The currency used in Canada is the Canadian dollar. Currency comes in coins and bills, using predominantly the same denominations as the U.S. dollar. Coins include the penny, nickle, quarter, loonie (one dollar) and toonie (two dollars). The smallest Canadian bill in current circulation is the five dollar bill (blue), although one dollar (green) and two dollar (brown) bills do exist, but are no longer printed. After the five dollar bill there is a purple 10 dollar bill, a green 20 dollar bill, a red 50 dollar bill and a brown 100 dollar bill. Canadian currency is accepted across the country, although at times 50 and 100 dollar bills are not accepted by some merchants due to concerns about counterfeit currency.
Many merchants in Canada will accept U.S. currency, but not all will calculate the conversion. The value of the U.S. dollar fluctuates, but is often worth more than the Canadian dollar and as such it is to your advantage to convert U.S. currency to Canadian currency rather than using U.S. currency at par with Canadian merchants. Some stores, especially those near the U.S. border will post the exchange rate that they use, which may or may not be the same exchange offered by the bank. Any Canadian bank will convert U.S. currency to Canadian currency and there are also many currency exchange services available in Canadian airports and cities. If you do choose to use U.S. currency you will receive your change in Canadian dollars and coins.
In Canada, check is spelled "cheque." Traveler's checks are widely accepted and can be purchased in Canadian dollars from your bank or credit card issuer. Traveler's checks offer added security when traveling because you can avoid carrying large amounts of cash and they can be replaced quickly if they are lost or stolen.
Very few places in Canada will accept a personal check from a foreign bank, and in fact personal checks are not widely used at all for retail transactions in Canada. Individual Canadians can cash a personal U.S. check, but there will often be a long hold placed on the deposit and thus checks are not a good choice for a visitor to Canada.
Major credit cards are widely accepted across Canada and your credit card issuer will handle all of the currency conversion issues. When you use your credit card in Canada the charge will be put through in Canadian dollars and then converted to the currency of your card. Your credit card issuer will establish the exchange rate and some cards charge additional percentages for making transactions in foreign currency but these are often quite minimal. Before leaving your home country you may want to check with your credit card issuer to determine the rates associated with making foreign currency transactions and you may also wish to inform them of your plans to travel so that they do not flag your card for unusual use while you travel. The most commonly accepted credit cards in Canada are Visa, Mastercard and American Express.
ATMs or ABMs are widely available in Canada, but relying on your debit or bank card from another country may not be your most reliable option while traveling in Canada. Depending on your bank and the ATM that you locate, your debit card may or may not work. If you do use an ATM, the ones associated with major banks will have the lowest service fees, as compared to independently operated ATMs which may charge up to $3 in transaction fees. The availability of ATMs also varies based on location, with them being easily found in large urban centers but sometimes being less prevalent in rural areas, especially in northern Canada.
