Online Guide for Newcomers to Prince Edward Island - Canada
Canadian currency is called the dollar ($), and it comes as paper money (bills or banknotes) and coins. There are 100 cents (¢) in one dollar.
Bills are printed in $5, $10, $20, $50, and $100 denominations, and coins are made in 5¢, 10¢, 25¢, 50¢, $1 and $2 amounts.
Canadians like to use nicknames for each of the coin denominations:
Ways to Pay
The Canadian penny, the 1-cent coin, was withdrawn from circulation in February 2013 because the cost to produce it became larger than its value. Existing pennies will remain valid means of payment indefinitely.
In Canada there are many ways to buy goods and services and pay bills. You can use cash, cheques, money orders, credit cards, debit cards or online banking.
Bills and coins are called cash. In Canada some people do not use or carry cash with them. Still, there are some small businesses which take payments in cash only or do not accept large bills, like $50 or $100.
If you have a checking account in a bank, you can use cheques as means of payment. Some businesses do not accept personal cheques. Most businesses take cheques if you show your identification.
A money order is a payment order for a specified amount of money, which can be bought at a post office or bank for a small fee. Because it is required that the funds are prepaid for the amount shown on it, money order is a more trusted method of payment than a personal cheque.
- Credit card companies usually charge a high interest rate. It is best to pay the full amount you owe on your credit card each month.
- Some banks or businesses charge a fee for using your debit card.
Using credit cards allows you to buy something today and pay for it later, like a loan. If you do not pay the full amount you owe each month, interest is charged on the amount you still owe.
Debit cards are connected to your bank account. You can use them to:
- make deposits in the bank
- withdraw cash from your bank account
- pay bills
- check your account balance
- pay for goods and services
Online banking is a convenient way to pay using secure websites operated by banks and other financial institutions over the Internet.