3 replies to this topic

[ASDmike]

Just received one of those "change in terms" mailers from a bank. So it looks like come this summer with this bank, a "foreign transaction fee" is also due on US dollar transactions if the merchant and/or the merchant's bank is outside the US. This arbitrary fee was only previously added to the parade of fees when a currency conversion was required.

Sorry, don't ask me "which banks?". Since banking and their fees are state regulated, you need to browse through those mailers and/or check this stuff with your banks before a trip...

But here is a good breakdown of what the fee is:
http://www.creditcar...n-fees-1276.php

I guess I only had a couple dive trips abroad that charged me in US$ -- But it was nice to be in Costa Rica and Grand Cayman and realize I would not be dinged by my bank. --> All my cards I have now charge a 3% foreign transaction fee...

The horrible new part is you could buy something over the internet from some one you thought was "domestic"-- in US Dollars and have your bank slap a 3% fee onto the transaction. It could even be shipped to your house from a US based distributor!

So what's in your pocket? Hint: for now it should be a Capitol One card ( they still apply No foreign transaction fees )

[dustbowl diver]

This shouldn't come as too big a surprise as every bank and lending institution are looking for ways to remain solvent. Appreciate the heads up on the info!!

[Landlocked Dive Nut]

Yep, I've been dinged myself. It's a tough decision......taking cash to a foreign country is risky, even if you have a "safe" in your room. Guess I'll continue to take the credit card.....I'd rather pay the 3% fee than be robbed and stranded with no money at all!

I very recently obtained a Capital One MasterCard......they are being very stingy with the credit limits for new card holders! My credit score is over 800, and they only gave me a $2,000 credit limit. Can't use that card on vacations......the car rental companies would lock up most of that limit in their pre-authorized damage deposit, leaving almost nothing for spending on hotel, food or dives. I am hoping to convince them to increase my limit, but they say they won't even consider it until I've had the card for 3-6 months.

[ASDmike]

Can't use that card on vacations......the car rental companies would lock up most of that limit in their pre-authorized damage deposit, leaving almost nothing for spending on hotel, food or dives.

Don't use your low limit / no fee card when checking in or making reservations, only for actually paying the bill.

Most of the time I rent a car in the islands, they still run a hold and take a paper imprint of my card. Then they need a card again to actually charge me when I return. Even here in the US when I return a car, I may change the card when I return since the "rapid checkin" programs only hold one card. So often I have to tell the "car returns" attendant that I need to go inside to change the card over from my personal card to my corporate card (or vice verse).

You will still have to factor in inflated currency exchange fees to make sure you don't get too close to the limit. In addition to the foreign transaction fees, some banks add a currency exchange fee surcharge and/or up to a 5% hidden fee in the exchange rate. Before you go, you can call your credit card issuing banks and over the phone ask what a hypothetical 100 charge in the local currency would cost on a charge made "today".