Often customers will ask “why is the Canadian price 10% higher when the Canadian dollar is at par, or higher then the U.S. dollar?” Understanding this difference is understanding that the “posted exchange” rate is not the same as the “actual exchange” rate at the bank of financial institution.
If the Canadian dollar is posted at par with the U.S. dollar, and you exchange $100 Canadian dollars at the bank or financial institution, they will not give you $100 U.S. dollars. You will more likely receive 5% to 10% less. Posted rates are for inter-bank transfers that usually exceed $4 Million dollars. In other words, the only way to receive the “posted” rate is to do a bank transfers for $4 Million. To see this first hand buy something with your credit card from the US, the “exchange rate” is always lower then the “posted rate” and will be evident on your next statement.