Credit and debit cards are widely accepted throughout Canada; however, the extent to which you can use a foreign-issued card and the fees that apply depend on the card company and the type of account you have set up with them.
Most occasional visitors to Canada should use their credit cards to make purchases and make local currency withdrawals at larger ATMs at Canadian banks, but frequent travelers should talk to their banks about the best debit and credit cards. for these purposes. All travelers should call their bank or credit card companies in advance to inform them of upcoming use outside the country.
Note that currency exchanges often cost an additional fee if done at a foreign bank, especially an ATM, so it is best to limit the amount of cash withdrawals you make to avoid costly fees.
Tips for using debit cards
Most debit cards issued by non-Canadian banks will not work in Canada for retail purchases, but some debit cards issued outside of Canada will work at point-of-purchase terminals in the country. For example, a Bank of America debit card issued by the United States will work at Canadian retailers, but the user incurs a three percent foreign transaction fee for each purchase.
Note that debit cards differ from credit cards in that they withdraw money in real time from your bank account. Purchases made by swiping, inserting or tapping your card and entering a PIN number at a terminal will have those funds withdrawn. In Canada, these terminals operate on the Interac network, a specific network in Canada, which means that they cannot access this information or charge their account in real time.
Even if your debit card doesn’t work for point-of-sale purchases, it can be used to withdraw Canadian currency from ATMs in Canada. Generally, withdrawal and exchange fees apply, but will vary depending on your bank, so try to make cash withdrawals at major banks where user fees are not as high as at small ATMs that found at outlets (such as stores and restaurants), which typically add a three to five dollar fee per transaction.
If you travel to Canada frequently, you may want to consult with your bank about setting up an account that does not require additional fees for withdrawal and currency exchange when you are out of the country. For example, State Farm Bank offers a debit card that allows its users to withdraw money from ATMs in foreign countries without charging these fees.
Major Credit Cards Accepted at Retailers in Canada
Major credit cards are accepted at all Canadian retailers, with Visa and MasterCard being the most common, but some exceptions include Costco Canada, which only accepts cash or MasterCard, and Walmart Canada, which no longer accepts Visa credit cards as of Fall 2017.
Credit cards issued abroad incur overseas transaction fees for their users unless you choose one of the few that Capital One offers that does not apply these fees, so it could be beneficial if you are on vacation in Canada to a short trip to withdraw a one-time lump sum of cash and use it at all retailers, vendors and restaurants.
Be sure to call ahead and inform your credit card company that you will be spending money outside of the country, especially if you have never traveled outside of the United States with your current credit cards, as your credit card company could suspend the emergency . on your “suspicious activity” account if you start spending somewhere you’ve never been.
Calling your credit card company to fix an account that is accidentally on hold once you are in Canada also carries an additional charge on your phone bill, so try to avoid this hassle by planning ahead!
