Paying with cash - Canada.ca (2024)

FAQs

Is it better to use cash or debit card in Canada? ›

While major cities and tourist areas in Canada typically accept debit cards, some smaller shops, local vendors, or remote locations may only accept cash. Carrying some Canadian dollars for these situations is always a good idea.

Use the credit card instead of cash wherever possible. Credit card issuers typically charge fees for international transactions and you may get the best exchange rate and fees lower than those associated with exchanging cash.

Most casual visitors to Canada should use their credit cards for purchases and make larger ATM withdrawals, in Canadian dollars, at Canadian banks. Frequent travelers should talk to their banks about the best debit and credit cards for their trips.

Most merchants accept cash as a form of payment. Some merchants don't accept debit or credit cards. You may prefer paying for something with cash because you don't have to provide your financial information. For example, your debit or credit card number.

“For example, if you were traveling to Canada, it is 100% in your favor to get the Canadian dollar from the U.S. bank before you travel if the U.S. currency is stronger. But when we're looking at currencies like the British pound, better to do everything when you get to London, not beforehand,” he added.

There's no single best way to take money to Canada. Carrying one or more cards, including a travel prepaid or debit card, as well as some cash is a good idea for most people. That way you have a back up plan if one payment method isn't accepted for some reason.

If you are planning to rely on USD in Canada, you may like to reconsider. Although large retailers, tourist attractions, hotels and border crossings accept US currency, smaller and rural destinations may not. Travellers don't always consider the situations when the local currency is the only option.

No need to carry cash for tips, but you can still leave a tip in cash if you wish. Just enter no tip. Note, however, that the percentage will be added to the whole bill, including liquor, which is not normally tipped at the same rate as food— and, most importantly, the sales tax, which can be as high as 15-16%.

While the use of cash for payments is on the decline, our survey found that Canadians still use cash for a big share of their purchases. They are not ready to move entirely to electronic forms of payment.

Do stores take American money in Canada? ›

Carry USD to Canada

Though this currency is widely accepted at retailers, hotels, and border crossings, smaller rural areas prefer the local currency and do not accept USD. Hence, you need to use the Canadian official currency for your local cab fare, laundromats and other things.

Debit and credit cards remain the go-to choice for most Canadians when making payments. Cards like Visa, Mastercard, and American Express are widely accepted, making them essential for everyday purchases. Contactless payments, where you can simply tap your card at checkout, have also become increasingly prevalent.

There are no restrictions on the amount of money you can bring into or take out of Canada, and it is not illegal to do so, as long as you declare it. This applies to all travellers, couriers and to people carrying money on behalf of someone else.

American credit cards are widely accepted in Canada. Taking a credit card with you to Canada might be more convenient and secure than taking cash.

Yes, debit cards by Visa are widely recognized for various online and electronic transactions globally, wherever Visa is welcomed. Keep in mind that Visa fees will be applicable, and these charges will be visible on your statement as a 1% international transaction service fee.

You'd be better off exchanging cash at a bank (any Canadian bank will do this) or a Foreign Exchange store. Also, most American debit and credit cards are accepted by Canadian retailers and ATM's, and they'll debit you in Canadian dollars, converted from US dollars.

You can use US dollars in big stores in Canada though exchange rate won't be to your advantage; smaller retailers might refuse to accept them. Using Canadian dollars in the USA is also restricted to big retailers only (like Costco or Starbucks) and they only accepted in areas close to the border.

Canada pushing toward a cashless society with a 70 per cent drop in cash transactions by 2030. By 2030, cash purchases will make up only 10 per cent of money spent in Canada, according to a prediction by Moneris Solutions Corporation ("Moneris"), Canada's leading credit and debit card processor.

Credit cards can also be a convenient way to make payments abroad, though they may not be accepted in all countries. If you know credit cards are widely accepted in your study abroad location, it is best to get a credit card that charges no foreign transaction fees as this will save you money in the end.