International tourists charged $34.2 billion on their Visa cards while visiting America during 2010.

Canadian visitors, in turn, led the way, buying $9.2 billion worth of goods and services south of the border last year. Both the overall international and Canadian figures represent 18 per cent gains over 2009.

Canada has been America’s number one international source of Visa card revenue over the past three years. Responsible for 27 per cent of total card spending in 2010, Canadian visitors contributed 3.7 times more than travellers from second-place United Kingdom.

Exchange rates
The stronger Canadian dollar is one of the most powerful drivers compelling Canucks to spend south of the border.

Based on Bank of Canada data, CreditCards.ca calculated that, on average, the Canadian loonie was worth 0.9713 U.S. dollars in 2010 — 10.4 per cent higher than the 0.8797 exchange rate during 2009.

Lower U.S. prices
Cheaper prices are another major reason for accelerated Canadian cross-border shopping, particularly for big-ticket items, including automobiles, appliances and electronics.

CreditCards.ca ran a random test using Canadian and U.S. websites for two major retailers and found:

• Self-cleaning ovens priced over 30 per cent less in the U.S. than in Canada.
• Brand-name laptops priced 20 per cent less.

Travel and vacation spending
Famous tourist destinations such as Disney World in Florida and California, Times Square in New York and Las Vegas, Nevada also posted higher Canadian cardholder sales in 2010.

The fastest-growing state destination, New York, shares it border with Canada’s two most heavily populated provinces, Ontario and Quebec. Those provinces represent a combined 61.9 per cent of Canada’s total population.

U.S. airlines saw a significant 24 per cent uptick in international Visa cardholder spending in 2010, exceeding pre-recession levels by more than $2 million. This presents an opportunity for selling airline reward credit cards to Canadian drivers fed up with high gas prices.

International credit cards are king
While the loonie remains strong and U.S. prices remain discounted, Canadians continue to flock to the U.S. and spend with their credit cards.

To eliminate uncertainty associated with fluctuating exchange rates, travellers should consider using U.S. dollar credit cards which charge exact purchase amounts in American currency.