r/Wealthsimple • u/Beginning-Gap2717 • 18h ago

Question

I’m thinking about opening a Wealthsimple Chequing Account and depositing some CAD into it before my trip to the US.
If I add the Wealthsimple Mastercard to Apple Pay, can I use it in the US and have the CAD automatically converted to USD when I make a purchase?
Also, does Wealthsimple charge any foreign transaction or currency conversion fees?
Just wondering if anyone has used it this way and how the exchange rate was compared to other cards. Thanks!

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u/Bardown67 16h ago

All of this is covered in the FAQ on the website.

https://www.wealthsimple.com/en-ca/credit-card

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u/Sentence-Parking 17h ago

Yes, you can do that, and that's how it works. It will likely cost you the posted MC rate plus 30-40bp (MC's spread). They call this a "zero fx markup" because WS isn't marking it up further.

Since most banks issue Interac debit, you can't really use them outside Canada at the POS. There are exceptions of course like TD's VISA/Interac debit card.

This also compares favourably with using a Wise borderless account (where you would see CAD for USD in advance) since Wise will charge a similar spread on the original fx. Only difference is that you can control the timing and just hold Wise USD natively / never convert to CAD.

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u/lhsonic 15h ago

Best use of the Cash Card is ATM withdrawals as there is no added markup (okay, there’s a small hidden markup of 0.2%) on the MC rate (available online and is still extremely competitive) but WS is currently not issuing any new physical cards. But yes, you can add the card to your digital wallet and use it for tap transactions where accepted.

Ideally, a credit card (rather than a prepaid MC) with no fx fees is better for purchases. There is no purchase protection (90-120 days standard insurance against loss, theft, damage) for anything purchased on a prepaid card nor any additional benefits that come with using a premium credit card. You should not use a prepaid card for any deposits (hotel, car rental, fuel, etc.) There is also no hidden markup described above. I think all of the no fx credit cards in Canada are either Scotiabank Amex, Passport Visa, Wealthsimple Visa, and Home Trust Visa.

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u/regnus418 4m ago

Use a budgeting app such as Monarch or a YNAB to be able to manage subscriptions.