Did Visa/MC Increase Foreign Currency Conversion Fee?
 

I checked with my credit card banks today to see what the fee is for foreign currency conversion. Was told by both Chase and Citibank that both MC and VISA charge a 2% fee, and the bank also charges 1%. I could have swore that this used to be 1% by Visa/MC and 1% (or 0%) by the bank. Was this changed recently, or were the service reps misinformed?

That's gotta be some kind of misinformation or spin being applied by Citibank and Chase. Just to be sure, I called Visa (1-800-Visa-911) and the rep there confirmed they only add a 1% service charge. Anything above that is your credit card issuer reaching into your pocket.

Just for kicks I called Mastercard too (1-800-MC-ASSIST) and posed the same question. The rep there confirmed the same thing -- they only add 1% to their foreign currency transactions.

Looks like Citibank and Chase are blowing some hot air your way. Doesn't surprise me at all.

The insert in my July VISA (United -First USA) states that effective the first day of the billing cycle that includes Sept 1, 2003 (which could technically begin in mid August?) the foreign currency transaction costs will change.

"Transactions in Foreign Currencies. Visa and Mastercard convert transactions in foreign currencies into U.S. Dollars and add 1% to the amount. We now will add an additional 2% to the amount Visa or MasterCard provides to us."

Suffice it to say, this is one card staying "at home" from now on.

FirstUSA made that change a couple of years ago, but only now are disclosing it, probably because of recent lawsuits.

QL

Does all this foreign currency fee stuff apply to credit/charge cards only, or does it also apply to debit cards as well.

I have a Citibank MC Debit Card and a Citibank MC Dividend Rewards Card among others. I am pretty sure in total the MC Dividend Rewards is 3% total (1% by MC and 2% by Citi) but is the MC debit card also the same structure? Thanks.

[QUOTE=STAM4NICK]Does all this foreign currency fee stuff apply to credit/charge cards only, or does it also apply to debit cards as well.
[QUOTE]

Good question. My guess would be that if you use the card as a Visa/MC in a signature transaction, then Yes, you will get charged the 1% Visa/MC fee AND the 2% Citi transaction fee.

But if you use the card in an ATM or debit transaction involving a PIN, then you might escape the the fees since your transaction is handled by the cheaper ATM networks (Cirrus, Plus, Maestro, Star, etc) and thus may escape the 2% transaction fee. I'm not sure if Cirrus, Plus, Maestro, Star, etc. also have a 1% conversion fee of their own.

[QUOTE=anthonyanthony][QUOTE=STAM4NICK]Does all this foreign currency fee stuff apply to credit/charge cards only, or does it also apply to debit cards as well.
I suspected the same as well. That is just more money right out of my bank account then, rather than onto Credit Card, where it can at least be disputed before the money has been deducted. But now I wonder, if I use a debit card, get the 1% Visa/MC fee, and it is my Citibank debit card, will I get 2% on top of the 1% so a total of 3%? I always find the foreign exchange rates via an ATM the best, so if I use my card I use at the ATM (i.e. a debit card with MC and Citibank for example) would I get that better exchange rate if I used it as a debit for a purchase. (We all know that AMEX/Visa/MC all get us with a determined by them bad exchange rate then add thier own percentages.)

That is an other good question if Cirrus, Plus, Maestro, Star and NYCE etc... have their own foreign currency conversion fees i.e. 1% when used in PIN based transaction, but how many of us use PIN based transactions? The banks obviously charge a fee to us when using out of network ATM's for cash, who in turn probably get charged by Cirrus, Plus, Maestro, Star and NYCE etc... most of the time.

Thanks for your reply.

I have the Farm Bureau Bank Visa and i thought they only tack on 1% onto Forgein Exchange..but now I guess the cheapest is MBNA?

I used my US ATM card (not Citibank), which has the Plus logo, to get money out of an ATM at the Singapore airport. I checked the Interbank currency exchange rate on oanda.com for that day, and according to my calculations I was charged exactly a 1% conversion fee. My bank did not charge any network fees.

If Citibank charges you an extra 2% for a similar ATM transaction, I would consider that a pretty slimy practice.

RE: Your 1% ATM Fee
 

Does the ATM card you use have a MC or VISA symbol on it ?
If so, then I guess that exactly 1% fee went to them.

If no MC or VISA symbol on the front, who get that 1% at the ATM ?

My WAMU debit card does not charge any additional exchange fees when using it as a credit card; my Citibank and Wells Fargo both charge 3%. Obviously it varies by bank and by product so check them out!

PEACE!

This stuff keeps changing
 

I had a First USA card. Then Bank One took them over--everything changed including the travel awards program. I had made my mind up to look for a new card for three reasons 2% additional currency surcharge by bank, limit on dollars charged to earn travel miles and now a new $49 dollar annual fee to use the travel miles rewards program in addition to a $49 fee for the card..YIKES>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>
Now I hear Bank One is being taken over by Chase....

I was going to look for a new card, maybe MBNA to get a better deal on travel rewards but don't know about Chase....

Whatcha think?

The card has a Visa symbol on it, as well as the Plus ATM network logo and the MAC ATM network logo. I believe that my foreign ATM withdrawal transaction was handled by the Plus network, not the Visa network. The receipt has the last few digits of my bank acct number, not the Visa number.

I think Visa would not get the fee unless I select the "Credit Card" option on the ATM. Only then would the transaction have been handled by the Visa network, like debit card transactions and cash advance transactions.

I believe the Plus Network is owned by Visa anyways, which would explain the similar 1% fee. Similarly, I think Maestro (and Cirrus?) are owned by MC, and probably have the same fee too.

I've read reports of people who used an ATM and got charged no foreign currency fee, so maybe their transaction was handled by one of the other ATM networks like AFFN, MAC, NYCE, The Exchange, Interlink, Star, etc.

Oh the power of Google. In the last few minutes I've found out the following:

Cirrus and Maestro are indeed owned by MC.
Plus and Interlink are owned by Visa.
The Exchange have ATMs in the USA & Canada, not sure if they are foreign transaction free..
Star and MAC are now the same company, and only have ATMs in the USA.
NYCE is only in the USA.

Perhaps the ATM networks didn't charge foreign currency fees once upon a time, and those days are now gone since Visa/MC gobbled them up...

AFFN (http://www.affn.org/), a military ATM network with international ATMs, is not available to most.