US Dollar Credit Card?

[drakes2]

1 hour ago, Fouremco said:

While a POS terminal and the underlying computer systems may recognize your card as having been issued in Canada, what determines the currency of the charge is the input at the POS. So, as example, if you are using a normal Canadian CAD credit card, guest services will let you choose to be charged in USD or CAD. If you choose USD, the conversion will be made by your financial institute. Alternatively, you could ask guest services to charge you in CAD, in which case the conversion from USD to CAD is made at their end of the transaction and the charge is already in CAD when it hits your financial institute. In most cases, it's best to have the conversion done by your financial institute.

 

When using a Canadian USD card, the same applies. Normally, you would simply have the charge made in USD and that will be the currency of the charge reaching your financial institute. The computer system isn't going to change the currency of the transaction simply because the card was issued in Canada. 

Thanks for the info. I have a couple of cruises coming up later this year and normally my bill is under $500 many times its just gratuities and the odd drink. I'll put some cash down and pay the rest on my CC.

[Oceangoer2]

On 5/21/2024 at 12:46 PM, drakes2 said:

What about paying your onboard account with a USD account issued by a Canadian bank? I just got the TD USD visa card but if I use it onboard does the system recognize it as a Canadian or US card. The first two numbers are 45 which all Canadian  visa cards start with.  

Thanks to all the info here, I just applied/approved for a TD US Visa card, and will pay the balance out of a US $ TD account, which incurs no conversion fee.

[Fouremco]

39 minutes ago, Oceangoer2 said:

Thanks to all the info here, I just applied/approved for a TD US Visa card, and will pay the balance out of a US $ TD account, which incurs no conversion fee.

What exchange rate does TD use when you place CAD funds into the USD account? I'm wondering how it compares to a purchase made in USD using a CAD credit card that charges no conversion fee.

[gnome12]

52 minutes ago, Fouremco said:

What exchange rate does TD use when you place CAD funds into the USD account? I'm wondering how it compares to a purchase made in USD using a CAD credit card that charges no conversion fee.

For me that is the crux of the matter. Unless you have income in USD at some point you have to fund the USD account. And, since I am currently getting 4% interest on my CAD funds, I would lose a fair bit by keeping money in a USD account. As an aside, EQ pays a very generous 3% currently on USD accounts, but my TD US$ account that holds about $1100 earns 1 cent of interest every month.

[drakes2]

31 minutes ago, gnome12 said:

For me that is the crux of the matter. Unless you have income in USD at some point you have to fund the USD account. And, since I am currently getting 4% interest on my CAD funds, I would lose a fair bit by keeping money in a USD account. As an aside, EQ pays a very generous 3% currently on USD accounts, but my TD US$ account that holds about $1100 earns 1 cent of interest every month.

I buy my US cash from a currency exchange kiosk. They give an extra half % off for seniors every Monday.  Still better than any bank's rate. Fortunately the TD bank is close enough for me to walk so I can just deposit when funds are low.  

[rodndonna]

1 hour ago, Fouremco said:

What exchange rate does TD use when you place CAD funds into the USD account? I'm wondering how it compares to a purchase made in USD using a CAD credit card that charges no conversion fee.

 

I expect it would be the same rate then would it not? The rate TD gives when I move money from my Canadian to US account (or vice versa) is their daily posted exchange rate.

 

If I use my TD Canadian credit card (that has a conversion "fee") I expect I would be calculated at their daily rate PLUS a conversion fee. If I had a card without a conversion fee than I guess I pay that same posted exchange rate.

 

 

 

[Oceangoer2]

2 hours ago, Fouremco said:

What exchange rate does TD use when you place CAD funds into the USD account? I'm wondering how it compares to a purchase made in USD using a CAD credit card that charges no conversion fee.

Today it was $1.4002 (higher than recently) to purchase US $.

Edited June 3 by Oceangoer2

[Oceangoer2]

1 hour ago, gnome12 said:

my TD US$ account that holds about $1100 earns 1 cent of interest every month.

Interest rate really is laughable.  We're only going to use the card onboard and for convenience at ports........ $$s are there to be used and they've sat for a while.

[drakes2]

9 minutes ago, Oceangoer2 said:

Today it was $1.4002 (higher than recently) to purchase US $.

If you have the TD borderless account the rate is 1.3952. Currency exchange kiosk is 1.3895 and simplii financial is 1.4160.  I just don't like carrying a lot of cash around when traveling so will use the US visa to pay my onboard account and a couple meals out.  

[gnome12]

44 minutes ago, rodndonna said:

If I use my TD Canadian credit card (that has a conversion "fee") I expect I would be calculated at their daily rate PLUS a conversion fee. If I had a card without a conversion fee than I guess I pay that same posted exchange rate.

No. Using your TD Canadian credit card would be calculated at Visa's exchange rate, not TD's. Then TD would add the 2.5% fee. I am willing to bet that TD's daily rate will be less favourable to you than Visa's.

[Fouremco]

15 minutes ago, Oceangoer2 said:

Today it was $1.40 (higher than recently) to purchase US $.

That's very interesting. Mastercard's conversion rate today is 1.3672 and Visa's rate is 1.3672. So if you used a CAD credit card with no forex fee to buy something in USD, it would cost lest than if you were to use a TD USD card and then deposit CAD to you USD account to cover the amount. I don't know if this is typical or not, but I suspect it is.

[gnome12]

26 minutes ago, Oceangoer2 said:

Today it was $1.4002 (higher than recently) to purchase US $.

The current rate on XE is $1.3638. My experience with my Home Trust Visa (with no conversion fee) is that Visa's rate was very similar to that shown on XE. (And I have also shown by having to immediately reverse a transaction that there is very little difference between the rate for a charge and the rate for a reversal.)

You are paying a lot to purchase your US$, and then you earn no interest while the money sits in your US$ account.

[gnome12]

2 minutes ago, Fouremco said:

That's very interesting. Mastercard's conversion rate today is 1.3672 and Visa's rate is 1.3672. So if you used a CAD credit card with no forex fee to buy something in USD, it would cost lest than if you were to use a TD USD card and then deposit CAD to you USD account to cover the amount. I don't know if this is typical or not, but I suspect it is.

I very much suspect that it is. Even if you go to a currency exchange and change a lot of money I suspect you won't get a rate as good as Visa and Mastercard. The other advantage of a conversion fee free credit card is that it works as well in places other than the US.

[Fouremco]

2 hours ago, gnome12 said:

As an aside, EQ pays a very generous 3% currently on USD accounts, but my TD US$ account that holds about $1100 earns 1 cent of interest every month.

EQ allows you to transfer funds to/from your USD account from/to a similar account at another bank. Have you considered opening and EQ USD account and transferring funds from your TD USD account? You could transfer it back later when you needed to make a withdrawal. Assuming that TD also allows such transfers.

[Fouremco]

11 minutes ago, Fouremco said:

That's very interesting. Mastercard's conversion rate today is 1.3672 and Visa's rate is 1.3672. So if you used a CAD credit card with no forex fee to buy something in USD, it would cost lest than if you were to use a TD USD card and then deposit CAD to you USD account to cover the amount. I don't know if this is typical or not, but I suspect it is.

Correction. Visa rate is 1.3692.

[drakes2]

7 minutes ago, gnome12 said:

I very much suspect that it is. Even if you go to a currency exchange and change a lot of money I suspect you won't get a rate as good as Visa and Mastercard. The other advantage of a conversion fee free credit card is that it works as well in places other than the US.

I just returned from a cruise last month and made a purchase of $2000 on my home trust visa card. The rate used was 1.3675. 

[gnome12]

12 minutes ago, Fouremco said:

EQ allows you to transfer funds to/from your USD account from/to a similar account at another bank. Have you considered opening and EQ USD account and transferring funds from your TD USD account? You could transfer it back later when you needed to make a withdrawal. Assuming that TD also allows such transfers.

Yes, but I spend more of my foreign charges outside the US, so I'll stick to using my EQ card linked to my CND account, that gives me back 0.5% on foreign purchases and uses Mastercard's conversion rate.

 

By the way, I leave my USD account at TD alone, because, if I want to get cash, I can take it out from that account. EQ being virtual doesn't let me access US cash.

Edited June 3 by gnome12

[Fouremco]

7 minutes ago, gnome12 said:

Yes, but I spend more of my foreign charges outside the US, so I'll stick to using my EQ card linked to my CND account, that gives me back 0.5% on foreign purchases and uses Mastercard's conversion rate.

 

By the way, I leave my USD account at TD alone, because, if I want to get cash, I can take it out from that account. EQ being virtual doesn't let me access US cash.

Yes, I use the EQ card for similar reasons.

 

I usually know well in advance when I'll need USD cash. That's why I was thinking of placing it with EQ, but having them transfer it to my local bank when I need to access the cash.

[gnome12]

17 minutes ago, Fouremco said:

Yes, I use the EQ card for similar reasons.

 

I usually know well in advance when I'll need USD cash. That's why I was thinking of placing it with EQ, but having them transfer it to my local bank when I need to access the cash.

Unfortunately my TD US$ account charges for transactions, both deposits and withdrawals, so it probably isn’t worth it to me to put the money into EQ. But if I had a larger amount I probably would. 

[drakes2]

11 minutes ago, gnome12 said:

Unfortunately my TD US$ account charges for transactions, both deposits and withdrawals, so it probably isn’t worth it to me to put the money into EQ. But if I had a larger amount I probably would. 

The fee is $4.95 US a month but waived if you keep $3000 in it at all times. I've only had both cards just over a month so will see how it works for me when I cruise in October. 

[rodndonna]

4 minutes ago, drakes2 said:

The fee is $4.95 US a month but waived if you keep $3000 in it at all times. I've only had both cards just over a month so will see how it works for me when I cruise in October. 

 

It sounds like we have the same account - and I don't know why (I don't question it) but ever since we ran the balance down from all those cheap US dollars we accumulated years ago, it is now charged as $4.95, but then rebates us back $3.00, to we are only paying $1.95 with a balance of a few hundred. No idea why (maybe because we have a Canadian account that maintains $5K to avoid fees and a few other perks?)

[drakes2]

32 minutes ago, rodndonna said:

 

It sounds like we have the same account - and I don't know why (I don't question it) but ever since we ran the balance down from all those cheap US dollars we accumulated years ago, it is now charged as $4.95, but then rebates us back $3.00, to we are only paying $1.95 with a balance of a few hundred. No idea why (maybe because we have a Canadian account that maintains $5K to avoid fees and a few other 

If you have the first class visa then the rebate is $3.00 unless you keep 3K in the USD account at all times.  Another point of consideration is when traveling abroad (Europe) and making a purchase if the terminal gives you a choice of paying in CAD or Euros choose Euros as the conversation rate will be crappy. The bank will convert unfavorably if you choose to pay in Canadian $.   Found out the hard way.  Was in a rush and not paying attention. 

[Fouremco]

3 hours ago, drakes2 said:

If you have the first class visa then the rebate is $3.00 unless you keep 3K in the USD account at all times.  Another point of consideration is when traveling abroad (Europe) and making a purchase if the terminal gives you a choice of paying in CAD or Euros choose Euros as the conversation rate will be crappy. The bank will convert unfavorably if you choose to pay in Canadian $.   Found out the hard way.  Was in a rush and not paying attention. 

Not just in Europe. It's always better to be charged in the local currency, no matter where you are.

[d9704011]

1 minute ago, Fouremco said:

Not just in Europe. It's always better to be charged in the local currency, no matter where you are.

For sure.  We recently returned from Spain and pretty much everywhere we used our credit card the option of paying in CAD was presented.  I told my wife don't ever do this, just choose the local currency.  I have traveled extensively and I don't recall experiencing this so much in the past; a nice little income stream.

[Fouremco]

2 minutes ago, d9704011 said:

I have traveled extensively and I don't recall experiencing this so much in the past; a nice little income stream.

That's my experience too. Once upon a time, back when travellers' cheques were starting to disappear from the tourism scene, your credit card was automatically charged in the local currency. It's only been in recent years that the option to pay in your home currency has been offered. 

 

Starting in 2025, Ontario students must complete a new financial literacy graduation requirement as part of their Grade 10 math course to demonstrate practical skills and proficient application of knowledge in financial literacy skills. One can only hope that they include an adequate segment on the use of credit cards.