Being Canadian does not mean that you only ever need access to Canadian dollars. We’ve created this TD U.S. Dollar Visa Card review to help you learn more about a credit card that will make it easier for you to shop with the currency of our closest neighbours.
Use this card to pay in USD and skip the pricey foreign exchange fees.
|You Are Interested If||You are a frequent cross-border shopper and would like a credit card option that makes that habit more affordable for you.|
|Brief Description||The TD U.S. Dollar Visa lets you pay in USD directly, cutting out pricy foreign exchange fees and potentially allowing you to access better exchange rates.|
|Main Requirements||You’ll need decent credit to be offered this card, but not much other than that.|
|Provider||TD Canada Trust.|
|Card Type||This is a foreign currency card.|
Fees and Interest
|Purchase Interest Rate||Purchases made with this card are charged 19.99% annual interest.|
|Cash Advance||Taking out cash using this card costs 22.99% in annual interest.|
|Balance Transfer||Debts from another card onto this one will be charged 22.99% interest too.|
|Income Requirements||There are no stated income requirements to get this card.|
|Household Income Requirements||There are no firm household income requirements either.|
|Annual Fee||This card costs $39 each year.|
|Welcome Bonus||There is currently no welcome bonus active for this card.|
|How To Earn Points||This card does not use any points system.|
|Benefits||Holders of this card receive travel accident, trip interruption, and rental car insurance, as well as coverage for baggage delay, loss, or theft, purchase protection and an extended warranty policy.|
About TD U.S. Dollar Visa Card
Millions of Canadians buy products or services in the US every year, and many will encounter difficulties if they use a credit card for this purpose. A normal Canadian credit card would cover this purchase in Canadian dollars that were automatically exchanged at the point of purchase, incurring both conversion fees and foreign transaction fees. The combination of both of these charges means that the final bill you see when making a purchase in USD could be significantly larger than you expected it to be.
The TD U.S. Dollar Visa Card gives you a way to get around some of those charges. Not only will this card allow you to completely cut out all those unnecessary foreign exchange fees, but it will also keep your balance in USD without converting it when you pay. This means that instead of paying whatever conversion rate would normally apply at the exact time of your transaction, you can wait and exchange the money you need to pay for that purchase when the exchange rate is better for you.
Sounds good in theory, right? The trouble with this card is that things don’t work out that neatly in real life. You would need to make approximately $1560 in purchases in USD to break even with the annual fee (assuming a standard foreign exchange fee of 2.5%). You could save a little more if you planned to use the card as a way to get better exchange rates as described above. However, if you’re going to do that, you’d better have the money ready in advance, because the 19.99% interest you’ll be paying otherwise will quickly wipe out any gains you might have achieved. As a result, this strategy does not have any certain payoff and can’t really be factored into this TD U.S. Dollar Visa Card review. Some people know they will exceed the $1560 purchase mark – mostly frequent travellers, people with family in the US, or people running small businesses – but those are the only ones who should look at this card as a reliable way to save money.
On the plus side, this card does provide better benefits than you might expect from a mid-tier card. Many of them, such as trip interruption insurance, travel accident insurance and baggage insurance, are particularly appropriate for a card that assumes you are a frequent traveller. Others, like the rental car insurance package, extended warranties and purchase protection, are nice to have even if all your US purchases happen online. They’re nothing exceptional and provide little incentive to get the card on their own, but they deserve a mention in this TD U.S. Dollar Visa Card review.
As this TD U.S. Dollar Visa Card review makes clear, this is a card that should not be applied for without giving some thought to it. Being able to pay in US dollars is nice, but the moderately high annual fee and lack of dependable savings is what really complicates things. It has potential and the benefits are fairly nice for a mid-level card, but it’s questionable as to whether this is enough to make it worth anyone’s while to get it.
The current form of TD Bank is made up of several merged companies, but their Canadian operations go back to 1855 in one form or another. Since 2005, they have also been part of the US banking market. Not only do they take care to serve their 22 million customers all over the world, they are also active philanthropists. They sponsor several stadiums around Ontario and even created the TD Friends of the Environment Foundation in 1990 to promote ecological well-being for all.
What We Think
We’ll finish our TD U.S. Dollar Visa Card review with a tepid recommendation for this card, but only for a select few. For most, the level of benefit that you’ll get from it is just too unpredictable to be relied upon, and because there is a somewhat high fee to pay here, that’s not an issue without any risk attached. If you know that you’ll get good use out of this card and plan to stay on top of the currency exchange market, you can do well with this card. If not, you’re probably fine to shop in the US with just your regular credit cards.