Credit Card Foreign Transaction Fee

[Cajuncru Diver]

check with your credit card company for sure. I just received a notice from one of mine that said they'll charge a fee if the card is used out of the US, even if it is charged in US dollars!! I need to check with my other card to see if they're doing the same thing before our trip to Bonaire this summer.

YES everyone with a Bank of America Mastercard or Visa got that notice this week! The have effective June 1 changed their definition of "foreign transaction" to include any transaction made outside of the US even if it's in US currency.

 

[vondo]

Capital One does not do this or has lower fees.

 

[fairybasslet]

Capital One does not do this or has lower fees.

I have never been charged a fee using my Capital One card. Of course, that might have changed since the last time I traveled out of the country in February, but so far, I have not received a notice about it. Those 3%'s really add up after a while

 

[herman]

So far I have not seen any charges on my Chase Visa. I was in the Bahamas in early april and with DeputyDan in Bonaire last week. There were Bahamas charges on my card in the last statement and I checked my online statement which had Bonaire charges on it but so far no fee is indicated. IF Chase is not hitting us with such BS charges and others are I would suggest we cancel any and all cards that do, open accounts with those who do not and tell BOTH why.

 

[vondo]

So far I have not seen any charges on my Chase Visa. I was in the Bahamas in early april and with DeputyDan in Bonaire last week. There were Bahamas charges on my card in the last statement and I checked my online statement which had Bonaire charges on it but so far no fee is indicated. IF Chase is not hitting us with such BS charges and others are I would suggest we cancel any and all cards that do, open accounts with those who do not and tell BOTH why.

It's may not be a line item charge, but check the exchange rate they gave you with the actual exchange rate that day and see how far they are off. I think even those that "don't charge anything" are off by a percent or so, but if it's 4-5% different, you are being charged.

Bahamas is interesting since the rate dollars are the same value.

 

[Scared Silly]

If it is a VISA expect at least 1% plus whatever the bank tacks on typically 2%, AmEx charges 2%. It used to be that the fee about 1% was part of the exchange rate but it is now explicitly noted. If you are not seeing it then more than likely it is still being buried in the exchange rate used or you might be lucky with a bank that eats the charges such as Capital One.

Currency conversion costs


If you do not like the charges take travelers checks - at least then it is only 1%.

As for charges in $ rather the local currency - never ever do this as you get a poor exchange rate plus the connivence fee.


Folks might be interested in this class action suit. CCFSettlement.com - Home - Notice

 

[tfsails]

SunTrust just sent me a notice that they were gonna start charging 3% June 1. They "expanded" the definition of "foreign transactions" to include "transactions in US dollars if they were made or processed outside the United States".

Gotta love it!! If I've done my math correctly, they now make about 6% on all foreign transactions when you include the 3% fee they charge for making the transaction to start with.

 

[herman]

It's may not be a line item charge, but check the exchange rate they gave you with the actual exchange rate that day and see how far they are off. I think even those that "don't charge anything" are off by a percent or so, but if it's 4-5% different, you are being charged.

Bahamas is interesting since the rate dollars are the same value.

In the Bahamas and most places on Bonaire make the charges in USD so up until now there has been no fee because there was no "exchange" that happened. What some are doing now is charging a fee simply because they know the purchase was done outside of the US reguardless of what currency you were charged in. I may well go back to cash and ATMs.

 

[AquaExplorer]

I simply do not understand why, in this day and age of electronic banking and most of our money being bits and bytes, why they even CHARGE for foreign transactions. Well other than simply it being a money maker.

 

[Scared Silly]

I simply do not understand why, in this day and age of electronic banking and most of our money being bits and bytes, why they even CHARGE for foreign transactions. Well other than simply it being a money maker.

Because it is a money maker. Just like why the airlines now charge for baggage. Plain and simple.