Bank raises conversion fee
 

Folks,
Just got notice from my bank today that it is raising currency conversion rates to 2 percent (or a minimum of 50 cents for those big spenders) and I was wondering how this (M&T) bank compared to other U.S. savings institutions.

Because of a lot of other irksome increases and some iffy customer service, I'm thinking of changing banks.

Thanks for any advice.

What kind of currency conversion are they talking about, it isn't clear to me what you mean.

Do you mean on a credit card that is one of their products? Or do you mean when using an ATM to get cash in a foreign country? Or do you just mean if you go to the bank and buy foreign currency from them?

I have never done the latter, but my bank doesn't charge anything for the conversion when I use an ATM abroad, although I have the out-of-network ATM flat fee as I would using any ATM that wasn't theirs.

Sorry, I was referring to a recently hiked fee -- from zero to 2 percent -- on using an ATM/Debit abroad on my checking account.

In looking around, I see it's not quite as bad as some that jumped to 3 percent. I'm planning a monthlong trip to Italy and want to have my ducks in a row.

I see there are other postings here on the matter and I apologize for not being a bit more dilgent before starting a new thread.

I got a letter from my bank too, they raise the fees to 3% for foreign transactions, meaning: if I use the credit card for purchases in Switzerland in May, I'll pay 3% additional.

Rats...

My British Airways Visa (FirstUSA, then BankOne, now Chase) that I've used for years for international travel just imposed the extra "exchange rate adjustment" on all foreign transactions. I was not happy when I got my Visa bill and saw all those extra charges.

Guess it will teach me to read all that fine print crap they send with the monthly statements. I'm now in the market for a new credit card that doesn't charge this little fee. :|

KayB, and IF you succeed in finding such an institution, please let us all know, I'm sure we'll all be glad to support such a company financially!

Seriously, is there a bank which will not follow this example to add a conversion charge?

Agreed...these banks are all pretty sneaky.

I switched to Capital One in order to avoid the nonsense foreign transaction fee tacked on to each foreign purchase.

Scores of recent posts on this issue, please read them.
M

Betty, sorry to disappoint you, read the "currency conversion scam" thread, somebody there mentioned Capital1 will be charging 3% starting April 1.

Faina,

Which thread are your specifically referring to? I tried to do a search but did not find the right one.

Thanks,
Betty

After seeing my VISA bill when I returned from FRance, I recently began calling all of my credit cards to ask them about the conversion rates. Two of my credit cards said that, beginning in April, they will start charging 3%. My MBNA still charges the lowest %, so I will use them on the hotel bills. One of my credit cards (Capital One) told me that they have begun charging 3% or $15, whichever is higher. I told the rep, you can't be serious, but she stood her ground. I kept all those little pieces of paper that come with the cards, but it appears that they have all jumped onto the increase in fees. I was shocked by what I learned with my CCs. I am so glad I did this BEFORE my trip in May.

It's probably not in the search yet, you can't search for a thread immediately... scroll down to #23 (or it may move down a little)

ITALYSS...

I believe the clerk who you sppoke to, and clerks are notorious for not having a clue, thought you were asking for fees on cash advances and when he or she brought up fees on their screen which tells them what to say, he or she brought up cash advance fees and not credit card foreign exchange fees.

To the best of my knowledge, Capital One passes along whatever the amuont converted by visa or mastercard is...

Incidentally I have begun receiving notices from banks indicating visa will convert at a rate of their choice from the rates available to them on a given date and dropping any reference to a 1% fee....very ambiguous and very unclear.

ItalySS,

Thanks for the update! I have the Capital One Platinum Card -- I wonder if they have a difference in what they charge or if it's across the board?

I'll call them today.

P.S. So. you're happy with USAA? Maybe I'll switch to them immediately.

Thanks again!

Sorry, I meant MBNA, not USAA.

I have a Capital One card and do not believe I got any notice of them raising a fee to 3%. I also just called them and asked them ten diff. ways if this were true and the rep swore up and done that they did not charge more than the 1% fee and they had no plans to do so on April 1st. I am pretty careful about notice of terms in the mail, and don't think I got one, either.

The very terminology of 3% or min. of $15 must be a cash advance fee as that is how they structure that.

It would appear to me that the information people are spreading on here is wrong about Capital One regular credit card charges for purchases, not cash advances. I don't think any company charges a minimum $15 fee just for any purchase in a foreign country.

p.s. it isn't the BANK, it is the CREDIT CARD ISSUER. You don't have to leave your bank b/c of this - just apply for a card elsewhere (unless you want to leave your bank anyway). The trick is to know what credit card issuer your next prospective bank partners with.

Is it the bank that is raising the price or Visa? It may be the bank is only passing on the increase they receive, in which case don't bash the bank, bash Visa (or MC).

I have both MBNA and Capital One - they do not add on any extra 'conversion' fees. Now a cash advance using a credit card might net you a cash advance fee, but that is a separate thing from the 'foreign currency conversion' fee.

Travelnut,

Thanks for clearing that up...such a headache!

Did you read the many posts since last year on this topic? USAA wins hands down re: fees.
M

annieladd -
Visa adds 1%
Bank adds 0%
Card issuer adds xx%

(very few banks actually issue cards; normally, they just use a vendor ie. MBNA, Providian, etc)

My Capital One imposes a 3% conversion fee along with the 1% by VISA.

I guess it depends on the card you have.

I have a Capital One "GO Miles".

Christina--what kind of Capital One card do you have?

Thanks,

Mary

mikemo: Just wondering why the USAA card is considered to have the best fees. (Could you be more specific?)

kelbert: I too have the Capital One Go Miles Platinum card, and was told that there is NO conversion fee whatsoever for foreign purchases. Maybe you need to call them to clarify...unless it is an issue of Platinum vs. non-Platinum cards?

Hi bettyo70--

Arrgghhh!! We all seem to be getting different answeres from the cc companies. I DID call Capital One and ask them! Maybe it is because I am in California....:-) Who knows!!

Hmm...maybe I'll call and ask someone else and see what tehy say.

Kelbert

I apologize for my atrocious typos. Dog was jumping up on me....had to go out the poor thing. :-)

There was a leaflet in my boss's CitiCard statement last month announcing additional 2% FINANCE CHARGE on foreign transactions. This leaflet did not mention currency conversion fees, but I wonder if they charge that as well.

I don't think these fees are NEW, I think the cc companies are just required to disclose them now, thanks to some class action lawsuits.

That's just my understanding of the issue.

Okay, called Capital One: They reiterated that they charge NO EXTRA FEE on top of the 1% charged by VISA. When I mentioned that other cardholders were told about a 3% fee strting April 1, Capital One said that everyone's account is different, so I recommend each person check what his/her current situation is. And, ask for them to PUT IT IN WRITING and MAIL THE FEE POLICY TO YOU in case you have problems later.

Furthermore, I was told by other travellers that BANK OF AMERICA does not impose ANY FEE on foreign ATM use. CAN ANYONE VERIFY THIS that currently uses Bank of America abroad? Because I would be happy to switch from Washington Mutual -- my current bank-- which told me of a $3/foreign withdrawal. (I live in NYC.)

Thanks!!

As I understand it, Bank of America has parternship agreements with specific banks in various European countries and when you use the ATM's of those banks, they charge no fee (although you have to check what exchange rate they use and some banks are surcharging ATM withdrawals with the same 2 or 3% additional conversion charge above the 1% international credit card charges who control the major shared teller networks).....

Incidentally, if you use a bank ATM, you will not be charged a fee for having the audacity to use a machine that is not your bank's which is a common practice in the US as the regulations of the shared teller networks prohibit such charges.

Thanks, xyz.

Hello Folks, I just called Citibank to inquire about their change in terms notice regarding foreign purchases. I was told the difference is now they will separate the finance charge from the purchase and put it at the bottom of the bill. The woman told me there has always been a charge, they are just making a separate charge now. I have to admit, I never read the fine print on my initial agreement. Does this sound like an answer fro anyone else's c.c. company? Thanks

i just called MBNA and they stated that they do not charge fees, but that mastercard adds 1%, over the Wallstreet quoted rate. He said the same applies to VISA (I have MBNA Mastercard)

Betty,

This is what the information I just received from my BofA branch:

I just picked up BofA's Personal Schedule of Fees, and in it I learned that as of February 14, withdrawals from an ATM in a foreign country will be charged $5, up from last year's $3. That's 5% on $100, which could be a normal withdrawal since ATMs are ubiquitous in large cities.

But if the money is withdrawn from a bank belonging to the Global ATM Alliance, no fee is charged. These banks are: Santander Serfin, Barclays, Scotiabank, Deutsche Bank, BNP Paribas and Westpac.

I might add that my local credit union is not charging any fee, and I will join just for my ATM withdrawals abroad.

I have a Capital One Platinum card.
I haven't received any notice from them that their foreign currency transaction fees have changed.
So I emailed an inquiry to Capital One. Their response and my original message to Capital One are pasted below.

<b> Dear Ms_______,

Thank you for contacting Capital One.

When you process a transaction outside of the United States, your account
may be subject to a one percent conversion fee charged by MasterCard or
Visa. Capital One does not assess additional processing fees to your
account.

Please respond to this e-mail if you have any additional questions.



Sincerely,

L. Forbess
eCorrespondence
Capital One Services(R)

Original Message Follows:
-------------------------

I am aware that VISA itself adds an additional 1% to the amount of each
purchase made in a currency other than USD.
What additional percentage fee does Capital One VISA add for purchases
made in foreign currencies? I am specifically inquiring about purchases
made in Euro and in Pounds Sterling.
Yours truly,
M______________ <b>

</b></b>

The credit card companies hide those
&quot;extra&quot; fees-No Kidding! So, cut those
cards up and call your company and
complain that you won't pay their fee!
They get what they want-so get another
card-now!

Just called Bank One and Bank of America. Credit or Debit check card - 3% fee (1% goes to VISA, 2% - to either bank). Every ATM transaction is subject to a 5$ fee, even if processed at the affiliate bank. Only free option - order cash in your local branch free of charge. Hope it helps, although I feel it's a highway robbery. Your 5000 USD vacation automatically turns into 5150 USD vacation with no benefit to you.

Michael,

Thank you for your research!

I am not currently in a credit union. Do you think it's worth it to join one just to save some $ on foreign ATM withdrawals?

And yes, Folks, it's worth it to find out which credit cards tack on these inane fees and which don't.

From what I understand: Capital One (my card), USAA and MBNA DO NOT CHARGE EXTRA FEES.

Citibank, Bank One and most others DO.

Betty,

It does not cost anything to join a credit union, but you have to be eligible by occupation or location. The one I will join just requires a minimum $100 deposit in a savings account.