This thread is so confused because people are mixing up ATM transactions with credit card transactions.

CapitolOne and MBNA credit cards do not add charges over and above the MC/Visa 1%. The others do, and as I understood my Citibank notice it will be upped to 3% additional on April 2.

ATMs are a different bear. I received a notice this month from my CU stating that Visa would be able to pick and choose from several rates from the transaction date (this may be true for credit cards too) and would add the 1% conversion charge. As I understand it, foreign ATMs do not charge fees (though I have seen it in Canada and it is clearly indicated on the ATM machines), and whatever extra fee is imposed depends on your bank or CU.

Whenever I contact Bank of America with a question, I frequently get conflicting answers. I usually call them with the same question about 3 times and see if at least 2 of the answers match.

As mentioned in a previous post, BoA belongs to the "Global ATM Alliance." I was told by a BoA representative that if I use one of those ATM's there will be NO fee. This conflicts with the answer given to a previous poster.

The Global ATM Alliance does have a website if you want to read more about it.

There are a limited number of banks that belong to this alliance...as listed in a previous post...and you may not be able to find one where you are travelling.

I was also given a speech by VISA about there being some sort of fee that will be determined every day "depending"....

It really would be nice if there was some way to cut through all the bank and CC doubletalk and get to the truth!
But I don't think they want to make it too easy for customers to understand.

My credit union just issued a notice stating that they would be listing the Visa 1% conversion fee as a separate line item on the statement for credit card Visa, but no additional charges added on.

I think a credit union Visa/MC and credit union ATM card is the way to go!

We traveled in Canada last year using credit union cards, no extra charges at ATMs or with credit card (besides the Visa 1%).

Regarding national banks, like Bank of America, I would advise everyone to check the fine print on your latest notice or call the bank yourself. Don't rely on information provided here by other posters. Each state that a national bank does business in has different regulations. Bank of America here in California could and probably does have a completely different set of rules/fee structure than it has in another state. Check it out yourself.

BTW, I have used Bank of America for over 15 years now. But, when planning a trip to Europe in 2002, I added a checking account at my credit union. I have never ordered checks printed. I leave a small amount of money in this checking account for the sole purpose of making ATM withdrawals overseas. Never had an extra charge added and have been in Germany, Italy and Canada. No charge from either the foreign bank nor my credit union. I would advise using a bank ATM, though, which I always use, rather than the non-descript ATM machines one finds in restaurants and hotels.

Another thread on this subject that is an interesting read is titled "Euros". If it does not come up in a search, try by the original author "barsyd7" then link from there to the euros thread.

anyway, call me cynical, untrusting or pessimistic but I am waiting until May and then calling my credit card companies about the conversion % charges and what is charged when used as an ATM, as well as requesting it in writing.

IMHO (and not verified yet) it seems as if there may be two different areas that can each have an answer. Citibank may say one thing while Visa says another, so that if you have a Citibank Visa your statement could have a 1% AND 2% (or 3%) charge for every transaction. Ensuring that all of those involved in this new scam can have their piece of the pie...it's just the traveler that will be skipping desert...too 'spensive!

Yes, 12perfectdays is correct: If you are getting conflicting information from your customer service people, ask to GET THE POLICY IN WRITING!

Washington Mutual (my bank in NYC) says that charge a flat $3/foreign ATM withdrawal.

When I inquired with Bank of America, they said $5/foreign ATM withdrawal BUT unlike Washington Mutual, BOA has a bunch of affiliate bank -- so when you use these designated banks' ATMs, you are not charged anything! BOA lists these foreign ATMs in their "alliance" on their website, providing specific addresses where the ATMs are located.

I think I will take the advice of David and a few others and open up a credit account with a credit union to avoid fees...THANKS TO EVERYONE FOR YOUR RECOMMENDATIONS!

Just opened my Capital One statement and read the cardmember agreement and called the company. Apparently, they will be instituting a foreign conversion "finance charge" on credit card transactions. Although it has not yet taken effect on my card, it is discouraging that Capital One has made this move. I have used them before when traveling in Europe and intended to use them on my upcoming trip to Italy. I guess I still will because they tell me that it will not take effect until I get a separate piece of paper that indicates there has been a change in my cardmember agreement. At that point, they will indicate what percentage of the transaction, I will be charged. They could not tell me when this will happen. Anyone else out there had this experience, and are there any cards left that don't add on to the 1% charge that Visa imposes?

All the banks seem to be sending out these notices as a result of a class action suit the credit card companies lost on the issue of non disclosure of the fees they charge for foreign currency transactions. Whether there are actual raises being instituted is a bit unclear.

Visa, for example, is becoming very vague as just to what it is doing regarding foreign currency transaction and the banks are following through. Perhaps by calling it a finance charge, and I am not a lawyer, they hope to get around any possible legal restrictions on just what they can and cannot charge. Also some banks are beginning to institute a charge not for foreign currency conversion as they know damn well they don't convert currencies, visa and mastercard do the conversions, but rather for all foreign transactions as a whole. This, of course, is aimed at those merchants who are using dynamic currency conversion and trying to recapture the foreign currency exchange action they feel they are losing.

If anything, this is making the issue more muddled than it has ever been.

If only the government had the courage to step in, despite the huge amount of bribing the big banks do under the guise of lobbying and put an end to this garbage. But long ago I gave up on the government doing anything to help anybody but big business.

Could someone please read the article in today's Wall Street Journal (3/31, page D2)and translate, please? I don't have a clue as to which is really the best credit card to use. Thanks!

I just called MBNA and they will be instituting charges April 2 (I stupidly didn't ask how much); said I would be getting a notice. I told him I had read that some MBNA cards were exempt and that I hadn't gotten a notice; he checked the list of exempt cards and said I was in luck, that NEA cards were exempt. I am encouraged to believe him because he knew exactly what I was talking about.

The WSJ article says, in part:

"After Saturday ... Visa USA Inc. plans to levy instead a 1% fee on every charge that's made outside the cardholder's home country, even on those where customers have paid in their native currency. MasterCard International Inc., so far, isn't matching Visa's fee increase. Banks that issue Visa cards have a choice as to whether to pass the increase along to customers.

MBNA Corp., Merrill Lynch & Co., HSBC Holdings PLC's HSBC Bank USA and Capital One Financial Corp., among others, will be making customers pay fees when charging in U.S. dollars while abroad. The banks that aren't passing the fee along include Citigroup Inc.'s Citibank and J.P. Morgan Chase & Co." [Note: not in the WSJ article, but I understand that these banks already add their own 2% or 3% conversion fee, but I'm not sure if this is true when the charge is made in dollars.]

The WSJ goes on to say:
"Consumers can avoid being hit with multiple fees by asking merchants to use the local currency when charging with their Visa credit cards."

What this means is that for example, you buy something in France, but the merchant makes the conversion to dollars from Euro before the charge goes on your card. Previously VISA would only have taken their 1% if they made the currency conversion. Now they will take it off even if the original charge in the Euro country is made in dollars. Since the merchant generally builds in their own conversion fee, this is a doubly bad deal, and the WSJ says you should generally try to pay in the native currency and let VISA calculate the exchange rate.

Also in the article:

"Meanwhile, some banks are raising their own currency-conversion fees at the same time that Visa is passing along its new one. Beginning in May, MBNA plans to add two percentage points to Visa and MasterCard's 1% fees, bringing total conversion charges to 3%. Previously, the issuer just passed along the 1% fee."

Apparently though if LvSue got a correct answer, not all the MBNA cards are affected. Also, so far there's nothing about additional fees from Capital One, except the "charges in dollars" fee explained above.

<i>&quot;I think I will take the advice of David and a few others and open up a credit account with a credit union to avoid fees&quot;</i>

I did just that a few days ago. I located a local credit union I was eligible to join (found them through a google search.) I downloaded their membership and Visa application and mailed it in. Just this afternoon, they actually called me to tell me my application was approved and I would be receiving my card within a week or so.

I'm through with the big, corporate mega-banks and their fees.

Too amazing not to tell...

I had seen that there was a possibility that USAA mastercard was not going to add anything to the 1% it always did so I called to apply and was told quite a story.

The CSR that tried to sign me up told me that it was 3% BUT it was not USAA, the 1% was from mastercard for the conversion BUT THE OTHER 2% WAS FROM THE MERCHANT and I could still get the card and when I used it in Europe I should talk to the merchant there and try to negotiate for them to not add the 2% additional!

&quot;Please sir, please won't you take 2% off my bill, the credit card company told me it was all your fault!&quot;
...yeah, I can see what would happen to my dessert if that happened!

It was one of those &quot;Here's your sign&quot; moments but there are times when you just have to let it go...LOL!

It's a sad but true commentary how idiotic some of these so called customer service reps are.

I have read of several complaints from people who went to their bank in the US for foreign currency, told the bank official they were going to the UK, and were told and sold euro!

None of them know how to say we don't know.

<i>&quot;I have read of several complaints from people who went to their bank in the US for foreign currency, told the bank official they were going to the UK, and were told and sold euro!&quot;</i>

We talked to a couple in London last month that this happened to. They went to their local bank, were told they'd need Euros for London and came to London with Euros and Traveler's Checks. Since they did not have an ATM card, they lived on their credit cards while there.

Well let's see some of the other idiotic things bank officlas have told Americans about foreign currency transactions...

1. Your money will go further in Paris than in London as the Euro is worth less than the pound.

2. Some dishonest merchants will hold credit card transactions until the dollar goes down so they can get more dollars for the transaction.

All these I have heard!

umm.... how is #1 not true?

Well you see sir when something costs 3,25&euro; in Paris the same thing would cost &pound;3.25 in London so you can obviously see that things are cheaper in London than in Paris...

Actually the story I heard occurred several years ago when Ireland was converting to the Euro and some genius bank clerk told customers prices would be better in Ireland since the Euro was worth less than the punt.

Long ago and far away, but I still remember when as late as 1997, Munich banks cashed US TT's for the institutional rate into then DM - don't do this anymore.
M

MBNA UPDATE:
Opened the mail today, there it was. MBNA will be charging 3% on foreign transactions, AND raising my fin.chg. rate by 3% as well. I have a Platinum Plus M/C.
Needless to say, I am not pleased.

Other notices we have received:
- local credit union Visa - 1% only
- Compass Bank Visa 3%
- Compass Bank debit card 1% (this is the one I opened to fund travel only, so that's still a 'go').

I got disgusted with the major bank cards and got a Visa from a local credit union to use in Europe.