Not sure I understand the fees invoved with using a credit card. Help?

The problem with Amex is that it's very rarely excepted in Europe. I had problems in Scotland, France, England, Amsterdam, Ireland, Wales, and N. Ireland with my card. It's also not as widely excepted in the Caribbean either.

I ended up calling home and transfering money from my AmEx card to my debit Mastercard.

It seems that you DO understand the foreign transactions fee. Apply for a Capital One card if you don't want to pay a foreign transaction fee!

You assessment is correct. However, you would receive an exchange rate very close to the interbank rate. However, I would be concerned about the generally acceptability of the Am Express card in Europe. It is not as widely accepted as Visa and Mastercard.

Currently I have a Wells Fargo Visa card to use if AmEx is not accepted(I think their fee is 3%, but maybe their exchange rate is a little better?) and a WF ATM card, for when I need cash, but I'm assuming this also comes with a fee for exchanging currency plus an ATM fee from both banks.

I have heard Capital One is a good card for foreign travel, but I am overseas less than 2 weeks per year and I think the mileage offer with the AmEx might offset the higher percentage. 35,000 miles is equivalent to more than half a flight to Europe or a a free domestic trip and change. Any thoughts?

Michelle, CapitalOne has cards that offer cash back and other rewards too, including miles. The one I have now is 1% on all purchases and 2% for things like gas, supermarkets, and maybe drug stores. So, going to Italy this fall, if I charge as many hotels, restaurants, and purchases as I can, not only will I save on the transaction fees, but I'll get 1% of it as cash back too. You may want to check into their options and see if the Amex would be good for you. Also remember as Frank said, many places don't accept Amex in Europe. I just booked a bunch of hotels in Italy and every single one of them accepts Visa and MC only. So that may be something that factors in your decision too. Ultimately of course, you just have to evaluate the options and see what will be best for you. Just because CapitalOne has no fee doesn't mean it's the best deal for you! :)

With your WF ATM card you will get a good exchange rate but they have a $5 off-network transaction. If you use it take out as much as you can each time to minimize the transaction fees. Also check with your WF branch to make sure you have a withdrawl limit of at least $500.

You really can't blame merchants for not accepting American Express cards because they charge the merchant a considerably larger percentage of the charge amount than do VISA and MC. Even many merchants in the USA has rebelled at this. Hotel chains and the more expensive restaurants practically always accept American Express, but because of their higher prices they can afford to pass on the fee to the customer.

I carry a Virgin Atlantic Amex issued through the BOA as well as my BOA debit card and a Fidelity credit card. The Fidelity card has no fees at all. You are limited to the amount you have in your basic account with them. If you have a Fidelity account, it is worthwhile to call their customer service about this.

I use the Virgin Amex as much as possible. I have had no problem in England using it. I have charged train fares, hotels and purchases with it. Since I get 1 1/2 miles per dollar spent, I find
it extremely worthwhile to use. If someone will not accept the Amex then I use the Fidelity card. I do not use the BOA debit card except to get cash from an ATM...Barclays in England and Paribas in France. Their fees for charges are too high in my opinion.

I have also used the Amex in Paris, I always ask first if they accept Amex as it is to my advantage. I can understand that small places will not take it because of the fees but I use it as much as possible. You should always carry several cards anyway in case you have a
problem with one of them.

Michelle (great name, BTW)
I have Wells and Amex and didnt' like the nickel and diming of the cards.

I ended up opening a credit union account and left my Wells and AMEX at home.

My CU CC waived the foreign fee, and my CU debit also allowed me to withdraw up to 5 Non CU ATM's without fees.

If you have time, I'd check around. Capital one has a no fee one but there's been some issues here about them approving people.

Also, Mastercard provides less fee than Visa.

I used a credit card to secure hotel reservations in several cities in Italy last year. Every one gave me a 5% to 10% discount for settling the bill in cash (except for one night - the clerk spoke NO English and I, no Italian). I don't think they were trying to do "under-the-table" business, as all the bookings were on the internet and I got receipts for all the payments (to make sure there were no later claims on the credit card). I imagine it was just to avoid the credit card's merchant fees and - possibly - waiting for payment.

I use my ATM card for cash. It is $5 a pop, so I try to take the maximum, but I always get a great rate with no exchange fees.

Michelle, you have posted this comment before in several places ------ Mastercard provides less fee than Visa --- I have no idea what you mean by that. The fee structure for both MC and Visa are similar and ALWAYS determined by the card issuer once pass the network fee. My VISA card does not apply a currency conversion fees so a MC card could not have less fees.

The are no fees imposed in Europe by the ATM owner for using the ATM. In fact, ATM usage fee may be prohibited by local statutes. The results may be the same but your CU did not wave a "foreign fee." Rather they chose not to impose a fee on you for using a ATM that the CU did not own. Sometimes the terminology gets confusion as we often think that foreign means anything outside of the US. But US banks often use the term "foreign transaction" to mean that you used an ATM terminal that was not own by them and that terminal could have been in Scottsdale or Paris. It just means that bank doesn't own it -- not where it is located.