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#1
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Credit card use while traveling
Another thread (see "Mastercard ATM problems: Warning" thread)
reminded me about something that many people may not be aware of: Most credit cards add a surcharge for international transactions. First they change your transaction into dollars (or whatever your home currency is). Then VISA or Mastercard adds a 1% fee to the transaction. Then your credit card company (i.e. the issuing bank) adds another 2% (usually). There isn't anything you can do about the 1% that VISA or Mastercard add on. But the 2% is something that is relatively new (last couple of years) and not all banks do it. I use a Capital One card for overseas travel specifically to avoid this charge. Capital One doesn't add the additional fee (so far). AmEx also adds on a few percent. I suggest calling your credit card (the customer service number on the card or on your statement) and asking what they charge for international transactions. If the customer service person sounds unsure, ask to speak to a supervisor. If your card charges the 2%, and you expect to spend a few thousand dollars internationally, it may be worth getting a different card. Note that these charges apply to any foreign currency transaction, such as mail order from other countries, or visits into Canada. DanK |
#2
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Credit card use while traveling
"Dan K" wrote in message om... I suggest calling your credit card (the customer service number on the card or on your statement) and asking what they charge for international transactions. If the customer service person sounds unsure, ask to speak to a supervisor. If your card charges the 2%, and you expect to spend a few thousand dollars internationally, it may be worth getting a different card. Note that these charges apply to any foreign currency transaction, such as mail order from other countries, or visits into Canada. Dan, I'm not sure that "most" banks add this fee, but some of the larger ones do, and there is no justification for doing it, aside from greed. Since learning about this practice, I think I'm about to dump my "backup" credit card. No sense in paying the extra fee when you don't have to. Also, watch out for merchants charging you in dollars while overseas. When they do the conversion, it is not to your advantage. However, unless you plan to spend $ million or so, the %1 credit card & ATM exchange fee is the best deal going. -- Donald R. Newcomb DRNewcomb (at) attglobal (dot) net |
#3
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Credit card use while traveling
And do you have any suggestions for transferring funds for less overall
cost? Dan K wrote: Another thread (see "Mastercard ATM problems: Warning" thread) reminded me about something that many people may not be aware of: Most credit cards add a surcharge for international transactions. First they change your transaction into dollars (or whatever your home currency is). Then VISA or Mastercard adds a 1% fee to the transaction. Then your credit card company (i.e. the issuing bank) adds another 2% (usually). There isn't anything you can do about the 1% that VISA or Mastercard add on. But the 2% is something that is relatively new (last couple of years) and not all banks do it. I use a Capital One card for overseas travel specifically to avoid this charge. Capital One doesn't add the additional fee (so far). AmEx also adds on a few percent. I suggest calling your credit card (the customer service number on the card or on your statement) and asking what they charge for international transactions. If the customer service person sounds unsure, ask to speak to a supervisor. If your card charges the 2%, and you expect to spend a few thousand dollars internationally, it may be worth getting a different card. Note that these charges apply to any foreign currency transaction, such as mail order from other countries, or visits into Canada. DanK |
#4
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Credit card use while traveling
Yeah!! Spot on, Donald.
The deal they offer may include small, not well known charges - but it's still better to use ATM's than any other source of foreign cash. The Visa Electron Card, which Visa is promoting heavily charges bigger fees; and since it is 'front loaded' with your cash, has the additional 'benefits' of depriving you of interest and giving Visa an interest free loan of YOUR money, which they then charge you to access!!!!! All with the complicit approval of your 'friendly neighbourhood bank' - who also get a little out of it all!!! "Donald Newcomb" wrote in message ... "Dan K" wrote in message om... I suggest calling your credit card (the customer service number on the card or on your statement) and asking what they charge for international transactions. If the customer service person sounds unsure, ask to speak to a supervisor. If your card charges the 2%, and you expect to spend a few thousand dollars internationally, it may be worth getting a different card. Note that these charges apply to any foreign currency transaction, such as mail order from other countries, or visits into Canada. Dan, I'm not sure that "most" banks add this fee, but some of the larger ones do, and there is no justification for doing it, aside from greed. Since learning about this practice, I think I'm about to dump my "backup" credit card. No sense in paying the extra fee when you don't have to. Also, watch out for merchants charging you in dollars while overseas. When they do the conversion, it is not to your advantage. However, unless you plan to spend $ million or so, the %1 credit card & ATM exchange fee is the best deal going. -- Donald R. Newcomb DRNewcomb (at) attglobal (dot) net |
#5
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Credit card use while traveling
In article ,
"Donald Newcomb" wrote: I'm not sure that "most" banks add this fee, but some of the larger ones do, and there is no justification for doing it, aside from greed. Since learning about this practice, I think I'm about to dump my "backup" credit card. No sense in paying the extra fee when you don't have to. I used to have a Citibank Visa and still have an Amex. I use an MBNA because it doesn't charge anything beyond the wholesale currency exchange rate. It's been that way for years though, so I don't know about this "new" fee. |
#6
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Credit card use while traveling
"Frank F. Matthews" wrote in message ...
And do you have any suggestions for transferring funds for less overall cost? I think that using an ATM is probably the best method. However, on a recent trip I was unable to use my ATM card (see recent post in this group titled "Mastercard ATM problems: Warning"). Next best is using a credit card, as long as you get one that only charges the 1% fee, and not an additional fee beyond that. This also has the convenience of it being a credit card, i.e. don't need to carry a lot of cash, don't need to pay until you return home, etc. |
#7
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Credit card use while traveling
"Dan K" wrote in message I think that using an ATM is probably the best method. However, on a recent trip I was unable to use my ATM card (see recent post in this group titled "Mastercard ATM problems: Warning"). Next best is using a credit card, as long as you get one that only charges the 1% fee, and not an additional fee beyond that. Well it depends about your credit card. I have a Visa that's issued by European country and there are NO fees or hidden costs when you make a purchase with it. The exchange rate is always better when you are using the Visa. Let's say I'll go the UK and buy something from there. I have three choices: Take the money from ATM in UK. (2.5% percent fee) Change my euros to pounds before the trip.(Usually a fixed fee for the exchange) Use Visa. (No fees or comissions and the best rate for the conversion.) Paying the purchase with Visa is always the cheapest way for me. You must have some other systems in US if you are saying that this is the expensive way. |
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