Is Cash Passport the cheapest method to transfer money online?

Cash Passport Hidden Costs : Analysis of Cost, Speed, Hassle and Risk

  • cashpassportlogoOverview :
    • Cash passport account from Canada is possible to be purchased Here , only single currency is allowed in Canada.
    • Providers of the card in Canada include Travelex and ICE (Travelex Ontario 1-416-776-3443 , ICE Montreal 1-855-423-2274)
    • Card purchase and upload should be free , but that depend on the branch purchased from.
    • The card can be filled with the currency of choice directly from a currency exchange shop, some branch will not allow to do that directly but buy the currency of choice in the local currency and convert it with the exchange rate available.
    • The minimum to upload in the card will be $200 US .
    • The card has monthly inactivity fee of $2. only if it was not been used for 12 months.
    • Every time you withdraw money from an ATM the fee is 3$, if you are withdrawing in a different currency (there will be 2.5% to 5% conversion fee depending on the card you order).
    • Payment is available in Canadian Dollars only when You cash out Your Card through a Distributor, and if Your Card is in a foreign currency, the

The distributor will apply their own foreign exchange rate.  Also, there is an administrative fee when you close and cash out your card (Around $20 + 2%-5% currency conversion rate)

  • Cash Passport can’t be used to transfer funds to another person. Transfer money from bank account to the card only.
  • The card is safer to use internationally , and can give better advantage than carrying

 

  • Requirements :
    • Go to a distributor in Canada (currency exchange provider ) and get the card for free usually , top it up with at least $200

 

 

  • Limitations :
    • Can’t be used for transferring

 

  • Speed:   
    • N/A as there is no transfer to a third-party

 

  • Cost:  Costly , Exchange conversion fee can be up to 5% , there are hidden fees such as
    • Monthly inactivity fee of $3 if not used for 12 months
    • Administrative closing fee ($20)
    • ATM withdrawal fee ($3)
    • Some branches will require you upload funds in local currency first then they will convert it to the currency of choice.
    • Cashing out the funds from the card will only be in local currency , meaning the company will apply currency conversion fee

 

 

  • Hassle:

 

  • Must go to a branch location to get the card.

 

  • Potential:
    • Only secure method to carry foreign currency in another country
    • Can have advantage than exchanging money at another country
    • Purchases from shops are free of charge (Not always)

 

  • Risks :
    • N/A
  • Testing Results:
    • N/A
  • Conclusion:
    • Can’t be used for transferring funds to a third party.
    • Very costly when withdrawing funds ( fee for cashing out, conversion rate of 3%-5%, ATM fee 3$)
    • Must go to a currency exchange distributor to get the card.