I just received a notice from MBNA that they are instituting a new 3%
fee for all charges made outsdie the USA __OR__ in a foreign currency.

Also, "For transaction made in a foreign currency the conversion rate
will be reduced by 1% compared to the way it was previously
determined." What does "reduced" mean. Does that mean I pay 1% less
for the currency or does it mean I get 1% less of the foreign
currency?

So, is the oversll effect 2% or 4%? I can guess.