Visa Fees when using the card oversea

[righthalf]

My visa credit card charges 3% (or 1.50$ minimum) when using the card oversea. My understanding is that this is visa rule, not credit-card issuer policy. So, it is something to keep in mind if your visa will charge the fee.

As an example, I bought a coke at Narita airport for 1.25$, and I had to pay the 1.50$ minimum fee for a total of 2.75$. A second example, I also had to pay 3% when I bought a foreign-country domestic airline ticket from that airline website. It was considered to be an oversea transaction eventhough I was sitting in front of my computer in the USA to purchage that airline ticket.

It makes me wonder if you guys need to pay oversea-trasaction fee when you buy a train ticket from a Germany train website.

If you have info on this topic or if Master card charges the fees, please share.

[Kevin Etzel]

My visa credit card charges 3% (or 1.50$ minimum) when using the card oversea. My understanding is that this is visa rule, not credit-card issuer policy. So, it is something to keep in mind if your visa will charge the fee.

As an example, I bought a coke at Narita airport for 1.25$, and I had to pay the 1.50$ minimum fee for a total of 2.75$. A second example, I also had to pay 3% when I bought a foreign-country domestic airline ticket from that airline website. It was considered to be an oversea transaction eventhough I was sitting in front of my computer in the USA to purchage that airline ticket.

It makes me wonder if you guys need to pay oversea-trasaction fee when you buy a train ticket from a Germany train website.

If you have info on this topic or if Master card charges the fees, please share.

I just got a VISA card through Providian that supposedly (according to the fine print) charges a 1% "foreign transaction" fee. I have yet to test it on a foreign transaction. It can't be any worse than my current VISA card that also charges also charges 3%.

[NASL Fan]

Even if they don't charge any fees, where they really stick it to you is in the exchange rate. It can be anywhere from 5 to 10% worse than the rate you get for cash at the local exchange house.

[chilistrider]

Huh! I was about to post the exact opposite. What I'm more familiar with is that when you make a purchase in a foreign country, your "currency" is "converted" in bulk (i.e., along with all the millions of other euros to dollars transactions Visa is carrying out that day) and that you therefore are subject to a more favorable conversion rate.

Of course, I haven't been overseas for 5 years, but in all the times before that the rate for cc transactions was more favorable than at, say, the local Amex office.

NASL, where is your info from? I would totally believe it if cc companies have started screwing people over in the last 5 years. :(

[eissman]

Perhaps read this LINK (http://ricksteves.com/plan/tips/bank.htm)

Good source of expert advice from a guy who goes for the entire summer to Europe every year. I highly recommend the TRAVEL TIPS section (where this comes from) and the RAILPASS section is extremely helpful as well.

[chilistrider]

Aye, Rick Steves is da man. And I'm glad to find out that my memory isn't faulty; those fees are new: "But a second kind of fee has emerged in the last few years for travelers: a percentage-based currency-conversion fee added to your credit-card charges and some ATM withdrawals made overseas."

Thanks for that link, Herr Eissman!

[AGF Aarhus]

My German bank issued Visa charged me 1% on charges on my recent trip to the US and Canada. The exchange rate was exactly what was published in the newspaper, though (1.18 to US, 1.37 to Canada). Nothing to get upset about there.

[MikeLastort2]

Even if they don't charge any fees, where they really stick it to you is in the exchange rate. It can be anywhere from 5 to 10% worse than the rate you get for cash at the local exchange house. That is incorrect.

[Minnman]

I've not followed the various linked posted previously, so I apologize if this has been mentioned somewhere. But keep inmind the difference between using your CC for purchases and cash withdrawls from an ATM. You're right that card companies, in recent years, have started to implement various and sundry fees associated with foreign purchases that can make it substantially more pricey to buy things - especially smallish purchases - with plastic.

You could, of course, use cash (that is, Euros) for everyday purchases (that is, beer), which - as has been my experience - is a lot more common in Europe than in the States (where we use plastic for just about everything).

But what's the best way of getting cash? Probably depends on the country, the particular credit cards and ATM cards you own, and your experience as a traveller. Travellers checks are, of course, a tried and true method. BUT, there can be fees for getting them issued from your bank at home; there are almost always fees incurred when you use them; rates and fees vary considerably (example, at bureaus de change in train stations/airports vs. banks downtown); and the places with the best rates/lowest fees might not be open when you need cash (banks, for instance).

ATM and credit cards can often, but not always, be used in local ATMs. Check with your issuing bank/cradit union on this AND try and find out what kinds fo ATMs are in use in the countries in which you'll be travelling (for example - and this is from memory, so I could be wrong - I believe ATMs in France only accepted 4 digit, numbers only, PINs). Credit cards may be a more reliable bet at ATMs BUT here you need to be aware of substantial cash withdrawl intrest fees. My understanding is that, unlike purchases, where you get a billing cycle grace period to pay without interest penalties, on cash withdrawls the interest starts accumulating right away. The only way to avoid it is to pre-pay your card the amount you'll be withdrawing in cash.

Finally, I know Rick Steves is a proponent of buying some local currency before departure. Not a bad idea, especially since, outside of the UK, western Europe is on a single currency.

[peledre]

There's always been a foreign currency fee on credit cards, you probably just didn't know about it until a year or two ago when the banks started disclosing the fee. They used to just add it into the amount of the charge after converting it into US dollars, so you wouldn't notice it unless you actual read your card agreement line by line. Mastercard and Visa now bill the banks a 1% fee each time a card is used in a foreign currency then the banks will generally add a currency conversion fee on top of that. I've seen a couple of cards that only have a 1% fee, but those were sub-prime cards that weren't very good. Most of the major Visa and MasterCard issuing institutions (Citibank, Chase, BofA, MBNA) have a 3% fee. Some AMEX cards have a 2% fee, there are some that don't, but they have really high annual fees. Discover is 2% right now as well.

[sarabella]

I've found it's cheapest to take large sums of cash out at an ATM. My bank charges a $1.50 foreign ATM transaction fee, but the exchange rate is pretty decent compared to some of the currency exchanges around here.

[MikeLastort2]

I've found it's cheapest to take large sums of cash out at an ATM. My bank charges a $1.50 foreign ATM transaction fee, but the exchange rate is pretty decent compared to some of the currency exchanges around here.

That's what I usually do when travelling in Europe - head to the nearest ATM and take out a couple of hundred Euros. The only fee I pay is $1.50 to my bank, and the exchange rate is the same as what I'd get using travellers' cheques.

[FC Tallavana]

I've always used my debit card over there and have never been hammered by fees or exchange rates. If there is a better way I'm all ears but I've been under the impression that my debit card is the way to go for all small transactions.

[taylor]

I use master card and the charge a percentage which is small and the exchange rate is spot rate, so no complaints from my side.
(PS, I am one of the two people in the world who continues to have a "DC UNITED MASTERCARD"
Let me tell you, it is very foreign here in Germany.)

[DaniD]

Here are some more articles on using credit/debit cards overseas. The author points out which ones are particularly good and how to avoid the new "scam" where you are actually charged in US dollars.

http://www.smartertravel.com/advice/ed/advice.php?id=108334
http://www.smartertravel.com/advice/ed/advice.php?id=255059

[Phee]

I just got a VISA card through Providian that supposedly (according to the fine print) charges a 1% "foreign transaction" fee. I have yet to test it on a foreign transaction. It can't be any worse than my current VISA card that also charges also charges 3%.
Kind of unrelated, but I'd watch out for Providian. There are numerous lawsuits against them and it sounds like they have destroyed many people's credit. Just do a google search on providian and about half of the sites that come up that aren't company related are about people who got screwed by them.

[chrisrun]

I first noticed this when I looked at my bill with the FIFA tickets I bought with my Citibank MC. There was a "FINANCE CHARGE*FOREIGN TRANS" that amounted to 3%.

[El-Professor]

Has anyone used the American Express travel card? What kind of fees are associate with it? Can you use it at an ATM?

[DaniD]

Has anyone used the American Express travel card? What kind of fees are associate with it? Can you use it at an ATM?
Here's some info on that:

So American Express came up with the American Express Travelers Cheque Card and at first I thought -- what a great idea! That was until I read through the website and did not find the answers I was looking for. So I called their customer service line to discover that apart from paying $14.95 to purchase the card (and $5 each time you want to refill it), American Express has the audacity to still charge users the 2 percent overseas transaction fee when the stored value is in US dollars and you use it overseas. To me that is an obvious case of double-dipping. Their website states that "there are no fees to make purchases at retail or merchant locations" but this is clearly not the case in countries that do not use US dollars, UK Sterling or Euro.

Where this card is effective is if you are traveling to the UK or a European country that uses Euro. The card can be purchased in these denominations and therefore, American Express cannot charge the additional 2 percent fee on transactions. The Travelers Cheque Card may also be used at ATMs where you see the American Express logo. Your maximum daily withdrawal is $400 and the Card will be charged a $2.50 fee for each ATM use. Your card must start with a minimum load of $300 and a maximum of $2,750. You can pay using your American Express card or a Visa or MasterCard debit card and the card is valid for three years. As a special offer, order the Travelers Cheque Card before December 31, 2005, and you can receive a free $25 gift card by mail.

Full article here: http://www.frommers.com/articles/3231.html

And the previous column I posted has an update that actually charts what things cost with the various transactions: http://www.smartertravel.com/advice/askanswer/advice.php?id=284490

I read WAY too many travel forums.

[BuffloSoldier]

But you're one smart lady.

Thanks, Dani.