Best Bank Card Exchange Fee?
 

We're heading to England and Wales in May 2007. Mr. Pickle wants to know:

Besides the basic exchange rate, all credit cards charge a fee per transaction. Does anyone know what bank charges the lowest fee for converting purchases in GBP to U.S dollars?

Lee Ann

Hi LeeAnn, are you two members of USAA by any chance?

No, we're not members of USAA. What is it?

Lee Ann

Okay, let the flaming begin!!!

I have been here at Fodors for close to 2 years now. And I have seen COUNTLESS threads and posts complaining about, at what is at most, a 3% fee added to CC charges. My take is, quit your whinning!!! (And yes, I do use my CC's while I am in Europe)

Come on, think about it, that is a mere $30 for every $1000 you are spending! That is less than the cost of one really great meal, and sometimes not even a decent meal. At least you are in EUROPE!!!

I know this will make some angry. Like I said, let the flaming begin.

Tom

Tom, be good, LeeAnn is a beautiful and kind woman.

LeeAnn USAA is for military people, active and retired. For those that have their insurance policies with them they are able to obtain Visa and/or MC which only has the 1% fee.
Do a search here on Fodor's as you will find lots of information regarding various CC companies, well that is if the Search Engine is working properly. Best regards.

I believe Citibank has no overseas txn fees on their cards.

Citibank has a 3% foreign transaction fee.

Most credit unions' CC's either have no or just 1% fee. Capital One has no transaction fee (don't even pass on the VISA/MC 1%). Some of the former MBNA cards have 1% fee, but these are getting harder and harder to find since Bank of America (3%) took over. I believe the AAA card still has only 1% fee.

I second the credit union suggestion. When banks and CC companies began almost universally imposing these add-on fees I got an ATM debit and a CC from my credit union. No additional fees.
And BTW capital One has started adding fees on some of their cards.

That $30 will buy you quite a few Guinnesses. It all depends upon your priorities. :-) ((b))

Try BellCo credit union. It's an all-around excellent credit union in all its services. We've been members for over 30 years.
:)>-

You may be better using your ATM card at ATMs in UK to get cash out - only charge is what your local bank charges you for this - usually $3 in my case and can get up to about $250/day - ATM card should be a debit card or hooked to checking account to guaranteeably work - as well as having a 4-digit PIN number - then will work at zillions of ATMS and the bottom line is often better than using credit cards.

If you have a BofA account, you can withdraw cash from Barclay branches with no fees attached. When I need cash and I see a member bank, I use my BofA ATM card. Otherwise I use by Credit Union ATM card (no fees) and for credit card purchases its Visa card (1% Visa charge).

Well, a credit card could charge No fee, even offer 1% rebate...BUT...if they charge a higher exchnage rate, they still make money. So the exchnage fee is just ONE of the costs that need to be taken into consideration. Based on that, I would use ATM withdrawals (since they seem to be at better exchange rate and usually lower fees) to pay for as many purchases as possible, then use CC for large items like hotel and card rental.

In the end, hopefully 1% vs 3% does not make a big difference in the whole price of a holiday.

My BOA ATM card usage at Barclays resulted in no extra charge. It was treated just like I was using a machine at home.

Capital One is now my credit card of choice. The AAA card is still 1%, but for how much longer is anyone's guess. I have started phasing it out for overseas use except for car rentals where there are some advantages. One in particularly is that I get 10% off at Hertz. Because I usually end up with a Hertz rental when I go through Auto Europe, the AAA card still has an advantage.

Otherwise, if you cannot find a better deal, go with Capital One.

Before you apply for a credit union credit card check carefully because some are outsourced to a consolidator who will charge 3%. That is the case with my credit union so no joy there.

Again?

1. Bring cash. Change it at a site with the lowest rate. Not airport or hotel! Inquire of locals.

2. Withdraw funds with your debit card.

Better yet, use an evening going over all your CC an DB papers and learn what your sources are charging YOU for their services.

Advertise for Euros or whatever in a local paper. Many travellers bring back substantial amounts of foreign currency and will part with it at a market figure.

Yikes! I meant Capital One has no overseas fees. Citibank does.

Sorry, but I disagree with:

1. Bring cash. Change it at a site with the lowest rate. Not airport or hotel! Inquire of locals.

>>>Exchanging cash dollars is about the MOST EXPENSIVE way to get Pounds. And carrying enough $ in cash would be a theft risk too.<<<

2. Withdraw funds with your debit card.

>>>Debit cards may have the same fees as credit cards. ATM cards--without a credit card logo on them--are usually a good deal, as others have noted.

KidstoLondon, I'll agree with you about NOT exchanging cash -- way too expensive.
But most debit cards, including those with a VISA or MC symbol so they are also debit cards -- charge no different fee (if any) from their ATM only counterparts from the same bank.

Just received my NEW Capital One credit card which I plan to use overseas. In speaking with their representative they informed me that Capital One does not charge a fee on overseas use of the card, BUT that Mastercard which is the logo on my card does charge a 1% fee on conversion rate.

Is this still a good deal. Is Mastercard used throughout Europe or must it be a Visa card?

Anyone, anyone?