Unfortunately, Michael, I don't think that the credit card company cares that you shread your card. For that matter, they wont mind if any of us do that either.
It is bad enough that the dollar is doing so poorly. Its just adding insult to injury for those credit card companies to rob us another 2%.

SoeurAnneLafleur--Maybe and maybe not. Mine was obtained through Working Assets, and I let Working Assets know that it is cheaper for me to contribute to causes by writing a check than by using their credit card. They might care, and I am waiting for their reply; REI did not, claiming that members had other advantages that offset the 3% fee.

I hope that it works out for you, Michael. There has to be a way around it.

I called my credit card companies today and got the following info:
Capital One Visa - 1% Visa surcharge. They don't add any more.
MBNA Visa - 1% Visa surcharge + 2% MBNA surcharge.
Amex - 2% surcharge.

I also have a MBNA World Points card and I know the current foreign conversion fee is 2.5%. I have'nt recieved any ammendments from MBNA as of yet.

I too have an uncoming trip to Europe (end of May) and after reading this thread called MBNA 5 times (and no, I am not obsessive compulsive). I got the exact same answer each time, having made sure I got different people on the phone. My LLBean MBNA Visa is and will be still only 1%, but some Master Cards, and perhaps some other Visas are going up in May.
It is still the least expensive credit card, especially with my lower interest rate, with American Express at 2% with outrageous interest coming second. My United Visa is horrendous, and I will not use it in Europe. For ATM Euro cash, the least expensive is to fill a checking account in advance of the trip and use the check/debit card to get money-the fees vary, but there are no interest charges.

LOL humanone!
I totally understand - I have called several times over the past month and I keep getting different answers.
Happy to hear you at least got some consistency!!

Quick point - only one poster mentioned asking to be sent a copy of the cardholder agreement. Several folks mentioned the considerable variability in answers when talking to different phone agents. Please note that no matter what a phone agent tells you, it is the written agreement that matters - i.e., if you get a statement that has unexpected charges and call to complain, the comp;laint wilbe resolved according to what written terms were in place, not what someone said on the phone. If you are concerned, ask that a copy of the terms be sent to you.

Well humanone, I also have a LLBean Visa card and just called them. The rep advised me that the foreign currency conversion rate was 3% and that I had recently been sent a notice to that effect with the effective date being 5/25. I had previously called re: an MBNA affinity MasterCard and was told the charge was 3% as well.
OY!

so there you go -- Mara is number 6 with a different answer on the LLBean Visa card. I think you have to be careful as it's possible they just told you the current situation and don't know about what's going to happen next month. I know I got two diff. answers and one guy said they don't have any access to information on what it's going to be in the future.

I wouldn't have called to check so much if I knew how obvious this notice and changes were going to be, as I said. Given how many changes they made at this time, even without any increase in that foreign transaction fee, I'd guess you'd have to be getting that mailing for some kind of change. If you haven't gotten any one at all, I'd still wait to see it in writing.

Instead of calling back MBNA several times, though, after I got two diff. answers, what I did was call AAA customer service finance dept. as they were the ones who cared about having me as a customer. They called me back and verified AAA was not having this increase.

Ironically, we just received our MBNA notice yesterday with the good news (LOL)of increased late fees, higher default rates, possible suspension of the grace period and the 3% conversion fee. I called my other credit card companies and found the following:
ATT Universal MC--3%
US Bank Worldperks Visa--3%
Capital One Visa--1% (hoo hoo!)
Discover--No fee (Don't get too exited: you can't use it outside of the states)

I have the MBNA WorldPoints card,and I just received a new cardholder agreement, that states all transactions in a foreign country are subject to a new 3% fee.

Thanks Lovejoy. Haven't got my notice yet but it must be coming soon. Drat! Time to get a new card.

USAA FSB Mastercard is the way to go. Get their ATM card too, as they reimburse you for other banks' ATM fees. Also USAA MCard gives you 31 days auto CDW instead of MCards usual 15

Go to USAA.com to get info and telephone numbers, then call - takes very little time as they have intelligent humans answering their phones. You do not need a US military connection to use USAA

Received the latest cardholder agreement for my Texas A&M Platinum MBNA Master Card over the weekend. We scoured it and there is NO mention WHATSOEVER of any foreign currency fees or foreign transaction fees. This is consistent with what I was told the last time I called.

So... it appears that what I was told over the phone may be true. They appear to be "phasing" in the fees in "waves". Obviously, my Texas A&M MBNA Master Card is not in the first few waves. Some posters have reported that their MBNA World Points cards are being assessed the fees (or will soon be assessed the fees), so obviously that particular card is in one of the first waves.

My guess is that **most** MBNA cards will have the fee within the next 6-12 months.

I have some MBNA cards (three, in fact) that I hardly ever use, but do like to keep for backups in case something should happen to my Capital One card.

Here's what I just found out when I called:

As of May 25 Fidelity MBNA Worldpoints will be charging a total 3% currency conversion fee fee -- 1% MC and 2% from MBNA.

BankNorth MBNA Worldpoints MC is already charging this 3% fee. (Perhaps this discrepancy is related to the "wave" implementation mentioned above.)

My NEA MBNA card is not charging any conversion fee in addition to the 1% from MC.

Don't know whether the wave hasn't hit NEA yet, or perhaps organizations like NEA and AAA are not looking to take that cut from their members, at least as of now.

So for now, Cap One is the only card I know of that gives you travel points and doesn't charge that extra currency conversion fee. (Their standard Miles card does have a $19 annual fee, however.)

Use a Target Visa if you have one - they only charge a total of 1%. I know this for sure because I've already booked a lot of tours, bought museum passes, London Eye tickets, etc. and the conversion fee is just as they said - 1%.

Forget our Diamond Preferred card and our Platinum cards - they charge 3%!!

I got the gobbledegook insert in the mail from MBNA concerning new amendments to the credit card agreement concerning late fees, payment due dates, and foreign currency transactions.

I was not positive I understood what all the mishmash said, so I called for clarification, and verification.

First I was told the conversion rate was 3%. I told them to cancel my card.
Then after a hasty huddle, I heard that the rate was 1%. After I heard that I asked, "What is the 1% based on?"
Duhh.

I read the statement to the associate who took my call and said, "Now. Tell me what this really means."

Well, after more huddling, she decided that it meant the conversion cost would be listed as a line item on the statement. I would see the foreign currency amount, the amount of the conversion fee, and the converted amount in US dollars.

I still am very dubious about all this.

Here is what the statement I received from MBNA just a little while ago said:

There will be a new 1% foreign transaction fee on these types of transactions (Charges out of the US.)
Your statement will list the transactions separately from the foreigh transactin 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. (but they don't say how it was previously determined.)

AMENDMENT We are adding the folowing to your Acount Terms Transaction Fee section, Effective for all transactions outside of the United States or if a foreign currency, that post to your account after May 25, 2005 we will assess a transaction fee (FINANCE CHARGE) equal to 1% of the US dollar amount of each such foreigh transation. This fee will be in addition to other applicable transaction fees. (NO defintion of "other fees".)

We are replacing ... with the following:

If you make a transaction in a foreign currency, the transaction will be converted by Visa International or Master Card International depending on which card you use, into US dollars in accordance with the operating regulations or conversion procedures in effect at the time the transaction is processed. Currently these regulations and procedures provide that the currency convesion rate to be used is either (1) a wholesale market rate or (2)a government-mandated rate in effect one day prior to the processing date. The currency convestion rate in effect on the processing date may differ from the rate in effect on the transaction date or posting date.

It sounds like I get charged 1% of something, but there are so many undefined terms that who knows.

One example would have cleared the whole thing up. Instead, MBNA just keeps babling and refuses to give me an actual example of how the foreign currency conversion will be put into actual practice.

For example, lets assume that at the time the transaction is calculated, the exchange is €1 = $1.30.
Or €.76923 = $1.00
I make a €100 purchase on credit. Does my credit card statement show a final $ amount of $131.31? And $1.31 will be posted separately as a finance charge?

That is the way I read it.

Now, somebody analyze my gobbledegook.

The way I read it, under the prior system, your 100 euro charge would have been increased by Visa or Mastercard from $130 to $131.30, which would have been shown as the exchange rate on your statement.

Under the new system, your 100 euro charge will show up on your statement as $130, to which there would be added the finance charge of $1.30, for a total of #131.30.

Previously the 1% charge by Visa or Mastercard (actually, I think in some instances it varies slightly from 1%) was billed to you, the cardholder, by Mastercard or Visa, but not specifically shown on the statement. Under the new system, the 1% charge is billed by Visa or Mastercard to the bank (the card issuer) and then passed on to you by the card issuer.

So there is only a technical and inconsequential change in that part of the transaction. Visa and Mastercard are dropping the 1% fee to you, but adding it to the bank which, of course, will pass it on to you. The consequential change is that the 1% fee will also be added to charges made overseas in dollars (the infamous dynamic currency conversion), and that apparently a lot of banks are taking this opportunity to add their own fees, effectively converting our costs from about 1% to possibly a little over 3%, unless we are alert enough to find a card issuer that isn't adding their own fees.

What is different is that MBNA has decided to join the other near criminal banks of adding an additional 2% fee to foreign transactions for providing no service whatsoever as the actual conversion is done by visa/mc.

However, what is confusing is that it is not across the board. MBNA sponsors many cards...apparently they have decided, at least for the time being, not to impose the additional 2% charge on the AAA card. I also have an NHL card and a MLB card with them, I have received no notice yet. Don't now if that means yes the fee is being added or no it's not. They don't list on their web sites which ones yes and which ones no.

Just a total bummer for all of us who have been ripped off on this by other banks for years.