Credit Card Charges grrrrrr
Oct 21st, 2010, 12:44 AM
#1
Original Poster
Join Date: Apr 2008
Posts: 269
Likes: 0
Received 0 Likes
on
0 Posts
Credit Card Charges grrrrrr
Can any of you offer advice for US citizen traveling overseas for extended time and the best option for paying with a credit card. You can't use your debit card with the logo of Mastercard or Visa without getting these charges tacked on. I am beginning to think I should go back to the old way of getting euros before I travel. It is just so convenient to use a card when paying for dinner. I got whacked with a huge charge for paying the deposit on an apartment, now when I check in, there will be another one. I understand why they do it for the money conversion. I have a large dinner coming up soon to pay for in foreign currency and I dread to think what the add on is going to be.
Oct 21st, 2010, 01:22 AM
#3
Join Date: Jan 2003
Posts: 5,271
Likes: 0
Received 0 Likes
on
0 Posts
Look, the official rate of exchange between euro and dollars is called the interbank rate. This is the rate that is in the newspapers and the rate large banks use for transactions dailytotalling in the millions. It is driven by market forces. When you exchange cash, that is dollars for euro, whoever you are exchanging with has a built in surcharge, something like 8 to 10%. Thuys ib a dat wgeb tge iffucuak excgabge rate is listed at €1 = $1.40, if you went to most money changers they would tack on a charge of 8 to 10% ahd charge you something like $1.52 to $1.55 for each euro.
OTOH when you use either mastercard or visa, there is a built in 1% fee ab ove the interbank rate for exchanging euro to dollars. It is called the foreign transaction fee. It's always been there but because of a court case mastercard and visa lost, these fees must now be shown. In the past, they weren't. So in this case, if you charge something in euro, mc or visa will convert it to dollars, send it off to your bank and charge a 1% fee, something like $1.414. Some near criminal banks, even though they have nothing to do with the exchange, now charge an additional 2% for a total of 3% so with the additional fee, the rate would be, in this example, $1.442, still it would be a far far better thing you do than any other thing you've done with currency transactions (thank you Charles Dickens).
And it isn't even necessary to pay the 3%..there are banks whose credit cards just pass along the 1% mc/visa charge (mostly from credit unions). There is also at least one bank, Capital One, that eats the 1% mc/visa fee and so would charge you the $1.40.
So to answer your question, using a credit card is always better and it's better to use a credit card that dosn't charge the additional 2% and better yet to use Capital One which eats the 1% mc/visa fee.
Hope that helps you to do the right thing by you.
OTOH when you use either mastercard or visa, there is a built in 1% fee ab ove the interbank rate for exchanging euro to dollars. It is called the foreign transaction fee. It's always been there but because of a court case mastercard and visa lost, these fees must now be shown. In the past, they weren't. So in this case, if you charge something in euro, mc or visa will convert it to dollars, send it off to your bank and charge a 1% fee, something like $1.414. Some near criminal banks, even though they have nothing to do with the exchange, now charge an additional 2% for a total of 3% so with the additional fee, the rate would be, in this example, $1.442, still it would be a far far better thing you do than any other thing you've done with currency transactions (thank you Charles Dickens).
And it isn't even necessary to pay the 3%..there are banks whose credit cards just pass along the 1% mc/visa charge (mostly from credit unions). There is also at least one bank, Capital One, that eats the 1% mc/visa fee and so would charge you the $1.40.
So to answer your question, using a credit card is always better and it's better to use a credit card that dosn't charge the additional 2% and better yet to use Capital One which eats the 1% mc/visa fee.
Hope that helps you to do the right thing by you.
Oct 21st, 2010, 01:27 AM
#4
Original Poster
Join Date: Apr 2008
Posts: 269
Likes: 0
Received 0 Likes
on
0 Posts
I am speaking of the foreign transaction fee, that is what it is called on your billing statement. Diners Club International (so much for international) and American Express. They charge 2.7 and 3.0 of charge. For any charge outside of US. It is a conversion charge. But none the less I wish that I could acquire one that does not do this, especially since I have been out of the US for a few months.
Oct 21st, 2010, 01:32 AM
#5
Original Poster
Join Date: Apr 2008
Posts: 269
Likes: 0
Received 0 Likes
on
0 Posts
Thanks xyz123, perhaps before our holiday trip I should look into the Capital One card. I have just always wanted to use the DC and AE because I don't feel like I am charging. Good information, thanks again.
Oct 21st, 2010, 02:14 AM
#7
Original Poster
Join Date: Apr 2008
Posts: 269
Likes: 0
Received 0 Likes
on
0 Posts
yes while all this information is good, I went online and was going to push that apply button and could not bring myself to it. So I decided to do a bit more research, Capital One reported by JD Powers has the worst customer service complaints, while AE and Discover have the best. I should call my credit union and ask a few questions because I do have one of those. I will probably just stick with good old American Express, though my DH has ask me a few times to leave home without it. Thanks, all have a wonderful day.
Oct 21st, 2010, 02:32 AM
#8
Join Date: Jan 2007
Posts: 8,351
Likes: 0
Received 0 Likes
on
0 Posts
Do not rely on American Express credit cards in Europe. Many places do not accept them due to their high charges to the shop/restaurant/whatever.
Diners Club is almost never accepted.
You need either a Visa or Mastercard to be sure of acceptance.
Even then you will also need an ATM card for cash as credit cards are not as widely accepted in Europe as they are in the US.
Diners Club is almost never accepted.
You need either a Visa or Mastercard to be sure of acceptance.
Even then you will also need an ATM card for cash as credit cards are not as widely accepted in Europe as they are in the US.
Oct 21st, 2010, 03:28 AM
#10
Join Date: Mar 2005
Posts: 11,975
Likes: 0
Received 0 Likes
on
0 Posts
In my experience, this is the cost of buying things in Europe
1. Cash from an ATM using my local credit union debit card with Visa logo. Interbank exchange rate + 1% fee tacked on by visa network + $0.00 per withdrawal charged by my CU.
2. Visa credit card (Chase or Citibank). Interbank exchange rate + 3% tacked on by Visa or credit card co.
+ these methods I've investigated but never used
3. Exchanging cash on the ground in Europe. "local" exchange rate = interbank exchange rate + 4-6%, plus a convenience fee.
4. Travelex online from home, before going to Europe. Interbank exchange rate + 5ish % + $10 fee.
5. Buying euros at the Travelex desk at my departing airport. More expensive than #3.
1. Cash from an ATM using my local credit union debit card with Visa logo. Interbank exchange rate + 1% fee tacked on by visa network + $0.00 per withdrawal charged by my CU.
2. Visa credit card (Chase or Citibank). Interbank exchange rate + 3% tacked on by Visa or credit card co.
+ these methods I've investigated but never used
3. Exchanging cash on the ground in Europe. "local" exchange rate = interbank exchange rate + 4-6%, plus a convenience fee.
4. Travelex online from home, before going to Europe. Interbank exchange rate + 5ish % + $10 fee.
5. Buying euros at the Travelex desk at my departing airport. More expensive than #3.
Oct 21st, 2010, 03:47 AM
#11
As has been mentioned above, the Capital One card does not charge any foreign transaction fees. We have used ours whenever travelling abroad and have never had any customer service issues.
We use our local credit union cash card at ATMs to get cash..yes, there will be a fee; yes you will get a better exchange rate than you will at change bureaus.
We use our local credit union cash card at ATMs to get cash..yes, there will be a fee; yes you will get a better exchange rate than you will at change bureaus.
Oct 21st, 2010, 05:41 AM
#15
I, too, use Cap One credit card and ATM card.
I recently called them about a trip to Europe so a note would be attached to my file about using my credit card in Belgium and France during that time. I received this email from them (in part):
"Though we are always dedicated to helping you avoid a financial inconvenience at home or abroad, the risk of your account being compromised is increased when you travel. Please feel free to contact us if you have any issues using your card while traveling.
If you need to contact us from outside the United States, place an operator assisted collect call to 00+1+804-934-2001 and Capital One will accept the charges.
The best way to call us from outside the United States is to
• Connect with a live international operator
• Tell the operator you are calling the U.S. collect
• Provide our number (00+1+804-934-2001) to the operator
• Give your name as "Capital One Customer" when prompted"
I've never had any of my other credit card companies offer collect calling on trips!
I recently called them about a trip to Europe so a note would be attached to my file about using my credit card in Belgium and France during that time. I received this email from them (in part):
"Though we are always dedicated to helping you avoid a financial inconvenience at home or abroad, the risk of your account being compromised is increased when you travel. Please feel free to contact us if you have any issues using your card while traveling.
If you need to contact us from outside the United States, place an operator assisted collect call to 00+1+804-934-2001 and Capital One will accept the charges.
The best way to call us from outside the United States is to
• Connect with a live international operator
• Tell the operator you are calling the U.S. collect
• Provide our number (00+1+804-934-2001) to the operator
• Give your name as "Capital One Customer" when prompted"
I've never had any of my other credit card companies offer collect calling on trips!
Oct 21st, 2010, 05:51 AM
#16
Join Date: Mar 2008
Posts: 356
Likes: 0
Received 0 Likes
on
0 Posts
I also use Cap One and have never had a problem with acceptance or customer service. In Europe you need either a Visa or Mastercard if you plan on using it often.
Using a debit card to pull out euros also cost us more due to ATM fees. There is also a limit on most cards of how many euros you can withdrawl in a day and we used our withdrawls to pay for B&B's as we usually got a discount for paying in cash. I also didn't feel comfortable carrying several hundred euros around all the time.
Using a debit card to pull out euros also cost us more due to ATM fees. There is also a limit on most cards of how many euros you can withdrawl in a day and we used our withdrawls to pay for B&B's as we usually got a discount for paying in cash. I also didn't feel comfortable carrying several hundred euros around all the time.
Oct 21st, 2010, 06:09 AM
#18
Join Date: Jan 2003
Posts: 34,856
Likes: 0
Received 0 Likes
on
0 Posts
This is silly. If you are so worried about "customer service" with Capital one, pay your stupid CC's charges. How much customer service do you need, anyway? It makes no sense to claim you are going to buy euros in advance because you don't want to pay a 2.7-3 pct CC foreign transaction charge and you will pay a lot more to get those euros. This makes no sense at all.
Oct 21st, 2010, 06:49 AM
#20
Join Date: Nov 2005
Posts: 2,674
Likes: 0
Received 0 Likes
on
0 Posts
You are very naive if you think paying your bill solves all your customer service issue. I hope you never have fraud on your account or a duplicate transaction. Or you lose your card and need it replaced. Have fun with that customer service!
