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We used to send Postal Money Orders and TD Canada Trust Money Orders to our nieces and Nephews in Texas for their birthdays.
We found out about a year later that the Texas bank (I forget which one) was charging my brother-in-law $40 to cash the money orders, even though both were drawn in US funds. Now we just send them Gift Cards from large chains which honor the cards on both sides of the border.
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NSFW
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