themicah

Where are you getting your numbers? Currency markets are volatile so the rates can vary quite a bit from transaction to transaction, but in my and my friends' experience, Schwab gets as-good or better rates than any other card we've tried. And we've done some pretty thorough real-world testing.

Happy

How do you determine the 3%?

I believe you misunderstand the mechanism.

Remember:

1) Currency markets can be really volatile, even during the hours of the day... not to mention between days.
If you dont believe it, check some historical rates on some particularly volatile currencies, such as Korean Won and Australia Dollar - especially in the months of March to April...

2) The conversion is done based on the day the transaction is POSTED to the card, NOT the transaction is authorized, i.e. when you used the card for the purchase. The 2 dates can be a few days or a couple weeks apart - I have had some purchases made in Sapporo, Japan that do not get posted until almost 3 weeks later - during the interim, Yen as gone up against USD from 97 Yen per USD to 93 Yen per USD when the transactions finally posted.

In this case, the rate used to post, definitely is HIGHER than the rate was when the transaction occurred, and it is higher by 4.3% - BUT, it is within the 0.5% variance when comparing to the historical rates fround on XE site for the date the transactions were POSTED. So Schwab clearly does not charge a higher rate, but a market rate that is very close to the mean of Interbank rate of the date when POSTING occurred.

That is just how things work - a draw of luck. It could be the other way round! Such as during the early part of this year when USD was getting stronger when the stock market was plunging deeper, between Feb and Mar - you would have better rates when transactions are posted!

The rates Schwab Visa used are highly competitive from our experiences.

ziobacio

You are mistaken. Please post more details: date, original charge in non-US currency, amount charged on your CS Visa, etc.

I've used this card many times, in many countries, and at most I've seen a difference of 20 or 30 basis points over that day's exchange markets.

Antipode

Another Q: The statement period closed, I got some points, and then the end of the month was a few days ago. I see on the detailed points history that they had deducted my points balance in a sweep with a transaction date of 10/1 and posting date of 9/30. The deposit hasn't hit my brokerage account yet. Should I be worried that something isn't working right, or will it take a few more days for it to finally deposit?

jbalmuth

I think that it'd be worth posting the specifics of the transaction so that we could help you verify this.

One of my first uses of the card was extremely problematic --- it appeared that a HUGE (e.g. 3 - 5%) surcharge had been added .... and it took me several months to understand what had occurred. In the end it turned out that the Internet vendor had submitted a USD charge to FIA, and not the GBP charge that they confirmed to me on the bill of sale and receipt. The vendor knew that I was a U.S. based customer (they require address and zip code for the cc authorization) and decided to pocket a massive FX surcharge by translating the GBP amount into USD before submitting it to VISA. I contested the excess charge through Schwab customer service, and forwarded to them the bill of sale, and they credited me the disputed amount.

This "apparent" issue taught me 3 things: 1. don't assume anything regarding FX surcharges until all the facts are at hand, 2. don't underestimate the ability of a good CS phone agent to help make things right, and 3. don't buy anything from a certain disreputable LCC airline based in Ireland unless you're prepared to be nickeled and dimed to death.

jimbaum

Recently, RBS announced that they are quitting my Cash Rewards program (3% back on highest category, and I was charging a lot of medical/pharms). They are converting all to 1% only.

I am looking for an alternative card now and cannot decide if the Schwab Visa or Fidelity Amex cards (both 2% cash back) are better for me for the following reasons:

1) I do all of my 401k, IRA, 529 with Fidelity. My company is set up with them
2) I do all of my stock trading with Scottrade ($7 per trade).
3) I have never had any accounts with Schwab
4) I churn a lot of citi AA cards and my inquiries are always pushing limits
5) I do moderate Mint coins for miles, rooms, etc. and may be able to earn some cash back as well with the new card.

Please let me know what you would do and why.

TIA!

Happy

It took quite a few days in July to have the sweep showing up in my SchwabOne, like on 07/06/09, when the card side said it was swept on 06/30 and posted on 07/01. The weekend and July 4th might have something to do with that.

I have not seen Sept's sweep showing up in brokerage account yet. It may be until Tue or even Wed for it to show up... I also would call the card itself to change my statement date from the 3rd of each month to may be 27th of each month. I am tired of waiting an extra month to see my rebate, eventhough I currently just let it sit at SchwabOne, given it is not a large amount. But still, I want to see my money right after the end of month, instead of another 35 days later.

Happy

Well, not just Ryan would do this. I suspect merchants based in UK have tendency to do such... A Hertz franchisee did exactly same to me, despite the billing currency on the contract was in GBP, the franchisee at Liverpool airport submitted the bill in USD... Worse, the franchise at the time of car return, would NOT even produce a receipt! It insisted that the only way I would get a receipt would be to go online several days later... I could only manage to have the counter agent hand-wrote on the contract that the car was returned on time with her signed and dated it.

The padding in my case, was not as bad as yours - it was just about 3% on the conversion, and was like US$7xx extra that I should have paid. I decided not to pursuit because of the amount was not a whole lot. OTOH, I really should, so the merchant, in this case, a Hertz franchisee, would get the message.

Antipode

Thanks. I guess I'll wait a little while longer.

pawtim

Wirelessly posted (BlackBerry8830/4.2.2 Profile/MIDP-2.0 Configuration/CLDC-1.1 VendorID/105)

I've had a Fidelity MC 1.5 percent card for years, and I've liked using it, but it has an annual cap of $1,500 that suddenly has come into play for me, so I needed to make a similar decision.

I decided to switch to the Schwab card.

Main reasons were that Visa is more widely accepted than Amex and I like that there's no forex fee. Opening up a SchwabOne account was easy over the phone (they mailed me something to sign) and requires no minimum balance if you have the Visa. I didn't switch any holdings into that account.(As of now.)

These are both administered by BoA, so after I got the new Schwab card I had them switch the credit lines so the new card has the bigger line I've worked up over years of being a good customer.

Another potential and minor difference *might* be if you want to generate virtual account numbers -- I don't know whether that can be done with the Amex -- I could not do it with Citi Amex or SPG Amex, so it may be something that's just not done with the shorter account numbers. (I don't have a BoA Amex and so I have no experience there.)

As far as advice, I think the differences between the two choices are very minor and it's just personal preference which one you choose.

Happy

No, AMEX of any kind is not able to generate virtual account number - that is the reason given on Citicards website that one cannot set an AMEX card as a default card (the first one on the account summary page).

josephstern

I've learned that, in any type of vaguely touristic location, to specify without being asked that I'd like to be charged in pounds/euros/whatever is local. Fortunately, the first time this almost happened to me, the clerk asked "euros or dollars?" and she gave me their conversion rate, and I swore it off once and for all.

josephstern

I tried doing this from a different old BofA Visa, and they told me that they couldn't do this any longer. I called back, and the next rep told me I needed a different registration (co-app with my wife, who is on the old Visa, versus a single app for me). So I submitted a form to add her as a co-app. They seem to have never processed it.

In the end, I faxed over some tax returns, got the credit limit I needed, and the old card sits in a drawer, hopefully helping keep my credit score up.

Happy

Actually I forgot to add - Avis at Zurich in-town office even "conveniently" forgot to UNCHECK a box about customer accepts the currency conversion to USD, despite I told the manager that we wanted to be billed in Swiss Franc.

I noticed the English translation of the contract has a clause, stating the customer was informed, and agreed with, to be billed in USD!!!

I pointed this out to him, and he said, "Oh, I forgot to uncheck the box, because the acceptance is a default..." Then he typed something and said it was now fixed - but he wouldn't print me a FRESH contract, nor the new English translation.

Upon return the car at ZRH airport location, I handed the counter the contract in German with our crossing over the clause about customer acceptance billing in USD, and asked the agent at the counter to double-check. Sure enough, the guy had to go into system, and again, typing a lot, then, said, "yes, you are now billed in Swiss Franc, I have changed it." So the manager at in-town office was either not knowing what he should do, or deliberately not doing it, as he would not give me a Fresh printout after he claimed he fixed it.

In the case of Avis, the padding was close to 9%! Crooks!

I would contest the charge should the final charge show up in USD, but it showed up in Swiss Franc correctly at the end.

My experiences with purchasing tickets on LCCs website (EasyJet in UK, ClickAir in Spain, Virgin Blue in Australia), there always seems to have box to check, or uncheck, depends on the design, on whether you will be billed in their currency or your home country currency. The box appears before the final submit button. Must pay attention to notice it and properly handle it.

jphripjah

Does the Schwab ATM card still rebate foreign ATM fees? I ask because I went to Europe in August and made about 12 ATM withdrawals in seven different countries. I could have sworn that some of them charged fees, but I can't be sure. Anyway, I got no rebates at all for the whole month, which makes me wonder if they no longer rebate foreign ATM fees.

On the plus side, they still rebate the exorbitant ATM fees charged at a "gentleman's club" here in Las Vegas. The machine there charges $15 for every $100 withdrawn. Last time I was there I withdrew $500 and Schwab reimbursed the $75 fee.