i called last night, the fees are as follows...
MC/Visa charge 3% on every purchase made oversees.
BOA ATM card used to withdraw $$ from an ATM get a $2 charge from BOA. If using the ATM card like a debit/credit card you get charges from Visa the 3%.

By my estimates if i spend $500 whether it be cash (assuming i get that much out at once) or credit... the$2 fee is cheaper than the 3%. of course this is all in addition to the exchange rate at the time... but that is what those fees are for... calculating the exchange for you.

If you use your BOA ATM card to withdraw funds from its affiliates - Barclays, Scotia Bank, Deutsche, BNP or Westpac there are no fees.

It sounds like you mostly understand what things will cost you, but the fee is not for calculating the exchange for you, I'm sure that's what those institutions told you.

It's just because they want to make more money and think that kind of charge is not as noticeable to many people, and a good way to make more money. It's not for doing anything basically that actually costs them. A computer calculates the exchange and that costs hardly anything, it's done by machine.

well said Christina. i had never heard of the calculating the rate of exchange as any kind of service that needs paid for.

MC/VISA charges 1 percent, sometimes a little less. The 3% fee cited to you is because your bank pads the MC/VISA fee. There remain some banks and credit unions that do not pad the MC/VISA fee, and if you are looking to minimize your costs, you should find one of them.

The idea that there are no costs involved in currency trades, and in processing charges through a worldwide network is laughable. It assumes that there are no equipment, software, and personnel costs involved, and that simply is not the case. My feeling is that MC/VISA provides a valuable service, and I don't mind paying their small fee; I think the banks that pad that fee are unreasonable, and I don't deal with them. However, many people have pointed out that even the highest ATM/credit card fees are a relatively small fraction of the expense of travel.

I agree wiht you clevland brown, except for this...

<MC/VISA charges 1 percent, sometimes a little less. The 3% fee cited to you is because your bank pads the MC/VISA fee.>

I talked to Citibank (my credit card holder) and they told me that the 3% fee is charged directly from VISA/Mastercard. Unless your telling me that Citibank itself 'pads' the 1% and is blaming the entire 3% on VISA.

kimberlina...

Visa charges 1% over interbank...Citibank indeed pads it by adding on an additional 2%.

<<The idea that there are no costs involved in currency trades, and in processing charges through a worldwide network is laughable. It assumes that there are no equipment, software, and personnel costs involved, and that simply is not the case.>>

Amen.

The same people that complain about the very real cost of buying and selling currency, on the customer's behalf, seem to have a field day defending the escalation of <i>tipping</i> from 10% to 15% to 20% to who knows what figure in our children's futures!

i am sure you're right XYZ... maybe the Citibank personnel are un-educated in WHO exactly does the charging. They definitly blame it on VISA tho.

Not that 3% is a BIG deal but, You have inspired me to call my other C.C. companies and find out what their % is. Why pay 3% if I don't have to.

Clearly the idea that all that is involved in a currency exchange is to &quot;calculate the rate&quot; is very wrong. This topic is confusing enough without these silly statements.

Fun with numbers! Friend asks wealthy neighbor how he does so well. &quot;Easy, I mark up 3%, buy for one, sell for three!.&quot; If currency exchange rates are a concern would bringing US Dollars and trading them on the street or private exchange be almost the least expensive? Obviously, dealing directly in US Dollars involves no exchange costs. American whisky is expensive in England and Europe. Consider loading up in duty free and selling or trading later. The price of cigars is another attractive hedge material. If not traded the items mentioned are also super gifts.

We have gotten Euros from American Express before via telephone and they do not charge for delivery. I'm not sure how their exchange rate compares with other USA banks or credit cards but it is very convenient since you never have to leave your home.

Sometimes we just arrive with no euros and immediatly hit an ATM in the airport. Getting currency from ATMs is always the best way!