Using a US Dollar credit card from Canada

[tonnerbeer]

I have a US Dollar account with my Canadian Bank for which I have a US Dollar credit card. Whenever I make a purchase on EBay in US Dollars, the charges to my bank have been converted to Canadian Dollars and then my bank converts the Canadian Dollars back to US Dollars for payment against my US Dollar card.  Fees are charged for each conversion.

How can I prevent the unnecessary conversions.    As an aside, isn't this rather unethical if not illegal?

[reallynicestamps]

It's done because it is legal.

American law since the 1990s has demanded currency exchange be done this way.

It started with money laundering by criminal organizations, and moved from there to terrorists.

I'm not clear on all the ins and outs, but if you have a PP balance in US dollars and move it to your Canadian bank account in US dollars, PP MUST send it to Canada in loonies, and then your Canadian bank can change it back into USD and deposit it.

If you bank with the Royal or TD, you may be able to get a "real" US dollar credit card.

Both banks have American banks. RBCBank and TDNorth.

Snowbirds and businesses use these. I asked a month or so ago about this and the teller at the Royal Bank assured me that the connection is still there.

Ask at your branch about opening an account with one of those.

All your US income can go directly to the American account. You can get an American credit card - VISA .

BUT.

You may be paying US taxes. There are different and often higher fees.

We opened ours when we had an active shop and auction. We have since retired. It was well worth it when we were taking in several hundred thousand US dollars annually.

I tried RBCBank for my tiny eBay business, but found it too expensive and ended it.