credit card for foreign travel

[uncledrz]

This topic is a follow up to the credit card rewards topic. I have noticed that all of the cards that I have (the usual suspects -- mc/visa/etc) have recently sent notice that all foreign (non us dollar) transactions will be converted with a 3% premium added for the conversion.
Any thoughts on the best card to travel with/best conversion rate?

 

[tozz]

The last time I checked, all the MBNA family of credit cards were free of surcharges.   To get the authoritative word, you might want to ask some of the folks at www.flyertalk.com.  There are a lot of extremely seasoned foreign travelors there.  Their anal retentiveness concerning $$ matters (secondary to frequent flyer miles, of course) would put most of the dryer-sheet folk here to shame!

 

[tozz]

Oops, just read Nord's message about MBNA's conversion fee change. The only reason I kept my MBNA card account open was for overseas travel--bye bye MBNA. Nevertheless, the flyertalk recommendation still goes.

 

[cute fuzzy bunny]

Used to be a credit card was your best bet, you got just about the best conversion rates available.

Might check out american express and see if they offer a good rate and no surcharges.

 

[sailor]

Used to be a credit card was your best bet, you got just about the best conversion rates available.

Might check out american express and see if they offer a good rate and no surcharges.

Nope - the whole mass mailing of x % conversion fee started with Amex conversion fees for Turkey. Most CC companies did have such a fee, but Amex settled in a case, where the fees were not clearly stated. So now everybody is mailing you the piece of info so you can't sue them.
I've got a notice from the class action suit that I can try to get some of the conversion fee back.

 

[LovesLife]

My local credit union has a 1% conversion charge. I am going to be using it in just 9 days

 

[cute fuzzy bunny]

Info...

http://tripso.com/archives/2005/04/7_rules_for_cre_1.html

Apparently capital one cards dont charge the fee.

 

[uncledrz]

Thanks all for the good information.

Looks like I'll have a bit of work to do, but considering that the add on charge for foreign transactions is 3%, I think I'll spend the time and see if I can't find a card that doesn't put on this additional charge for doing absolutely nothing!

Uncledrz

 

[BigMoneyJim]

ACK! 3%? To have their computers multiply? I'm glad this thread came up. I had no idea they'd charge a fee...especially this much!

 

[Lancelot]

Are you a member of a Credit Union? Many CU cards do not charge the foreign currency fee. Best check the fine print though.

Also, many foreign merchants will add back the "discount" (the % the merchant agrees to give the bank for immediate payment of the charge.) It never hurts to ask the merchant to list the "Visa/Mastercard" fee as a seperate line item, then, after returning home, ask your CC bank to "charge back" (charge the merchant) the fee.

Here in Thailand, it is illegal to add discount fees into the price... but 99% of the merchants do it anyway...

TIT (This is Thailand...)

Lance

 

[uncledrz]

Update on the credit card and foreign currency matter.

Called a number of banks and most charge the 3% additonal fee. My credit union, however, did not, so I got a card with it.

An article on this issue with some guidance:
http://www.tripso.com/cgi-bin/mt-se...deBlogs=1&search=credit+card+foreign+currency

Uncledrz

 

[ESRBob]

I've got a notice from the class action suit that I can try to get some of the conversion fee back.

Yeah, I sent in my paperwork for that class action -- Amex.

I received my settlement a few weeks back. [Drumroll please....]

Just cashed a check for 62 cents!

Penfed seems to be offering a good Visa card deal with 1.25% cash back. Anybody got one of those cards? I'll check out their overseas charge policy

 

[charlie]

Yea, I recently got a 1.25% cash back card from PenFed. No
problems so far and I have not used it abroad. My guess is
that they won't screw you on foreign usage because of their
large military base of customers.

Cheers,

Charlie

 

[ESRBob]

Thanks, Charlie,
I just went ahead and set it up. The 1.25% also seems good compared to points programs that increasingly feel mean.

Penfed said there is a 1% surcharge on foreign purchases, which is charged to them by Visa and they just pass it along. I talked to Visa, and they said 'some banks choose to pay it for you, others charge premiums on top of it.' Seems it might be hard to beat the 1% unless the bank has a way to get it from you some other way -- but at least its better than paying 3%.

Also, Penfed will auto-deduct the monthly credit card payment out of my Penfed savings account which saves me from having a late fee -- always a problem for me in the past.

 

[wildcat]

May want to ask Dougdo. He posted a little thread on his blog about how he pays overseas. Basically says he hits the ATM's for cash and has the least amount of resistence when it comes to paying for stuff in US dollars I suppose it depends on where you go. American Express will convert currency for you prior to a trip for like $3.