Originally Posted by ajnaro
Every time I have taken the time to check, the effective Citibank exchange rate, including the foreign fee, was better than the oanda.com interbank rate (with no added percentage) for that day.
I just called Citibank and spoke to a very convincing sounding representative in New Delhi who categorically stated that the new 1% foreign fee is the same 1% that was formerly bundled into the exchange rate. He said several times, in no uncertain terms, that Citibank itself, and not MasterCard, carries out the conversion from foreign currency to US dollars, using 'market rates' and then adding the 1% fee separately. According to him, MasterCard is not involved in the currency exchange and does not add any fee for any reason. The total cost of the new two-line entry is the same as the old system, at least according to the representative I spoke to.
1% total fee is fine on ATM transactions - if you typically withdraw $100-200 I think it's hard to find a better deal with any major bricks/mortar bank, particularly as some charge $5 per transaction.
I sure don't want to pay 2% - at least not without knowing it, and no offense but I'm not sure I would trust some CSR in India. A more authoritative source would be someone who has recently received a statement and can verify the actual rate used.
Addendum - from the T&Cs for ATM cards on Citi website:
Outside the U.S.
Outside of the U.S., you can use your ATM/Debit Card at more than 7,000 Citibank ATMs free of charge. However, if you get cash in the local currency at any ATM—Citibank or non-Citibank—then there is a foreign exchange fee that totals 1% of the transaction, in U.S. dollars. For example, if you withdrew 100 Euros at an ATM in Italy, and the value in USD was $125, then the 1% fee would be $1.25. This exchange fee is also applied when you use your ATM/Debit Card to make purchases overseas.
IMPORTANT NOTE: Please be aware that—inside and outside of the U.S.—other institutions may charge you for using their ATMs. These fees are beyond Citibank's control and are in addition to the fee that Citibank may charge for using non-Citibank ATMs.
If in fact Citi is adding an additional 1% in the form of an undisclosed markup included in the conversion amount, then it sounds like some class action lawyer is going to have a nice case soon.
