I used my US currency Visa card to buy a ticket in Canadian dollars. My statement included an additional service charge. "What's this?" I asked the bank. Visa charges two percent on every overseas transaction. "So, if I use my card on my holiday, Visa gets a 2% cut?" Yup.

It's not like they're giving me a great exchange either. I called a few other banks and they gave me the same bad news, Visa charges a premium when you use it with another currency.

OK, I plan to do a lot of international travel in the next year or two. Which US dollar bank and credit card combination offers the best deal for the international traveler? I'm looking for the best bang for my buck (maximum moola for my Marks, utmost utility from my Euros, paramount price for my Pounds, greatest good from my Guilders, etc.).

Thanks!

Comphrehensive treatment of this topic here...

http://flyertalk.com/forum/showthread.php?t=401958

I found the best deal with a credit union here in town. They only charged 1%

personally, I use an ATM and pull out cash. Better exchange, and again, my credit union has no fee for international ATM usage :)

Capital One ^, they do not charge any foreign transaction fees.

And don't be influenced by the cap one naysayers who have bad credit and expect a credit card company to give them the world. Capital One will issue cards to people with poor credit and then they complain about their low credit limits.

Since there is a very extensive thread in MilesBuzz on this subject, I am going to close this thread.

William