a company doing currency exchange called Currency Mart, they offer very good rates, and if you are buying from their Toronto branch there is no service fee. I usually buy Euro and Pounds from them for my business trips.
We have a Scotia Passport Visa Infinite card (no forex fees) and it works everywhere we’ve taken it. I also recently used OFX (best rates, better than Knightsbridge) to convert USD cash back to CAD and transfer the funds from my CIBC USD account to my CIBC CAD account, both of which are set up at Canadian CIBC branches. I’m pretty sure it would work in reverse. So you don’t need to move the money across the border in the case of USD.
Mike,
The Scotiabank card is definitely reliable.
The best forex rate I know, especially for large amounts, is with Interactive Brokers. It costs about 18 CAD to convert 1 million CAD into Euros. So that a rate of, what? 0.0018% instead of the 2.5% a bank charges. Even the online exchange companies pale in comparison, their rate is around 0.5%.