When visiting Niagara from US next week, is it better to pay with US$, Credit card, or get Canadian$?

Question

My credit card charges a 3% transaction fee, and I believe several shops in Niagara-on-the-Lake claim they charge a fair currency exchange rate. Is it better to pay with a credit card, use US currency, or get Canadian currency beforehand either in US or from a Canadian bank or exchange? Thanks.

Answer 1

It's hard to generalize on one, there are exceptions to any of the choices.

I suggest getting some Canadian money out at a bank ATM.

I would normally say credit cards as you tend to get good exchange when the switch in currency happens electronically. However, if you are getting charged that much, it is already a significant extra fee. Plus, credit cards defer your purchase. Right now the Canadian dollar is surging. You can't really control the day to day exchange rate, but the Canadian Dollar is on an upward trend and can go up by quite a bit per day. So using a Credit card can delay the currency exchange by a couple of days, and you could end up with a lower exchange rate. Being the opposite, as a Canadian, I try to use a credit card right now when going to the US.

Merchants are unpredictable too. It usually cost them to take exchange (it's not the business they are in) and most of the time they pass those costs onto you. Or worse, pass the costs on and make it into a bit of a profit. However, they may actually be having a tough year, because of high gas prices, passport requirements and perceived requirements, and the high Canadian dollar. Some might offer good deals in exchange to try get some extra Tourism business. I would carry some US dollars with you just in case there are some good merchant exchange rates out there. But I wouldn't carry just that, you could save a little with one, then pay it all back and then some to the next.

Answer 2

All of these answer have some interesting and sometime incorrect information, I am a Canadian, and travel to Niagara Falls and Buffalo areas frequently, you can use US$ or credits cards, if you were going to be in Canada longer and further away from the border, you might choose to have some CAN$.

But a weekend trip to the Niagara region an area were tourisum and the American $ flows freely, do not bother with the exchange, pay for what you want with paper money and the hotels with your CC, you will save on the exchange.

When your bill arrives it will be less than the amount you paid in the first place, on longer trips and there can be a difference in rates of exchange depending on the daily rate, fast food places and malls generally give the closest, smaller stores outside the tourist areas can be less generous.

Answer 3

I don't think you'll have a long wait at the border. We went there the summer after 9/11 and even with extra precautions the wait was minimal. The longest lines (we could see from our hotel room) were on Friday/Saturday/Sunday nights starting around dinner time and continuing throughout the night. In the Niagara Falls area, there are more hotel choices on the Canadian side. If your children have not been to Niagara Falls, they would probably enjoy at least a bit of time walking around the Canadian side of the falls. With the exchange rate, Canadian hotels can be reasonable and part of the very high sales tax on Canadian hotels is refundable if you spend a certain amount per night. Your best bet for purchasing anything in Canada is with a credit or debit card. Your receipt will look like you paid the worst rate exchange but when you get home, your bank will give you the best rate of exchange based on the day/time you made the purchase. It could take up to 2 months for charges to appear on your bill, but it gives you the best rate of currency exchange. Check with your banking institution for full details.

Answer 4

Since you will be shopping in Canada, it's better to use Canadian dollars. There isn't a lot of difference between American and Canadian currency right now, and predictions are that the Canadian dollar will continue to rise, so get your money exchanged at home, bring Canadian dollars to shop at Niagara, and stash any left-over money away for your next trip. Or use your credit card. But using US dollars in Canada isn't a great idea, because stores who do accept the US dollars set their own exchange rate and it isn't as good as the bank.
Enjoy Niagara -- it's a fun place.

Answer 5

In a border town like Niagara Falls, and N.O.T.L. they are quite familiar and astute at accepting and exchanging US funds. I usually make sure I have some Canadian for parking meters, coffee, valet & such. But use both $CAN and $US whichever I have at hand at the moment.

Credit vs. ATM -- If your card charges 3% per transaction, thats $3.00 per hundred - so you will pay more than $10-15 on a 3 night hotel stay alone. If you get cash from an ATM - you can usually get up to $500 at one time for an atm charge of $2.00 or so. So that would be the choice over the credit card.

Here is one bit of advice for making purchases. You can get a refund of your GST taxes at a duty free shop on your return across the border. BUT --- and remember this -- the refund is only available on receipts of $50 or more at any one merchant. SO if you are in a store and racking up $40 or so --- find something else to add to your purchase to make $50. You will get back nearly that amount in taxes. Like extra mdse for free!

Answer 6

Of course they say it's fair! You expected to say that they charge and unfair rate?

Remember, normal FX quotes are for bank to bank deals in the millions. 3% premium is decent for small transactions. I've seen merchants charging 5-15%. Remember: they have a time risk. The rates might change by the time they get to the bank. With the credit card, YOU have the time risk. The rate you get is the rate when the charge is presented, not when you make the purchase. If you exchange cash, you are locked in, which could be good or bad.
I get some cash for tips and newspapers and use the card for everyhing else.
Do not use an exchange service or travel agent. Wait until you get there and then get your C$ from an ATM.

Answer 7

The local Canadian stores will rip you off more than 3% on cash conversion, just like the American side stores do on Canadian money.

The best conversion is to buy Canadian dollar travelers' cheques.

By the way, if you have an AAA credit card it charges only 2%.

Answer 8

You should look into a debit card

Answer 9

U.S$