westie2 -- Citibank's surcharge consists of two parts: 1% imposed by MasterCard (same goes for VISA), and additional 2% imposed by the Citibank itself. While you can't avoid 1% surcharge imposed by VISA/MC, you definitely can avoid those extra 2% by switching to MBNA cards (e.g., Amtrak MC, GoldPoints Rewards VISA - no annual fee and no additional bank-imposed fees for transactions in foreign currencies). Amtrak points can be converted 1:1 to United, Continental and Midwest Express Miles, and GoldPoints can be converted to many airlines (at a ratio of 4 points to 1 mile, provided you join GoldPoints program through Radisson - important!).