Credit cards...hidden prices????
Posted 19 July 2007 - 01:07 PM
Posted 19 July 2007 - 01:50 PM
Posted 19 July 2007 - 02:16 PM
Posted 19 July 2007 - 02:54 PM
| Most credit card issuers charge currency conversion fees for foreign purchases made with their credit cards, debit and check cards, and ATM cash withdrawals.|
Over the course of your travels, that can add up to a significant increase in the cost of your vacation -- money you could save by picking the right credit card.
The fees are twofold: Visa and MasterCard have a standard 1 percent charge on foreign purchases and the issuing bank adds another fee.
In the chart below, the percentage shown below each credit card issuer is the total of the fees: the amount charged by the issuer, plus the charge by Visa or MasterCard for a foreign purchase. For that 1 percent fee, Visa or MasterCard converts your foreign-currency purchase to U.S. dollars. All Visa or MasterCard cards carry that 1 percent charge.
The credit card issuer or bank often charges an additional fee, usually 2 percent, which adds up to a 3 percent total charge on foreign purchases. Bankrate contacted several credit card issuers and all refused to explain the reason for the charge.
The percentage posted under debit- and checking-card purchases is the charge assessed by both Visa or MasterCard and the credit card issuer or bank. A fee is also assessed by each card issuer and bank for ATM cash withdrawals. ATM charges vary for each card.
The table of major credit card companies and their currency-conversion-fee policies was correct as of April 2007. The data were originally collected by Bankrate researchers in October 2005. Write to
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Posted 19 July 2007 - 04:16 PM
I thought it ws capital 1 that didn't charge the fee, but I wasn't sure. One thing to know about capital 1 though is that they only report the credit you are using, not your available credit. It can hurt your credit score because it gives you a worse credit/debt ratio.
Also, you can't use a discover card in Europe. You can use it in Mexico, but its just good to know if you are heading to Europe.
Now that I know this, I'll try to use my Discover in Mexico to pay for trips.
Posted 19 July 2007 - 06:42 PM
It's funny you mentioned this fee. I just looked at my cc statement today and I have a fee for $6.95 because we used my Bank of America credit card to upgrade our rooms in Tulum. On my statement it says that it is "foreign transaction fee". I would alert your guests if you think they may be using cc's.
Kacey & Eric
March 14, 2008
Posted 20 July 2007 - 04:48 PM
Thank you everyone for responded to my post and for all the helpful information. I guess I better get a Capital One card to pay for the rest of my deposit for the wedding.
Thanks again for all the advice and info!!!
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