A while back I posted a note here saying that as of May 1, this card was going to add a 2% surcharge on foreign transactions. I did write a note to United (sent to [email protected]). Here's the reply:<BR><BR>Hello,<BR><BR>Thank you for sharing your comments and concerns with us. We are looking<BR>into this issue with First Card as our customers are very negative to<BR>this.<BR><BR>Best Regards,<BR>Patty<BR>United Airlines<BR><BR>No matter how true the response, please do take the time to send an e-mail to United.<BR><BR>Thanks.<BR><BR>John H

Just looked at my BofA Divided Miles terms (USAirways) 3% on foreign transactions. Ouch. What is Amex?

"...our customers are very negative to<BR>this"<BR><BR>Hmm... perhaps United should consider enrolling their employees in remedial writing courses

AMEX is also 2%

We found out our regular card charged 3%... Yankee husband nearly had a stroke. So we will be using AAA Visa on our next trip. (It's either 0 or 1%... I forget.)

I wrote my letter. Hope they change the policy.

I agree that these surcharges are not fantastic. I was not very happy when Amex started chargin 2% on my Platinum card. <BR><BR>However, you are still making out pretty well, even with the service charge. By charging something to your card, you are charged at the bank exchange rate. This is much better than the rate you would normally get when exchanging money. Even with the service charge, it is a bit better than the rate at which you would exchange traveler's checks or other cash.

Grandma, AAA cards are with FirstUSA bank, which does charge 2% in addition to the standard Visa/MC 1% on foreign transactions. Since it is the bank (and not the associated company) which charges the extra 2%, I would be very surprised if AAA cards did not make that charge.<BR><BR>So I called; after several consultations with the supervisor, the gentleman informed me that they (?) weren't provided with that information, but it would be spelled out once I got my card. Ha! This is exactly what their website says (FirstUSA). Try Capital One or MBNA.

Regarding Amex 2% surcharge: don't forget that the Visa and Mastercards that have a 2% surcharge also pay Visa or Mastercard another 1%. So, Visa/MCs with a 2% surcharge are really costing 3%, whereas Amex is only 2% all-in. <BR><BR>My original posting listed some cards that have not yet added a foreign surcharge: those issued by MBNA and Capitol One among them.<BR><BR>Happy travels.<BR><BR>John H.

Hey guys...where have you been on this issue?<BR><BR>A handful of the big credit card banks (Citibank, First USA, Bank of America, Chase, Providian) about a year or two ago began charging a surcharge of 2% for foreign transactions on top of the 1% charged by the Visa/MC clearing house making a total of 3% above interbank rates for anybody dumb enough to use those banks' credit cards for foreign transactions. Of course, those banks control most of the credit card business and control many other bank programs (example...Citibank controls AT&T so AT&T cards have the extra surcharge). The only big banks that don't do this are MBNA and Capital One.<BR>Many smaller banks don't either. At those banks, you will always pay a 1% surcharge above interbank rates even if the bank swears to you there is no surcharge. They are passing along the 1% imposed by Visa or MC.<BR><BR>What these banks do for the 2% escapes me as when they receive the charge, it has already been converted. Try to get an answer from them of what service they are providing for this extra 2% and again you don't get an answer.<BR><BR>Amex about the same time raised its rate from 1% to 2% above the interbank rate.<BR><BR>Originally First USA had exempted its two large airline cards i.e. United Airlines and British Airways from this charge. About two months ago, they announced United Airlines cards would be subject to the charge. Apparently, and I say apparently, the British Airways card remains exempt from this charge. If you call them, nobody seems to have the right answer to this.<BR><BR>Now, as far as I know, AAA cards are issued by MBNA. At least, the AAA club in New York's visa card is issued by MBNA so it is exempt from the extra 2% surcharge. I have no reason to doubt that other AAA clubs might use other banks. If the poster's club uses First USA for its credit card, then people dumb enough to use that card for foreign transactions are throwing away 2% on every charge they make in a foreign currency.<BR><BR>There is no reason anybody should pay this quasi illegal surcharge. Why is it quasi illegal? Well, Visa/MC regulatons prohibit merchants from imposing a surcharge for using a credit card. How then do these large banks justify applying a surcharge which they prohibit merchants from doing? Again, when you ask them they have no answer.<BR><BR>Folks, you should not use a credit card issued by any bank that charges this surcharge for foreign transactions. By supporting the efforts of MBNA and Capital One and making it clear to them you are doing it for them not imposing this surcharge, they will refrain from doing it. If enough people do it, then this surcharge might be done away with just like annual fees were done away with by most banks several years ago.<BR><BR>Oh yes, there are still people who pay annual fees for their credit cards. With the exception of the airline reward cards, there is no bank I know of who will not waive the annual fee on request. If you receive a billing statement with an annual fee, just call the customer service number and suggest to them that you wish to close the account and will be going with MBNA which has no annual fee for its credit cards. You will be shocked at how quickly the customer service rep will say, "Of course we will waive the annual fee."<BR><BR>Hope this helps clarify this situation.

To John H: Thank you for starting this thread a while ago. Like many other posters, I appreciate the heads up. I, too, will e-mail UAL and I encourage others to do likewise. Carol

Interesting that AAA cards in NY are through MBNA and in Calif. are through FirstUSA. What is that about? And why are the Westerners getting that extra surcharge on foreign transactions? Inquiring minds....

Hi Sue... checked out my cards. Our regular VISA (but affiliated w/ a university; platinum) is with First USA.<BR>Our AAA is Platinum Plus with MBNA. We live in New York. ??? Anyhow... El Husband is a bull dog on this... trust he didn't fall down on his homework!

Grandma, your hubby is right on! I checked with AAA; NY is MBNA (no fee); Ca and the west is FirstUSA. I even wrote and asked how come we got cheated. Here is the response I got: "Thanks for visiting aaa.com! Each club is responsible for forming it's [sic] own alliance with various companies. Please let me know if I can further assist you."<BR>Gee, glad I asked.

Thanks to John H for the post and all the others who replied. I have both an MBNA affinity card and a United MilagePlus/1st USA card and had been using the United card for most purchases to get the FF miles...guess, which is going to be the new favorite ?? Those frequent flier miles aren't worth that much to me. I have alays found MBNA to be a great company to deal with...and I am going to complain to United and 1st USA but don't hold out much hope of changing their corporate minds. These currency surcharges have been successully imposed on too many other cardholders by credit card companies of all stripes.<BR><BR>One point to share: Did you know that many credit card co.s do not provide auto insurance when renting in Europe? My MBNA card does provide auto insurance but other cards I have used did not. Call you card company and ask, do not assume they do provide coverage just because they cover rentals in the US. (To cover or not also has to do with which "flavor" card you have: simple, gold platinum etc)<BR><BR>BTW, does anyone know a of credit card that will provide milage for charges and can be redeemed on most airlines?? I seem to recall an AMEX like product that allows you to accumulate FF miles and redeem them on many carriers (and not just tied to one airline) but how about a regular bank charge card?...or am I just having another brain systems failure??<BR><BR>Thanks, Judy from Munster, Germany

to the top.

My AAA credit card is with MBNA.<BR>I recently got it.<BR>Question:<BR>I recently used my ATM card off net in Delaware. I could not find a BOA branch and needed money in currency form. I had to pay the owner of the atm a fee of $1.75. Is this practice common in the states?<BR>Believe it or not, it is the first time I found my self in that situation in the USA.<BR>

Bob Brown, <BR><BR>This surcharge is very common. It's most annoying. I think it's ridiculous that you should have to pay to access your money, which is why I bank with a company that rebates my surcharges.