Hello everyone. I wanted to share a recent thing that changed on my Nordstrom Visa. They sent me a notice saying they were no longer charging foreign transaction fees! So I tried it and paid for a couple of hotels on our upcoming trip and sure enough, there were no fees!
This topic comes up often here so I thought that I would share. The best part of it? I get more Nordstrom points!! :-)
Hi April. Yes, I notice that it's gotten much easier to find cards w/ no foreign fee. United and Marriott cards are other examples. Thanks.
What exactly do they mean by fees? Fees can be a $2.50 fee for using the ATM or a 3% discount on the exchange rate. As Rick says, places with good rates have huge fee, but places with no fees have terrible rates.
That said, my United Explorer **credit card* charges exactly the Interbank exchange rate for POS transactions. But it's only a credit card. Generally speaking, any place that takes a credit card is more expensive to start with.
Lee, we are referring to the extra fee (usually 3%) that many credit cards charge for foreign transactions. We are just saying that for times when we choose to use a credit card, (or it's the only practical option, such as buying foreign train or airline tix online), it's nice to be able to use one that doesn't add an additional 3% conversion fee.
Southwest Airlines' Premier Visa doesn't charge foreign transaction fees either. We fly them often so it works out for us to use that card!
Yes I was referring to the 2% or 3% that most cards charge as a "foreign transaction fee". It's great to hear hat so many cards have stopped charging this rate! I like to be able to charge as much as I can on the card and then pay it off each month so that I can get the points. When you factor in hotel and other charges over seas it can add up to substantial points.
On my last American Express statement, they too said they were no longer charging foreign transaction fees. I know it is more difficult to find a place that takes AMEX in Europe, but I plan to try it out next time I fly over the pond.
There are Fees and there are Rates. Remember in the past when Rick said to look at both. "Places with no fees have lousy rates; the good rates come with high fees." A fee is a fixed charge to do something, like make the exchange - $2 to $5 to use an out-of-system ATM. The rate is how many euro you get per dollar. The rate is generally "discounted" 1% by the "Network (Plus, Cirrus, et al). Bigger banks, those with foreign currency operations, pay the Network in euro, avoiding the 1% for currency exchange, then add about 3% of their own. Some smaller institutions pass along the 1%, others "eat it" as a service to their customers. One of my banks passes along the 1% and charges me a $2 fee for the ATM usage.
When a bank says "no fees", they technically could still discount the exchange rate, although some use fees generically, meaning anything that subtract from what you ultimately get.
My United Explorer (credit) card recently announced they were eliminating the currency exchange rate discount for European transactions. But that is only for use of a credit card, for which they extract 4% or more from the merchants. I can't use it to get cash without paying a "cash advance charge". My Wells Fargo account, as a customer benefit, does waive all charges, fees and rate discounts, for two ATM withdrawals per month.
And, as I have previously mentioned, in Germany, the less expensive restaurants and accommodations don't take credit cards, only cash, so if you are using a credit card, you're paying more. Essentially, that "fee" is built into the price.
As with Laurie Beth, on my AmEx bill it indicated they were no longer charging a "Foreign Transaction" fee. But at the same time they increased the annual membership fee for my card (Platinum Delta SkyMiles CC) to $195!! Though I've gotten a handful of "free" trips to Europe through the card and SkyMiles, I'm not sure the annual fee is worth it. Is it?
Our Charles Schwab debit card with a cc logo also has a no foreign transaction fee. So since it is a debit card, there is not CC rate. But I don't think that the no fees apply to using the card at the ATM to get money out.
My Hawaiian Airlines Visa card is changing to a MC and with another banking organization. As an incentive to keep customers who prefer Visa over MC, they have offered several benefits of the new card including no foreign transaction fees. However, it is still a cc which in going to Europe every summer for many years, we rear-ly (sp?) use. We do however use a CU debit card tied to a checking account to get local currency from ATM machines all over Europe. It charges a 1% fee - total cost and no hit on the Euro exchange rate. Since I have been a member of that CU, and it gets all of my retirement checks, since about 1973, I choose to stay with them.
To clarify a bit, the Schwab Bank debit card is branded VISA and works both as an ATM card (Interlink and Plus systems) and a debit card. When using at an ATM, there are no fees by Schwab and the exchange rate is within 1% of the interbank rate. Further, per Schwab bank, "...when you get cash from an ATM that adds on a surcharge we'll rebate the amount of that fee to your Account." The card has worked flawlessly for me in many countries.
Capital One Visa Venture card doesn't charge nay transaction fees either.
re Schwab debit card -- I have used it in France, Austria and Italy as an ATM card. Wonderful !! I move enough money into the Schwab checking account to cover trip expenses plus a "cushion" for emergencies, then readjust once I'm home.
@George, I hardly use my BofA debit card for purchases at home. So no, I have not used it that way in Europe. For that I have no-fee Capital One Visa.
"@Bruce, have you actually used your Visa branded debit card in Europe?" Yes.
Used my Schwab debit card a few days ago in France to satisfy a hotel bill. Not a hint of a problem.
