Any MasterCard left that still charge 1% for foreign currency conversion?

Capital One issues MasterCards that as of April 1, charge 0% for foreign currency transactions. This may go up to 1% or 3% any time in the future, however...no one knows.

Using a MasterCard abroad is about to get more expensive for many consumers.

MasterCard International Inc. says it plans to charge fees for all card transactions abroad, not just those where it converts to dollars purchases made in a foreign currency. Earlier this month, Visa USA Inc. started levying a 1% fee on every charge made outside a cardholder's country. American Express Co., meanwhile, charges a 2% fee for transactions abroad where currency conversion occurs.

MasterCard says that starting Oct. 1, it will charge issuers a fee of 0.8% on all transactions when the card holder and merchant are from different countries. The company also plans to levy an additional 0.2% whenever a merchant's foreign currency needs to be converted. The new fees apply to users of both MasterCard credit and debit cards, and include ATM withdrawals and debit-card purchases.

Previously, when someone used a MasterCard or Visa while traveling abroad, the companies added only a 1% fee for purchases that required currency conversions. The banks that issue credit cards would frequently add their own fees, resulting in total currency-conversion charges as high as 3% in some cases. But travelers previously could avoid those fees by shopping at a growing number of foreign merchants that allowed travelers to use their cards to pay in dollars. For example, a car-rental agency in Europe would figure out the cost of a rental in dollars, and charge your card that amount. Merchants, however, charge a fee for doing that.

The new MasterCard fees will be charged directly to the issuer and as a result, won't show up on credit-card bills as part of the transaction amount. If the issuers decide to pass along the fees, consumers could face fees from both the merchant and the card issuer for the same transaction if the transaction is done in dollars.

Some banks such as J.P. Morgan Chase & Co. are choosing not to pass along the new fees and plan to continue to charge consumers only for purchases where MasterCard converts the currency. However, other issuers, including MBNA Corp., HSBC Holdings PLC and Capital One Financial Corp., plan to begin charging fees for all MasterCard transactions abroad.

Looks like Capital One MC will be 0.8%-1% come October 1st.

Yeah, great. But Chase WILL be charging us 3% (a profit of 2%) when Capital One will still just charge us whatever MC or VISA charges them.

The way MC International is quoted above it would mean that this would also apply in Europe if a French cardholder made a purchase in Germany even though the Euro is the same for each country.
The question is are they going to appy to rule equally to Europe or are they 'discriminating' against US cardholders== and if so, maybe Elliot Spitzer will get into the mix

Thats what the whole lawsuit against MC/VISA was all about. MC is no longer charging the CC user, they now charge the CC issuer. If the issuer in turn charges us, thats not MCs problem or liability.

It seems all that MC wants is its 1% that it charged in the past, that is until those law suits came along and made them change that practice. So the consumer won (Im sure the liers a/k/a lawyers did better) but now we will pay even more as now even US$ transactions will cost us 1% where there wasnt any fee B4 this. I just LOVE how the those who are out for the consumers best interests help us so much.

I guess MC can be in a bind legally if they didnt apply it across the board. Cap One still seems the way to go as it was 1% by MC till now and all that will change is having to pay the 1% on even US$ trans. While the majors will charge us their 3% and then MC will still charge their 1% for a total of 4% or will the Banks go down to 2% and add that to MCs 1% for a total of 3% still. I dont see the Banks giving up any part of the 3% it will be charging at all.


some will say whats 3-4% well if you go over once a year and dont spend much , maybe not much. But I usually have anywhere from 10-15 Intl trips a year and it will add up very fast. Guess Cap One its gonna be.

Yeah, but some Hotels (even 4 star ones) in Europe have recently started to automatically offer to charge US credit cards in US$. But they assess their own currency conversion fee at the hotel counter rate. Usually around 8% !

So the potential discount you said MC has now eliminated is sort of a scam anyway, or at least you really have to watch yourself.