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Capital One does not add an additional 1% to the posted interbank rate...in another thread somebody who's wife works for visa indicated that rate already has the 1% so it might seem a matter of semantics.

What I have found in general in the last little while that my charges with Capital One clear at essentially the same rate listed as the interbank rate on xe.com or the paper, charges made with my USAA or MBNA cards clear at 1% above the interbank rate, and since I will not fall prey to the near criminal activities of adding an additional 2% to the 1%, in other words 3% to interbank, I know not what really happens with Citibank, Chase and Bank of America but I assume they are not liars and do add 3% to interbank rates.

Many credit unions don't have charges either. My daughter is in Spain for 5 months and is using her credit union ATM and her credit union issued Visa. We can look at the history on oanda.com and see that she is getting the rate listed for the date she charged or withdrew money.

The European Central Bank http://www.ecb.int don't know nuttin' 'bout no 1% ISA charged by Visa.

The ECB's Reference Rates are constantly within a few thousandths of Visa's posted rates. Today, they are 1.1914 and 1.19, respectively.

I live in Mexico and use my USAA ATM (15 free out of service w/d's a month if needed) for cash and USAA V and MC which charge the 1% V/MC fee which is clearly posted on the account statements. I get a variable CC rebate of 0.5-1.5% depending on the total purchases.
M

These threads are often confusing because it's unclear when people are talking about credit cards from a particular bank and when they are talking about ATM/debit cards from a particular bank. I think (though am not sure) that most of these posts are about credit cards. Here is my non-credit card inquiry, which may or may not be the OP's question:

When I went to Paris less month, everytime I used my ATM card to withdraw cash from my Chase banking account, I was charged a $3 international withdrawal fee, plus 3.5 percent of the withdrawal as a currency conversion fee, and I may also have been charged the standard $1 for out-of-network ATM fee (my statement is less clear about that). This strikes me as ridiculous--I would have been better off using my Citibank credit card with the 3 percent surcharge. Do others know whether Chase is unique in these offensive ATM charges, or do many/most U.S. banks do the same? Because I am inclined to look elsewhere.

I meant to say when I went to Paris LAST month.

And I also don't mean I would have been better off using my Citibank credit card to withdraw cash--I understand the interest rates are incredible. I mean I would have been better off relying on credit cards instead of cash given these ATM fees. All right, I'm done belatedly editing my post now.

"These threads are often confusing because it's unclear when people are talking about credit cards from a particular bank and when they are talking about ATM/debit cards from a particular bank"

It's simple, you are a fool if you use a Credit Card to get cash except in the direst of emergencies

emnyc -- yes that Chase fee structure is way out of line with most others. Most banks charge a per transaction fee of several dollars, but that additional 3.5% is really excessive.

Some people find it worthwhile to find a bank that charges nothing. For me, it would be as much trouble to change banks as to pay $8-12 a year for a few out of network transactions, but if I were in your shoes, I'd definitely change banks.

Here are a few paragraphs from that NY Times Article:
Many banks, including large ones like MBNA, now charge an additional 2 percent for foreign transactions on top of the 1 percent charge by Visa or MasterCard. Capital One, however, is traveler-friendly. Not only does Capital One not charge an additional foreign exchange fee, but it also does not even pass along the 1 percent currency conversion charge that Visa and MasterCard charge for all purchases made abroad.

Most travelers don't live by credit cards alone, so when it comes time for getting currency from an A.T.M., make sure you reach for the right piece of plastic. "If you need cash, use a debit card to get money from an A.T.M. instead of a credit card, since the fees are generally much lower," Ms. Openshaw said. "The biggest mistake I see is travelers taking cash from their credit cards, since you get hit with the A.T.M. fee, a cash advance fee and the currency exchange fee. A $1,000 withdrawal from a credit card account can easily end up costing another $50 to $100 if you're not careful."

Using a debit card to withdraw money from one of your bank accounts will typically incur only a currency exchange fee and perhaps an A.T.M. fee. But you should check if your bank has partnerships with foreign banks or A.T.M. networks that will reduce the cost of withdrawals and eliminate additional fees.


NB: Amex charges a 2% rate. Citibank has reciprocity agreements in many countries for their debit cards, so there will be no "foreign" ATM fee. You can check on their website. As another example, North Fork bank charges $1.75 to use a foreign ATM with your debit card. They have no reciprocity agreements. DO NOT GET CASH with a credit card. This cannot be overstated.