I recently had a transaction on my Canadian Credit card from aUSvendor.  The original charge was $55.83 USD with a Canadian exchange rate of 1.0164 or $56.74 CDN.

I decided to pay for the charge with my USD Savings Account:

To exchange my USD savings to $56.74 CDN cost me: $59.26 USD

So overall; it cost me $3.43 dollars more based on Banking Policies and practices to pay me original charge of $55 USD with same currency.

Now, $3.43 is not much, I admit, but now add another zero or two to the amount, $550 would have cost me $34 more, $5500, over $340 more just for a matter of computers automatically transferring money between accounts.

Coincidently, today’s exchange rates are:

Country Currency Name /
Currency Code
Rate Bank Will
Buy From You:
Rate Bank Will
Sell To You:
United States Dollar (USD)

0.9499

1.0008

 

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