Go Back  FlyerTalk Forums > Miles&Points > Credit, Debit and Prepaid Card Programs > Citi | ThankYou Rewards
Reload this Page >

Foreign transaction fees with AAdvantage Visa?

Foreign transaction fees with AAdvantage Visa?

Old May 2, 2011, 7:29 pm
  #1  
Original Poster
 
Join Date: Jan 2010
Location: SFO
Posts: 384
Foreign transaction fees with AAdvantage Visa?

Hi - Is anybody else getting foreign transaction fees periodically on their Aadvantage Visa?

I have now gotten two. Citibank has gotten rid of both when I complained - but this time they were pretty defiant about it saying that Visa charges them 3% and they just pass this cost on to the consumer. Reading online it seems like most banks charge 3%, though Capitol One seems not to charge any fee whatsoever.

Is there any way around this? The last company that I got one from is based in the USA, but they do their banking out of England apparently (moneybookers.com). Their is no mention (that I can find) on their website of this fact, so that's pretty lame. (interesting note - when I called moneybookers I went to a call center in Sofia, Bulgaria. I'm not used to that and Bulgarian accents are much more pleasant sounding and easier to understand than Indian accents IMHO)

Thanks, and sorry if this question belongs elsewhere.


edit: apparently Chase BA Visas also don't have foreign transaction fees.
uoficowboy is offline  
Old May 2, 2011, 8:08 pm
  #2  
 
Join Date: Jul 2009
Location: USA
Programs: AA EXP, UA GLD, Bonvoy Titan, HH Dia, WoH Exp
Posts: 2,673
AFAIK, most Citi credit cards charge the foreign exchange fees, except for maybe the Chairman's card. Capital One, Amex Platinum/Centurion, Chase BA, Chase Marriott Rewards don't charge foreign exchange fees. There may be others. If you do a search, there should be a FAQ on this somewhere.
Time traveller is offline  
Old May 2, 2011, 8:31 pm
  #3  
 
Join Date: Apr 2009
Location: YYF/YLW
Programs: AA, DL, AS, VA, WS Silver
Posts: 5,950
As you note, nearly all US-based credit cards charge a 3% foreign transaction fee. (It is *not* a fee from Visa or MasterCard. Visa and MasterCard typically charge the bank 0.8% or 1.0%. The bank can choose to pass all, none, or more than all of that fee through to you; most, including Citi, pass more than all.)

The way around it is to use a credit card that doesn't charge foreign transaction fees. Capital One is the only major national bank I'm aware of that doesn't charge foreign transaction fees, as you mention. My credit union only passes along the 0.8% fee from Visa on a credit union credit card; I think that's common for credit union-issued credit cards. (Perhaps small banks too; I don't know.)

The extra 2.2 cents isn't worth the AAdvantage mile for me for foreign transactions, particularly because I do get (limited) rewards on my credit union credit card. Check the exchange rates, though....
ashill is offline  
Old May 2, 2011, 8:34 pm
  #4  
 
Join Date: Apr 2010
Location: SF Bay Area
Programs: Marriott Bonvoy Ambassador, AA EXP
Posts: 2,692
For those with the AmEx Platinum, foreign transaction fees are now waived.
Xero is offline  
Old May 2, 2011, 8:56 pm
  #5  
Senior Moderator and Moderator: American AAdvantage & TravelBuzz
 
Join Date: Nov 2007
Location: BOS
Programs: AA EXP, Marriott Titanium
Posts: 10,409
Since this query is less about AA or AAdvantage and more about credit card policies, we'll move this over to the Other Credit Card Programs forums for the experts there to chime in. Thanks! /Moderator
JY1024 is offline  
Old May 3, 2011, 7:08 am
  #6  
 
Join Date: Feb 2006
Location: Tokyo, JAPAN
Programs: UA, AA, *wood, (re)starting from scratch
Posts: 56
Chase United Visa

The Chase United Visa card (US-based) has also waived FX fees
Just tested mine in Japan last week!
LH1H7 is offline  
Old May 3, 2011, 7:27 am
  #7  
mia
A FlyerTalk Posting Legend; Moderator: American Express, Capital One, Citi, Chase, Credit Card Programs, Diners Club, Signatures
 
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,877
American Express, Capital One, Chase, Citi, and PenFed all issue some cards without foreign transaction fees, but you need to read the terms of your specific card to verify. To my knowledge all Citi AAdvantage cards are still subject to foreign transaction fees -and- the fee applies even if the foreign transaction is billed in US Dollars.
mia is offline  
Old May 3, 2011, 11:01 am
  #8  
Original Poster
 
Join Date: Jan 2010
Location: SFO
Posts: 384
Originally Posted by mia
American Express, Capital One, Chase, Citi, and PenFed all issue some cards without foreign transaction fees, but you need to read the terms of your specific card to verify. To my knowledge all Citi AAdvantage cards are still subject to foreign transaction fees -and- the fee applies even if the foreign transaction is billed in US Dollars.
Any idea if the fee is charged by Visa or by the bank itself? From reading online, it sounds like Visa charges a fee, but then the bank increases that fee. Accurate?
uoficowboy is offline  
Old May 3, 2011, 11:11 am
  #9  
mia
A FlyerTalk Posting Legend; Moderator: American Express, Capital One, Citi, Chase, Credit Card Programs, Diners Club, Signatures
 
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,877
Originally Posted by uoficowboy
...sounds like Visa charges a fee, but then the bank increases that fee.
Correct. The explanation that Citi customer service gave you is an oversimplification.
mia is offline  
Old May 3, 2011, 7:33 pm
  #10  
 
Join Date: Jan 2010
Posts: 396
Originally Posted by LH1H7
The Chase United Visa card (US-based) has also waived FX fees
Just tested mine in Japan last week!
I don't think this is true, unless you have the Mileage Plus Club Visa card.
samdori is offline  
Old May 4, 2011, 7:58 am
  #11  
 
Join Date: Apr 2003
Location: Tulsa OK USA
Programs: AA PLT
Posts: 620
So my question is, if you get one of the cards that does not charge the foreign exchange fee, do they just give you a worse exchange rate to make up the difference?
RachelG is offline  
Old May 4, 2011, 8:21 am
  #12  
mia
A FlyerTalk Posting Legend; Moderator: American Express, Capital One, Citi, Chase, Credit Card Programs, Diners Club, Signatures
 
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,877
Originally Posted by RachelG
... do they just give you a worse exchange rate to make up the difference?
No.
mia is offline  
Old May 4, 2011, 12:27 pm
  #13  
FlyerTalk Evangelist
 
Join Date: Mar 2006
Location: DFW
Programs: AA 1M
Posts: 31,437
I didn't realize that it was Visa charging the 3%. This makes Cap1's policy even more significant.
UA Fan is offline  
Old May 4, 2011, 12:28 pm
  #14  
FlyerTalk Evangelist
 
Join Date: Mar 2006
Location: DFW
Programs: AA 1M
Posts: 31,437
Originally Posted by mia
No.
Is there a way for us to test it, or do you know any group who has?
UA Fan is offline  
Old May 4, 2011, 12:34 pm
  #15  
mia
A FlyerTalk Posting Legend; Moderator: American Express, Capital One, Citi, Chase, Credit Card Programs, Diners Club, Signatures
 
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,877
Originally Posted by UA Fan
I didn't realize that it was Visa charging the 3%.
It isn't. VISA is charging the card issuer perhaps 1%. The issuer is charging the cardholder the amount specified in the cardholder agreement, typically ranging from zero to 3%.
mia is offline  

Thread Tools
Search this Thread

Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.