3% Fee on Foreign Currency Transaction
 

I just noticed this term:

Transaction Fee for Purchases made in a Foreign Currency: 3% of the amount of foreign currency purchase after its conversion into U.S. dollars.

Is this a normal procedure for a MasterCard? My MC from Chase always charges me 3% for foreign purchases. Any other cards that do not do this?

Fees seem to range from 1-3%. I use a Paypal debit card, and 1% is the norm there.

How about American Express?

I cancelled my AMEX card in the late 80's because they charged 2%. I don't know if they're still the same or not. Call up the customer service number and I'm sure they'll tell you.

Hard to understand
 

This seems to be the custom in the US. I have an European Visa, MC and DC and none of those charge any fee for Foreign Purchases. I think you Americans should not accept this situation. I think the reason for the fee is that most Americans never travel abroad so they don't care.

I was always telling people to use an MBNA card for foreign transactions, never to use American Express. Now it looks like my MC's and Visas all are charging 3%, and Amex is still at 2%. I'm taking my Amex (even though it is not as widely accepted).

Not so for all cards. MBNA is a mixed bag. Some cards only charge Visa/MC 1% others the full 3%. Capital One Cards only charge Visa/MC 1%.

MBNA is trying 3% on some cards. Says reason is high over seas fraud loss. Suspect tsastor is correct that most Americans do not care. However the volume of complaints here shows that FT Americans do. Since 1% is min and Amex is 2% and points are worh at least 1% I mostly use Amex or get cash with my debit card.

It's simple: American Credit Cards Companies are Greedy. Just look at how much various credit card fees have risen in past 5-6 yrs, not to mention 10 yrs. It's absurd! Credit card companies will continue to increase and create new fees, as long as enough American cardholders put up with it.

mshaikun - if you notice, I did say that MY mc's and visa's charge 3% now, there may be some out there that don't, but after checking on the cards I have, they charge 3%.

I noticed. That is why I said

"Not so for all cards. MBNA is a mixed bag."

There are MC's and Visa's that charge less. Even some issued by MBNA. You need to change cards or get separate card for international travel if you travel much internationally .

citi aadvantage your best bet

You're kidding right? It gets 3% on foreign transactions. Just got a Capital One Ultra offer based upon 80 points per dollar of ticket price. It only gets 1% of foreign transactions. My $220 US Airways ticket to LGA would be available at anytime for 17,600 points and I'd get miles when I used te ticket.

My Starwood Card gives AA miles. A $20,000 spend = 25,000 miles. beats CITI but as an Amex card it is not taken everywhere. Still it is my favorite card.

The real question is now much do you charge in a foreign currency when you are out of the USA. 1-3 thousand dollars may add only an extra 10-30 dollars out of your pocket. Is the concern really worth it?

The problem is that 3% is almost invariably greater than the value of the points, miles, cashback, or other quasi-currency one is getting, so it negates the benefits of using one's card. (This is because the interchange fees charged to merchants are rarely in excess of 3%, so the value of whatever the issuer gives you to keep you as a customer is naturally going to be at least slightly less than that, so they can turn a profit.)