The Best (and Worst) Cards
 

As there are always posts here about the best credit card and ATM cards to take when traveling, I thought I would post this article that went up today on the site's Wire and out in this week's newsletter.

The Good: Capital One, HSBC, Starwood Card, Wachovia, Washington Mutual, credit unions

and

The Bad: Chase, Citibank, Bank of America, Wells Fargo

Want to know why? Check out: http://www.fodors.com/news/story_2384.html

I'd be interested to hear your own recommendations for top cards--- especially for regional banks.

Let me add:

The Good -- USAA

The Bad -- Regions

s

As usual that article does not have all its facts straight. Under the debit card section it specifically says that Bank of America charges a 3% conversion charge on its ATM withdrawals plus mentions a $5 charge for non affiliated withdrawals. That is just plain wrong, unless it has changed in just the past few months. Bank of America shows a 1% conversion charge on your bank statement, but ironically every one of those withdrawals also seemed to be discounted the 1% (lower than the rate on credit cards or on XE for the same date). So in fact there was no conversion charge for any of my withdrawals -- and certainly not a 3% one. Where did they get that information?

Meanwhile I had looked at opening a Wachovia checking account for the express purpose of foreign ATM withdrawals, and there is a Wachovia just a couple blocks from me. But unless I wanted to keep a huge balance in it, their checking account fees far outweighed any advantage I'd have by using their ATM card on European trips. My Bank of America checking account charges me nothing for regular service, even paying me interest on my balance. So it's paying me back the couple of $5 charges I may have when I can't use an affiliated bank -- which is rare.

I would really like to know if Capitaol One is truly "absorbing" that 1% fee or if they are, in fact, making up the difference with exchange rates, etc.

Of course, nobody claimed this article was "in depth" now did they?

Just before my daughter left for her internship in Ireland, she opened an account at WAMU. They <b>do</b> charge a $3 fee to use ATMs out of the country. But don't tack on their own currency conversion fee.

Dukey, there have been numerous reports from people who use Capital One who have checked their exchange rates and their bottom line and have indeed determined that Capital One is absorbing that 1%.
Others have suggested, however, that policy might not extend to ALL Capital One cards -- like special reward type ones -- not their &quot;Big Hassle&quot; ooops, I mean &quot;No Hassle&quot; reward card, where clearly there is no fee or charge for foreign charges.

So in other words, CAPH, that article is wrong about Washington Mutual as well.

Thanks for the quick replies.

All of the banks mentioned, including Washington Mutual and BOA, in the article were contacted in the last two weeks. It is possible that the customer service representative on the other line might have given incorrect information.

In my own experience, I know that I've received two different answers my own bank in regards to currency conversion. Interestingly enough, I've had better luck calling than actually speaking to the bank manager of my local branch.

I think the more important thing is to increase awareness about these fees.

Thank you, Neo for that information.

To clarify on WAMU, they <b>don't</b> charge to use other banks ATMs within the US. But they <b>do</b> charge the $3 fee overseas. As I said though, they don't add a conversion fee. And, sadly, that made it the best my daughter was able to do.

I have to say also that, so far, we've been extremely happy with WAMU. We've run across a few minor problems and they've gone way out of their way to help.

Thanks CAPH52 for sharing your experience. Sounds like another call to WAMU is in order.

When I travel, I'm less concerned about the withdrawal fees and more about the currency conversion rates but I can see how those fees could really add up for your daughter.

Schwab Investor Checking:

Zero percent currency markup
ISA absorbed
Foreign ATM (US or overseas) rebated

No costs whatsoever to cardholder.

Just checked with US Bank - their conversion rate is based on the Wall Street Journal rate the day prior to the day they process the transaction. They have a 3% conversion fee on all international charges.

Also checked with Wells Fargo Bank about the fees associated with buying some Euros before leaving the States. They charge 6.62% fee to do so. I was just curious. I use ATM's while there but there was a discussion about having some Euros when landing.... but I just grab at airport anyway..... Just an fyi

Turnstile Traffic, I think you've learned what many have reported here in the past. Many bank representatives, including officers, really don't have a clue what their bank actually charges. Apparently bank personnel are often aware that their bank credit card charges a certain percentage exchange rate for purchases, and I think often they just assume that the ATM cards will work the same way. When a bank officer insisted that there was no charge for me to get euro traveler's checks from them, he seemed totally clueless as to how a different exchange rate could make any difference. He kept insisting that if there is no fee it doesn't cost me anything. Duh!

My favorite was discussing the cost of getting some euro for a deposit on an apartment with a senior teller at my bank and finally she said, &quot;I don't know why everyone is so concerned with getting their currency. They'll all just take US currency in Europe. They're glad to get it.&quot; So much for expert advice!

It's as if most people think it's still 1948!

Bookmarking

I did some research on this for our five month trip and ended up changing banks to a credit union and dealing with the No Hassels Capitol One card (I once asked them on the phone, does their tag line mean No Hassels for THEM?).

Over five months, this did save us a lot of money. Especially in Bali where we had to visit the ATM almost daily because of small withdrawal limits!

The following bankrate.com article was written in Oct. 2005, but still seemed accurate as of a few months ago. They have a table which more accurately describes the BOA card fees, for example, putting the 3% fee on the cc, not the debit card.

http://tinyurl.com/pyxvw

Robespierre, the Schwab Investor Checking doesn't seem to require a minimum monthly balance like I expected! I thought perhaps it might require $10,000 or something, but no? This sounds like an excellent option.

I thought I'd share this information even though, unfortunately, anyone who isn't going to Europe very soon won't be helped by it.

My daughter has been using her Target Visa since she's been in Ireland. I saw her last bill and, though I didn't take the time to actually figure it out, I thought it looked like she wasn't being charged much of a conversion fee. So, for the heck of it, since I also have a Target Visa, I just called to ask them what their conversion fee is.

Right now, they're charging only the 1% Visa fee and not tacking on any of their own. On April 3rd, they're changing their fee to 3%. That just happens to be the day I come home!

I'm wondering if this means it might be worthwhile to check out other MCs and Visas that have been issued by businesses other than banks. I think I'll check on my Dick's Sporting Goods MC!

Well I can attest that BOA is huge RIP OFF on the fees. FIVE DOLLARS? They have to be kidding. (As a result, I am moving back to a credit union!)

caution - hsbc is the worst for the traveller...not the best as claimed in this article.

my HSBC card did not work in any HSBC bank machine in china (or other banks' machines). the branch was open so i went in thinking that they could easily sort it out. i was told that the problem was with the issuing bank, not their problem. when i politely pointed out the (obvious) fact that this was an hsbc card and i was standing in an hsbc bank, they still repeated that the issuing bank was the problem. they were polite but refused to help a customer. this was the manager of a major Beijing branch. they just don't get it. upon returning home, the card could not be used because &quot;there was an attempt to use it overseas&quot;. a new card had to be issued. i totally understand security concerns but this whole experience just shows an inability to deal with the needs of an international traveller. i live on the road and these strange things always happen with my hsbc card.

'the world's local bank'....this is a joke. my NatWest card works fine all over the world. i have also had other problems using an hsbc bank card in other countries.

hsbc also is not a good international bank in other areas. they offer few, if any useful services to those of us who live internationally and travel extensively. having accounts in different currencies still incur transfer fees as if they were being transferred to different banks. of course they market themselves quite differently. but if you start to ask a few simple questions, their 'international' story falls apart.

i suspect it was just on the list because of the international marketing rather than through real analysis of their ability to provide good service internationally.

unfortunately, when i posted this on the US board, it seems my main point was lost when it was all put down to my having a uk issued card. these problems are about how the bank operates around the world with nothing to do with where my card was issued. i would be interested to know the basis for choosing hsbc as 'the best'.