I just got my first statement with 3% foreign transaction fees added onto my hotel bill, etc. I called to complain and was told that it makes no difference how the bill is charged by the merchant, MBNA is charging a 3% fee on all foreign transactions. The guy politely explained that all companies previously charged this fee but it was hidden in the conversion rate rather than being openly disclosed as it is now. This did not make me feel one bit less ripped off! Is there anything we consumers can do?

As is so often the case..the customer service rep doesn't have a clue.

Here's the deal...for years there was no breakdown of these fees on statements. Because of a class action suit banks are now required to break down any extra fees imposed on foreign transactions and they do it in a variety of ways.

Now for years, MBNA only charged the 1% pass along fee from visa or mc on foreign transactions...but it was never shown on the statement.

Some time around last March at the same time it became required to show these fees separately, they imposed the additional near criminal 2% fee for doing nothing on foreign transactions on some of their cards but not all which is the source of much of this confusion at present.

There was no rhyme or reason as to which cards they applied to near criminal fee on and which they didn't. You only knew when they sent you one of those change in terms flyers and there is no definitive list on their web site which cards do and which cards don't.

Apparently, the AAA card doesn't. Apparently as I have not received any notice of a change in terms for either my mlb or nhl cards so I don't think they're pulling this garbage and near criminal activity at present on those cards. The card you use, apparently has had this near criminal fee imposed on it.

But as I said, apparently the reprieve for all of us with MBNA cards not charging the near criminal 2% additional fee is only temporary...Bank of America, one of the biggest near criminal banks in this country with fees such as the declined fee on ATM transactions, imposes the fee on all of its credit cards.

So when the 2 systems are combined and all the MBNA cards are re-issued as Bank of America cards, we'll all be nailed with these near criminal fees and that will leave Capital One (no pass long even of the 1%) and USAA (which passes along the 1%) as among the remains fair players in this game.

I have always loved MBNA. I find their service super duper. I don't think we used that card on our trip to France though, so don't know about foreign fees. I just know that that is my favorite credit card company.

Near Criminal? Fees are an effort to cover the cost of doing business and turn a profit. The 3% charge was for the cost of converting local/foreign currency charges to the domestic currency. I hope you are current with your charge card payments. I now note that my AT&T Universal Card is charging an ANNUAL PERCENTAGE RATE of 37.838 % on certain overdue balances. Near criminal? Consider all of your foreign purchases...Keep a record of your coffee (a cup) prices. Prices can vary as much as 500%! In the USA check a price at Wal-Mart and then at Sam's. What is the percentage difference?

Here is why that fee..the additional 2% is near criminal...

I don't mind paying for a service provided by a company. MC/Visa do the actual currency conversion so their 1% charge is justified as they incur the possibility of large currency fluctuations...I don't have a problem with any bank passing it along.

But..when the charge reaches the near criminal banks such as Bank of America, Citibank, Chase (the list is growing shorter and shorter because of all the mergers, First USA is part of Chase now and MBNA will soon be part of Bank of America), the charge has already been converted. They perform no service so just because they want to rip off their customers, they put an additional 2% charge on foreign currency transactions in effect a surcharge, which merchants are not allowed to do, on using a card in a foreign country.

Try to get one of these near crooks to tell you what you are being charged for and you get lie after lie.

This is a fee that has no basis in costs to the bank but is just a way of ripping off their customers.

>The 3% charge was for the cost of converting local/foreign currency charges to the domestic currency...<

I must respectfully disagree.

MC/Visa charges 1% above the bank rate to make the conversion and records it in domestic currency.

The bank then adds an additional 2% to a charge that is already in domestic currency when they get it.

Oh, Ira, I hate it when you are always right! Yes, I have found the same to be true.

One of the most tiresome and inaccurate phrases used when discussing CC fees is "near criminal". Call the fees excessive if you wish but thse fees are spelled out in the Cardmember Agreement you received when the card was issued and you receive an amendment whenever a change is made. I have no sympathy for anyone who says "I didn't know".

Unless I'm mistaken there are other methods of paying and you are under no obligation to use a card if you don't like the terms or feel they are excessive. Get over it.

Nowadays, it's no longer realistic to say that you can get by without plastic. That could be construed to mean that certain cardmember agreements may be contracts of adhesion.

As far as I am concerned, it is a near criminal act to lie and to price gouge...they lie when they say this is a charge for currency conversion when they have nothing to do with the currency conversion. Before they put on this 2% near criminal charge, the charge has already been converted. When you call customer service reps you are told lies such as this is standard practice in the credit card industry, this is to protect the bank against currency fluctuations yada yada yada. I consider that near criminal behaviour just like when I am price gouged on gasoline or a container of milk; none of which are absolutely necessary to live.

There is another answer, although you won't get all the "free" miles and other perks: Join a credit union.

In the 40s and 50s and probably well into the 60s, if not later, people travelled without CCs and the ubiquitous ATM. I suspect that some still do today.

It may not be convenient, AnthonyGA, but one still could. There are TCs and US$ to convert into Euros. If the fees are more than 3% by using those methods then the 3% CC is a good deal, isn't it?

There are also CCs, as we all know, that charge less than 3%. If you know what your card charges and don't have enough sense to shop for a cheaper card, whose fault is it?

I believe that companies are free to set their prices with a few exceptions for monopolies. CC fees are set in a very competitive environment so they are not among the exceptions.