Credit Card Fees

My problem with credit cards in Europe is that most places that accept them are the more expensive places to start with. The places at which I stay are usually rooms in private homes (Privatzimmer, B&Bs) or small, family run Pensionen and Gasthäuser. Most only take cash. A number of banks, etc, have "no fee" ATM cards. Some accounts at Wells Fargo are like that.

Something the article alludes to, but doesn't say outright, is the foreign transactions are handled by the "Network" (MC, Visa, Cirrus, Plus, et al), which charges the bank 1%, about half for the transaction itself and half to currency exchange. Banks with foreign currency operations pay the Network in Euro (or whatever) and then charge you a higher percentage for their currency exchange. The way to get around this is to use a local bank that doesn't have a foreign currency operation. My local bank in Colorado passes on to me the 1% Network charge plus $2 (about 4/10%) for out-of-system-ATM. For credit card purchases, it's just the 1% Network charge. Shop around.

That first post would scare me away from Schwab:

1 -- all my credit cards have an international number on the back

2 -- I get the same advantages from my podunk bank and credit union

3 -- I would not want to deal with an outfit that "forgets" where I am and only shuts down the card on subsequent purchases. My experience has been that the cc outfits record times and dates of out-of-area the moment you give it to them -- it's not as thought there's a little old lady making notes on scrap paper. It's also been my experience that the door slams shut on the first attempt at use, not somewhere down the road. But then, I've never bought a camera in France since the things are eight zillion times what they are at home.

Interesting anecdote, however.

"You do have to open a brokerage account at Schwab to get the cash back from the card."

You also need to have a Schwab Bank checking account, but it is free too, and pays about 0.75% interest. Not bad.

The reason you need the checking is because your cash back rewards from the VISA are deposited monthly into your brokerage account. In order to spend the cash back, you need to move it into your checking, so you can withdraw it with your ATM card. (There are probably other ways to get the money, but this is the easiest.)

Both the brokerage and checking accounts have no monthly fees, or minimum balance requirements. Schwab hopes you will use the brokerage account to buy stock, but there is no requirement.

All in all, it's a good deal, and I've found their customer service people very friendly, should you have a question or problem.

If anyone is interested, there are currently also two articles on Wall Street Journal's website, www.wsj.com, regarding credit card rates, fees and the new law.