Conversion rate for non US cruisers

[Cez]

Question for Non US cruisers (and US cruisers with banking knowledge) 

I'm doing my online check-in (yey !!) and one of the questions always makes me wonder. For as long as I remember RCCL always is giving choice between two conversion options.

My CC is charging 2% foreign conversion rate and I always select option B, but would like to have your opinion/advise on this subject 

 

[Lovetocruise2002]

27 minutes ago, Cez said:

Question for Non US cruisers (and US cruisers with banking knowledge) 

I'm doing my online check-in (yey !!) and one of the questions always makes me wonder. For as long as I remember RCCL always is giving choice between two conversion options.

My CC is charging 2% foreign conversion rate and I always select option B, but would like to have your opinion/advise on this subject 

 

For the last few years we have a US card that we use while travelling. Then we just convert money on our own to pay the card.  But before we would choose B as well. 

[F1guynz]

I always choose option B for a couple of reasons;

1.if it is done by our bank I can see a breakdown of the costs, e.g. commission and currency conversion rates. When you do it through a 3rd party in my experience they just charge you in you own currency and can’t see a breakdown of the how the amount charged. This also makes it difficult to see which is the better option.

2. They call it a convenience but they must only do it to make money. Therefore I would expect the costs to be around the same or higher than for our bank. I don’t think they would be lower (just my opinion and not based any real world knowledge) so no real advantage to having them do it other than knowing immediately how much you are being charged (as apposed to checking your credit card statement)

 

[Neaxan]

I'd always choose option B, especially because our bank doesn't charge a currency conversion fee and no matter where we used the card to pay or to withdraw money from an ATM, the conversion rate was always much better than with 3rd party services.

[Gears]

Best way for us Canucks...

Get a US based bank account and a USD credit card. Most of our banks offer this (RBC does). You can usually get an account (again, based in the US) and a no fee USD credit card. The account will generally have a fee, but what you will save very much offsets the fee.

Open a $USD account in Canada, move funds from your $CDN account to your $USD account using your online banking (this is where your conversion happens), then transfer the USD funds from your Canadian based account to your USD account based in the US (again, in your online banking), then pay your USD credit card from your USD account in the US. It's all online, no physical bank.

The best conversion rate is achieved by transferring online from your $CDN account to your $USD account based in Canada (have to do it at some point!). No crappy exchange rate from your $CDN credit card and no foreign exchange fees on top of that. What you will save more than covers the monthly account fees for the US based account multifold. 

[Lovetocruise2002]

33 minutes ago, Gears said:

Best way for us Canucks...

Get a US based bank account and a USD credit card. Most of our banks offer this (RBC does). You can usually get an account (again, based in the US) and a no fee USD credit card. The account will generally have a fee, but what you will save very much offsets the fee.

Open a $USD account in Canada, move funds from your $CDN account to your $USD account using your online banking (this is where your conversion happens), then transfer the USD funds from your Canadian based account to your USD account based in the US (again, in your online banking), then pay your USD credit card from your USD account in the US. It's all online, no physical bank.

The best conversion rate is achieved by transferring online from your $CDN account to your $USD account based in Canada (have to do it at some point!). No crappy exchange rate from your $CDN credit card and no foreign exchange fees on top of that. What you will save more than covers the monthly account fees for the US based account multifold. 

This is exactly what we do except @Gears explained it much better than I did earlier. ?

[Cez]

thank you @Sabrinaklai @F1guynz @Neaxan @Sabrinaklai @Gears for your input.

It's too late for this cruise but I'm going to implement @Gears solution. More money to spend on board :) ! 

[J. Woody]

Hello!  My first Rcl cruise will be Aug.2018.  I never have USD bank account and USD based CC. I am not frequent US traveller.  When I traveling US, always exchange cash in advance.

I checked RBC website, looks like no fee for open US account and RBC cc.  worth to open it ??  big different exchange rate ??

Exchange rate from CDN to USD is very harmful!!

 

[Lovetocruise2002]

21 minutes ago, J. Woody said:

Hello!  My first Rcl cruise will be Aug.2018.  I never have USD bank account and USD based CC. I am not frequent US traveller.  When I traveling US, always exchange cash in advance.

I checked RBC website, looks like no fee for open US account and RBC cc.  worth to open it ??  big different exchange rate ??

Exchange rate from CDN to USD is very harmful!!

 

Not sure about RBC but our US cc is no fee.  All USD purchases get charged to the card in USD.  No conversion to Canadian dollars.  We then exchange money periodically at currency exchange that has really low rates and deposit on the card.  I'm not explaining this well.  But that is pretty much what happens lol.  It is worth it to have a US card.  We save more by converting the money ourselves rather than having the bank do it for us.

[twangster]

3 minutes ago, Sabrinaklai said:

Ours US cc is no fee from Scotia bank.  All USD purchases get charged to the card in USD.  No conversion to Canadian dollars.  We then exchange money periodically at currency exchange that has really low rates and deposit on the card.  I'm not explaining this well.  But that is pretty much what happens lol.  It is worth it to have a US card.  We save more by converting the money ourselves rather than having the bank do it for us.

I have family in Canada.  For years now they have listed my US address as a secondary address on their US credit card so they can use it at gas pumps in the US.  Those often require a 'zip code' to work and they could never pay at the pump lacking a zip code.  Have they overcome this issue on your Scotia card?

[monctonguy]

I have done 10 cruises and always choose my bank to do the exchange rate..so option B. I am pretty sure it works out to an extra 3-5% if they do it for you.

 

Really simple solution if you don't have a USD credit card or bank account and are leaving soon..is to get a pre-paid, re-loadable USD credit card at your bank. NO fees at all.....so its the cheapest method and easy to use.

[Cez]

1 hour ago, twangster said:

Those often require a 'zip code' to work and they could never pay at the pump lacking a zip code.  Have they overcome this issue on your Scotia card?

 

For any Canadian CC if prompted for your ZIP code, just enter the three digits of your postal code following by two zeros. So for example, if your postal code is A1B 2C3, the zip code is 12300

[Cez]

I have found another maybe bit less elegant but effective solution.

Fido/Rogers Master Card is giving you 4% cash back for purchases made in non Canadian currency (online or physical transaction).  With 2.5% exchange fee you are 1.5% ahead of the game. The downsize is that you have to spend this "cash" on your phone bill, upgrade  or accessories. So in reality for Fido/Rogers clients only.....

[Lovetocruise2002]

3 hours ago, twangster said:

I have family in Canada.  For years now they have listed my US address as a secondary address on their US credit card so they can use it at gas pumps in the US.  Those often require a 'zip code' to work and they could never pay at the pump lacking a zip code.  Have they overcome this issue on your Scotia card?

Our card doesn't require a US address.

[Cez]

22 minutes ago, Sabrinaklai said:

Our card doesn't require a US address.

have you tried to pay with it at the pomp? That's the only place where I've seen this requirement. Paying inside gas station works as usual  

[Lovetocruise2002]

1 minute ago, Cez said:

have you tried to pay with it at the pomp? That's the only place where I've seen this requirement. Paying inside gas station works as usual  

Don't know. We never fill up in the states lol.  It's Costco always for us.

[Lovetocruise2002]

18 minutes ago, Cez said:

have you tried to pay with it at the pomp? That's the only place where I've seen this requirement. Paying inside gas station works as usual  

Actually, I just asked hubby now.  He said that once he did use it in the states but he had to go inside to pay.

[J. Woody]

Thank you. It really doesn’t matter for some one in local or on-line.  

[Gears]

7 hours ago, J. Woody said:

Hello!  My first Rcl cruise will be Aug.2018.  I never have USD bank account and USD based CC. I am not frequent US traveller.  When I traveling US, always exchange cash in advance.

I checked RBC website, looks like no fee for open US account and RBC cc.  worth to open it ??  big different exchange rate ??

Exchange rate from CDN to USD is very harmful!!

 

You want the RBC Bank (US entity) account and the no fee Signature USD card that you can apply for with the RBC Bank account (again, RBC Bank is the US legal entity and RBC Royal Bank is the Canadian legal entity).

Best exchange rate is to move CDN to USD using your online banking. It's not massively different than going into the branch, but it is a smidgen better.

[Lovetocruise2002]

1 minute ago, J. Woody said:

Thank you. It really doesn’t matter for some one in local or on-line.  

I only use a TA when it benefits me greatly from doing so. Sometimes I am my own TA and I do not mind. I think that is because I am pretty comfortable researching and taking care of all aspects of my vacations.

I've gone through local TA and online ones but the thing that stands out for me is that you have to be comfortable with who you work with. And different agents or agencies offer different deals. Sometimes even agents within an agency offer different deals. 

Being from Ontario myself, I honestly have not found even one agency in Canada that I like. Most the times if I do book with an agent it is online, by email, or through the phone and they are usually US based and it is usually if it works out better in my favour to book with them. 

But above all, don't just go with someone because someone recommended it. Go with someone who you are comfortable with. I think that is the most important. And if it's a cruise vacation then deal with an agent or agency that at least has CLIA certifications because then at least you know that they are up to date with their knowledge of the industry. Hope that helps. Many others here have great recommendations too. 

[J. Woody]

You are so true. Thank you for your thought.!

[TheaFromCDA]

Thanks @Sabrinaklai for advising me to look up @Gears ...since I do a LOT of online shopping both in Canada and the US, I am always on the lookout to best leverage the dollar to get the most bang out of a (Canadian) $.

Disclaimer: I am NOT a financial expert nor am I in any way affiliated with any of the institutions listed outside of being a customer...all my data is anecdotal from a personal consumer standpoint 

@LetsTryThisTech linking to you vs cutting and pasting to the other thread 

For those that would prefer a TL:DR - what I have done is use my credit card (depending on FX as seen on table below) in combination with  (despite it clearly stipulating for US residents only)  RC gift certificates using my CANADIAN credit card and address. I wasnt sure my modified address was going to work, so at first I tried it with a $50 GC. I was ALSO pleasantly surprised that not only did it work, when I DIDNT end up using the $50, I got cash back on the ship! Now mind you, maybe it was because it was only $50 bucks...not sure what their policy may be for higher currency but I'm sure you guys can find ways to spend on board . The reason for me going this route:

- I get to save bit by bit so that like @Matt has repeatedly said, I dont get that sticker shock at the end of a cruise

- one of my credit cards charges 0% foreign fx fee and still gives me 1% back. Since RC gift certificates can be applied to the actual fare or anything on the ship, I tend to buy them when the exchange is favourable. See specific concerns FX wise below. 

BIGGEST REASON  I go the gift card route:

as y'all know, when you BUY currency, they often charge MORE than when you "SELL" currency... IE if a refund has to be done. For example, right now (Feb 2, 2018 10:01 AM EST), to buy US it is 1.279 [screenshot below]...to SELL is 1.2028. For example, if you had to cancel and rebook due to a sale on something on cruise planner, you get a refund and a new charge:

say purchase value is $500 USD. You would be paying 639.50 CDN but only getting back 601.40. thats a total of $38.10 you "lost out" on which may or may not lower your actual savings by cancelling and rebooking something on cruise planner... 

I have a pre-done spreadsheet that basically I plug how much currency I want and the rates...and I get a side by side comparison and decide how to charge accordingly. 

-=-=- MUCH longer winded explanation-=-=-

I have the following:

-a US Dollar account in a Canadian Bank

-a US Based Bank and Credit Card

- A no fee Canadian credit card that DOES NOT charge any foreign conversion fee...and still gives 1% cash back rewards... 

- Cards with rewards but have 2.5% conversion fee

So for those looking for STRAIGHT convenience, this may not be the best route but Im normally in front of a screen an inordinate amount of time and looking up cruising is relaxing and fun. I I also have a nerdy spreadsheet where I break down cost because Im a nerd like that... 

I have this spreadsheet that before I start going through the sites I update so I have a baseline ... mInd you with currency the situation is so fluid it can change every time some financial news comes out. For example (though my budget is NOWHERE near that...) for those going the suite route... on 10,000 USD here's my spreadsheet for currency for Feb 1, 2018 or those that uploaded their currency by today (Feb 2 ie Mastercard is still on Feb 1 so thats what Im using). Also keep in mind that banks tend to do their exchanges live...while Visa or MC may wait to change their conversions. ALSO, for credit card companies, the actual rate you pay is when the transaction is POSTED vs actual date... so if in the 1-2 business days it takes to post, if the FX has gone up or down... your rates are also going to be skewed. 

GENERALLY: the cheapest route without factoring in the Rogers MC system tends to be using a card with a 0% conversion. Its still cheaper than me transferring from my CDN Bank to my USD bank (whether in Canada or the USA)

Example: 10,000 USD as of Feb 1/ Feb 2 at 10:01 am EST
0% conversion= $2,334

CDN bank to US account in CDN bank =  $2591

2.5% Visa Conversion(was a live rate)= $2,642

2.5% Masterccard Conversion (rate from previous day) = $2,617

CDN Bank to US based bank = $2760

 

[Lovetocruise2002]

5 minutes ago, TheaFromCDA said:

So for those looking for STRAIGHT convenience, this may not be the best route but Im normally in front of a screen an inordinate amount of time and looking up cruising is relaxing and fun. I I also have a nerdy spreadsheet where I break down cost because Im a nerd like that... 

Whoa, lol, I got lost at the beginning and could not tell if all that info was from you or something you found from @Gears in past posts? 

I have to admit, I am a Math/Science major but spreadsheets specifically are not my forte.  That would be right up there with @twangster and @JLMoran.

Anyway, from what I understand, all that is under the assumption that you are paying on a Canadian CC and allowing it convert to US funds right?  We never go that route. We have a US card (from a Canadian bank) that charges for purchases in USD.  Then we go to a local currency exchange which charges a very minimal exchange fee and that is how we pay off the card.

[Cez]

18 minutes ago, TheaFromCDA said:

one of my credit cards charges 0% foreign fx fee and still gives me 1% back.

What is this card name ?

[TheaFromCDA]

1 minute ago, Sabrinaklai said:

Whoa, lol, I got lost at the beginning and could not tell if all that info was from you or something you found from @Gears in past posts? 

I have to admit, I am a Math/Science major but spreadsheets specifically are not my forte.  That would be right up there with @twangster and @JLMoran.

Anyway, from what I understand, all that is under the assumption that you are paying on a Canadian CC and allowing it convert to US funds right?  We never go that route. We have a US card (from a Canadian bank) that charges for purchases in USD.  Then we go to a local currency exchange which charges a very minimal exchange fee and that is how we pay off the card.

Whoops! so sorry all the data I typed up was me... though there is a likelihood I just havent found the posts that @gears may have posted that gave similar data. 

My degree is in something completely useless ...I just LOOOOOVE spreadsheets and im visual so it helps both in comparing side by side as well as historically. 

its kind of a 2 parter... Royal Caribbean Gift Certificates are charged in USD funds, whichever route you take..

now with regards to HOW I pay, whether its certificates or a TA or RC, I use a zero conversion credit card. I find it more favourable than a designated USD credit card. 

I have a USD CC but in order to pay that, you're eventually going to have to draw that amount from a Canadian source to pay off right? Even if you have a USD Bank account  sadly (at least in the case of the card/ account I use) their FX is still MORE. For example, supposedly a borderless plan enables you to have a more "favourable" exchange rate... and dont get me wrong, it still does....

using the same example I did above: 

Example: 10,000 USD as of Feb 1/ Feb 2 at 10:01 am EST
0% conversion= $2,334

CDN bank to US account in CDN bank =  $2591

2.5% Visa Conversion(was a live rate)= $2,642

2.5% Masterccard Conversion (rate from previous day) = $2,617

CDN Bank to US based bank = $2760

Borderless = $2,703

=-==-=

[Lovetocruise2002]

3 minutes ago, TheaFromCDA said:

I use a zero conversion credit card. I find it more favourable than a designated USD credit card. 

So back to the question from @Cez, what is this card???

[TheaFromCDA]

29 minutes ago, Sabrinaklai said:

So back to the question from @Cez, what is this card???

My card is actually an Amazon.CA visa...UNFORTUNATELY, Chase Canada has elected to close all their Canadian credit card holdings (including Marriott's) BUT

there is STILL one CC company that offers the 0% conversion fee and 1% cash back... (again not affiliated with them and I dont have their card but a lot of the CDN financial and/or credit card blogs mention them as a viable option.)

HomeTrust Preferred Visa 

• No annual fee
• 1% CashBack with no limits to your total rewards
• No restrictions on where you earn your rewards¹
• Roadside Assist membership at no extra charge
• No foreign currency conversion surcharges²

It doesn't stop there.

The benefits of a Home Trust Preferred Visa include a range of other features that add great value all year round - whether you're shopping, travelling or looking for special offers.

• Purchase Security Insurance, so you can shop with peace of mind³
• Visa Auto Rental Collision/Loss Damage Insurance⁴
• Emergency card and cash replacement
• Guaranteed hotel reservations
• The Visa Zero Liability Policy for protection against fraud⁵
• Verified by Visa for enhanced online shopping safety and security

Apply for your Home Trust Preferred Visa with CashBack today, and say goodbye to everything you don't want, like annual fees and cash back limits or restrictions.

http://hometrust.ca/preferredvisa.aspx 

[JLMoran]

1 hour ago, Sabrinaklai said:

I have to admit, I am a Math/Science major but spreadsheets specifically are not my forte.  That would be right up there with @twangster and @JLMoran.

To paraphrase The Tick (animated one, not current Amazon show):

”Foreign Exchange spreadsheet... boring... losing... CONSCIOUSNESS” ::thud::

I work in the financial industry and I’ve even had to write a UI for an FX Exhange system, but the actual mechanics of FX and how to optimize currency conversions? Well, let’s just just say it’s a good thing I wrote the system’s user interface and not the underlying services and back-end interfaces to actually do the legwork. ?

[Lovetocruise2002]

4 minutes ago, JLMoran said:

To paraphrase The Tick (animated one, not current Amazon show):

”Foreign Exchange spreadsheet... boring... losing... CONSCIOUSNESS” ::thud::

I work in the financial industry and I’ve even had to write a UI for an FX Exhange system, but the actual mechanics of FX and how to optimize currency conversions? Well, let’s just just say it’s a good thing I wrote the system’s user interface and not the underlying services and back-end interfaces to actually do the legwork. ?

Ok, I have not a clue what any of that means.  And it's ok, you don't need to explain. LOL.

[JLMoran]

4 minutes ago, Sabrinaklai said:

Ok, I have not a clue what any of that means.  And it's ok, you don't need to explain. LOL.

I feel sad for you that you don’t get the reference  to The Tick. Your life is missing so much joy and mirth!

And you have no excuse for not seeing it back in the day! From the Wikipedia page:

“The Tick was also shown on Teletoon in Canada as part of its Toonaholics Anonymous block in 2001.”

I sentence you to a YouTube search for all things “The Tick animated”. ?

[Cez]

2 hours ago, TheaFromCDA said:

HomeTrust Preferred Visa 

damn.......

*Not available to residents
of Quebec

[Lovetocruise2002]

45 minutes ago, JLMoran said:

And you have no excuse for not seeing it back in the day! From the Wikipedia page:

“The Tick was also shown on Teletoon in Canada as part of its Toonaholics Anonymous block in 2001.”

I sentence you to a YouTube search for all things “The Tick animated”. ?

Hmm...let  me see what excuse I can come up with...2001...I had just started teaching (and did I mention that you don't learn much in teacher's college), so more like flying blind while teaching and I was trying to plan a wedding for about 350 guests.  I basically watched nothing from 2000-2002 except for the kids that I was responsible for at the time.  But I will do some YouTube searching this weekend.  Life is more calm now ?

[TheaFromCDA]

51 minutes ago, JLMoran said:

I feel sad for you that you don’t get the reference  to The Tick. Your life is missing so much joy and mirth!

2 minutes ago, Sabrinaklai said:

Hmm...let  me see what excuse I can come up with...2001...I had just started teaching (and did I mention that you don't learn much in teacher's college), so more like flying blind while teaching and I was trying to plan a wedding for about 350 guests.  I basically watched nothing from 2000-2002 except for the kids that I was responsible for at the time.  But I will do some YouTube searching this weekend.  Life is more calm now ?

And you have no excuse for not seeing it back in the day! From the Wikipedia page:

“The Tick was also shown on Teletoon in Canada as part of its Toonaholics Anonymous block in 2001.”

I sentence you to a YouTube search for all things “The Tick animated”. ?

Isnt this a new amazon show? the Tick?

[TheaFromCDA]

23 minutes ago, Cez said:

damn.......

*Not available to residents
of Quebec

oh sorry :( you guys have waaay cheaper cell phone prices though? and a bunch of other things that I cant think of the top of my head? your Metro is more effective than the TTC? I had illusions of learning French and briefly considered moving to Quebec to learn lol.

[TheaFromCDA]

On 2018-01-09 at 2:04 PM, Sabrinaklai said:

Actually, I just asked hubby now.  He said that once he did use it in the states but he had to go inside to pay.

kinda a late reply but since I cross border quite a lot, at least for Sunoco and Kwik Ive been able to do that adding 00 system for when I used my Cdn CC

[JLMoran]

1 hour ago, TheaFromCDA said:

Isnt this a new amazon show? the Tick?

Not to hijack the thread, but The Tick has had a long history. Originally a comic book satirizing superheroes. Then an animated TV series in the late 90s / early 00s. Then a very short-lived live action TV series with Patrick Warburton as the lead. And today a reboot of the live action show that’s only on Amazon.

[Rose City Cruiser]

21 hours ago, Cez said:

damn.......

*Not available to residents
of Quebec

A country within a country.