Credit card fees for overseas transactions

Hi Ed - its not a matter of % rate - more of a "card/company" policy. The banks usually 2% and the other 1% goes to Visa or MC. When a bank only charges 1% - they are waiving their share - but the 1% goes to Visa/MC anyways. So far - CapOne is the only MAJOR bank that says they waive all fees - and you pay no transaction fee for purchase (cash advance is probly another issue - but avoid that by using ATM card only in ATM machines!) Your personal creditscore etc will determine your rate. If you pay off the card - it wont matter - but if you have to choose between 18% and no fee or 8% intrest and 3% fee - you can calculate yourself which is cheaper long or short term!

I'm not conversant with US banking practices but I had a GE Mastercard issued in Aust which I used in New York last year. Half way through my stay I checked my balance etc on line and couldn't believe the different charges for each transaction. They took 3 lots of commissions. I'd never had this before. I also have a Visa with my credit union and this has no additional charges for use overseas. I'd suggest reading the fine print and/or calling to clarify what you will be charged. Painful but worth it.

As Tom says, the prize goes to Capital One.

Thank you all for your replies. That was the answer I needed.

Ed

I think there has recently been a change in the reporting requirements. On my last trip over (this month) I saw that the 1% network fee was reported as a separate item. This is what Visa/MC/Plus/Cirrus/... charges to pay the European bank in Euros and collect in USD from your bank. It has always been there; it just wasn't shown separately. A few banks might absorb that charge, but most don't. Apparently Cap One does absorb those charges, but they have some other business practices that are so onerous that I will never do business with them.

Some large banks, those with foreign currency operations, pay the network in Euro. Then the network only charges them 0.6%, which they pass on to you. BUT, then the charge up to 3% extra for exchanging the currency. In other words, they end up charging you 3% for what the network would have done for 0.4%. Just the kind of people you want to do business with, huh?

Just returned from Italy first of Oct and used my CapitalOne card (Visa). Used it for all charge purchases and there was not conversion fee or usage fee. It is the best one offered to date. Used my Credit Union card for ATM withdrawals, and no fees charged on it either. It was a win-win.