USAA Credit Card question
Mar 3rd, 2005, 03:09 PM
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USAA Credit Card question
I just found out that my USAA credit card doesn't charge any fees for overseas purchases. So my question is this: should I use it every chance I get?
I ask because I am not sure if the credit card or an ATM withdrawal will give me a better conversion rate.
Let me know what you think, hopefully there will be some USAA people out there.
Thanks!
Eric
I ask because I am not sure if the credit card or an ATM withdrawal will give me a better conversion rate.
Let me know what you think, hopefully there will be some USAA people out there.
Thanks!
Eric
Mar 6th, 2005, 12:34 PM
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Eric,
That's why I use my USAA card everytime I am in Europe (and leave my British Airways card at home). USAA does not add any currency conversion fees to overseas transactions, BUT Mastercard (and Visa) do charge a fee of their own, usually 1 percent, and there is no getting around that fee no matter whose credit card you are using.
ATMs and credit cards both provide commercial currency conversion rates rather than the retail rates that you would get from a money exchange company (a "bureau de change", which is French for "rip off the tourist"
. So the currency conversion rate is probably the same.
With an ATM card you likely will pay a $2 or $3 fee from your bank for each transaction (unless good old USAA is your bank and they don't impose this fee either). That may or may not be less than the credit card fee imposed by VISA or Mastercard...depends on the amount of the transaction.
I hope this helps, rather than confuses you.
Dave White
[email protected]
That's why I use my USAA card everytime I am in Europe (and leave my British Airways card at home). USAA does not add any currency conversion fees to overseas transactions, BUT Mastercard (and Visa) do charge a fee of their own, usually 1 percent, and there is no getting around that fee no matter whose credit card you are using.
ATMs and credit cards both provide commercial currency conversion rates rather than the retail rates that you would get from a money exchange company (a "bureau de change", which is French for "rip off the tourist"
. So the currency conversion rate is probably the same.With an ATM card you likely will pay a $2 or $3 fee from your bank for each transaction (unless good old USAA is your bank and they don't impose this fee either). That may or may not be less than the credit card fee imposed by VISA or Mastercard...depends on the amount of the transaction.
I hope this helps, rather than confuses you.
Dave White
[email protected]
Mar 7th, 2005, 12:55 PM
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USAA makes no charge for using an ATM; in fact, they reimburse you, withing limits, for any charges imposed by the ATM owner.
With both their credit card and ATM withdrawals (in Europe) the only cost is the 1% fee imposed by the network, so the only reason to favor one over the other is the ability to defer payment by using the credit card, and I personally like having a listing of expenditures, such as the credit card statement.
One hint, if you are a couple, get cards for each of you to help avoid daily limits, and in case one card is lost or damaged. Also, as USAA offers free checking accessably via internet, I opened a checking account and associated my ATM card with that account, so I can keep limited funds in the account (because I am paranoid about having my card stolen), and replenish them online when necessary.
With both their credit card and ATM withdrawals (in Europe) the only cost is the 1% fee imposed by the network, so the only reason to favor one over the other is the ability to defer payment by using the credit card, and I personally like having a listing of expenditures, such as the credit card statement.
One hint, if you are a couple, get cards for each of you to help avoid daily limits, and in case one card is lost or damaged. Also, as USAA offers free checking accessably via internet, I opened a checking account and associated my ATM card with that account, so I can keep limited funds in the account (because I am paranoid about having my card stolen), and replenish them online when necessary.
Mar 7th, 2005, 01:04 PM
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I know there is another thread on this, but I just got a notice from Citibank (which I opened and read because of this discussion instead of just tossing it!) and they are raising their foreign transaction fee to 3%.
Mary
Mary
Mar 7th, 2005, 01:17 PM
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Hi ericjdaniels, I do not have a checking account with USAA but I do have a credit card with them.
And even though I have a FF credit card I will NOT use it in Europe. The fees are to high. I will use my USAA card.
And from info I have received from USAA if you have a checking account with them I believe at least the first 10 ATM withdrawals a month are free (and believe if you are charged at the ATM bank USAA will re-imburse your account.
You should call them and verify this.
Also, my late DH and I also each had a separte USAA credit card (seperate accounts). Good to have for trips.
I would still take along another credit card and ATM card just for backup.
And even though I have a FF credit card I will NOT use it in Europe. The fees are to high. I will use my USAA card.
And from info I have received from USAA if you have a checking account with them I believe at least the first 10 ATM withdrawals a month are free (and believe if you are charged at the ATM bank USAA will re-imburse your account.
You should call them and verify this.
Also, my late DH and I also each had a separte USAA credit card (seperate accounts). Good to have for trips.
I would still take along another credit card and ATM card just for backup.
Mar 7th, 2005, 04:35 PM
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Use your USAA credit card for all purchases overseas. You will only be charged the normal 1% conversion fee on your purchases. This conversion fee is standard with all credit cards. Some others charge more.
If you use your credit card to withdrawal cash from an ATM machine, you will pay the same conversion rate -- 1%, but the funds will be subject to interest as a cash advance from the day of withdrawal. I'm talking your credit card, not to be confused with your ATM card in which the funds come out of your checking account.
If you use your USAA credit card to get a cash advance and pay off the balance when you return to the States, the interest will be minimal -- much less than 1% per month (12% annual). My USAA only charges me about 7% annual on a cash advance, so that would only be about 1/2% for 30 days for the cash advance -- that's a lot less than most banks charge just for conversion fees.
I don't know what bank your ATM card is with, but you will be charged the same 1% conversion fee -- some banks will charge additional fees, even using your ATM card -- no ATM fees in Europe, but your Stateside bank will be the one who will charge you.
Bottom line, use your USAA credit card for purchases (hotels, restaurants, rental cars, major purchases). You will get the BEST exchange rate.
If your ATM card/bank is like mine, it does not charge anything other than the 1% conversion fee (standard -- some charge more). The funds come directly out of the checking account.
If you use your credit card to withdrawal cash from an ATM machine, you will pay the same conversion rate -- 1%, but the funds will be subject to interest as a cash advance from the day of withdrawal. I'm talking your credit card, not to be confused with your ATM card in which the funds come out of your checking account.
If you use your USAA credit card to get a cash advance and pay off the balance when you return to the States, the interest will be minimal -- much less than 1% per month (12% annual). My USAA only charges me about 7% annual on a cash advance, so that would only be about 1/2% for 30 days for the cash advance -- that's a lot less than most banks charge just for conversion fees.
I don't know what bank your ATM card is with, but you will be charged the same 1% conversion fee -- some banks will charge additional fees, even using your ATM card -- no ATM fees in Europe, but your Stateside bank will be the one who will charge you.
Bottom line, use your USAA credit card for purchases (hotels, restaurants, rental cars, major purchases). You will get the BEST exchange rate.
If your ATM card/bank is like mine, it does not charge anything other than the 1% conversion fee (standard -- some charge more). The funds come directly out of the checking account.
Mar 13th, 2005, 07:53 AM
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I thought just a few days ago there was another big discussion about the USAA card, and someone specifically said that despite a lot of questions about military affiliation on the application, that it was NOT necessary that you have any affiliation. Did I read that WRONG?
Mar 13th, 2005, 07:54 AM
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Kay, no, that is not correct. You can get a USAA credit card without being a member of the military -- your rates may be a tad higher, though. Mine are around 6-7%, yours may be around 7-8%, which is still a great deal.
This question came up several months ago by mikemo, so I called to verify.
Yes, you can get a USAA credit card without being a member of the military. Now, you can't get their car insurance or some of their other benefits.
This question came up several months ago by mikemo, so I called to verify.
Yes, you can get a USAA credit card without being a member of the military. Now, you can't get their car insurance or some of their other benefits.
Mar 13th, 2005, 09:21 AM
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USAA is actually an insurance company founded by military officers years ago when it was hard for them to get insurance from other companies. You need the military affiliation (which extends to children of qualified military) to join the insurance company and buy insurance.
USAA Federal Savings Bank is a subsidiary of the insurance company, again established for the convenience of military members, who have inconvenience in dealing with other banks because they move so frequently. My understanding is that you can become a customer of USAA FSB even without the military affiliation, but I am not certain as I joined while in the service, and my children all got their affiliation through me. The web site I use is for all the USAA entities; I don't know what they do for customers who are not members of the insurance company, but their service is so good that I would certainly give them a call and find out what they can offer you.
Incidentally, since their customers are all over, we cannot use USAA FSB ATMs (I'm not certain they even have any), so we use non-related ATMs and they reimburse us, within limits, for fees incurred at ATMs. At one time they reimbursed for up to 10 transactions per month, but I think now there is a limit of $15 per month, or vice versa.
USAA Federal Savings Bank is a subsidiary of the insurance company, again established for the convenience of military members, who have inconvenience in dealing with other banks because they move so frequently. My understanding is that you can become a customer of USAA FSB even without the military affiliation, but I am not certain as I joined while in the service, and my children all got their affiliation through me. The web site I use is for all the USAA entities; I don't know what they do for customers who are not members of the insurance company, but their service is so good that I would certainly give them a call and find out what they can offer you.
Incidentally, since their customers are all over, we cannot use USAA FSB ATMs (I'm not certain they even have any), so we use non-related ATMs and they reimburse us, within limits, for fees incurred at ATMs. At one time they reimbursed for up to 10 transactions per month, but I think now there is a limit of $15 per month, or vice versa.
Mar 13th, 2005, 01:27 PM
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Oops, that last one of mine was a sloppy message that could be misinterpreted.
It means, it looks as though the information I passed on originally was not correct.
So my original answer was incorrect.
Pretend I didn't respond to this thread at all.
Ignore my answers.
I'm Sorry.
It means, it looks as though the information I passed on originally was not correct.
So my original answer was incorrect.
Pretend I didn't respond to this thread at all.
Ignore my answers.
I'm Sorry.
Mar 13th, 2005, 04:26 PM
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The website is www.usaa.com. If you click on "contact us", alot of different phone numbers are shown, mostly re insurance, but I'm sure one of them could tell you where to call for credit card division. I'm going to try myself.
Mar 13th, 2005, 04:36 PM
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Hi everyone. The USAA Credit Card phone # is 1-800-922-9092.
You do not have to be a member of USAA to apply for their credit card. They are a great company. I have always had fantastic service from them.
You do not have to be a member of USAA to apply for their credit card. They are a great company. I have always had fantastic service from them.
