What's in Your Wallet?

There are a few things I’ve learned about paying for things in Canada that differ from the US, and I thought were worth sharing.  

Cash:  Regarding the currency, you know a Canadian dollar (CAD) is different than a US dollar (USD), right? (I'm not being facetious, some people don't.)  And though my nephew questions whether bills with so many colors are REAL money, the exchange rate is around 98 cents/dollar.  Yes, for those of you stuck in 2001, the CAD is almost one for one with the USD (see converter on the side of the blog for up-to-date exchange rates as this is changing all the time).  One difference that I find a bit annoying is that the smallest bill is $5 so they have $2(toonies) and $1 (loonies) coins that you have to carry around.  Keep in mind that some merchants, not many and usually small, only accept cash so be prepared. 

Debit:  Interestingly debit cards are used more often here than in the US.  This could be because of the of proliferation of the Interac system, or because some retailers don’t accept credit but do take debit because the merchant fees are lower.  Or maybe it is just because Canadians don't spend as frivolously as Americans?  I'm not sure.  Also, for the most part debit cards in Canada are not associated with a credit card company (like VISA) so cannot be used as a credit card (signature) transaction – just ATM and debit (PIN) transactions.

Credit:  If you do not have a Canadian credit history, no matter your history with big companies in another country, it is unlikely that you will be able to get a regular credit card.  If you are in this situation, you may need to wait until you build credit or get a "secured" credit card.  This works where you deposit money into an account and can only use the card to withdraw those funds this way there isn't any risk to the bank.  We were fortunate enough to work with the bank that the U of T has a relationship with so we got a credit card with a decent credit limit. 

One thing we’ve found to be a pain with our credit cards is that we have a joint account, but our cards have different numbers.  I didn’t realize it would be an issue since it is the same account until I tried to return something we purchased on my husband’s card and I wasn’t able to without his card.  I still don’t know why they do this – if anyone else does please share! 

Another difference which I guess is common in Europe is that most credit cards have an embedded chip.  Like the picture to the left, you can insert the chip into the machine (no swipe) and enter a pin.  Then you don’t have to sign your receipt.  Also, most restaurants have these portable machines that they bring to your table to process your card.  You can enter the tip percentage or fixed amount and don’t have to calculate anything!  I know that some places in the US have mobile machines as well, but they aren’t nearly as common there as here.  A definite positive!