rkkwan

I know the topic of credit card foreign exchange fees have been discussed a lot, but just want to report a card that has no exchange fees - not even the 1% VISA fee.

It's the $29/year Chase Priority Club Visa <b>Signature</b> card, associated with the InterContinental hotel groups (IC, Crowne Plaza, Holiday Inn, etc). I used to have their basic cards, but that one charges a total of 3% foreign exchange fees.

I just charged something in Hong Kong Dollars, and the rate (1USD = 12.86HKD) is the official rate, without even the 1% VISA fees. That's it, nothing else. So, if one travels a lot, and also want to get some bonus Priority Club points, the $29 annual fee may be worth it.

rkkwan

Oh, sorry, I stated the exchange rate wrongly. It's 1HKD = 0.1286USD.

Christina

Did they tell you it had no Visa fee at all or are you just assuming that because of the exchange rate you figured out? I just wondered because the rate could easily vary within one pct around the date you bought something, or even more. Sometimes the rate they use isn't the exact date of a purchase. Besides, I just looked at their web site and the terms on that exact card says it has a three pct fee for foreign transactions.

So what do you think is up with that? You seem to have figured out the exact rate, though, so it is curious. This is on www.chase.com, if you go into the section on priority club visa signature card and click on &quot;pricing and terms&quot;
it says:
&lt;&lt;International Transactions: 3% of the U.S. dollar amount of the transaction, whether originally made in U.S. dollars or converted from a foreign currency.&gt;&gt;

rkkwan

Christina - I was surprised as well, as my previous non-Signature card definitely has the 3% added.

As for the rate itself, I figured it out myself. Hong Kong dollar is hooked to the USD, so there's hardly any fluctuation. During the last few months, it's always been within a extremely tiny range about $0.1285-$0.1286. A 1% fee with bring that to $0.1298, and cannot be right. [My recent charge was for HK$100, and I was billed $12.86 and not a cent more.]

I know I cannot reliably do this with other currencies, but with Hong Kong Dollars, I can.

kayd

With my Mastercard (a different issuer from rkkwan's) the rate shown for each individual transaction is usually the official rate. The 3% foreign transaction fee is applied at the close of the billing cycle and itemized as one entry on the statement, 3% of the total of all out-of-US transactionsis. If I check my account on the Web in mid-cylcle, that fee hasn't shown up yet.

rkkwan

kayd - The charge is from the actual monthly statement. In the past with the standard non-Signature card, Chase will put the 3% charge along with the item listed.

For example, I used the old card for the same merchant last year, and the item is listed as:

100 Hong Kong Dollars = $12.86 ($100 x 0.12860000) + $0.39 (fees) = $13.25.

[Same rate last year as this one.]

This time, it's just 100 HKD = $12.86 ($100 x 0.12860000).

I looked through the whole statement and there are no other charges or fees.

Christina

well, that is very odd then. I didn't know HK currency was that stable, but it seems like you are saying no one actually told you there were no foreign fees. You must have gotten a terms statement when you signed up for the card, they have to mail you one. What did that say? Probably the same thing as I found online, as that is what it is.

I have a Visa that itemizes the transaction fee separately, also, and it doesn't look like a purchase. The purchase would show the exact bank rate. On my card, which only has the one pct, that one pct fee is a separate line item underneath each charge it applies to, so it is real obvious. It's not one total number, and it's labeled foreign transaction fee.

But you got this off an actual paper bill that was mailed you? well, congratulations, but I still wouldn't trust it given their official statement and I think Chase is known to have foreign transaction fees. Maybe they exempt Hong Kong or something, but I can't imagine why. Anyway, you'd have to charge $2900 a year just to make up for that service fee over the one pct charge. My Visa only has the one pct but no fee for having the card. But if it's true, and people charge a whole lot every year, it would make sense.

rkkwan

Christina -

I think it's just one of the perks of paying $29 for a card. I do it mostly for the bonus points and Priority Club gold status for a year. Next year, I will probably revert back to the old card.

When I upgrade the card over the phone, I ask the agent what the foreign exchange surcharge is and she cannot give me an answer right then. I didn't pursue it further at that time, thinking it's probably the same 3%. I also browsed through the terms and conditions that was mailed with the card, and I can't find where it describes the foreign exchange fees.

But anyways, at least when I have this card, it'll become my primary card to use overseas. I used to have a 1% MBNA that went up to 3%; so I had been using my AE Gold which is 2%. But of course, not all merchants take AE, including this one from Hong Kong.

Anyways, as you see, I'm as surprised as many of you. That's the reason I start this thread.