I got the cashback from FIA to my designated account (you could add and manage the accounts that you'd like to distribute your monthly cashback to). I guess I like it even better after it went away from Charles Schwab.

miles or cash
 

The same risk applies to many things, most notably cash. Cash has no guaranteed redemption value either, ever since the gold standard blew off. At least airlines have customer loyalty to worry about. Central banks mostly get cheers when they devalue.

Thanks for the lesson.

Given your point of view, I imagine you use your uncertain cash to buy FF miles at every opportunity.

Credit Union Cards
 

I'm going to start using my credit union debit card for many expenses -- since I just learned today that there is NO forex transaction surcharge AT ALL. This was suggested by a friend whose credit union credit card only adds a 1% surcharge. Also learned that Bank of America debit cards carry only a 1% surcharge when used in their "Global ATM Network" (which includes Barclays in the UK and DeutcheBank in Germany).

I'll give up the miles for the ridiculous surcharges the banks and credit card companies are ow gouging us with.

Please share which credit unions.

I use Velocity Credit Union, a local (Austin) CU that was originally the City employees' credit union but now has open membership (www.velocitycu.com).

I'm also told by a friend who works for the Feds and uses an associated credit union (don't know specifically which one) that their surcharge is only 1%.

I should have added that any transaction about which I would be concerned with fraud, etc., I would still use a credit card just for the protection factor. However, airlines, hotel chains, local transport, and the like don't worry me. However, even changing to the CU for just ATM withdrawals will add up.

The Chase British Airways Signature card today (Nov. 4) announced that they are eliminating foreign transaction fees, effective Nov. 1. Here is the link:

http://www.businesswire.com/news/hom...-Announce-Card

Great news! I'd been about to cancel my Priority Club Rewards card but held on since it now has no foreign tx fee and have a number of trips next year...but now may consider keeping the BA card.

Great news about the British Airways card. I would much rather use that than deal with Capital One's rewards program which is one of the worst redemption rates in the business.^

What is this about the Priority Rewards Card?

Oh Ok I see what you mean with Priority Rewards now. Only thing is that I am weary about this being too good to be true with the bank and Visa fees. Seems like Capital One has to reimburse 1% or something in the back-end to make it totally free on foreign transactions? Has anyone got their statement back yet and seen No FT fees at all with the Priority Club and the British Airways cards?

Yes, but when you use your BA miles to redeem for a flight award you will get charged very high YQ (fuel surcharge) that is MUCH more expensive than 3% on transactions. BA is now charging YQ even on AA redemptions. Better to stick with FIA.

Not sure I agree with that in all cases.

3% on $40,000 (=50,000 BA miles) is $1,200 which is more than YQ would be on such an award. The counter would be that most of your charges are not subject to the 3% foreign transaction fee. So it really comes down to how much of your spending are subject to the 3% fee.

Wirelessly posted (Mozilla/4.0 (compatible; MSIE 6.0; Windows 98; PalmSource/Palm-D062; Blazer/4.5) 16;320x320)

I tried both td and schwab (both debit) and got the exact same rate, plus no atm fees.

^ ^ ^

Now I just have to figure out what to do with my no-annual-fee CapOne cards. :D

The Nordstrom VISA Signature card has just a 1% foreign transaction fee. I only retain this card when traveling internationally.