I just received my Visa statement from a trip I made overseas last month. I received two charges for a purchase I made - one for the item, and another "foreign transaction fee" that amounted to 3% of the total. Is this normal???

As I was on a business trip, all of my other charges were made to my AmEx, so this is the only example I have.

Yes, it has always been there but now it is "broken out" for all to see. There's a big long thread about it here--maybe someone can link it up for you.

Is this the one you mean - see post 3 http://www.fodors.com/forums/threads...z123&fid=2

Several years ago, there was a class action suit, you know the kind where the lawyers make millions and each of the ripped off parties, us, gets 12¢ each alleging the foreign transactions fees were illegal (they probably are but the banks have big lobbies), violations of anti trust (funny they all charge the same thing) but most importantly of all they were not adequately disclosed to customers....the court agreed with the lack of notification. It was a California bank so since visa is headquartered in California it applies to all US visa cards but only California mastercard holders as mastercard is headquartered in NY.

Anyway, the banks appealed so nobody has received their 12¢ yet (nor have the lawyers received their millions) but in response the banks began making these fees much clearer on their statements.

Mastercard and Visa each charge a 1% fee. In addition, most (but not all) banks add an additional charge, usually 2%, bringing the total to 3%.

I mostly use cards that accrue airline miles, however, they all add the 3% (1% + 2%) fee. So, when traveling outside the US, I use the non-mile-accruing card issued by my credit union -- that card has the 1% Visa surcharge, bue nothing more.

If you shop around, you can get a card that charges <b>0% over the interbank rate</b>.

The 1% Visa fee is charged to the bank, and the bank may or may not pass it through. My bank neither passes it through nor does it mark up the currency transaction.

Salomon Smith Barney FMA account.