Can anyone compare the exchange rates used by Capital One 1% cash back card versus the exchange rates used by Pentagon Fed. 1.25% cash back card? Pentagon Fed. charges a 1% fee for foreign currency exchange while Capital One doesn't charge a foreign currency transaction fee at all. My question is whether Capital One makes back the 1% in the exchange rate? I'm about ready to get one of these two cards for use during a family trip to Europe over the summer. Any thoughts would be appreciated. Thanks.