[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]

Originally Posted by 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.

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

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]

Originally Posted by 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.

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.