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Canada's currency is the Canadian dollar (symbol: $ proper abbreviation is CAD), commonly referred to simply as a "dollar". One dollar ($) consists of 100 cents (¢). In the 1970s, 1 Canadian dollar was worth more than 1 US dollar, but slipped to approximately USD$0.66 by the mid-1990s. By late 2007 however, with commodity prices rising and the US dollar falling against most major currencies worldwide, the Canadian dollar was once again at par with the US Dollar (1 CAD = 1 USD).

Canadian coins are of 1¢ (penny), 5¢ (nickel), 10¢ (dime), 25¢ (quarter), 50¢ (rarely seen/never used), $1 (loonie) and $2 (toonie). (The penny, nickel, dime, and quarter match their U.S. counterparts in size, shape, and colour, but not in metallic composition.) Canadian notes come in $5 (blue), $10 (purple), $20 (green), $50 (red) and $100 (brown) denominations. The $1,000 (pinkish) bill has not been issued since 2000 as part of the fight against money laundering and organized crime. Although it remains legal tender, banks have been taking them out of circulation. In addition, the $1 (green/black) and $2 (terra-cotta) bills no longer circulate but are still considered legal tender.

Bargaining

Bargaining is extremely rare in ordinary retail shopping in Canada and attempts to talk a retail worker down in price will result in nothing (besides testing the employee's patience). This is rarely a problem, as most retailers in Canada price their items fairly and do not look to extort their customers due to the highly competitive market and well-off economy. For larger-ticket items, especially high-end electronics and vehicles, many employees work on commission, so bargaining is possible for these items, and sales-people may offer you a lower price than what is ticketed right from the get-go. However, in certain establishments such as flea markets, antique stores, farmer's markets, etc, you may be able to negotiate a lower price, although it is, again, often unnecessary to put forth the effort.

Currency exchange

In all cities and towns, it is possible to convert between Canadian dollars and most major currencies at many banks. In addition, most retailers in Canada will accept US currency either at par or at slightly reduced value. All Canadian banks provide currency exchange at the daily market value. In some areas, private exchange bureaus will give better exchange rates and lower fees than banks, so if you have time during your travels to look one up, it might save you some money on the exchange both when you arrive and before you leave, because Canadian dollars may not be worth as much in your home country, particularly the coin.

Private businesses are under no obligation to exchange currency at international rates. Even in the most rural areas, converting between Canadian and American dollars should not pose a problem, although travelers expecting to convert other currencies at a Canadian bank may need to be patient. In fact, most tourist destinations will accept American dollars as such, and are most likely to give a very good exchange rate. This is particularly true of regions that rely on tourism as a cornerstone of their local economy.

Credit cards

Credit cards are widely accepted, with Visa and MasterCard being accepted in most places, American Express somewhat less frequently and Diner's Club only in the more upscale restaurants and hotels. Generally, using a credit card also gets you a better exchange rate since your bank will convert the currency automatically at the prevailing daily rate.

Electronic banking/purchasing

The banking system is well developed, safe and technologically advanced. ATM usage in Canada is very high. There is a safe and widespread network of bank machines (ATMs) where you may be able to use your bank card to withdraw money directly from your account at home, but the fees involved can be more than for credit cards. If possible, try to use chartered bank ATM machines as the fees are often cheaper than the independent ATM machines. All Canadian banking institutions are members of the Interac international financial transaction network. Most retailers and restaurants/bars allow purchases by ATM card through Interac, even if they do not accept major credit cards. Other ATM networks, including PLUS are widely supported and will be indicated on the ATM screen.

  

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