Do most credit cards charge a 3% finance charge on foreign transactions? I've used my Diamond Preferred MasterCard on a few overseas trips and don't remember seeing these charges before. I'm leaving for Spain next week and just received a credit-card bill with some of my hotel bookings on it, and there was the charge. When I called, the customer service person told me the rule had always been there.

I'm planning to bring my Discover card to Spain, too, although I know it isn't accepted in many places. And it's not as safe using a debit card as a credit card, is it? Harder to dispute wrong charges?

Guess we'll be paying with cash more than we thought!

The last I knew Discover was not accepted anywhere in Europe -- period. Has that changed?

Those fees may well have always been there, but in the last year or so, they've started showing them as a separate item rather than hidden.

There are some credit cards that only charge 1% (the usual imposed by VISA itself) and some that supposedly don't even charge that. Most ATM withdrawals these days also add a 1% fee, so basically you're talking about an extra 2% over getting foreign currency from an ATM, assuming that your bank doesn't also impose a flat fee for using foreign ATMs.
If you charge $5000 that's an extra $100. Personally since I get the equivalent of about 8cents per dollar spent towards my annual business class ticket to Europe, I really don't mind that extra money. But if it bothers you, then you might want to search for a card that doesn't impose the fees. Capital One is supposedly one such card (although you'll have to figure out which of their many cards don't).

Unless this has changed, I don't believe that Discover Card is accepted anywhere in Europe. For cash withdrawals overseas our bank charges a flat $5 fee regardless of how much you take out. We would just try and take out the max. each time we used the cash machine and usually always just pay with cash. You can sometimes get discounts from your hotels by paying cash.

&quot;<i> . . . although I know it isn't accepted in many places</i>&quot; Leave the Discover card home -- it is strictly a North America thing.

Many cards assess (and have for years) the 3% fee - but at neopolitan says before it was just rolled into the total amount of the charge. Now it must be a line item on your statement.

But even w/ the 3% your credit card is MUCH cheaper than any other form except for ATM cards. So Charge using the MC, and get cash w/ your debit card.

Thanks for the quick replies. That makes sense about the 3% being &quot;hidden&quot; before... now it's a line item, so it jumped out at me.

Thanks for the info about Discover, too; I'll leave it at home. And I'll call my bank to find out about flat fees for using the ATM... I can't recall what they charged when I went to Europe two years ago.

Capital One advertises 1% charge which they may refund, depending on the card. I don't have one, so this is just what I've read.

American Express only charges 2% on foreign transactions.

Realize that an extra 1% is only $10 per $1000 spent in euros, not a trivial amount, but not a major part of your vacation costs.

Be sure to call your credit card issuer and tell them about your trip or they may freeze your card (thinking your number has been stolen).

My Capital One card does not charge a fee. It is the one that says &quot;No Hassle Miles&quot;. I have had it for years. The annual fee is $19 but well worth it.

I think I have a bad attitude toward Capital One because of the volume of junk mail they send me and my husband... they've been mailing us stuff at least twice a week for months and months. ugh!

Capital One -- no hassles -- unless you actually have to call them.

Someone here suggested I call to try to find out about their policy regarding moving miles earned directly to AA (so I can combine them with other AA miles). I tried several times, and each time gave up after 15 minutes or so on hold. Unless someone can prove me wrong, that information is nowhere on their website.

Use an ATM card to access cash from your checking account. NOT a credit card advance from an ATM machine, which will cost you more. As others have said, cost wise, the best bet is to use ATM card as much as possible (cash is king) and where it is not feasable (hotel room is an example) use a credit card.

Cash is king? Try to get some kind of redress if you pay cash for goods not delivered or delivered damaged or delivered and not what you bought. See how fast you can get your money back.

Credit cards are king but make sure you use the right credit cards.

We'll be travelling to another country (Australia) for 3 months. What would be the best way to handle money matters to keep transaction fees as low as possible? For example, is it possible to set up a temporary bank account? Kathy