credit card foreign transaction fees
 

Hi,
Now that MBNA is owned by BofA they have very high credit card foreign currency transaction fees. Does anyone have a card that is reasonable in the fees they charge to use credit cards in Europe?
Cid

Capitol One. They do not charge a fee and refund the Visa charge.

Thanks, I will check them out.

Does anyone else know of any other cards?

I realize Tim and Liz said Capital One does not charge a fee but that may not be the whole story. If a card does not charge a separate fee they are making it up somewhere and that would be in a less favorable exchange rate on purchases. The cards make it up somehow, it may just not be obvious.

Hi C,

I called Capital One a few times before I applied for a card.

The 3 people I spoke to insisted that CO only passes through the 1% Visa/MC fee and adds no other fees.

The exchange rate is set by V/MC.

((I))

PS,

Amex charges 2%.

They set their exchange rate more or less the way V/MC do.

Check with your credit union. Mine does not charge anything over the 1% fee that Visa itself charges. The same goes with ATM card withdrawals: absolutely no fee.

Schwab brokerage accounts provide cards with zero currency markup and zero fees. They also rebate ATM charges from out-of-network banks.

buongiorno:

NO. Over and over people have related their experiences, and C1 doesn't make up for it with a less favorable exchange rate. My $800+ of charges in Germany on my C1 Visa last May came within 30 cents of the rates on xe.com.

I'm curious about the Schwab Brokerage Credit Cards. I believe they do charge the 1% Visa/MC fee. I thought recently they also started charging the 2%. But then again, they keep changing their schemes - I have a Schwab _Bank_ Visa _Debit_ card now, and use that to withdraw foreign currency at ATMs. No transaction fees, but they do charge the 1%. If you can post what Schwab credit card it is that does not charge the 1% fee, I'd like to know! (I have been with them for 15 years.) Thanks.

Hi, I propose the following experiment:
to charge the exact amount in a Capital One, and another different card on any given day while in a foreign soil. And check. I am going to do it in next March and certainly let you all know.

Our Citibank Mastercard charges 1% on foreign transactions. If we buy 100 Euros = $128.00 a fee of $1.28 is charged. No debit card fees for exchanging dollars to Euros since Citibank has ATM's all over Europe.

Jan, but I guess you're saying that's what Citibank charges if you use one of their ATMs. Any idea what they charge if you use some other bank's ATM?

It is a flat rate $2.00 fee for using a un-Citibank ATM.

Debit Cards: Compass Bank - 1% visa curr fee, no ATM fees (ever).

Credit Cards: Wachovia Visa & BOA(MBNA)-AAA logo Visa - 1% visa curr fee.

Schwab Investor Checking - no markup and no ISA. They also rebate transaction fees paid to ATM providers.

http://tinyurl.com/ygjvyx

I have a Capitol One card and they do NOT change the standard interbank fee. People shouldn't just make up charges like that. I know it for a fact, it's just math, all you have to do is compare the rate they used for a transaction (which they tell you explicitly on the bill to about 5 decimal points) and compare it to the interbank rate that day. They aren't playing games with people, most people wouldn't even know about this stuff. They don't exactly refund the one pct VISA/MC fee, though, they just don't take it off in the first place. I have another card that itemizes that one pct fee, and it is always a charge on the card, it's not that it is somehow taken out and then refunded to you.

I have another CC without any foreign transaction addon fee, just the one pct VISA charge, and it is MBNA administered for AAA, but I've had it a long time so don't know if the terms vary for new users.

Christina's reply is right-on. Pure and simple, there are no transaction or extra Visa or other fees when using CapitalOne, and their exchange rates are excellent. No gimmicks at all. We used the card exclusively during our Round the World Trip and saved in excess of $1,000 dollars versus using a Citicard (they charge a total of 3% for foreign transactions) or other similar card.

JerryS is right about Citibank. I asked Tony and he told me our Citi Diamond Preferred Mastercard has a 3% transaction fee on all foreign purchases after converting Euro to Dollar amounts. And there is a 1% fee for exchanging Dollars to Euros even at Citibank ATM's. Sorry I was wrong.

Jan, now you have me confused. That last post indicates the charges for using a CREDIT CARD. But before you were talking about using an ATM card withdrawing funds from your Citibank checking account, right? Both your statements appear to be correct. What do you now say you were wrong about?

Converting USA dollars to a foreign currency will cost between 2% and 3% no matter what you try. Some cards are upfront with their fees and others slightly obfuscate. The buy and sell postings illustrate this. If the fee bothers you, advertise in your local paper. I would like to buy 'X' country currency. The seller can avoid conversion costs as can you.

GSteed, no offense but why did you just insist that what several people said above is NOT true. Several have explained that there are credit cards which will NOT result in those fees. I know as a fact that my ATM withdrawals in France and Italy did not cost anything beyond the XE rate of exhange for that day. Why do you insist we are wrong?

Travelnut has answered the question perfectly. Am I missing something?
You Know? Swings and roundabouts. Debit card? Credit card?
This is a travel forum Not a nursery financial advice centre.
Use a credit card to obtain cash and pay the price!!! Sometimes a high price.
Sorry, but what are you going to do when.............happens. Something usually does.
Best of luck in Europe.

If you want to know <i>exactly</i> what rate your card issuer applies, run a few transactions through xe.com/ccc and you can be sure.

Contrary to what Gsteed claims, there <u>are</u> a few issuers who don't make a penny on their cardholders using foreign currencies.

Yes, Capital One is about the best national company for transaction fees. No charge, and they swallow VISA/MC's 1% fee. No gimmicks, and no hidden increased rates/charges, but for the very GOOD business reason of attracting the loyalty of more affluent international travelers. It brings them more business. It certainly works for me. Other small banks/regionals do so for the same reasons,so check out your local banks before you travel. Research info at bankrate:
http://www.bankrate.com/brm/news/cc/20050624b1.asp