Fidelity Visa removes foreign transaction charges

[imbatman]

I didn't google it but I have always thought closing accounts was bad for the credit score ecosystem - (1) shortens the lifetime of currently open credit history and (2) lowers unused credit balance.

 

[Markola]

Maybe it's time to get rid of my Chase Sapphire card.

I hear you but it still has some advantages, despite the fee. It’s the best rental car insurance I’ve seen, has some other travel protections, and you can rack up points like crazy if you book travel through that Chase app, which you can then convert to cash back, if you’re like me.

I’m not organized enough to maximize points, so I still like the Chase SP card for traveling and the no-fee Wells Fargo 2% back one for everything else.

 

[braumeister]

I didn't google it but I have always thought closing accounts was bad for the credit score ecosystem - (1) shortens the lifetime of currently open credit history and (2) lowers unused credit balance.

I don't think it's much of a problem in most cases, but my understanding is that it can be a bad idea to close your oldest accounts. Shortening your credit history like that can definitely have an impact.

One of my cards was opened in 1987 and even though I no longer really use that bank, I'll never close it for that reason.

 

[BlueberryPie]

you get +1 or 2 points for having credits over 25 years. I don't worry about a couple of points but I do have a card that was open over 25 years ago and have a recurring $1.99 going to it every month and paid off automatically.
In my case closing the citi will barely make a dent in the total credit available, fidelity gave me 3.5x the credit limit right off the bat.

 

[sengsational]

Maybe it's time to get rid of my Chase Sapphire card.

I called and got my $95/yr card switched to a non-annual fee version. Same CC number, but the alternative has a foreign transaction fee. They said I should keep the original one because the alternative had a 1% foreign transaction fee. In the interest of brevity, I lied and said I wasn't going overseas.


Even with the Elan Visa FTF of 1%, I used it overseas (until they locked it). I've tried before several trips to establish a travel alert, but they had me in a goofy phone loop both times, and I gave up. But, point being, I was getting 3% on everything and that nets to 2% on overseas. I'll take that. Now it's going to be 3% everywhere...not bad!

 

[Phroig]

Even with the Elan Visa FTF of 1%, I used it overseas (until they locked it). I've tried before several trips to establish a travel alert, but they had me in a goofy phone loop both times, and I gave up. But, point being, I was getting 3% on everything and that nets to 2% on overseas. I'll take that. Now it's going to be 3% everywhere...not bad!

Do you mean you get 3% on the Fidelity Visa? How come? Thanks!

 

[teej1985]

Do you mean you get 3% on the Fidelity Visa? How come? Thanks!

They must be a wealth management client and pay AUM fees.

https://www.fidelity.com/rewards/overview

 

[Texas Proud]

They must be a wealth management client and pay AUM fees.

https://www.fidelity.com/rewards/overview

Interesting, but what is the wealth management fee?


I think it is more than the 1% cash back...

 

[teej1985]

Interesting, but what is the wealth management fee?


I think it is more than the 1% cash back...

Of course it is, you'd need $2M in managed assets to get the extra 1% back. The cheapest way to do that is probably the tax managed US equity index SMA:

https://www.fidelity.com/managed-ac...tax-managed-US-equity-index-strategy/overview



It would be silly to hire Fidelity to AUM $2M of your assets just to get an extra 1% on credit card spend. But if you've already decided to hire them, might as well take the perk.

 

[isisdave]

This is great news. We use the Fidelity card for almost all expenses but we've had to use our backup USAA card when on European trips. USAA has no foreign transaction fees but is only 1.5% cash back.

+1 -- it's our default card because of the 2% no-brain cash back, but it stays home when we travel because of the FTF. Chase Sapphire or Marriott get to come with us when traveling.

But even so, it's the card I have all 15 automatic payments on, so I don't want to risk having it compromised on a trip and have to re-do fifteen automatic payments.

I asked them once to issue a card with a different number on the same account so we could travel with it -- sorta like those virtual cards that Citi and someone else have -- but they wouldn't. It was years ago, maybe I'll ask again.

 

[Chuckanut]

+1 -- it's our default card because of the 2% no-brain cash back, but it stays home when we travel because of the FTF. Chase Sapphire or Marriott get to come with us when traveling.

But even so, it's the card I have all 15 automatic payments on, so I don't want to risk having it compromised on a trip and have to re-do fifteen automatic payments.

I asked them once to issue a card with a different number on the same account so we could travel with it -- sorta like those virtual cards that Citi and someone else have -- but they wouldn't. It was years ago, maybe I'll ask again.

Have you considered using Capital One’s ENO system of unique virtual card numbers for auto payments and online purchases? If one of those numbers is compromised it does not affect the others or the original card number. The drawback is you only get 1.5% cash back. For me the loss of that 0.5% is small compared to the hassles of a compromised card used in multiple places.

If it’s a big payment like the cost of a $5000 new heat pump system, I’ll use the card and get the full 2%. That’s worth the risk. But for monthly payments like Netflix, electricity, etc. I use a virtual number.

 

[Texas Proud]

Have you considered using Capital One’s ENO system of unique virtual card numbers for auto payments and online purchases? If one of those numbers is compromised it does not affect the others or the original card number. The drawback is you only get 1.5% cash back. For me the loss of that 0.5% is small compared to the hassles of a compromised card used in multiple places.

If it’s a big payment like the cost of a $5000 new heat pump system, I’ll use the card and get the full 2%. That’s worth the risk. But for monthly payments like Netflix, electricity, etc. I use a virtual number.

Curious... are those number a one time thing or can you set them up for monthly payments?

 

[Prague]

Can you provide the source that there will be no foreign transaction fee?

I cannot find any source on either Fidelity website or googling to confirm that this fee will be eliminated by end of August (today being September already) for existing card holders. Could you please provide a link that where you got this info?

 

[mn54]

there is a 1% foreign transaction fee on the fidelity visa card. however there is no FTF with the fidelity debit/ATM card at an ATM with the visa logo. maybe there is confusion between the two.

 

[COcheesehead]

Fidelity announced it on the Fidelity forum. You must be a member to see the post. If you doubt it, contact them directly.

 

[COcheesehead]

there is a 1% foreign transaction fee on the fidelity visa card. however there is no FTF with the fidelity debit/ATM card at an ATM with the visa logo. maybe there is confusion between the two.

No

 

[COcheesehead]

Here is the exact quote posted on the Fidelity Forum.

Individuals who apply now and are approved for the Fidelity Rewards Visa Signature Credit Card will enjoy 0% foreign transaction fees*. By the end of August, there will be no foreign transaction fees on new purchases for existing accounts.


*Foreign Transaction Fee: 0% for each foreign purchase transaction or foreign ATM advance transaction in U.S. Dollars. 0% of each foreign purchase transaction or foreign ATM advance transaction in a foreign country.


Learn more about the Fidelity Rewards Visa Signature credit card.

 

[Route246]

I didn't know any of the big guys charged foreign transaction fees. None of my cards do. I know generic credit cards all do but I don't have any of those. When I'm overseas I always call before I leave as these things can show up and you don't read the fine print carefully and miss it. I know my Citi and credit union cards don't have any fees. I have a generic card from a bank and they charge one but I don't use that card for anything now.

 

[Texas Proud]

I didn't know any of the big guys charged foreign transaction fees. None of my cards do. I know generic credit cards all do but I don't have any of those. When I'm overseas I always call before I leave as these things can show up and you don't read the fine print carefully and miss it. I know my Citi and credit union cards don't have any fees. I have a generic card from a bank and they charge one but I don't use that card for anything now.

Chase does... and they are the biggest

 

[yakers]

No FTF on my 2 Chase cards

 

[Texas Proud]

No FTF on my 2 Chase cards

From their website...


Does Chase Freedom FlexSM have foreign transaction fees?

The Chase Freedom FlexSM credit card charges a foreign transaction fee, which amounts to 3% on transaction charges made internationally

 

[audreyh1]

I had several regular large bank credit cards that charged a FTF, for that reason I originally got a couple of travel cards that didn’t.

Then Citi dropped the FTF on the Costco Visa and that became my major travel card for 3% on dining and rewards overseas. That plus ApplePay so I barely use the others now.

FWIW Visa charges their issuers a 1% FTF. So banks charging more are reaping a bit extra.

 

[braumeister]

The Chase Freedom credit card is the only one I have with this fee.
But their debit card also has one, not that I would ever use it. 1% plus $5.

 

[athena53]

I don't think it's much of a problem in most cases, but my understanding is that it can be a bad idea to close your oldest accounts. Shortening your credit history like that can definitely have an impact.

One of my cards was opened in 1987 and even though I no longer really use that bank, I'll never close it for that reason.

I don't worry much about that. I think the Fidelity card is my oldest and I've had it maybe 10 years? I always close out credit cards I have no plans to use. Just this year I got a Hilton Amex and they gave me a $40K credit line so that tactic seems to be working.

Back to the OT.

 

[Chuckanut]

I’ve closed a few cards in the past few years and other than maybe a temporary 10 point dip in my credit score, there are no consequences. I can’t even be sure the 10 point dip is the result of the closing or some other factor.