The United States and Canada have a long history with one another, and allow for citizens of either country to cross the borders relatively easily, according to the U.S. Department of State. The mutual respect from each country is apparent not only in their border crossing protocol, but carries over into law enforcement, environmental protection and even into the ease of currency exchange. Both countries use dollars and cents, and the exchange rate is fairly even. The one difference to keep in mind is that Canadian paper currency begins at $5. The Canadian $1 and $2 currency is in the form of a coin.
Find a bank that offers currency exchange. According to Frommer's, most banks on either side of the border will offer this, even if it is not advertised. Depending on where you cross into Canada, you may see banks immediately, or you can ask at your hotel front desk where to find one. Once inside the bank, ask to exchange currency from American to Canadian money (and vice versa when you come back into the United States).
Use an ATM machine if the bank is not currently open, or if the line is too long. Use an ATM inside Canada to receive Canadian currency, and inside the United States to receive American money. After inserting your bank card and entering your PIN, choose "Withdrawal," and enter the amount of money you would like. It will be dispensed in the local currency.
Pay for purchases or services with American money in Canada, and most merchants will make the conversion there, if a conversion is necessary. They will then provide your change in Canadian money.
