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!