About a month ago I made some purchases in Canada using my Citi Dividend Card. Two weeks later I noticed a charge that showed up as PURCHASES*FINANCE CHARGE*FOREIGN and figured it must have been associated with those charges in Canada. Finally had a chance to call tonight and was told by the customer service rep that all foreign transactions are subject to a 3% fee.
In the past I’ve used my Discover Card and have never been charged foreign transaction fees. Most of the time I’ve found credit cards are usually the best way to convert money when abroad, but now it looks like I need to be a bit careful.
I’m curious what others do when traveling out of the US. What Visa/Mastercard are you using and are you charged transaction fees?
Comments (13)
When I traveled through Europe two years ago, my Visa check card was my primary source of funds. My bank allowed 8 withdrawls a month without a fee (and a minimal one if I went over), and there was no transaction fee for foreign purchases. I mostly used it as an ATM card, but it came in handy when I needed a credit card (usually on the day I planned to leave a country, and its currency, and I was short on local cash). Also, the exchange rate was fair, probably similar to what a credit card company would charge.
Citibank, as you discovered, charged a 3% transaction fee, so I only used it once when I didn’t have enough in the bank to use my other card. I’m not sure if businesses in Europe take Discover, and I didn’t bother to bring it with me when I traveled.
My husband and I have both used our Citi cards in Europe and not run into that fee. Maybe there is another Citi card you can consider changing to if foreign travel and purchases are crucial to you?
England is moving to a “chip and PIN” credit card system, and within the next year or so many merchants may not allow the “old” cards that require signatures. So I’ll have to check with Citi before we go again, anyway.
I just talked to Citibank about this as I too saw a 3% foriegn transaction fee on my account. I was told that Citibank always charged the 3% fee and has been doing so for the last 17 years. However, earlier they would just bundle it up in the charge and now they are showing it as a seperate line item. They also told me that Discover and Amex charge the 3% too. I am going to make more calls to other credits to find out if this is true.
Capital One only has a 1% fee which used to be bundled with the conversion rate, but is now stated as a foriegn transaction fee. I believe 1% is the lowest fee, and it was the one that was “always there” . The Citbank and others now charging 3% are just charging what the market will bear. Now that everyones fees are out in the open and not bundled maybe we can help them mend their ways.
Imagine my surprise when I charged my daughter’s Canadian tuition on my VISA card - $12000 and then a 3% FTF! I am looking for another way to pay going forward!
Similar to the comment by Ramesh, I was told by Citibank that they had always charged the fees but it was bundled within the original charge and now they are showing it as a separate line item. I just checked with Bank One (Visa) and they too charge 3% fees. Amex charges 2% fees. Damn, didn’t even know about this for last 8 years and had used it at various countries. Just because Citibank is now showing it as a line item everyone is being aware of it.
I JUST CAME BACK FROM VACATION. I WAS USING WASHINGTON MUTUAL DEBIT\MASTERCARD THEY CHARGED ME 1% FOREGN TR FEE. WITHDRAWALS ALSO WERE CHARGED 1% , BUT THE CONVERSION RATE WAS HIGHER ( ~ 1% MORE).
Hi
I have been using my Citibank Master Card (debit card) for all transactions outside the US since April 2006 and they usually charged 1% even for withdrawals from any ATM. They have announcd this month that effective Dec 2, 2006, they will charge 3% for all foreign transactions. Very dissappointing.
Use Capital One! They charge no foreign transaction fees on their credit card at this time. See website below:
http://www.indexcreditcards.com/internationaltransactionfees/
The problem with Capital One is that their CC is no t widely accepted outside the US. In Singapore e.g., merchants I’ve approached have not heard of Capital One, much less would accept it.
I had the same issue. I was told that before they did not specify the foreign transaction fee in a separate line so it was embedded in the purchase. As always, these companies try to sneak some charges…
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