Exchange Rate Adjustment
 

We went to UK 9-15-06 to 10-2-06 and our Visa card charged us an adjustment on each charge. Is there anything we can do about this? Our Amex did not charge us but most merchants would only accept Visa?

We got charged also, for each purchase/charge when we were in Canada in September. I was told there would be a charge for all transactions when I notified our credit card that we would be out of the country. It's just going to be something we have to live with! :(

I guess it depends upon your bank. My guess is that fee/charge was either the currency conversion fee ( 1% VISA and M/C fee) and/or some banks charge a 3% conversion/ATM fee on top of that. It used to be wrapped into one, but I understand some banks are breaking it out on statements.

What bank charged you this fee? ((b))

And are you sure AmEx didn't charge you? Did you compare the rates for the same days between the two cards? It could be that AMEX gave you a worse rate but didn't itemize it out like Visa now does.
If you have about 18 hours to spare, you can do a search here about credit card charges and read all you want -- which cards charge what, what rates they do, how to try to beat the system, etc.

I used to have a bank which would very clearly indicate the amount as per the exchange rate plus a transaction fee separately shown, when applicable. This was excellent, especially for ATM charges abroad, as certain banks had no transaction fee. Also there was a lower transaction fee for spending money in the euro zone than in other countries. I regret not having this clarity any more with my current bank -- there is just a lump sum so you don't know whether it's just a bad exchange rate or if there is a transaction fee mixed in.

I believe this "fee" came about around one year ago -- as another way to generate revenue for the bank. It used to be that the credit card would get a better exchange rate than you could at a local bank. Then everyone started using their credit card -- credit card companies found a gold mine if they can get away with this processing fee.

Now the current realm of thought is to use foreign ATM's and pay for goods and services in local currencies and avoid the extra-bank fees.

You need to shop around for a bank or credit union that does not add anything to the 1% that Visa charges. If that bank is not convenient for local use, maintain the minimum to avoid monthly fees and feed the account when you are ready to travel.

Example: the credit union I use is not convenient for banking in the States because of fees incurred when withdrawing from non-CU ATM's. It also requires a $1000 minimum to avoid monthly fees on the checking account. But it requires only a $100 minimum on savings account. So I open the checking account when I am ready to travel (no charge for that), make sure that my ATM card is tied to the checking account, deposit the amount I think I will need for my travels, and close the checking account at the end of my travels. To keep the same ATM card, I simply have it transferred to the savings account with contains only $100.