Are US dollars accepted in Canada? This is a very common question that non-Canadians ask when heading to Canada for the first time.
While the answer is yes (sometimes), you might be better off exchanging your US dollars for Canadian dollars at American institutions or banks for non-residents.
We’ll explain our reasons why this might be a better option below. Plus, we’ll share everything you need to know about bringing money into Canada.
Feel free to use the table of contents to jump ahead to the section that is most relevant to you.
Table of Contents
- Bringing Money to Canada
- Canadian Dollars
- Currency Conversion
- Travel Options
- Frequently Asked Banking Questions
- Ready to Open Accounts With Banks in the USA
Bringing Money to Canada
Although you are not restricted on the amount of money you can bring into Canada, you are required to declare any currency, goods, or items that are of value equal to or greater than CAD 10,000.
If you have CAD 10,000 or more in possession and choose not to declare it, the Canadian Border Services Agency (CBSA) has the right to seize your money (and items) over the $10,000 threshold.
That said, you will likely be fined in the range of CAD 250 to CAD 5,000. Or worse, your money (or goods) could be confiscated permanently. So, it’s probably best to declare or not carry more than $10,000 in cash into the country.
Canadian Dollars
If you are planning on traveling to Canada, you’ll want to know “Are US dollars accepted in Canada?”. With that said, you might want to convert to Canadian dollars before stepping foot into the country. Why? Well, you likely will get a better exchange rate.
Not everywhere in Canada will accept US dollars. And, even the ones that do, will likely charge a premium for the exchange.
Of course, it’s important to look at your options of where you can get the best exchange rate. This is because exchange rates will vary from retailer to retailer and even from bank to bank.
Note: Another option is to get a debit card or credit card that doesn’t penalize you for making international purchases in other currencies and has reasonable FX rates.
If you’re looking to obtain financing here or a loan without an SSN or ITIN in the US, it’s important to choose banks that offer these services to non-resident account holders. The same goes for whether you’re looking to purchase real estate outside of your home country and require an expat mortgage in the USA or Canada.
Currency Conversion
Some of the best places to convert your US currency to Canadian dollars are major banks, foreign exchange bureaus, border crossings, and post offices. These locations typically will offer competitive rates.
Now, places you should avoid are high tourist areas, including airports, train stations, and high tourist traffic retailers. This is because these locations are often isolated from other alternatives and charge premiums. Meaning, it could be your only option. Therefore, they are often very expensive because their exchange rates are so bad.
Travel Options
You might be wondering “Should I exchange money before I travel to Canada?” Well, in most cases the answer will be yes.
Note: Some people opt to exchange money when they arrive in Canada, while others do it in another country beforehand. Deciding whether or not you should exchange money before arriving in Canada depends on which country in the world you are in and how predatory the local exchange rates are.
As mentioned above, exchange rates are going to be higher at retail locations, tourist destinations, and airports. So, if you have no choice but to exchange after you arrive in Canada, you should exchange at one of the major Canadian banks, which all accept US dollars.
Of course, other businesses in Canada do accept US dollars as a courtesy to tourists. However, as mentioned, their exchange rates will likely be higher than anyone else. So, whenever possible, exchange before or immediately after crossing the border. Or just get yourself a credit card with no FX fees.
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Frequently Asked Banking Questions
Below are three common questions we receive from people looking to answer “Are US dollars accepted in Canada?”. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Do Places in Canada Accept US Dollars?
Yes, there are places in Canada that accept US dollars. But keep in mind, exchange rates can vary dramatically from place to place.
Should I Exchange Money Before Going to Canada?
It is always best to use the local currency when visiting Canada. This way you avoid losing money on exchange rates. So, exchanging your money before going to Canada (or immediately after entering) is often the better option.
Do Canadian Banks Take US Dollars?
Yes, all of the major Canadian banks accept US dollars. That said, exchange rates will vary depending on the specific bank you choose to convert your money with.
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