Quote:
<font face="Verdana, Arial, Helvetica" size="2">Originally posted by Steve M:
One thing that people from Europe or other countries often don't realize about US-based business is that most Americans spend their entire lives in the US, never traveling outside its boarders. </font>
I live in two different countries, travel sometimes in 2 or 3 countries in the same week. And the next border is always a few hundred miles away. For me, even 2% fee is better than changing notes at the counter !<font face="Verdana, Arial, Helvetica" size="2">Originally posted by Steve M:
One thing that people from Europe or other countries often don't realize about US-based business is that most Americans spend their entire lives in the US, never traveling outside its boarders. </font>
Quote:
<font face="Verdana, Arial, Helvetica" size="2">Originally posted by BeantownFlyer:
That was the exact discussion I had with AMEX 6 months ago when I came back from Paris - how can a VISA with a 2% fee have a much better rate than AMEX with a 2% fee? Eventually AMEX credited about $125 to my account (no doubt solely because I'm a good customer). But I was very disappointed - AMEX used to have great rates, now their conversion rates are awful, and even the rate their "currency by mail" service gave me was better than the rate for card charges.</font>
How did you manage to have AMEX give you the refund? <font face="Verdana, Arial, Helvetica" size="2">Originally posted by BeantownFlyer:
That was the exact discussion I had with AMEX 6 months ago when I came back from Paris - how can a VISA with a 2% fee have a much better rate than AMEX with a 2% fee? Eventually AMEX credited about $125 to my account (no doubt solely because I'm a good customer). But I was very disappointed - AMEX used to have great rates, now their conversion rates are awful, and even the rate their "currency by mail" service gave me was better than the rate for card charges.</font>
Steven
Steve M:
Visa USA handles the currency risk and conversion. That's what the 1% charge is for.
I cited an article from bankrate.com in the general travel talk thread. You might want to read that before concluding that there's any reason other than the profit motive for charging an additional markup.
For my money .. I'll choose a card that doesn't add an additional markup.
-David
I am not suprised that Amex foreign currency charges, stated as "the rate" plus 2% are higher than Visa charges with the same stated mark-up. I've found Amex effective rates almost always higher and I thus try to never use Amex overseas.
As for overseas costs of business being higher, I don't know about that but I do know of no reason why Amex' cost of overseas business should be higher than Visa's cost of overseas business. In fact, in many places Amex isn't accepted at all in mid-level stores and restaurants, but only at the higher end ones. Thus I'd think their costs would be less.
Mileage Plus Visa and MCs have only the 1% mark-up from Visa/ MC- First USA does not add anything to that. And they start from excellant rates, so I find I get a very good net rate from them.
As for overseas costs of business being higher, I don't know about that but I do know of no reason why Amex' cost of overseas business should be higher than Visa's cost of overseas business. In fact, in many places Amex isn't accepted at all in mid-level stores and restaurants, but only at the higher end ones. Thus I'd think their costs would be less.
Mileage Plus Visa and MCs have only the 1% mark-up from Visa/ MC- First USA does not add anything to that. And they start from excellant rates, so I find I get a very good net rate from them.