Citi Visa to charge fee on foreign purchases?
Mar 9th, 2005, 05:50 PM
#22
Join Date: Jan 2003
Posts: 15,749
Likes: 0
Received 0 Likes
on
0 Posts
Author: djkbooks
Date: 03/09/2005, 03:41 pm
Message: The Citi notice states, "For each purchase made in a foreign currency, we add an additional FINANCE CHARGE of 3.0%."
Maybe I'm crazy, but that word "additional" sounds like 3% over the regular charge. Why wouldn't they say "total" if that's what they mean? Sure sounds like a total of 4% to me -- or even more if Visa/MC is raising their 1%. Where did we hear that they are dropping that 1%?
Date: 03/09/2005, 03:41 pm
Message: The Citi notice states, "For each purchase made in a foreign currency, we add an additional FINANCE CHARGE of 3.0%."
Maybe I'm crazy, but that word "additional" sounds like 3% over the regular charge. Why wouldn't they say "total" if that's what they mean? Sure sounds like a total of 4% to me -- or even more if Visa/MC is raising their 1%. Where did we hear that they are dropping that 1%?
Mar 10th, 2005, 01:14 PM
#25
Join Date: Jan 2003
Posts: 13,614
Likes: 0
Received 0 Likes
on
0 Posts
Saddam Hussein does not own Citibank. Citibank is a part of Citigroup, which is a publicly owned company trading stock on the NYSE.
I believe Mr. Hussein's assets are now frozen, pending the outcome of his trial for crimes against humanity.
BC
I believe Mr. Hussein's assets are now frozen, pending the outcome of his trial for crimes against humanity.
BC
Mar 10th, 2005, 01:15 PM
#26
Join Date: Jan 2003
Posts: 1,182
Likes: 0
Received 0 Likes
on
0 Posts
I'm totally confused . . . . So in addition to figuring out which bank card to use at which ATM so as not to overpay ATM/Banking service charges, we now have the credit card issue where we pay an additional 3% charge on top of the 3% conversion charge?? (I got the letter from Citi too) Maybe exchanging money here at home isn't such a bad idea . . ok, no, I know not to do that, but really - is the MBNA credit card the "best" one to use? Or, like coco & Patrick said will all issuers of Visa or MC cards be following suit?
Mar 10th, 2005, 01:25 PM
#29
Join Date: Jan 2003
Posts: 13,407
Likes: 0
Received 0 Likes
on
0 Posts
Margie,
It's not an additional 3% on top of the conversion fee, the 3% IS the conversion fee or finance charge or whatever they want to call it. The only question is does the 1% Visa/MC fee still apply or is it now rolled into one fee. We'll all find out soon.
It's not an additional 3% on top of the conversion fee, the 3% IS the conversion fee or finance charge or whatever they want to call it. The only question is does the 1% Visa/MC fee still apply or is it now rolled into one fee. We'll all find out soon.
Mar 10th, 2005, 01:29 PM
#31
Join Date: Jan 2003
Posts: 456
Likes: 0
Received 0 Likes
on
0 Posts
This article was in the SF Chronicle yesterday. Check it out:
http://sfgate.com/cgi-bin/article.cg...UG5EBMEFC1.DTL
DeeDee
http://sfgate.com/cgi-bin/article.cg...UG5EBMEFC1.DTL
DeeDee
Mar 10th, 2005, 01:41 PM
#32
Join Date: Jan 2003
Posts: 15,749
Likes: 0
Received 0 Likes
on
0 Posts
Well, I just read that article and while interesting, still doesn't make it real clear if the fee from banks is going up a percent or if their newly offered statement of what they charge includes the 1% already imposed. But, it sure didn't say anything about anybody increasing the fees, so I suspect they are indicating that the 3% being stated by banks is the same as it was before.
Mar 10th, 2005, 01:54 PM
#33
Join Date: Apr 2004
Posts: 3,500
Likes: 0
Received 0 Likes
on
0 Posts
The last charge from our Germany trip last month was run yesterday to our MBNA credit card (Mastercard)...
The total in USD was $354.20
The total in € was 265,42
So... our rate was $1.334488
Checking www.oanda.com, it seems like we were only charged the 1% fee - not a 3% fee.
The total in USD was $354.20
The total in € was 265,42
So... our rate was $1.334488
Checking www.oanda.com, it seems like we were only charged the 1% fee - not a 3% fee.
Mar 10th, 2005, 01:56 PM
#34
Join Date: Jan 2003
Posts: 1,182
Likes: 0
Received 0 Likes
on
0 Posts
so we are rumor mongers? There really isn't an increase but a disclosure of the 3% of what we already paid? Forgive me for not "getting it" I'm not usually this slow. Unfortunately I will have to explain this to 3 travel companions . . . and I can't even explain it to myself! LOL
Mar 10th, 2005, 02:25 PM
#35
Join Date: Jan 2003
Posts: 456
Likes: 0
Received 0 Likes
on
0 Posts
I would say that many (if not most) banks have been tacking on an add't 2% without any disclosure. Now, with the publicity (and lawsuit, I think), the banks are making the disclosure of this fact to their customers.
The pressure will be on the remaining banks that do NOT add an add't % to do so. It's a shame (or should I say a SHAM) as the article relates that there is clearly no justification for the banks adding to the conversion charge.
TA, kudos for using a card which does not gouge you for add't fees!
The pressure will be on the remaining banks that do NOT add an add't % to do so. It's a shame (or should I say a SHAM) as the article relates that there is clearly no justification for the banks adding to the conversion charge.
TA, kudos for using a card which does not gouge you for add't fees!
Mar 10th, 2005, 03:01 PM
#36
Join Date: Mar 2004
Posts: 5,869
Likes: 0
Received 0 Likes
on
0 Posts
The solution is to use your USAA charge cards overseas: they charge the 1% V and MC currency conversion fee and V rebated 1% from June '04 'til recently and MC is now rebating 1.5% (both promos of sorts).
Leave your AA Citi MC and Amex cards home.
The citi 3% is a 1% increase from their long standing 2%(in addition to the 1% V and MC) currency conversion fees. AMEX is being sued for their "undisclosed 3% conversion fees" they have imposed for years.
M
Leave your AA Citi MC and Amex cards home.
The citi 3% is a 1% increase from their long standing 2%(in addition to the 1% V and MC) currency conversion fees. AMEX is being sued for their "undisclosed 3% conversion fees" they have imposed for years.
M
Mar 10th, 2005, 03:12 PM
#37
Join Date: Jan 2003
Posts: 13,407
Likes: 0
Received 0 Likes
on
0 Posts
Margie,
No one here can say with absolute certainty until we actually check our statements after the effective date of the disclosure. Tell your travel companions that if they use their Citi issued cards, the conversion fee will either be 3% or 4% (will it make a significant difference to them either way?). Or better yet, use Amex or one of the other cards with lower conversion fees like MBNA.
No one here can say with absolute certainty until we actually check our statements after the effective date of the disclosure. Tell your travel companions that if they use their Citi issued cards, the conversion fee will either be 3% or 4% (will it make a significant difference to them either way?). Or better yet, use Amex or one of the other cards with lower conversion fees like MBNA.
Mar 10th, 2005, 03:16 PM
#38
Join Date: Jan 2003
Posts: 5,271
Likes: 0
Received 0 Likes
on
0 Posts
There's something else in the article and it involves something else we have been discussing here i.e dynamic currency conversion.
Read the article, it says visa will be charging 1% on all transactions outside the US even if denominated in US dollars and several banks have said they will be charging the 2% soon to be 3% on all foreign transactions; even those in USD.
So even more reason boys and girls to never allow a clerk to tell you while abroad that the charge has to be written up in USD.
Read the article, it says visa will be charging 1% on all transactions outside the US even if denominated in US dollars and several banks have said they will be charging the 2% soon to be 3% on all foreign transactions; even those in USD.
So even more reason boys and girls to never allow a clerk to tell you while abroad that the charge has to be written up in USD.
Mar 10th, 2005, 03:20 PM
#39
Join Date: Jan 2003
Posts: 239
Likes: 0
Received 0 Likes
on
0 Posts
I just want to clarify that I'm not sure about the 1% visa/mc charge "disappearing"--that was hearsay and I should not throw it out there so readily. What I do know is that MY citiAA Visa card has a total of 3% for currency conversion, same as before. How they split it up does not really concern me. VISA lost the California suit because they did not disclose their fee. It is now up to the issuer of the card (Citi, Bank One, Wells, etc) to DISCLOSE the total fee to the end user.
One good thing from all this, I also understand that the fees will be broken out on a separate line instead of being rolled into the transaction as before. This is supposed to start in April, so we shall see.
As a very frequent traveller to foreign destinations, this is still access to an exchange rate much more favorable than anything available on the street and even at 3 % conversion fee is an excellent deal.
One good thing from all this, I also understand that the fees will be broken out on a separate line instead of being rolled into the transaction as before. This is supposed to start in April, so we shall see.
As a very frequent traveller to foreign destinations, this is still access to an exchange rate much more favorable than anything available on the street and even at 3 % conversion fee is an excellent deal.
