Money

It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, and traveler's checks. You should also exchange enough petty cash to cover airport incidentals, tipping, and transportation to your hotel before you leave home, or withdraw money upon arrival at an airport ATM (automated teller machine).

ATMs often offer the best exchange rates; avoid exchanging money at commercial exchange bureaus and hotels, which usually have the highest transaction fees.

Currency

Canadian currency, like U.S. currency, is denominated in dollars and cents, though there are some differences. Canada has no $1 bill. It does have a $1 coin (called a "loonie" because it depicts a loon) and a $2 coin (called a "twoonie"). At press time, C$1 was worth approximately US¢90 and 50p.

If you're driving into Canada, you needn't worry about stocking up on Canadian dollars before or immediately upon entry into Canada. U.S. currency is widely accepted, especially in border towns, and you'll often see signs at cash registers announcing current exchange rates. These are not always the best rates, however, so it behooves you to visit an ATM or cash some traveler's checks as soon as you're able.

You'll avoid lines at airport ATMs by exchanging at least some money before you leave home. You can exchange money at your local American Express or Thomas Cook office or at your bank. American Express offices in the U.S. also dispense traveler's checks and foreign currency via tel. 800/807-6233 or www.americanexpress.com, though they'll charge a US$15 order fee plus additional shipping costs.

ATMs

Obtaining cash is rarely a problem for travelers in Canada. The easiest and best way to get cash away from home is from an ATM, sometimes referred to in Canada as a "cash machine" or a "cashpoint." These are widely available in most midsize towns and cities, and the networks are often compatible with U.S. banks, allowing travelers to use their own ATM or credit cards for cash withdrawals. Your bank will convert the currency at the prevailing rate. For example, if you withdraw C$100 from a Canadian bank machine, your bank statement will show a withdrawal of around US$90 (or £50 in the U.K.). Be sure you know your personal identification number (PIN) before arriving at said ATM. If you don't know yours, call the number on the back of your credit card and ask the bank to mail it to you; this usually takes 5 to 7 business days.

The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) ATM networks span the globe. Go to your bank card's website to find ATM locations at your destination. Be sure you know your daily withdrawal limit before you depart.

Many banks impose a fee every time you use a card at another bank's ATM, and that fee can be higher for international transactions (up to US$5 or more) than for domestic ones (where they're rarely more than US$2). In addition, the bank from which you withdraw cash may charge its own fee. For international withdrawal fees, ask your bank.

Note: Banks that are members of the Global ATM Alliance charge no transaction fees for cash withdrawals at other Alliance member ATMs; by chance, these include Bank of America (in the U.S.) and Scotiabank (widespread in eastern Canada). The lesson? If you have a BoA account, seek out Scotiabank ATMs.

Credit Cards

Credit cards are another safe way to carry money. They provide a convenient record of all your expenses and generally offer relatively good exchange rates. You can withdraw cash advances from your credit cards at banks or ATMs (provided you remember your PIN), though high fees can make credit card cash advances a pricey way to get cash. Keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time. Also, note that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad. Credit cards more or less universally accepted in eastern Canada include Visa, MasterCard, Interac (a Canadian card), and American Express. Diners Club and Discover are accepted by a few merchants, but not many. Remember to bring some cash, in any case: Many small establishments still accept no credit cards.

Traveler's Checks

You can buy traveler's checks at most U.S. banks. They are offered in U.S. denominations of $20, $50, $100, $500, and sometimes $1,000. Generally, you'll pay a service charge ranging from 1% to 4%.

The most popular traveler's checks are offered by American Express (tel. 800/807-6233 or 800/221-7282 for cardholders; this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee), Visa (tel. 800/732-1322), and MasterCard (tel. 800/223-9920). American Automobile Association (AAA) members can obtain Visa checks for a US$9.95 fee (for checks up to US$1,500) at most AAA offices or by calling tel. 866/339-3378. Auto clubs in other countries may have similar deals worked out.

Be sure to keep a record of the traveler's checks' serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.

American Express, Thomas Cook, Visa, and MasterCard also offer foreign currency traveler's checks in Canadian dollars. They're accepted at some locations where U.S.-dollar checks may not be.