Can anyone recommend a good VISA credit card for those who travel to Europe and other parts of the world often? I currently have Bank One (platinum) and find that their rates for international transactions are kind of high. Their APR is also rather high. On the positivie side, they cover all car rental insurance here and abroad (collision damage, theft, etc.) and they do not charge an annual fee. Thank you!

Betty,
I don't know if its the best, but my Merrill Lynch Beyond Banking hasn't been a problem. No fees etc.
John

Dear John,

Does Merill Lynch charge an annual fee? Does it cover all car rental insurance (theft/collision/damage)?

I am soooooooo tired of getting ripped off by Bank One Visa! Is Merrill Lynch an easy card to switch to?

Thanks, John!!

--Betty (MYC)

It is the VISA company that issues the car insurance (and other similiar services, such as product warranty, etc) NOT the bank that issues the card, therefore it doesn't matter which bank you use. For the purpose of car insurance, any VISA works the same.

In terms of rates for international transactions, Capital One seems pretty good. I've had it for several years and think the rates are about as good as you get. Plus, with a capial one rewards card (formally Miles Rewards) you can get free airline tickets (or cash back if you prefer). You have to accumulate quite a few points (e.g. miles), more than with some of the airline frequent flyer cards, but you get the points whenever you spend any money on anything so it's fairly convienient.

Personally I think anyone who has to be concerned about the annual percentage rate runs a balance which is, IMO, about the most financially irresponsible thing you can do..and if you are doing that then forget about traveling until you pay the thing off.

I agree that the Miles One card is NOT as good as having a credit card that accumulates mileage for one airline although I will say the restrictions have been lessened recently.

There seem to be a couple of posts in the forum about charges for using VISA and MasterCard abroad. Is this something about American cards? I don't know what other posters think but I have two UK VISA cards and none of them EVER charge me interest for purchases (only cash advances). Also, I have used them extensively not just in Europe but also in Canada and their rates seem to be excellent as well. My parents who live in Greece also never have to pay commission. What do other Europeans think on this?

I would agree with topman re: balances and interest rates.
The USAA savings bank no fee Visa (and MC) are among the best to use overseas - they have only the 1% currency exchange fee which all visa and mc charge (viz 3% on citi bank's AA MC and 2 - 3% on many other cards) and give a favorable exchange rate.
They have single digit interest rates if you are financially irresponsible and carry a CC balance from month to month.
A recent article in the WSJ stated that all VISA cards now provide auto insurance as do most Amex and Plat MCs.
Bank One charges only $1.25 for ATM w/d overseas which is the way I usually go in MX (many small merchants give cash discounts for MXP and have awful exchange rates for USD. i.e. last week I/we bought several original paintings in San Miguel de Allende with a payment choice of $4500. MXP or $450. USD (I "bought" the $4500. MXP for $400.USD from the ATM - a no brainer saving $50 USDs). The Bank One ATM exchange rates are not quite as favorable as USAA, but close and convenient.
M

>They have single digit interest rates if you are financially irresponsible and carry a CC balance from month to month.<

This sounds like an oxymoron to me.

Betty,
There is no annual fee. You do acquire points for Signature rewards which can be used for merchandise/Travel etc.
I get points for buying a car, groceries, phone bill, Health Insurance and on and on. Talk to your Merrill Lynch Broker.
I'm sure other companies offer the same or similar competitive programs.

Claro que si, Ira, but I thought I would post full disclosure for the illiterati!
M

But to get the Merrill Card you have to put down a chunky deposit - believe it's $5,000 in cash or investments (mutual funds, stocks, whatever) and there's an annual fee for the account of $125, though 52 free ATM withdrawals annually. But since Merrill is not a bank, if you use any ATM you'll incur a fee for using that bank's ATM machine. And technically it is a debit card, though in actuality it registers as a credit card when used at places like the supermarket, or shop (no PIN number required).

As to the comment that the insurance provided by Visa for auto CDW, Theft coverage - not all cards are equal. What is covered with a Classic card vs Gold vs Platinum are different.

Betty,
The Beyond Banking Signature Rewards card from Merrill has no fee but I'm sure its because I have a sizable account. I believe the minimum is $250K.
John

Betty,
MY BAD! There is a $125 fee....I just never looked! Guess its an auto deduction from my account.
John

Darn those tricky fees!...Thanks, Everyone! Will consider Capital One Awards card, MBNA, and USAA for now.

"but since Merrill is not a bank"....Merrill Lynch conducts banking thru 2 depository institutions,Merrill Lynch Bank USA and Merrill Lynch Bank and Trust.They have been a "bank" for 30 years and they invented the Cash Management Account,CMA, whereby you put whatever amount of money you desire into an investment account rather than a simple checking account.So, yes, Merrill IS a bank, not just a "stock broker".Most credit card programs associated with Merrill Lynch are debit cards.The amount charged on the card is automatically deducted from your CMA at a given time.Given that, I have never even been asked when renting a car if it was a debit or credit card.I have always wondered why not since car rental companies do not rent to a debit card.But who knows.

I went to France last month and took my debit card and one backup credit card. My credit card is a Capitol One Visa. I found that this company does not have a surcharge on any purchases ANYWHERE!! To my dismay, my debit/visa charged me 3 percent on all of my charges. They do not charge me an annual fee and their rates are low. Everyone should get a Capitol One Visa for all overseas trips!

BeachBoy is correct in stating:

>>Merrill Lynch conducts banking thru 2 depository institutions,Merrill Lynch Bank USA and Merrill Lynch Bank and Trust.They have been a "bank" for 30 years and they invented the Cash Management Account,CMA, whereby you put whatever amount of money you desire into an investment account rather than a simple checking account.So, yes, Merrill IS a bank, not just a "stock broker"<<

That said, when did you last see a Merrill Lynch Bank at the mall, or street corner or wherever. A bank yes, but not a Chase, Citibank, BankAmerica, HSBC - no easy place to use a bank-owned ATM, so when you do use a Chase or like to withdraw funds, Chase charges a fee. Likewise unless you go to a Merrill Lynch office you cannot make a deposit, except via the USMail system or Fedex, etc.

As to opening a ML-CMA account, the number is $20K to open, the $5K mentioned above is the lowest one can have in their account whether cash or investment, otherwise, you get charged quarterly $15 as a "low balace fee". And that yearly fee of $125 (increased last year from $100) is deducted automatically annually, so one often misses it. But for the $125, you get pretty good service, no charge for checks, monthly statements without those stacks of checks being returned (so sensible) - and this meets the need of certain people.

For those who have a CMA account but use it for checking purposes only and have balances of less than $5K, they can use their MLDirect service, which has no annual fee, no fee for checks, those 52 free ATM withdrawals have been removed, you don't get statements, but they are available to you online which you can print. You still get a ML Visa debit card, but you don't have the advantage of the financial services reps.

As to the ML Debit Card, as a service to clients, acts as a debit card, but the vendor (or car rental agency) has no idea as the card registers to such vendors as a credit card.

So while a bank is a bank, it's only a bank if there really is an edifice that looks and works as a bank, and ML doesn't have these on every street corner.

sandi.....Like many businesses, ML is NOT for everyone.They started the banking business as a response to their own clients.They have a business pattern to their own liking.And their success is attractive to their clients.If you go to an ML office, you can make a deposit, but you can't cash a check.Does that bother me?Not at all.As a side note, the ML FC's have considerable lattitude in taking on new clients.If I have a friend who wants to open an account but doesnt have the required "minimum",my FC can take him on as a client or not.

beachboi - As a former ML employee I know only too well how it all works. My explanation was more in response to the poster who suggested the Beyond Banking option - pros and cons, limits, fees, etc - which works for some, and not for many others.

There have been plenty of threads here on Fodors regarding which are the best credit cards to meet needs especially for foreign travel - conversion fees, ATM withdrawals, etc. Everyone has to select which fits their situation and pocket. Personally, any such fees applied to use of my credit cards overseas, were minimumal (maybe $10) in the scheme of my total travel budget - it's a non-issue.

I know that 1 to 2% is not a lot in the greater sheme of things, but if you travel abroad often and choose to use your credit card for all hotels, gifts, restaurants, etc., that 2% can add up over time. Plus, it's the principle of the matter: why not save if you can?