Foreign exchange

Started by Oscar, February 15, 2016, 02:45:45 PM

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Oscar

Usually, I will go to LHS and get my parts/planes.  But if the items is not available in Canada, I will get it thru Online store.  (usually Lipo batteries)

As you aware, our CDN is going 14years low.  I was hoping the CDN will goes up but It doesn't seem it will in awhile.

In terms of exchange rate, I always thought all credit cards are the same (They have the terrible exchange rate plus they charge an addition foreign transaction fee).  But surprisingly, there are some Canadian credit cards does not charge the foreign exchange service fee.  (A foreign exchange fee is about 4.7% ontop of the exchange rate)

I use Paypal for my online shopping.  One advantage is they convert the amount to CDN for me.  And if you are refunding the item, the full amount will be refunded.  Whereas if it's thru creditcard, it will base on the refund transaction date exchange rate.

In the past, I just link my creditcard to Paypal and let Paypal does the exchange.  Paypal will also add service charge for exchange fee (2.3%) just like the regular credit card.

Note: Maybe others are already doing this.  If not, maybe this will help you. 


Here are my findings (as of 2016). 

Rogers Bank MasterCard - https://www.rogersbank.com/en/card_details/rogers_platinum_mastercard
If you are using Rogers (TV/Home security/Phone/Internet etc) or Fido, this is the card you should apply.  No annual fee.  0% foreign exchange service charge. And it has cashback to your Rogers and Fido bills. 

Amazon.ca VISA - https://www.amazon.ca/gp/cobrandcard/marketing.html
No annual fee, 0% foreign exchange service charge.  Cash back to you.  If you use Amazon regularly, this is the card you should apply.

Marriott rewards VISA card - https://www.marriottpremier.ca/?JOBNUM=VMR1207057
$120 annual fee, 0% foreign exchange service charge.  Hotel points for all Marriott chain hotels. 

Note: Remember, it's not only purchasing online.  If you often travel outside Canada, you will benefit from it too.

And if you are like me that use Paypal for your online shopping and you have apply one of these credit card.  Make sure you change the option of payment to allow creditcard calculate the exchange rate but not thru Paypal.  :D



deltawing

I gave up using my CAD$ credit cards to pay(settle) my PAYPAL account in US$.

For whom might have a US$ credit card, you could link it to your PAYPAL account (it do allows multiple CAD and US credit cards together) and you pay it in US$ not CAD$ with unfavor conversion.

If you happen to have US$ saving or investment accounts, settle your credit card in US$ would save the exchange difference.  Bottom damage may be the same, but you may be enjoying more favorable exchange back then.