USD visa for online shopping?

[metta2006]

Hi,
I am going to buy something that is worth of 1500 USD online. Is it better to buy with a Canadian visa card or with a US dolllar visa card (BMO Mosaic)? I know there is 2.5 % charge with a Canadian visa for currency exchange. But if I buy with a US dollar visa, and pay it off with cash, the cash exchange rate at the bank is usually bad. I wonder if it is worth while to exchange cash at the bank to pay it off. Thanks so much.

[joe1487]

It all depends on whether you think you can get an exchange rate with less than a 2.5% commission factored in. If you know a bank employee who can get you lower exchange rates or use a private foreign exchange company with cheap rates, then go for it, but if you're thinking of exchanging money with your bank, I tend to think that bank exchange rates factor in a commission of around 2.5% anyway. The only advantage I see to that would be playing the rate markets (e.g. you think rates will decline by the time your Visa bill is due). I would probably end up paying with my Canadian card.

BTW, BMO offers a USD Mastercard, not a Visa.

[tkyoshi]

It all depends on whether you think you can get an exchange rate with less than a 2.5% commission factored in. If you know a bank employee who can get you lower exchange rates or use a private foreign exchange company with cheap rates, then go for it, but if you're thinking of exchanging money with your bank, I tend to think that bank exchange rates factor in a commission of around 2.5% anyway. The only advantage I see to that would be playing the rate markets (e.g. you think rates will decline by the time your Visa bill is due). I would probably end up paying with my Canadian card.

BTW, BMO offers a USD Mastercard, not a Visa.

Ya, it could go either way. Last time when the dollar was around 1.10, people that needed to convert ended up loosing since the dollar had dropped by the time their bills were due.

The key is whether you can exchange it for lower. Most banks charge about the same if not more in some cases. Also factor in the time/gas it might take you to get the money changed, you can't pay the bill online.