Local Currency in Canada: Can You Use US Dollars in Canada? (2024)

Benjamin White

If you're visiting Canada for the first time, you may be curious about the accepted currency and what currency you should bring along on your travels. In Canada, the official currency is the Canadian dollar (CAD), which we recommend obtaining by using Revolut's travel debit card to withdraw cash from local ATMs.

Using the local currency for your transactions is best when paying for goods and services. At the same time, some establishments in Canada (like hotels) may accept US dollars, be aware that they will set their own exchange rates between the Canadian dollar and the US dollar. This will result in unfavorable prices for you as a US patron.

In this guide, we walk through using US dollars in Canada, how to get Canadian dollars cheaply with Revolut, and why it's more beneficial for you to use the local currency for your transactions to ensure fair and accurate pricing. Let's get started!

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Does Canada Accept U.S. Dollars?

While some establishments near the U.S.-Canada border or in tourist areas may accept U.S. dollars, you will need Canadian currency for cash transactions in Canada. In places that do accept physical U.S. dollars, such as hotels, using them may result in very unfavorable exchange rates or additional fees.

Which Currency Is Best to Take to Canada?

If you have a debit or credit card that does not charge international card transaction fees, then your best option is to simply pay by card throughout your trip. Credit card processors (such as Mastercard, VISA, and American Express) use their own exchange rates, but they are typically very close to themid-market exchange rate(usually around 0.5% to 0.9% weaker). You can check Mastercard's exchange rateshereand check VISAhere.

If you want to avoid losing out to those small exchange rate margins, then the best currency to take to Canada is Canadian dollars (CAD), as it is the official currency and fully accepted throughout the country. Having Canadian currency ensures smooth transactions and eliminates the need for frequent currency conversions.

What Currency Does Canada Use?

Canada uses the Canadian dollar as its official currency. It is the primary medium of exchange in Canada, accepted for all types of transactions. The Bank of Canada is the central bank that issues the local currency.

What Is the Canadian Currency Symbol?

The Canadian currency symbol is the sign, $. It is used to represent the Canadian dollar (CAD).

Some write the symbol (Can), with the symbol and value written as follows: Can$ 10.99.

Using and Exchanging Currency in Canada

The most expensive currency exchange services occur at banks, currency exchange kiosks, and some hotels or airports. We have seen exchange rate margins as high as 10% at airports and with PayPal.

This is why we recommend travel cards like Revolut and Wise, which give you access to multi-currency accounts. Exchange USD to CAD at or near the real mid-market exchange rate, and get access to those Canadian dollars in your digital wallet instantly. Then, use your debit card to withdraw from a Canadian ATM. Best of all, Revolut and Wise are free to sign up.

Where Can I Buy Canadian Currency?

With Revolut's standard plan, you can exchange foreign currency, including USD to CAD, with no fixed fees if the amount is $1,000 or less monthly (although fair usage limits do apply). This fee-free exchange is available from Monday to Friday, meaning there are weekend markups and transacting outside of your home currency on those days will be more expensive. Revolut provides transparency by showing the exchange rate before the conversion too, which is typically around 0.2%, even lower than the rates offered by Mastercard and Visa.

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Revolut's multi-currency account makes converting your US dollar balances to Canadian dollar balances instantaneous — and at industry-low rates. Best of all, you get $1,000 USD worth of ATM withdrawals per month without any fees on the Standard plan (although third-party providers may charge a withdrawal fee and also weekend fees may apply). The free ATM withdrawal allowance with Wise, on the other hand, is only 350 CAD.

Read our full Revolut review to learn more.

Potential Bank Fees

You may experience expensive and un-transparent Canadian currency exchange at banks, currency exchange kiosks, and other foreign exchange dealers in touristic or downtown areas. We highly discourage you from using these options, if possible.

Banks and currency exchange services often charge higher fees than Revolut. Furthermore, these companies often apply very weak exchange rates on your conversions and pocket the difference as profit. Some providers may advertise their services as "fee-free," but very often fail to disclose the hidden exchange rate margin fee (which averages at 4% to 7+%).

Is It Better to Exchange Money in Canada?

Rates at brick-and-mortar establishments will often be high, regardless of whether you're in Canada or the US. To minimize costs, consider ordering currency from your US bank days in advance and compare their rates to the mid-market exchange rate (You can find the real mid-market exchange rate on Google,XE.com, orMonito). Pay attention to the margin they charge, aiming for a rate that is well below 4%.

On the other hand, using a digital platform like Revolut gives you the flexibility to exchange currency at any time, benefiting from transparent and industry-low rates that are consistently displayed before the transaction. This allows you to make informed decisions based on the current exchange rate.

ATMs and Local Payment Methods in Canada

Using ATMs abroad is often the most cost-effective way to obtain cash while traveling, especially when utilising cards like Revolut. One of the reasons is that the withdrawal fees associated with ATMs are typically minimal, around $1 or $2, or even waived entirely if you choose the right ATM or bank.

Additionally, ATMs treat you like a local if you use a travel card like Revolut (they don't apply currency exchange altogether). Otherwise, ATMs will use the exchange rate used by your card issuer (MasterCard, Visa, etc). In contrast, airport kiosks tend to have significantly weaker exchange rates, sometimes up to 10% weaker.

Are the ATMs in Canada Safe to Use?

ATMs in Canada are generally safe to use. However, it's best to use ATMs that are attached to a bank rather than a machine standing on its own. Some stand-alone ATMs, especially those in touristic areas, have been known to apply weak exchange rates on your US dollars before withdrawing. This is called a dynamic currency conversion.

Dynamic currency conversion is a process where you're given the option to pay for a purchase or transaction in your home currency instead of the local currency. It may sound convenient, but it often comes with additional fees and unfavorable exchange rates. It's like a middleman converting the currency for you, but they charge you more for the service.

Where Are the Best Places to Find ATMs in Canada?

Here is a list of the best places to find reliable ATMs in Canada:

• The Exchange ATMs: The five largest banks in Canada, including Royal Bank of Canada, Toronto-Dominion Bank, Scotiabank, Bank of Montreal, and Canadian Imperial Bank of Commerce, operate their own ATMs under their respective brands. These banks are also part of a Canadian interbank network called The Exchange, providing reliable access to ATMs.
• Global ATM Alliance: Scotiabank, one of the major Canadian banks, is a member of the Global ATM Alliance. If you hold an account with an Alliance member, you can access Scotiabank's ATMs without incurring any ATM fees.
• Allpoint: With a network of 55,000 ATMs across Canada, the United States, the United Kingdom, Australia, and Mexico, Allpoint offers fee-free withdrawals. You can verify if your card is compatible with Allpoint ATMs by using their online card checker.

Places You'll Need Canadian Currency

While credit and debit cards are widely accepted, you may be in need of cash at small businesses, markets, street vendors, public transportation fares, and some rural areas in Canada.

Do the Restaurants in Canada Accept Debit or Credit Cards?

Most restaurants in Canada accept debit and credit cards for payment. It's common for establishments to display logos indicating the types of cards they accept, such as Visa and Mastercard. However, it's always a good idea to carry some cash, as smaller or independent establishments may have cash-only policies.

As a travel tip, know that it is customary to tip around 15-20% on the total bill at restaurants in Canada.

Frequently Asked Questions About Using US Dollars in Canada

• Can I use US dollars in Canada?

  While some establishments near the U.S.-Canada border or in tourist areas may accept U.S. dollars, you will need Canadian dollars.

• What is the best currency to bring to Canada?

  It is best to have Canadian dollars, which you may instantly and digitally exchange for by using Revolut's multi-currency account.

• What is the official currency in Canada?

  The Canadian dollar (CAD) is the official currency of Canada.

• What is the symbol for Canadian currency?

  The Canadian dollar is often denoted with the following symbol: $.

• How can I exchange currency in Canada?

  Exchange currency instantly with Revolut. You may also withdraw cash from ATMs. Bank currency exchange and airport kiosks will be the most expensive method to exchange currency in Canada.

• Where can I buy Canadian currency?

  We recommend that you exchange currency instantly with Revolut or get Canadian dollars in cash at local ATMs.

• What are the bank fees for foreign exchange in Canada?

  Expect exchange rate margins of between 4% to 7% for foreign exchange at traditional Canadian banks.

• Is it better to exchange money in Canada?

  Brick-and-mortar money exchange will be expensive regardless of if you exchange in the United States or in Canada. We recommend Revolut to help you avoid fees and inconvenient brick-and-mortar exchange.

• Are ATMs in Canada safe?

  ATMs in Canada are generally safe to use. However, it's best to consider using ATMs that are attached to a bank rather than a machine standing on its own.

• Do Canadian restaurants accept debit or credit cards?

  Yes, most restaurants in Canada accept debit and credit cards for payment.

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