Travel Tip: Using Canadian Dollars At American Airports

The Canadian dollar is the official currency of Canada and has a lower value than the US dollar. While some retailers in Canada may accept US dollars, they will likely set their own exchange rate, which may not be favourable to the customer. Therefore, it is recommended that you exchange your US dollars for Canadian dollars before travelling to Canada. This can be done at your local bank or at a Canadian bank after arriving in the country.

Some American airports have a CBSA office that handles currency transactions

When travelling between the US and Canada, it is important to be aware of the currency differences between the two countries. While the Canadian dollar is used in Canada, the US dollar is more valuable and commonly used in both countries. As such, travellers crossing the border will need to exchange their money to purchase goods and services in the other country.

Most airports that receive foreign travellers usually have a CBSA office that handles currency transactions. The CBSA also requires travellers to declare if they are carrying 10,000 Canadian or US dollars or more. This is done through a CBSA Declaration Card and failure to declare this amount can result in the money being seized and the traveller being detained and investigated.

It is recommended that travellers exchange their currency at banks, post offices, border crossings, or American Express locations, as these typically offer more competitive rates than airports.

The Canadian dollar is worth less than the US dollar

While some retailers and businesses in Canada may accept US dollars as a courtesy to tourists, the Canadian dollar is worth less than the US dollar. The two currencies are distinct, with the Canadian dollar (CAD) having a lower value than the standard American dollar (USD). As a result, exchanging US dollars for Canadian dollars may not be necessary when travelling from the US to Canada, as US dollars are commonly used in both countries. However, it is generally recommended to exchange currency before travelling or immediately after entering Canada to obtain a better exchange rate and avoid unnecessary fees.

When exchanging currency, it is best to use banks, post offices, border crossings, or American Express locations. Airports, train stations, and tourist areas tend to have less favourable exchange rates and higher fees, so they should be avoided if possible. Banks can set their own exchange rates, so it is a good idea to compare rates before exchanging currency. Additionally, some credit and debit cards may not charge fees for international purchases in other currencies, so having one of these cards can be a convenient alternative to carrying cash.

It is important to note that when entering or leaving Canada, individuals must declare any currency, goods, or valuable items totalling CAD 10,000 or more. Failure to do so may result in fines or confiscation of money or goods. This rule applies to both cash and various monetary instruments such as bank drafts, cheques, stocks, and bonds. Therefore, it is generally advisable to carry only the necessary amount of cash and utilise other payment methods, such as credit or debit cards, for larger purchases.

US currency is accepted in Canada, but not everywhere

Major retailers, hotels, duty-free shops, border crossings, and popular tourist attractions in Canada will likely accept US currency. However, they may set their own exchange rate, which may not be favourable to the customer. Smaller, more rural destinations, and automated machines such as those at laundromats or parking meters, are unlikely to accept US dollars.

Therefore, it is generally recommended to pay in local currency (CAD) in Canada, as some businesses may not accept US dollars, and those that do may charge higher fees. Exchanging money beforehand or using a credit card are also recommended options.

Major banks, foreign exchange bureaus, border crossings, and post offices offer competitive exchange rates

While some retailers and businesses in Canada may accept US dollars as a courtesy to tourists, they will likely set their own exchange rate, which may not be favourable to the customer. Therefore, exchanging your US dollars for Canadian dollars before you leave is a good idea.

Major Banks

Major banks in the US, such as Bank of America, Wells Fargo, and Citi, can exchange your currency before you leave. Once in Canada, banks like the Bank of Nova Scotia (Scotiabank), Canadian Imperial Bank of Commerce, and Toronto Dominion Bank can perform this service. Remember that exchange rates will vary from bank to bank, so it is worth shopping around to find the best rate.

Foreign Exchange Bureaus

American Express has offices in Canada that provide currency exchange services. KnightsbridgeFX is another online currency service with physical locations in various Canadian cities, such as Keswick, Burnaby, and Saskatoon.

Border Crossings

If you are driving to Canada, you can exchange your US dollars for Canadian cash at the border. A border service officer will usually carry out this transaction. If you are flying, most airports that receive foreign travellers have a CBSA office that handles currency transactions.

Post Offices

US and Canadian post offices provide currency exchange services to consumers who frequently travel or send money to other countries.

High tourist areas, including airports, train stations, and retailers, tend to have poor exchange rates

When travelling, it's always a good idea to carry a backup source of funds in case of emergency. It's also important to know your options when dealing with foreign exchange rates, as you can save a lot of money by making the right choice.

It's best to avoid exchanging money at airports, train stations, and tourist areas. Instead, exchange your currency at banks, post offices, border crossings, or American Express locations. Banks can set their own currency exchange rates, so it's worth shopping around to find the best rates. Exchange rates will also vary from bank to bank and from retailer to retailer, so it's a good idea to call around or search online to find the best rates.

If you're travelling to Canada, it's recommended that you convert your US currency to Canadian dollars before you go, as you'll likely get a better exchange rate. You can do this at American institutions or banks for non-residents. However, if you need to exchange money once you're in Canada, the best places to do so are major banks, foreign exchange bureaus, border crossings, and post offices, as these locations typically offer competitive rates.

Frequently asked questions