On a related topic, I recently returned from a trip to Europe, where I used my Chase Manhattan ATM card to obtain local currency in France and the UK. On my banking statement, there is the usual $3 Cirrus fee for each transaction.

There is also a new fee labeled "I'ntl 3.5% ATM W". This fee totals 3.5% of the amount of each transaction. My inquiry to Chase yielded the following response:

"In response to your inquiry, I have reviewed your account
profile and our systems indicate that the international
3.5% ATM withdrawal exchange rate that was deducted from
your account was the service fee for the international
CIRRUS ATM withdrawal that was deducted from your account
on the same day as the international 3.5% ATM withdrawal
exchange rate.

Please be advised that as of April 2005, the international
exchange rate appears as a separate transaction, whereas
previously, the transaction was combined. A fee of $3.00
is still assessed for each international CIRRUS ATM
transaction as well."

Can anyone shed some light on this?

Reindeerflame, I'm still totally bewildered. I'm looking at my two most recent statements, all transactions since 5/25, and I don't see the additional surcharge. Is it supposed to be a separate item on the same line as the purchase? When I check oanda.com, the daily exchange rate are very similar to the ones used by Amtrak MC. This seems true for exchanges from late May until late June, and for SEK and GBP (the two currencies I was using).

I think I understand why. Some MBNA cards (e.g., Amtrak, Fidelity) have NOT changed their T&C to add the extra fee for foreign transactions. MBNA cannot arbitrarily start charging you the fee until they notify you of a change in the T&C. Many people in these forums assume that because the T&C changed on their own flavor of MBNA cc, it changed for all MBNA cards, which is not true, at least not yet.

You don't see the charge on your statement because, for your type of MBNA card, there is no additional charge.

What you're saying makes sense, but Reindeerflame was talking about his Amtrak MC statement showing the surcharges as of 5/25. Since I have the same kind of card, I find it strange that mine doesn't (but far be from me to complain! I'd rather keep it that way, of course). I still haven't received any notice of additional charges... perhaps MBNA will send me some info ahead of 10/1?

That's very expensive. Your bank is charching you a $3.00 FEE PLUS a 3.5% Exhange Rate/FEE!
I have not had ATM withdrawals recently. Last time I used my NetBank ATM in Europe, they didn't charge me any fees!

I got my Visa (BankOne, Chase) today and found this:

EURO 383.93 X 1.2072 (Exchange Rate) PLUS 13.90 (Exchange Rate ADJ) = Total US$477.40. That is almost 3%!!! The Exchange rate is OK ... about what was the going rate at that day.

I am looking for a better card: Lesser fees - but with miles. Any advise?
Thanks.

University Federal Credit Union. Doubt that you can get it unless you work for U of Texas though

EmailKid

USAFAN,

Sounds like you and I had some nasty foreign exchange surprises recently.

I have always heard and read that getting cash from foreign ATM's was quite efficient. Chase's recent charge of $3 plus 3.5% seems exorbitant to me---I'm still trying to figure out if this is a new charge by Chase. Their email response to me seems to indicate that the charge has always been there, but is now being broken out separately.

I did not make an ATM withdrawal, it was a purchase (rental car, paid with Visa Credit Card).
That was the first and only time I got such a charge ... and I am going to change this!

I am looking for a low fee credit card (<= 1% for foreign charges) and miles for BA, Delta or Starwood .. I have already Amexco Delta and Starwood cards .. I assume, they also charge an "arm and a leg" now.

AMEX hasn't changed their 2% forex fee. However, some people have reported that they have gotten bad exchange rates using AMEX, though I haven't had that experience. I think this was the subject of a class action lawsuit (my friend got a whopping $0.23 check as part of the settlement!).

In terms of a direct mileage earning card, I don't know of any that only charges the 1% fee. MBNA Amtrak came the closest, but apparently they are now charging 3%. I think the current best card is the Capitol One Visa that gives you 1% cash back. I like this better than a "rewards" card because cash is a lot easier to use vs accumulating points especially when it isn't your primary card. However, I think you need to be targeted to get the cash back card with no annual fee.

The latest T & C' for my Amtrak says it does charge the 3%. But my MBNA AAA Visa charges only the Visa 1% so far. I received the new T & C for both cards the same day. They are different.

Ok, I'll request new T&C for the Amtrak MC, because I've never received any. What's more interesting, though, is that charges from late May to late June haven't attracted the 3% surcharge. I just used the card for new forex charges: we'll see if this time they add the 3% (and that'll be the last time this card gets used).

I also got a check in the amount of $0.18 because of this Amex class action lawsuit!

I prefer REWARDS-cards over CASH-BACK cards.

Thanks anyway.

A bit late on this, but there is a thread on this in the Visa/MC forum:
http://www.flyertalk.com/forum/showthread.php?t=455351

Chase's explanation that this is a Cirrus fee is pure BS as presumably every other MC-based debit card would also be charging this extra 3.5%. Citi for one is not...

If you want rewards, SPG Amex is probably your best bet in general for forex purchases. Right now Amex Delta is the best with the double miles promo (this is the card I'm using right now).

But saying you'll only use a rewards card is IMHO very short sighted. You know the airlines are willing to sell you the miles at a grossly inflated 2.5c to 3c per mile. If you use Citi AA, Chase United, etc., you're paying 3 cents per dollar spent to get 1 mile per dollar. If you go with a 1% back card with a 1% forex fee, you're paying a net of 0 cents per dollar. So for the privilege of earning miles, you're paying an extra 3 cents to earn 1 mile. Maybe worth it if you need the miles immediately (due to fees they may charge you to purchase miles), but I certainly wouldn't do it.