The best exchange rate for Canadian dollars is always obtained by paying with a card since it is by far the most cost-effective option. And for carrying some cash, the best choice is to withdraw money from an ATM.
In other words, the best strategy to save money to the maximum would be to always pay with a card (as we will see later, in 2024, Wise card offers the best exchange rates and the lowest costs in the market) and only withdraw the amount of cash we will need from an ATM.
Certainly, this technique to save the maximum amount of money on your vacations may surprise you because if you go to any currency exchange or bank, you will see how they advertise “no fees” prominently, and therefore, one could simply think that the logical thing would be to exchange dollars at the current exchange rate and that’s it, right? Well, no! Everything has a cost, even paying with a card has a cost, although they don’t tell you or you don’t see it at first glance.
I’m going to tell you a secret: this website was created by a group of friends who have worked for several years in currency exchange offices, and frankly, changing cash is the worst option by far. Moreover, to give you an idea of the magnitude of this bad alternative, you should know that most currency exchange operators or bank employees have discounts to exchange currencies compared to the exchange rates offered to customers. But even with those discounts, we never exchange cash. At most, depending on the trip, only a small amount for certain payments or if it’s necessary to enter the country.
So, it is clear: always pay with a card and only withdraw the cash you will need from an ATM. Now let’s see how to pay the lowest cost possible in both cases:
What is the best card for paying abroad?
Based on the study we have conducted of all the cards available on the market for this year 2024, for paying in any foreign country, travel cards have lower costs than bank cards, and among travel cards, Wise card offers the lowest costs.
These results are valid not only for payments in international stores in foreign currency (Wise would offer the best conditions, other travel cards would be on average about 4 times more expensive, and bank cards on average about 10 times more expensive) but also for the costs of withdrawing cash in foreign currencies from ATMs outside your country (Wise would again offer the lowest fees, other travel cards would be on average about 4 times more expensive, and bank cards on average about 20 times more expensive).
Likewise, if you want to know the exact differences in costs and functionalities among the different cards you can find on the market in 2024, don’t miss our comparative study at this link. As you will see, this comprehensive study analyzes all types of cards (debit, credit, and prepaid) and all types of providers (banks, fintech companies, financial institutions, etc.).
Do we need to bring our country’s cards abroad?
As we mentioned, it is preferable to use the Wise card instead of a conventional bank card or other travel cards since you will save a significant amount of money when paying in foreign stores and when withdrawing money from international ATMs, paying the lowest possible fees.
In this way, in principle, it would not be necessary to bring any other card, but keep in mind that if you are going to make payments such as renting a car, you will need a credit card since most car rental companies will retain an amount as a deposit and will only accept credit cards.
On the other hand, if you are not going to carry out this type of operation, it is advisable to leave your bank cards with higher balances at home and only for security purposes, it would be advisable to carry an extra debit card with a small balance in case of an emergency (imagine that your other card gets damaged or stolen and you also lose your phone, so you would have nothing to pay with).
Keep in mind that in case of theft, there is a risk that fraudulent operations may be carried out with your cards within the limits they have, while with the Wise card we recommend, your balance will never go negative, so only the deposited balance can be spent.
In addition, you can instantly block your Wise card from your phone, while with your bank cards, you may have to call your bank to cancel them, running the risk that they may not provide service at that moment if it’s a holiday or outside customer service hours.
For all these reasons, when traveling, it is always better to carry a debit card like the Wise card with the amount of money you will need. If you need more, you can always reload it instantly through the mobile application, and if you need to block it due to loss or theft, you can do it instantly through the application as well. This way, you will have full access to your money at all times, without paying commissions for it, and minimizing the risk of theft.
As you can see, this card has numerous functionalities through the mobile phone, so it is important to make sure that your phone’s battery is always well charged. Remember that in many countries, the power outlets are different. Therefore, it would be a very good idea to get a universal plug adapter for traveling since it can be useful for any trip you plan to take in the future. In this link, at a very affordable price, we show you a universal plug adapter, as well as other ideal and necessary products for traveling.
Finally, it is important to know that if you are going to take your credit card from your bank to pay deposits in operations such as car rentals, before traveling, it is advisable to notify your bank that you will be traveling abroad and the limits you will need. Keep in mind that all cards have daily, weekly, and monthly limits, and when traveling, you will spend more than usual, so if you have somewhat low limits without knowing it, you could reach your limit and find yourself in serious trouble.
What to do if my card runs out of balance abroad?
If your debit card runs out of balance abroad, you can always obtain money in a very simple way:
- If you have a bank card, you should contact a family member or friend who is a customer of the same bank to make a transfer to your account. Transfers between accounts of the same institution are instant, so once the transfer is completed, your card will be able to use the new balance in your account. Another option would be to make an “immediate transfer” between accounts from different banks, as it is also processed instantly.
- If you have a prepaid card like Wise, you can reload it through the app (or someone else can do it for you) and receive the money instantly.
What do I do if all my cards are stolen abroad?
If all your cards are stolen abroad, these would be your alternatives to get by:
- Use cash you have withdrawn from an ATM: You can pay with the cash in foreign currency in case you have made a withdrawal from an international ATM.
- Exchange your currency for cash: It is always advisable to carry some cash in your home currency in case of an emergency, as you can exchange it for dollars at exchange establishments if needed.
- Pay with your mobile phone: If your phone has NFC technology and your bank offers mobile payment service, you can link your mobile phone with your card, and even if the card is canceled or blocked due to theft, you can continue making payments with your phone without any problem.
- Have someone pay for what you need from your country: If you simply need to purchase a plane, train, or boat ticket, any contact you have in your country can pay for it online and send you the boarding pass through your mobile phone (or you can download it through the company’s app).
- Receive money through money transfer agencies: In most tourist cities, there are numerous agencies of this type. In these agencies, any contact you have can make a transfer from your country for you to receive the money abroad.
- Sell your jewelry at a gold buying store: In most major cities around the world, there are numerous gold buying establishments that will buy any gold jewelry from you without any problem.
- Sell your high-value belongings at a second-hand store: The most coveted and easily sellable items would be technological products such as mobile phones or laptops, as well as high-quality clothing and watches.
- Ask for money: The easiest way to get what you need would be to ask fellow countrymen who can trust you. If you need a small amount, the perfect place to ask would be next to vending machines, as everyone gets change from them, and when asking, it’s very easy for people to give you something.
- Go to your Embassy or Consulate: As a last resort, the representatives of your country can always provide you with assistance.
Where to find the best cash exchange rate for Canadian dollars?
As we mentioned earlier, the cheapest way to obtain cash dollars is by withdrawing money from ATMs.
In any case, if you wanted to exchange cash dollars at a currency exchange or bank, an exchange rate with a margin of less than 5% compared to the official exchange rate would be a good exchange rate. A margin between 5% and 10% would be an acceptable exchange rate, between 10% and 15% would be a poor exchange rate, and anything above 15% would be usury.
You can easily find the official exchange rate of the Canadian dollar to your currency on Google. By subtracting the rate offered to you and dividing the difference by the official exchange rate, you will obtain the percentage of margin that would be applied.
Typically, highly trafficked areas in tourist locations are the worst places to exchange currency as they apply higher margins on exchange rates. Therefore, it is best to search online in advance for a reputable exchange establishment rather than going to the first one you see.
In any case, if it were a small amount of money to exchange, it would not matter much where you exchange it in case of need and urgency, as it would involve assuming a small additional cost in the worst-case scenario.
How much cash is sufficient for traveling?
Exchanging cash only serves two purposes:
- It serves as an emergency fund in case your card and phone are stolen, allowing you to at least get by: buy something to eat, make phone calls, travel to the embassy if you need to request a duplicate passport, and get to the airport to leave the country.
- It serves if you need to make cash payments: at some street vendors, certain vending machines, and for paying for services such as laundromats, telephone booths, shopping carts that require coins, etc.
Therefore, depending on the number of days you will be traveling and your estimated cash expenses, you can roughly calculate what you will need, which, in any case, should not be a large amount.
Is it possible to know if the exchange rate for dollars will be better or worse in the future?
Official currency exchange rates function like any other financial market, such as the stock market. Obviously, there are analysts and financial gurus who make predictions, but just like predictions about stock prices, there is no evidence to show that anyone is able to accurately predict future prices based on available data.
In general, foreign exchange rates tend to be fairly stable, and over the course of a month, they do not vary much more than 5%, unless there is an unexpected economic or political event, such as the unexpected victory of an opposition party with a groundbreaking economic program.