Personal Finance

How to minimize exchange rate impact during a trip to USA?

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Deal Addict
Nov 12, 2008
1983 posts
389 upvotes
Aurora

How to minimize exchange rate impact during a trip to USA?

I'll be driving the family to US this summer and expect the day-to-day expenses to add up.

Is there anything I can do beforehand to lessen the impact of the exchange rate?

I don't mind carrying US cash if necessary (who normally offers the best rates?)

Or are there other options?

Thanks.
17 replies
Deal Addict
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Oct 20, 2008
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Coquitlam, BC
Gweedz wrote: I'll be driving the family to US this summer and expect the day-to-day expenses to add up.

Is there anything I can do beforehand to lessen the impact of the exchange rate?

I don't mind carrying US cash if necessary (who normally offers the best rates?)

Or are there other options?

Thanks.
Setup a USD account at your bank as well as a USD CC (Visa?). That's what we do. Saves the 2.5% or whatever the CC processing fee is if you use a CAD CC in the USA.

Dump some CAD into your USD account when you have extra or the exchange rate seems favourable (this is a gamble to predict when it's "favourable").
Deal Addict
Oct 11, 2010
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Charlottetown
Only thing you can really do is use some form of payment where you aren't dinged for foreign transaction fees on top of the exchange rate. A US dollar account, a credit card with no exchange fee etc. You are going to pay the exchange rate no matter what, there isn't much you are going to be able to do to help with that on small transactions
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Dec 14, 2007
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Gweedz wrote: I'll be driving the family to US this summer and expect the day-to-day expenses to add up.

Is there anything I can do beforehand to lessen the impact of the exchange rate?

I don't mind carrying US cash if necessary (who normally offers the best rates?)

Or are there other options?

Thanks.
In many places in the US (at least in the PNW), gas stations offer a cash rate and a credit card rate. Sometimes the difference is big enough to warrant paying in US cash. Something to keep in mind.
I'd love to write history... in advance.
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Deal Fanatic
Feb 15, 2006
9183 posts
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Toronto
Gas up at Costco, it's a lot cheaper. Can also buy food at Costco, cheaper.

It's already mentioned, to get Chase Marriott visa card, it has no foreign conversion fee.

If you have, use points to book hotels.

Bring lots of cheaper food from Canada, including cup of noodle.

But you'll save on gas in US, as it's cheaper there.
Deal Addict
Nov 12, 2008
1983 posts
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Aurora
I just remembered I have a US $ account with TD. Has about $1.22 in it - I haven't used it in years.

Is the Chase Visa card still my best option?

I couldn't care less for points or other features, and chances are it will expire by the time I use it again.

Thanks for all the other tips!
Deal Addict
Nov 12, 2008
1983 posts
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Aurora
spiralspirit wrote: don't spend money.
I thought of that - but the kids want my wife to come with us.
Banned
Nov 29, 2015
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You can buy Costco cash card and use it in US. And some gas pump asked for your zip code to use your credit card.
Deal Fanatic
Feb 15, 2006
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Gweedz wrote: I couldn't care less for points or other features, and chances are it will expire by the time I use it again.
Fine. Then pay, instead of getting hotel rooms or things free.
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Nov 12, 2008
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Arrgh wrote: Fine. Then pay, instead of getting hotel rooms or things free.
I understand what your mean, but in my case I would be using it so seldom it's not feasible to collect points.
If I can save the conversion fee I'd be happy.

Does anyone know if I have a TD account in USD can I use my bank debit card in the US without paying any fees?
Deal Fanatic
Nov 24, 2013
6479 posts
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Kingston, ON
Gweedz wrote: I just remembered I have a US $ account with TD. Has about $1.22 in it - I haven't used it in years.

Is the Chase Visa card still my best option?

I couldn't care less for points or other features, and chances are it will expire by the time I use it again.

Thanks for all the other tips!
You still have to convert CAD to USD to fund your TD USD account, and no, as far as I know you can't link your TD USD account to your debit card.

Converting online with TD, you'll pay around 2.5% in fees, just like using a normal credit card. If the nominal FX rate is 1.30, TD would charge around $133.25 for $100 US. A currency exchange place might be less, like 1.2% fee, or $131.56 in that scenario. With a Chase Visa, you'd charge $100 US to the card, and a charge of ~$130 Canadian would show up, plus you'd get $1.30 in cash back (or points with their other card).

Not a huge difference for $100 US, but if you spend $2,000 on a trip, using a no-FX card looks better and better.
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Aug 8, 2012
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BC
Gweedz wrote: I thought of that - but the kids want my wife to come with us.
LOLOLOLOL :D
Gweedz wrote: Is the Chase Visa card still my best option?

I couldn't care less for points or other features, and chances are it will expire by the time I use it again.
Arrgh wrote:
Fine. Then pay, instead of getting hotel rooms or things free.
Gweedz wrote: I understand what your mean, but in my case I would be using it so seldom it's not feasible to collect points.
If I can save the conversion fee I'd be happy.
You can get a card to help you with FX *and* get signup bonus points you can use on the trip at the same time.

Chase Amazon Visa is free and has no FX fee.
Seems better than:
Chase Marriott Visa which is $120/yr and has no FX fee
... but, it's first year free, and you can find a link on RFD for a 50,000 point signup bonus.

That will save you more on a stay at a hotel than you will save all trip on 2.5% FX!

Unless you spend $10k on your trip ... 2.5% is $250 savings then ... but even so, the 50,000 points are probably worth at least $4-500 in hotel stays at Marriott or SPG (you can convert the 50k at 3:1 to SPG for 16,666 starpoints).

It should be fairly easy to get $500 value.

e.g. 10,000 SPG = 1 night at a $200-ish USD hotel. Total cost $0.
Normal cost: $200 + taxes + exchange = over $300 CAD.

You are asking about how to save 2.5% essentially, but some of the answers may save you $100's and $100's if willing to sign up for a couple credit cards.

e.g. SPG Amex costs $120 but will give you a 20,000 signup bonus (worth $600+ per above math).
POLL: How frequent is your RRSP-matching?
Plastiq: Pay any bill with credit card for 0-2.5% fee (help meet min spending and keep old cards active!)
Rewards program transfer times (e.g. SPG->Aeroplan, Marriott->SPG, Amex MR->SPG...)
Deal Addict
Aug 19, 2013
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Another vote for the Marriott card. No exchange fee and the sign up bunus could help cover a few nights in a hotel.
Deal Addict
Nov 12, 2008
1983 posts
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Aurora
ace604 wrote: You can get a card to help you with FX *and* get signup bonus points you can use on the trip at the same time.

Chase Amazon Visa is free and has no FX fee.
Seems better than:
Chase Marriott Visa which is $120/yr and has no FX fee
... but, it's first year free, and you can find a link on RFD for a 50,000 point signup bonus.

That will save you more on a stay at a hotel than you will save all trip on 2.5% FX!

Unless you spend $10k on your trip ... 2.5% is $250 savings then ... but even so, the 50,000 points are probably worth at least $4-500 in hotel stays at Marriott or SPG (you can convert the 50k at 3:1 to SPG for 16,666 starpoints).

It should be fairly easy to get $500 value.

e.g. 10,000 SPG = 1 night at a $200-ish USD hotel. Total cost $0.
Normal cost: $200 + taxes + exchange = over $300 CAD.

You are asking about how to save 2.5% essentially, but some of the answers may save you $100's and $100's if willing to sign up for a couple credit cards.

e.g. SPG Amex costs $120 but will give you a 20,000 signup bonus (worth $600+ per above math).
That 50,000 points sign up bonus is a game change - I wasn't aware of it (the Chase thread has 214 pages!). I'll search for the link.

So, from what you're saying I can:
Sign up for the card and get 50,000 points.
Use the points for a free hotel stay(s) sometime in the next 12 months.
Cancel the card before 12 months is up (to avoid annual fee).

Plus get no FX fee.

I agree, that's better than the 2.5% savings I was looking for!

Thanks.
Deal Addict
Aug 19, 2013
2397 posts
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Gweedz wrote: That 50,000 points sign up bonus is a game change - I wasn't aware of it (the Chase thread has 214 pages!). I'll search for the link.

So, from what you're saying I can:
Sign up for the card and get 50,000 points.
Use the points for a free hotel stay(s) sometime in the next 12 months.
Cancel the card before 12 months is up (to avoid annual fee).

Plus get no FX fee.

I agree, that's better than the 2.5% savings I was looking for!

Thanks.
Yes that's what you can do. We found the residence inn line by Marriott great to use when travelling with kids. It's just a basic hotel but you often get a room with a separate bedroom and a mini kitchen. So you get a little privacy. And many times breakfast is included.
Deal Addict
Nov 12, 2008
1983 posts
389 upvotes
Aurora
I got approved for the Marriott card. I plan on using it for a free room during my trip, and look forward to not paying FX fees.

Thanks to everyone here who helped make this happen!

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