These are the best ways to spend money in Canada!

Let's Explore the Best Ways to Spend Money in Canada!

Canada is known for its breathtaking landscapes, vibrant cities, and deep-rooted cultural heritage, so unsurprisingly, it will remain a top travel destination in 2025.

Whether you're exploring the bustling streets of Toronto, experiencing the awe-inspiring natural beauty of the Rockies, or indulging in Montreal's eclectic food and arts scene, managing your finances efficiently can significantly impact your Canadian experience.

If you’re planning a trip to Canada, understanding when to use cards, how much cash to carry, and the nuances of the Canadian Dollar is crucial if you want to make the most out of your visit!

In this brief guide, we’ll explore the best strategies for making the most of your money in Canada. These strategies will ensure convenience, savings, and peace of mind as you explore the country's offerings.

Stunning photo taken of Lake Louise in Canada on clear sky day. A boat with two people can be seen in the middle of the lake. Mountains and trees are vast around each side of the lake.

Table of Contents

What is the Currency Used in Canada?

Canada uses the Canadian Dollar, which is abbreviated to CAD and is symbolised as “$\” or “C$”, to distinguish it from other dollar-denominated currencies.

Coins come in the following denominations:

5 Cents (nickel)
10 Cents (dime)
25 Cents (quarter)
C$1 Dollar (loonie)
C$2 Dollar (toonie)

Bank notes are available in:

C$5
C$10
C$20
C$50
C$100

In 2025, Canada remains a mostly cashless society with digital and card payments being the preferred methods for most transactions. However, we would suggest that you take cash for some situations, for example, tipping, small purchases in remote areas, or when visiting cash-only establishments. These might include farmers’ markets, smaller towns and street vendors.

Using Credit and Debit Cards in Canada

Let’s take a look at the considerations of using a credit and debit card in Canada for your travels.

Credit/Debit Cards are Widely Accepted in Canada

Credit and debit cards are the predominant payment methods in Canada, with contactless payments being the preferred choice for transactions under $250.

Most businesses, including restaurants, retail stores, and public transport systems, support tap-and-go payments, making them an incredibly convenient option.

Additionally, mobile payment solutions like Apple Pay, Google Pay, and Samsung Pay are widely integrated into the Canadian payment ecosystem, allowing seamless and secure transactions with a simple phone tap.

Visa, Mastercard and American Express are commonly accepted, while debit cards function primarily through the Interac network.

Note: Interac is a Canadian interbank network that serves as the Canadian debit card system.

Ensure You're Getting the Best Exchange Rates for Your Trip to Canada

Paying with a credit card or travel money card that has no foreign transaction fees and provides competitive exchange rates can offer much better value than using a physical currency and exchanging it at a currency exchange booth, which may come with additional fees and commissions attached.

To maximise the benefits of a card, you could consider using cards that provide cashback or reward points on foreign purchases.

However, check with your card provider about any hidden fees, such as cash advance fees when withdrawing from an ATM or merchant surcharges that may apply to certain businesses.

To ensure transparency, always review exchange rates through your banking app or financial institution before making large transactions overseas.

Using Cards for Payments Can Provide Better Security

Cards provide better protection against fraud or theft, and most Canadian businesses accept Visa, Mastercard and American Express. Debit cards (Interac) are also widely used but may have limited international compatibility.

Carrying a lot of cash on you raises the potential risk of loss, or your Canadian Dollars being stolen.

Photo taken at night of the Toronto Skyline in Canada. The picture is taken near a body of water and boats can be seen docked underneath the city.

Using Cash in Canada

Now although we’ve slightly leaned towards using different types of card or digital payments whilst exploring Canada, utilising cash still has its perks and is necessary in certain instances, these include:

Useful for Tips & Small Purchases

While tipping on a card is possible, many service industry workers often prefer cash tips as they can access them immediately without deductions or delays.

Places You Should Expect to Tip in Canada:

Hotels and Resorts (staff) - 10% of the price.
Restaurants - 10% of the bill.
Tour Guides - 10% of the price
Salons and Spas - 10% of the price.
Taxis - 10-20% of the fare.

Cash is also useful to have on hand for small transactions at local markets, street vendors and independent businesses that may have minimum purchase requirements for card payments, or prefer cash to avoid processing fees.

Cash Can Provide Security in Remote Areas

In small towns and remote regions, cash might be the only payment option due to limited banking infrastructure, and unreliable internet access, which can affect card payment systems.

Additionally, ATMs may be scarce in some areas or charge higher withdrawal fees, so we suggest carrying enough cash for essential expenses like food, transportation, and lodging, before heading into remote areas. Check for nearby banking facilities and plan accordingly to avoid inconvenience.

Note: Many rural businesses, roadside vendors and independent operators, such as fishing guides or small B&Bs, may not accept cards at all.

Using Prepaid Travel Money Cards in Canada

If you prefer not to use your primary credit or debit card abroad, prepaid travel money cards can be a great alternative.

Prepaid cards allow you to load multiple currencies, including C$, and lock in favourable exchange rates before travelling, or whilst you’re on holiday.

What are the Benefits of Prepaid Travel Money Cards?

Budget Control: As you pre-load funds onto the card, it can help manage expenses and avoid overspending.
Added Security: These cards are not linked to your bank account which reduces the risk of fraud or unauthorised transactions.
Fee Savings: Some travel money cards offer free ATM withdrawals and free foreign transaction fees compared to regular bank-issued cards.

So, What is the Best Way to Spend Money in Canada?

Although cash is accepted in many places, cards and digital payments are the preferred option in Canada.

Here are the best options for making the most of your money whilst in Canada:

Use a No-Fee International Credit Card

The most convenient way to access money in Canada is to use a credit card or travel money card, which has no foreign transaction fees.

Withdraw Cash from ATMs When You Have Arrived in Canada

Instead of bringing large amounts of cash with you from the UK, as most people use digital or card payments in Canada, consider withdrawing money from Canadian ATMS using a debit card or prepaid travel card, when it is needed.

Banks like Scotiabank, TD Canada Trust, RBC, BMO and CIBC all offer ATMs that accept foreign cards. Check with your bank about potential withdrawal fees.

Bring a Small Amount of Local Currency

Upon arrival, carrying about $100 - $200 CAD in cash will help with immediate expenses, such as public transport, taxis, and small purchases.

Use a Multi-Currency Prepaid Card

Prepaid travel money cards, allow you to load Canadian Dollars before your trip, which will lock in exchange rates and avoid conversion fees.

Prepaid travel money cards are a great alternative for those who may experience ATM and transaction fees if they use their regular UK credit or debit card overseas and do not want to sign up with another bank.

A photo taken of buildings and a castle in Quebec, Canada. Snow can be seen on hills, cars are driving a long the road and people are walking up and down the street.

Overview of Top Considerations When Spending Money in Canada

When spending money in Canada, you should keep several key factors in mind to ensure a smooth financial experience.

First, while credit, debit and prepaid travel money cards are widely accepted, having some cash on hand is useful for small businesses, tips and remote areas where digital payments may not be available.

Use a card that waives foreign transaction fees to avoid unnecessary charges.

Exchange rates fluctuate daily, so travellers should compare rates between banks, ATMs and currency exchange services to get the best deal.

Sales tax, or VAT, is typically 5% and is not included in most Canadian provinces, so expect to pay more at checkout.

Lastly, be mindful of dynamic currency conversion (DCC) when offered the choice to pay in your home currency. Opting to pay in Canadian dollars typically results in better exchange rates and lower fees.

The Best Ways to Spend Money in Canada: A Summary

Spending money wisely in Canada requires preparation and awareness. The right payment methods, such as no-fee credit cards and prepaid travel cards, can help you avoid unnecessary fees and secure better exchange rates.

Keeping some cash on hand is essential for small transactions and understanding local tax policies can help you budget effectively.

By planning and choosing the best financial tools for your trip, you can focus on enjoying Canada’s incredible experiences without worrying about money management.

Whether you’re road-tripping through the stunning landscapes of Banff National Park or exploring the urban vibrancy of Vancouver, being financially prepared will ensure a hassle-free and enjoyable visit.

If you would like to know more about how to spend money abroad without transaction fees then the team at EasyFX are here to help. As currency exchange experts, we help people manage their international finances and make the process, Easy. Sign up for a free account today or talk to our team directly!

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