Cross Border Shopping Tips

Canadian Dollar at Par? Learn How to Do Shopping In the States

Currently, as of this writing, the Canadian dollar is worth more than the United States dollar. Against the Canadian dollar, the American dollar is worth 99 cents, a full cent below our Loonie. This is a good time to be a Canadian because most of us can remember a time when the Canadian dollar was worth 40 cents less than the American. That meant for every dollar something was worth in the United States, we paid .40 cents extra. To buy a ten dollar book, we paid $14.00. To buy a $100 stereo, we paid $140. Well for the time being that is no more because Canada is back on top.

Naturally, this means some big benefits to Canadian consumers, not to mention hockey teams that can now save money in Canada (unlike the situation in the 1990s). As a consumer, how are you going to benefit from the high Canadian dollar? Well, through cross-border shopping of course. When you go to the border crossing and exchange your money, you get one cent extra for every dollar you exchange. That may not seem like much but it can add up. It will be awhile before retailers in Canada begin to sell things at American par prices, so why not go to the States and get a jump start on savings?

What are the tips for cross-border shopping?

1. You are not going down to the United States for a vacation, so keep what you bring minimal. Make the process of going over the border easy by having a Photo ID, a birth certificate and a passport ready at the crossing. In addition, you can eliminate some delays by choosing to eat in the United States, rather than bring a lunch. If you do bring a lunch, do not brown bag it or you will probably have it confiscated. If you have a sandwich with beef in it, you will probably lose it as the United States border is very particular about beef products going into their country.
2. When you are in the United States, do not buy fruits and vegetables that do not originate from Canada. You are not allowed to bring fruits and vegetables from the United States into Canada.
3. Forget about using your credit card or your debit card. If you use your credit card, you may not be capitalizing on the rate of the day at that point. Credit card companies do not always credit your card right when you make the purchase, it could be later that day or the next day. So, if you buy something today when the Loonie is worth more, the credit card company might put the purchase through on your credit card tomorrow, when the Loonie is worth less than the American dollar. Also, debit transactions can be done, but they cost you $1.50 per transaction.
4. When you come back over the border, you have to declare everything and make sure you bring your receipts. If you do not declare all your goods and you are caught, then you lose what you bought, as well as the money you spent. On that same note, if you are in the United States less than 24 hours, you still have to pay a duty if you bought goods. If you stay for 24 hours, you can bring back $50 worth of goods without paying a duty and if you stay 48 hours you can bring back $200 worth of goods without paying a duty.

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