Money

Currency

Canadian currency is counted in dollars and cents, just like the currency system in the U.S. However, in addition to pennies, nickels, dimes, and quarters, there are one- and two-dollar coins (there are no dollar or two-dollar bills). Dollar coins are bronze-plated coins and bear the picture of a loon -- hence their nickname "loonies." There's also a two-toned $2 coin sometimes referred to as a "toonie." Paper currency begins with $5 bills.

Exchanging currency is pretty straightforward, particularly if you are changing U.S. dollars into Canadian. Most banks on both sides of the border will exchange U.S. and Canadian currency even if they don't normally advertise as foreign exchange services. However, the easiest way to procure Canadian currency is simply to withdraw money from an ATM.

Often, Canadian businesses will accept U.S. dollars in payment, making the currency value exchange, if any, at the till.

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.

The Canadian Dollar & the U.S. Dollar -- The prices cited in this guide are given first in Canadian dollars (C$), then in U.S. dollars (US$) and British pounds (£); amounts over $10 are rounded to the nearest dollar or pound, and amounts under $10 are rounded to the nearest nickel. Note that the Canadian dollar is now equal (or greater) in value than the American dollar. At publishing, US$1 is worth about C$1, and the British pound is worth about US$2 or C$2; these were the equivalencies used to figure the approximate prices in this guide.

ATMs

The easiest and best way to get cash away from home is from an ATM (automated teller machine), sometimes referred to as a "cash machine" or a "cashpoint." ATMs also offer the best exchange rates. Avoid exchanging money at commercial exchange bureaus and hotels, which often have the highest transaction fees.

The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) 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. Note: 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 $5 or more) than for domestic ones (where they're rarely more than $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; these include Bank of America, Scotiabank (Canada, Caribbean & Mexico), Barclays (U.K. and parts of Africa), Deutsche Bank (Germany, Poland, Spain, and Italy), and BNP Paribus (France).

Credit Cards

Credit cards are another safe way to carry money. They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can withdraw cash advances from your credit cards at banks or ATMs but high fees 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 (whether you're using the local currency or your native currency).

Canadian businesses honor the same credit cards as in the U.S and the U.K. Visa and MasterCard are the most common, though American Express is also normally accepted in hotels and restaurants catering to tourists. Discover and Diner's Club cards are somewhat less frequently accepted.

Traveler's Checks

You can buy traveler's checks at most banks. They are offered in 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 tel. 800/221-7282 for card holders -- 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) -- AAA members can obtain Visa checks for a $9.95 fee (for checks up to $1,500) at most AAA offices or by calling tel. 866/339-3378; and MasterCard (tel. 800/223-9920).

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 offer foreign currency traveler's checks, useful if you're traveling to one country or to the euro zone; they're accepted at locations where dollar checks may not be.

Another option is the new prepaid traveler's check cards, reloadable cards that work much like debit cards but aren't linked to your checking account. The American Express Travelers Cheque Card, for example, requires a minimum deposit, sets a maximum balance, and has a one-time issuance fee of US$15. You can withdraw money from an ATM (for a fee of US$2.50 per transaction, not including bank fees), and the funds can be purchased in dollars, euros, or pounds. If you lose the card, your available funds will be refunded within 24 hours.

All the above companies also offer travelers checks denominated in Canadian dollars. If you are planning to use travelers checks frequently while in Canada, there are advantages to buying them in Canadian dollars, as there is usually no fee to reimburse them, and they can be used like cash in most retail situations.