I have called my VISA company regarding my UK trip at the end of April. They informed me that there is an additional service charge of 2.5% on top of the conversion rate per transaction.

Is there a credit card that does not have this additional charge?

Do you have access to a credit union? If so, ask them what their fees are. I do not pay any fees and get 1% on every purchase, which cancels the standard 1% charge of Visa for foreign transactions.

Check Capitol One. If you belong to a credit union you should also check with them. Get rid of that 2.5% Visa NOW. That is nothing more than a charge for doing absolutely nothing.

Curious

I have called capitol one - and they had the 2.5% fee as well. I've actually called on all my cards and they all have it. Some companies build it into the conversion rate. I do not belong to a credit union. I wouldnt even know of one to look into.

Schwab Bank Invest First Visa CC:
http://www.schwab.com/public/schwab/...ng/credit_card

1) 2% cash back on purchases
2) no limit on the cash back you can earn.
3) No minimum monthly purchase amount.
4) no annual fee
5) no foreign exchange transaction fees.

The only *catch* is that you have to open a Schwab One Brokerage account, and that's where the 2% cash back gets deposited. But, according to the FAQ regarding the Brokerage Account:
<i>There are no monthly account service fees and no minimum balance requirements for the Schwab One account when it is linked to your Schwab Bank Invest First card.</i>

curious...

Where are you from? If you are from the USA, then Capital One not only doesn't add a service fee for foreign exchange, they eat the 1% fee imposed by visa.

However, capital one in other countries may not have the same rates (say Capital One UK or Capital One if they have a bank in Canada)...as I understand it almost every Canadian bank, if indeed you're from Canada, charges the 2.5% fee....

xyz - I am also from Canada, and am finding that the 2.5% is standard. Im thinking that it may be easier just to suck it up and deal with it.

Thanks for everyones help.

I'm pretty sure it is a Canadian Bank "thing". There have been many threads about this and I think the consensus is you really don't have much option.

"<i>Some companies build it into the conversion rate.</i>" -- this practice is not allowed in the States. In fact many of us are waiting for the settlement checks from a class action lawsuit that ruled rolling the conversion fee into the exchange rate to be illegal.

It's very important to state that you are Canadian, as that obviously makes a big difference, and what banks are available are different. So only Canadians will probably be able to suggest anything, if possible.

I didn't know Capital One even had services in Canada, that's news to me, but they obviously have different terms by country if you can get one of their credit cards and they said there was a 2.5% foreign conversion fee, as there isn't one in the US.

Janis is right, and thank goodness that it is now illegal for US credit card companies to hide it in the conversion rate. However, if it's a short trip, you may just have to go with it. 2.5% isn't as bad as a lot of cards in the US charge (many charge 3%).

As a quick reference, here is a rundown on what most US banks charge for foreign transactions:

http://www.indexcreditcards.com/inte...ansactionfees/

I have noticed a great deal of needless confusion on a wide array of subjects simply because posters do not indicate their country of origin in either their profiles or question. Advice on bank cards (including ATMs), car rentals, air fares and other areas becomes difficult to accurately formulate (if not useless to offer) when someone's country is guessed at or not known.

No one wants personal information compromised but what could possibly be exposed by simply completing one's profile indicating his country?

Hey sharm,

From www.capitalone.com
"7. Will Capital One® charge me a fee if I use my credit card overseas?
Capital One does not charge a fee for using your credit card for foreign currency transactions. Foreign purchases will be converted at the foreign exchange rate in effect at the time of posting the charge".

ira: "<i>Capital One does not charge a fee for using your credit card for foreign currency transactions.</i>"

But not Capitol One <u>in Canada</u> which is where sharm lives . . . . .

along the same line of questioning - fellow Canadians: Is there a service charge at most banks to convert Cdn $ into £ ontop of the conversion rate as well? Are the exchange booths a better place to exchange cash? I'm not going to take wads of cash, but need to have some.

If you want some cash before you get to the UK -- just exchange a few Can$ at you departure airport. No need to hunt for the "best" rates from banks or bureau de Change. There are NO good exchange rates on this side of the Atlantic. So do it the easiest way and just get some ££ after you are in the departure lounge.

We (from the USA) used Capitol One for charges on our last trip--no added conversion fee, as others have noted. However, there are credit unions and perhaps banks that have very reasonable fees for ATM withdrawals, especially if you get a fairly large amount of currency at one time. If you are staying only in the U.K. (or for someone traveling in one or more Euro countries) the ATM approach may be a good one.