Lowest credit card conversion fees?
 

I've searched past posts and haven't found exactly the answer I'm looking for.

Here is our dilemma:

1. We have a BofA ATM/debit card - fee to use ATM in Italy will be $5 per day plus whatever the Italian bank charges at the ATM. There are no conversion fees and we can withdraw up to $1,000(USD) per day. If we use it as a credit card, then its a 3% conversion fee.

2. We have a Citibank Mastercard and MBNA Visa - 3% conversion fee.

Are there any credit cards out there that do not charge any conversion fees. My guess is that they all will charge the 1% MC/VISA fees, but if we can get away without the additional 2% that would be great.

There are a couple credit unions I can join through work - I might check them out to see about their ATM fees.

I know that in the end, if we spend $6000, we are going to pay up to $180 in bank fees. Granted its not that much in the whole scheme of things - just more annoying than anything.

Any help?

Sorry - I wasn't clear - we will be in Italy (no BofA affiliate there).

Deutsche Bank is member of the "Global Alliance" affiliation with Bank of America and here are their locations in Italy. (where you should be able to use that BA atm with no additional charges)

http://deutsche-bank.map24.com/cc/?lang=en&

According to the posts appearing in the past couple of weeks, this is very much in flux. Until recently, it seemed that Capital One and MBNA were not charging additional conversion fees beyond the 1% to VISA. My MBNA VISA through AAA is so far one of the ones that hasn't added the additional 2%, but many report receiving notices that their MBNA cards have started charging additional fees as of April 1.

I think your answer is: Who knows?

Hello erical77, I am a bit confused. You have a BofA ATM/Debit card. That I understand.

But then you say if you use it as a credit card then there is a 3% conversion fee. Now correct me (anyone) but I do not know of an ATM/Debit card that is ALSO a credit card. Am I wrong? I have an ATM card. I have with another instituition an ATM/Debit card. And then I have credit cards such as Visa, Master Card, American Express.

Now about your BofA card. I believe that I have read here several times that Duetsch(sp?) Bank in Europen is affiliated with Bank of America. I don't personally know as I do not do business with Bank of America.

Regarding a credit card that does not pile on the extra fees. USAA does not. And you do not need to be a member of USAA as you do to acquire their insurance policies. So one more place you can check out, besides the credit unions.

It is so confusing, isn't it? Wishing you the best of luck of working out this financial situation.

LoveItaly - I wasn't clear - I meant that if I used my BofA ATM/Debit card as a VISA credit card, then I would be charged 3%. If I used that same card as an ATM card at an ATM machine, then there is a $5 per transation fee.

Deutche Bank is affiliated with BofA? I wonder why they told me that they have no affiliated banks in Italy??

To add to the confusion---We also will be using our BofA ATM card in Italy this summer. We have received two conflicting answers to the same question. My son spoke with someone at the foreign currency desk in Charlotte, NC. One would hope to receive a definitive answer at the headquarters. The answer there was we cannot use Deutsche Bank without the $5 fee per transaction. Well...
We didn't like that answer, so I called the BofA 800 number and got the answer that we like--yes, we can use Deutsche Bank and any other that has a Visa "PLUS" insignia on it without any fee. She had checked this information with her supervisor and listed specific banks that we could use without any fee: Nazionale del Lavoro, Cassa di Risparmio.

Two conflicting answers. In a few weeks , we'll call again and hopefully receive the same answer.

Sorry this doesn't clear anything up. Maybe someone who has just returned from Italy can tell us what to expect with ATM fees from BofA??

Sognodfn - I feel your frustration. It's like pulling teeth trying to get BofA to answer these questions! I had to go to 3 people just to find out that if I used my Debit card as a credit card that I'll be charged 3%.

I just got off the phone with BofA again, and they said that Deutche Bank IS an affiliate, but that the no fees is ONLY in GERMANY! UGH!

I guess BofA isn't good for traveling to Italy!!

erical, first of all there ARE partner banks in Italy (just no Italian ones). I know they look it up and don't see any Italian banks that are partnered and they tell you there are none, without looking for other national banks that do have branches in Italy. We did ATM withdrawals at Deutsche Banks in Rome, Venice, Naples, and Ischia. BofA doesn't charge if you withdraw from their ATMs. There may be some BNP Parabis branches also, which is a partner, but I'm not sure of that.
The only problem we had was that we had an ATM only card and some of the Deutsche Bank ATMs will no longer except those because there is no link with VISA, but you will be fine with yours. So at least you won't be paying $5 per withdrawal -- in fact there will be no fee if you use those partner banks.

Those other "partner" banks listed by sognodfn are new to me. By the way, I have an "Aadvantage" account with Bank of America and in addition to no charges at partner banks, I get two more "free" withdrawals allowed from any bank within each month. Then my fee was $1.50, not the $3.00 they used to state, that is now being raised to $5.00. I'm not sure what my fee would be now for after those first two free ones at non-partner banks.

Sometimes it's better to trust the written word of a company's website than rely on a local employee for information.

From Bank of America website:

<i><b>Bank of America customers can withdraw cash with their Bank of America Check Card or ATM Card without a fee at nearly 13,000 Bank of America ATMs in the United States and at over 12,000 international ATMs operated by members of the Global ATM Alliance. Bank of America may assess a fee for some transactions performed at ATMs operated by others and the ATM operator may charge an additional fee for cash withdrawals.</b></i>

Thanks Patrick - although I'm still confused because the guys stated that even if I use a Deutche Bank in Italy, I'll pay the fee. Guess we'll try to find Deutche Bank's and assume we'll pay the $5 and then be happy if we don't get charged.
By the way, I'm an &quot;Advantage&quot; member too and the rate is $5 - no discount (although it sounded as though if I weren't and ADV member, then I'd pay a conversion fee % too).

Your local credit union might provide an ATM card that charges no fee or 1%, and issue a credit card that charges no fee except the 1% imposed by Visa and MasterCard. I opened an account with mine just for foreign travel. I resent the charge and the idea that the banks charge a &quot;conversion&quot; fee. They receive the bill already converted by Visa and MasterCard.

I just researched this question as I too am planning a vacation shortly. I called Capital One and they have NO fee to use their card internationally other than the 1% that VISA themselves get. My other card is a CitiBank and they charge 2% in addition to visa's 1% &amp; thus won't be getting used on my trip. If you use Capital One make sure you notify their fraud department about your trip so the transactions aren't suspended due to possible mis-use.

I just checked 3 card companies and only Capital One charges the 1% Visa fee and nothing else. The other two tack on an additional fee...Amex totals 2% and First Card totals 3%.

We have a British Airways Visa card. It was with Bank One but is now with Chase. I just got a mailing which says international transactions are charged 3%. I think that it used to be less.

Thanks to this post, I emailed to my 2 CC companies: Bank of America VISA, and AmEx.

Bank of America VISA charges 3%
AmEx charges 2%

I was just told by the customer service people at the CC 800 numbers that the following conversion fees are applied when using the cards in Europe:
AAA Visa Platinum (thru MBNA) 1%
Amex Blue 2%
Chase Mastercard 3%

Of course the exchange rate actually used before applying the conversion fee is impossible to know until &quot;after the fact&quot; because it varies constantly!

Another poster, Christina, has a AAA (MBNA) card and got a disclosure a few days ago stating the full foreign transaction fee would be 3%, not just the 1% Visa fee.

I'd be curious about the exchange rate applied to foreign ATM withdrawals by BofA. I think when they do a foreign currency exchange, they appear to charge no conversion fee, but just use an exchange rate that is very favorable to them. That's pretty much what the money exchangers that infest every tourist site do.

I always look carefully at a bank transaction that appears to offer something for nothing.

To me, one problem presented by cards that offer a special deal at certain ATMs, such as affiliated bank ATMs, is that I don't want to use any of my travel time to look up and find an approved ATM.

Are you sure about that, Travelnut? I don't remember seeing a post on here from anyone that they had gotten a change that the AAA Visa was 3 pct.

In any case, I just got my change of terms notice from MBNA on my AAA Visa so it is current (a few days ago). And it definitely does not say it is 3 pct for foreign transactions. It says (and I'm quoting it exactly):

&quot;Summary of Change: There will be a new 1% Foreign Transaction Fee on these types of transactions. Your statement will list the transactions separately from the Foreign Transaction Fee. For transactions you make in a foreign currency, the conversion rate will be reduced by one percent compared to the way it was previously determined.

Amendment: We are adding the following to your Account Terms Transaction Fee section. Effective for all transactions outside of the US, or in a foreign currency, that post to your account on or after May 25, 2005, we will assess a transaction fee (FINANCE CHARGE) equal to 1% of the US dollar amount for each such Foreign Transaction. This fee will be in addition to any other applicable transaction fees&quot;.... then it goes on to say the conversion will be done by Visa International using either the wholesale market rate or a govt-mandated rate in effect one day prior to processing date.

That's it. It says something about a 3% charge for taking out cash advances, but that's for any kind of cash advance, foreign or domestic, and is not related to purchases.

I think some other person on here was confusing cash advances with purchases when discussing this, could that be what you remember?