Most exchange students are using credit card everywhere. They are prudent. Cash is the cheapest way to exchange money but good exchange rates are hard to find. A random sampling gives inferior rates than using a credit card on balance. Traveller’s cheques are better for safety reasons but cost an extra 2% for “insurance”. Credit card with a rebate of 1% will be as effective as traveller’s cheques, making it the preferred method of payment where accepted. But many countries aren’t as advanced and require cash-on-hand (like Germany, surprisingly). Withdrawing from a bank ATM gives the best rates, as long as you have an account in Canada that waives transaction fees (e.g. TD Select Service). For travellers who require a range of currencies (Norway, Sweden, Switzerland, Czech Republic, Hungary, and so on), this is a must.

EURCAD as of March 1st

True Rate: 1.345

Cash: 1.353

Traveller’s Checks: 1.373

Credit card: 1.382

Withdraw using debit card: 1.382