Capital One Hassle Free? Not!
 

I need to vent. For my upcoming trip, I decided to apply for a Capital One card as I figured that there're no FX fees tagged on.

In my stupidity, I decided to apply for a card with a $39 fee:

http://tinyurl.com/kyxpd

In my defense, I thought that this card offered a 2% cash back -- at least that was what the phone rep told me. So I figured that I could justify the $39 annual fee.

When I started thinking about it, I decided that this was too good to be true. So I looked at the website again, and the cash redemption option isn't spelled out anywhere. I called Capital One a few times, and they refused to tell me what the redemption is ("it depends on your plan"). Finally one rep told me that it's 1% cash back.

Since I'm not interested in the 2 miles for $1 option, I decided to see if I could switch my application to the cash back card.

No, the application isn't in the system. It can't be withdrawn. Even if it can be withdrawn, I'll have to wait 45 days before applying for a new card.

This is a nightmare. If Capital One is being this difficult I can only imagine how they treat their customers.

Who else doesn't charge the FX fee? And because of this screw up I'm not sure if I can apply for another card before I leave. I wonder if I've to wait 45 days to apply for another credit card in general.

What do people suggest? Are there other venues for complaints? I'm outraged.

My bank (and employer) has resumed issuing their own credit cards (since MBNA was bought by BOA). Their new Visa will pass only the 1% Visa Intl fee. Earlier in the year, I obtained the AAA Visa (which is issued by MBNA) but the disclosure stated they would still only charge the 1% Visa Intl fee. You can check on the 'terms' on the application at AAA.com (you have to be a member).

http://www.wachovia.com/personal/onl.../0,,13,00.html

In defense of Capital One, I've NEVER had one ounce of trouble dealing with them and I have had my card for years! I know you are an experienced traveler, and have contributed often to this board. It surprises me that you would decide now to change your credit card on what must be the eve of another trip. It's a relief to know that I'm not the only one who makes mistakes in spite of my best efforts.I always say, "You don't know what you don't know until mistake strikes." There's nothing worse that feeling blindsided.

Truly sorry for your situation. Hope you resolve it quickly.

I'm not an AAA member, unfortunately.

Maybe I should call Citibank to up my cash withdrawal limits when I'm in Europe this time. I wonder what it is at the moment.

But I really wanted a credit card in case I make some big-ticket purchases. Cash would be cumbersome. But maybe I can arrange for a Telex when I get home. We'll see.

What a pain.

Well I had MBNA, which didn't charge a fee until recently. And my impending trip prompted me to scramble for a new card.

Anyway, as I said, I was stupid, but I do think that Capital One is deceptive -- or at least misleading. I was misled into believing that the cash back option on the $39 fee card is better than I expected.

I don't think that there's anything I can do about it. I'm just upset and outraged about it. I mean, come in -- once an application is submitted, you can't change it? That's just plainly ridiculous, if you ask me. And not only that -- the 45-day wait period.

I just find this whole thing ludicrous.

Hi 111op, you aren't a member of USAA by any chance, are you?

USAA passes on only the 1% MC/Visa FOREX fee. Don't have to be a member of the armed forces but check their website for certain. Heard this may be changing.

I'll check the USAA website.

What about debit cards? It occurred to me that my Citibank ATM card has a MC logo (I think). I wonder if they will tag on the extra fee. I stopped using my Citibank CC because of the fee.

I'll have to call Citibank.

I have a Capital One card which doesn't charge the foreign currency fee...BUT they make it up on the exchange rate they use compared to my BOA Visa which does charge the foreign currency fee.

Believe me, banks get it from you one way or the other.

I have a Capitol One NoHassle Rewards MC and have never had any problem with them, either. I think I have only a $19 annual fee and I get a one pct cash back on everything. I think they have various terms based on whether you sign up for the solely cash back or miles option. I don't care about airlines and miles, it was too much trouble (I'd rather buy my own tickets), and just signed up for the solely cash back feature. I've never had any problem with them on that, and the terms were clear to me.

I also don't agree with the above statement on their rates. They are virtually identical to the interbank rate with no markup and there is no other foreign exchange fee on the bill. I have calculated them, using the interbank rate on the exact day of transaction (which I suppose could be a day or so different from when they convert), and the exchange rate they use has varied from .996 to .998 of the interbank rate. I just used mine a lot in Europe in July, and those are the stats I calculated over various transactions in various currencies over a month (from euro, CK, and PLN).

If you want exact stats, I'll give them:

7/12/06 Capitol One exchange rate on CK was .04484 and the official interbank rate was .04487.

7/9/06 Cap One rate on euro was 1.2842 and the official rate was 1.2816.

7/12/06 Cap One rate on PLN was .3144 and the official rate was .3153

I think it was Budman, anyway one of the long time Fodorites, that stated a few months ago that USAA no longer issues credit cards to non USAA members even if they are retired military.

If you are a member of USAA you can get their M/C and/or Visa that has no annual fee and as far as I know they still only charge the Visa 1% without adding on their own fees. But yes, check their website or call them. Best wishes.

I cancelled my Capital One accounts some years ago due to interest rates on my accounts when much more favorable rates were offered to "new" customers.

But, when MBNA added the FX fees, I obtained a no-frills, no annual fee, no FX fees, Capital One card in several days just ahead of a trip to Paris.

When shopping for/applying for credit cards, I think you must focus on your primary objective(s) and not get caught up in other ostensive "advantages".

I'm wondering exactly your concern...

Thanks, LoveItaly. I'm not a member of USAA, but I'll look into it.

Re the FX rate, I don't know, so I can't tell. I'm likely to believe that Christina is right, as Capital One is mentioned by many articles I can find online that mention that they don't charge the fee. However, that doesn't mean that they don't "fiddle with" the rate to get you, but I'm thinking that articles would mention this. (Maybe that's naive thinking.)

But Christina, Capital One now has a cash back card with no annual fee. I think that you should get the annual fee removed. I don't think that you should pay a fee for a feature that customers get for free -- unless you think your terms are more favorable for some reason.

djkbooks: "I'm wondering exactly your concern..." I'm not sure if you're addressing it to me. But my concern is how this company operates. First by basically misleading me (and obfuscating the situation) -- as I spelled out above. Next by telling me that I can't void my application and apply for the cash back card (which has no fee). Then telling me that there's a moratorium on new applications.

I'm also wondering if my credit score will suffer. I think it will drop a few points. But I'm not applying for big loans in the near future, so I'm not too concerned.

Basically I just don't like this idea that there's nothing that can be done for four days (my application will take four days to show up in their system -- but then, they put it into the system in the first place...), and then after that, they're saying it's basically too late anyway to make changes. If so why wasn't I told all this in the first place? It really makes me wonder what they're doing in the four days behind my back.

USAA banking services/credit cards used to be open to everybody, but as of 30 June they changed the rules, and only USAA members can get those services. That's too bad because you can get up to 1 1/4% cash back on all purchases which will take care of the 1% conversion fee imposed by VISA & Mastercard. ((b))

I took a look at USAA, but I didn't see anything about apps for cards, but I could have missed something. However I did notice the pdf files for the benefits of their ccs, which I didn't read.

I called Citibank, and it's claiming that the fee is 1% if I use my ATM card as an ATM card, debit card or credit card. It seems like my limits are high enough for my purpose.

One problem that I have though is that this card doesn't offer cash back (I use it as an ATM card only).

I cancelled my Capital One application (it showed up in their system late morning). I cannot apply for another Capital One card for 45 days.

I'll call Citibank again to make sure that the fee is always 1%. It sounds suspicious, as they're basically saying the ATM card used a cc has different terms from a Citibank cc.

Actually I could easily try to charge something in Euros on it and see what fee they charge me.

The 1% fee is, for the most part, universal for Visa cards. In the past, credit card companies used to absorb these charges, however in recent years they began passing them along. You will see it itemized as an association fee or something along that line. Incidentally, if you use a visa debit card you will still have to pay this fee.

To date, I've not seen this sort of charge appear on my Amex card, so that might be a good option.

111op,
No need to call Citibank back. It's listed in their FAQs http://tinyurl.com/f4jky

nnh,
Amex adds a 2% conversion fee. It's rolled into the total and not separately itemized on your statement. I recall seeing a disclosure somewhere though.

111op,
Is this the card you applied for? http://tinyurl.com/h6mvf (it was hard to tell from the application link)

I agree Capital One needs more disclosure on their website. There doesn't seem to be any way of finding out what the cash back option terms are unless you call.

Yes, I think so, Patty. Good luck getting the terms when you call them. It's just as unclear. I think that I spoke to about five people to get one to tell me what the terms are (funny the rep didn't have trouble misrepresenting the card to me when I signed up).

Contrast this Capital One FAQ with the Citibank one:

http://tinyurl.com/mrr2d

Take a look at #14 regarding redemption. If that's not obfuscation or tautology, I don't know what is.

But sadly I think that they're supposed to be the best game in town:

http://tinyurl.com/lbj7y

According to the NYT article above, they do not even pass on the 1% Visa/MC fee. So if I use my Citibank card, I'm off by 2% (as it charges the 1%, plus I don't get cash back).

Sigh. I may have to apply for Capital One -- but the no fee card....

I'm annoyed.