Paying with cash - Canada.ca (2024)

FAQs

Is cash still accepted in Canada? ›

Most merchants accept cash as a form of payment. Some merchants don't accept debit or credit cards. You may prefer paying for something with cash because you don't have to provide your financial information. For example, your debit or credit card number.

Payment of wages is to be made in cash (legal tender in Canada) or by cheque that is negotiable for legal tender. If payment is made by cheque, the cheque must be payable only to the employee.

Cash is still widely accepted

You will find many businesses – especially mom and pop shops prefer cash as a payment method over methods like debit cards. This is because they are charged a small fee for each debit transaction while they are not required to do so with cash.

There's no limit, and there's no civil forfeiture either. The government can't hold it against you that keeping large amounts of cash are evidence of criminal activity, or the intention of committing criminal acts.

Carry USD to Canada

Though this currency is widely accepted at retailers, hotels, and border crossings, smaller rural areas prefer the local currency and do not accept USD. Hence, you need to use the Canadian official currency for your local cab fare, laundromats and other things.

Therefore, you do not necessarily need to exchange money before traveling to Canada if you plan on using your card for most transactions. Just make sure that your credit card waives international card transaction fees, otherwise, those fees will add on very quickly.

Use the credit card instead of cash wherever possible. Credit card issuers typically charge fees for international transactions and you may get the best exchange rate and fees lower than those associated with exchanging cash.

Most casual visitors to Canada should use their credit cards for purchases and make larger ATM local currency withdrawals at Canadian banks, but frequent travelers should talk to their banks about the best debit and credit cards for these purposes.

There are no restrictions on the amount of money you can bring into or take out of Canada, nor is it illegal to do so. However, any time you cross the border, you must declare any currency or monetary instruments you have in your possession that are valued at CAN$10,000 or more.

It's hard to advise on how much spending money you should budget for as everybody has different tastes and spending habits. A good guideline is between $250 and $300 (Canadian Dollars) per week.

Can you use a ripped $20 dollar bill in Canada? ›

Mutilated bank notes

These bank notes are likely too damaged or brittle to be used for payment, so you can send them to us for redemption. We will examine them to determine the value of your claim. We do not accept the following: coins — contact the Royal Canadian Mint.

Where to safely keep cash at home. Just like any other piece of paper, cash can get lost, wet or burned. Consider buying a fireproof and waterproof safe for your home. It's also useful for storing other valuables in your home such as jewelry and important personal documents.

Whether you are leaving or entering Canada, you must declare any currency (cash) or monetary instruments valued at CAD $10,000 or more that you are carrying. This amount includes Canadian or foreign currency or a combination of both. Monetary instruments include, but are not limited to: stocks.

OTTAWA, November 14, 2023 – While cash use has significantly declined over the last six years from 2017-2022, with a 59 per cent decrease in the volume of cash payments and a 41 per cent decrease in the value of cash purchases, new research reveals that Canadians have no intention of ditching their physical wallets ...

Bank notes that are no longer legal tender. Since January 1, 2021, the Canadian $1, $2, $25, $500 and $1,000 bank notes are no longer considered legal tender. Essentially, this means that you may not be able to use them in cash transactions. Don't worry—these bank notes have not lost their face value.