I got taught a lesson today in exchanging money…

I was at the airport- about to board a flight to the US when I spied an ATM machine for US dollars. This is great- I thought- this way I don’t have to look for a machine when I land. Also, the transaction fee was $3.50 which is a lot for a regular withdrawal but I have found that banks can charge up to five dollars when you use ATM machines in another country.

What I should have noticed was that this was a standalone ATM- not affiliated with any bank- only a company called Direct Cash.

 What was the problem? Firstly the machine didn’t say what exhange rate was used until you actually received the money. When I checked my receipt I was astonished to find out that I got charged a ridiculous rate of 1.12 Cdn to 1 US- when in the real world the canadian dollar is the same value as the US dollar (today the Cdn is actually worth MORE than USD). I think they make more by giving you a crappy exchange rate than they do with the transaction fees.

In all I ended up paying $115 Canadian dollars for $100 US which at my bank would have only been $100. Even at an exchange booth I would have payed around $105.

The moral is to be very careful where you exchange money- and be sure to check the rates.

Too add insult to injury the ATM only gave me $60 instead of $100 so now I have to run after the banks to get back the rest of my money…

I just found out about the new Aeroplan Be a Miles Millionaire contest which runs from now until June 20th. The grand prize is 1 Million Aeroplan miles and there are 160 prizes of 25,000 miles.

This contest runs from today until June 20th, 2008. To enter you just need to collect Aeroplan miles from selected companies- each mile earned gives you one contest entry. Qualifying miles are any  Aeroplan Miles earned through Home Hardware, Esso, Tropicana-Quaker, Uniprix, Rogers Magazine Service, Primus Canada, Bose and Aeromove.

Usually I don’t enter contests, but the chance of winning a million miles will probably sway me to give it a shot. What I like about this contest is that there is a variety of retailers to choose from.

See full contest info here.

According to an article on yahoo  Air Canada has just added new fuel charges on all of their flights- effective immediately.

The new surcharges are $40 return for flights of less than 480 kilometres, $80 return on flights between 480 kilometres and 1,600 kilometres and $120 for longer flights.

It’s nice to see that Air Canada feels that they can do this without any warning at all. For a $25 additional fee for the second bag they gave 2 months warning but for a minimum $40 increase we get none. Thanks Air Canada.

According to the article  West Jet does not have any extra fuel charges- but they are considering them. I hope that if West Jet decides to do this it will not be out of the blue.