i just got back from italy and found that my capital one credit card gave me a better conversion rate without any extra % fees. on the capital one they converted at 1.19 and my chase card was 1.21 plus an additional percentage fee. doesnt seem like much but i liked that capital one didnt tack on any additional AND was the better rate.

The associations charge 1% as a seperate line item. The banks can add a surcharge to this fee as per their contract. This amount can be from 0% to 5% for doing absolutely nothing. The result is that for a VI or MC you will pay between 1% & 6% for any foreign transactions. I did a little research and this is what I found out. Bank of America cards are all 3%, Chase cards are all 3%, HSBC is 2% eeck, American Express is 2%, Discover is 0% (but only good in North America), Nordstrom is 1%, most credit unions are 1%, Macys is 1%, Juniper Bank is 2%, US Bank is 3%, MBNA is 1% on some and 3% on others but will increase all cards to 3% as of April 2006, Capital One is 1%. I hope this information is of help to you.

I wish we could have a "sticky" within a thread! Then I wouldn't have to keep posting the link to the wiki:

http://www.flyertalk.com/wiki/index....reign_Exchange

They are charging the 1% fee as a passthru from VI & MC

According to documentation I have from Commerce Bank in NJ (and many other states) they absorb the 1% fee on all ATM transactions and POS transactions.

Also, Capital One correspondence claims that they don't have any additional fees. Not sure if this is correct:

"Thank you for contacting Capital One.

Currently, accounts are not assessed additional fees with foreign transactions. If the terms of your account change, you will be notified.

Your Customer Agreement is a good source for detailed information about charges and fees on your Capital One. account. If you have further questions or need additional information, please call us at 1-800-955-7070."

Your point is very well taken.

Thank you for contacting Visa. Visa itself does not issue Visa cards. However, many of our 21,000 member financial institutions (the banks) do. Effective April 1, Visa dropped the Multi-currency Conversion Charge (MCC). On that date, a 1% International Service Assessment (ISA) went into effect. The ISA will be charged to card issuing banks on cross-border transactions (i.e. where the Issuer country is different from the merchant country) whether or not currency is converted.

The ISA is not a currency conversion fee but a 1% fee levied on issuing banks for relative usage of Visa's global payment system. The fee Visa charges Issuers for international transactions support ongoing maintenance and development of the Visa global network. Since it is based on use of the global system, we believe it is an equitable way to pay for the costs of maintaining the global network.

Issuers are responsible for setting the prices and terms of the Visa cards they issue, including any charges associated with cross-border or cross-currency transactions. These Issuer pricing changes may not necessarily affect the effective cost to cardholders of using their Visa card to make an overseas purchase.

Each bank sets their own ATM fees and limits. Fees or transaction limits would be located on the ATM screen before completion of your transaction. You can also inquire inside of the bank regarding any ATM limitations or fees.

Any additional limitations or fees charged by the bank which issued your Visa card should be indicated in your cardholder agreement/contract with your bank. Please contact the financial institution that issued your Visa card using the address or telephone number on the Visa statement to inquire further. This number may also appear on the back of the card itself. The financial institution can directly address your inquiry.

To locate the nearest ATMs near where you will be traveling, we suggest that you use our ATM locator. For your convenience, we have provided the link:

http://visa.via.infonow.net/locator/...SearchPage.jsp

Please remember that you can also obtain an over-the-counter cash advance with your Visa card. Simply present your card along with a photo identification to the teller at any financial institution that displays the Visa logo to complete this type of transaction. You may wish to contact the local tourist bureaus if you will be traveling. They can provide you with assistance in locating ATMs and financial institutions.

Visa is committed to providing cardholders with a safe, convenient and cost-effective way to pay when traveling internationally. Visa cardholders receive, through their Issuer, an effective foreign exchange rate that is typically better than converting cash at a local currency dealer.

If you are interested in shopping around, you will find a list of several Visa member banks on our web site where you can inquire by phone or mail. Please go to:

http://usa.visa.com/personal/cards/index.html

You may also find additional information, including a currency converter, at:

http://usa.visa.com/personal/using_visa/travel_with_visa.html?it=h4|/personal/using_visa/visa_travelers_cheques%2Ehtml|Travel

We hope this information proves useful.

When did Capitol One start charging this? I'm not that surprised that they would add the 1% fee, especially since I thought the original start date for this was going to be 10/05. However, as of 1/06, there was no charge.

As far as I've been able to determine, CapitalOne is NOT charging the 1% fee on its Visa cards. I just got back from a week in Guatemala and Belize where I exclusively used my CapitalOne Cash Rewards Visa. I called them before the trip, and they confirmed that they do not pass on any fees. All my transactions were indeed at or below the interbank rates for the day, and no line-item fees appeared on my final statement, either.

So it appears CapitalOne Visas are truly the best way to go overseas--assuming you can use a credit card without the merchant tacking on a service fee.

CapitalOne does not charge 1% and I confirmed. See below:

Dear Bidhere23,

Thank you for contacting Capital One regarding foreign transaction fees.

Capital One does not charge any type of foreign fee based on currency exchange, transaction location or otherwise. Capital One does not pass through any fees from MasterCard or Visa. There is no Foreign Transaction Charge (FTC) fee, no exchange rate fee and no other fee for any international transaction.

If you have additional questions or concerns, please reply to this message.


Sincerely,

eCorrespondence
Capital One Services(R)

After receiving my last statement, I am pleased to confirm that Capital One VISA (and MC) cards do not even charge the 1% markup. In fact, in some cases the Euro exchange rate used by CapOne was slightly better than interbank rate listed at oanda.com. ^ ^ ^

As for ATM withdrawals, the Citibank markup for foreign currency conversion varied between .7% and 1.7% (not including Citi fees for using non-Citi ATMs, which are quoted separately).

One thing that I found puzzling was that both Citi and CapOne used different exchange rates for multiple transactions that occurred on the same day. Does the conversion rate used by Visa float throughout the day (in sync with the markets)?

(1) You will get the same exchange rate at the ATM whether you use a debit or or non-debit ATM card.

(2) I don't know if BofA charges fees to re-issue ATM cards. Check with your branch.

(3) Yes, you have $0 liability for fraudulent debit and credit card transactions. However, if the money disappear from your bank account due to debit card fraud, it may take days or even weeks before the bank completes its investigation and returns the money to you. In the meantime, your balance stays at zero You don't have this problem with fraudulent credit card charges as you can simply dispute them. That is why I don't use debit cards.

My experience with Mastercard charges (can't remember if I've used Visa overseas) is that they use the exchange rate in effect the day before the transaction posts. In effect they fix the exchange rate at the end of the day and use that for all transactions that post on the following day. So if you buy something on 3/1, it most likely posts on 3/2 so they use the 3/1 exchange rate. But then if you buy another item on 3/1 and the merchant delays in uploading the transaction and it doesn't post until 3/3, then they'll use the 3/2 exchange rate.

Beware, the 3% restaurant and 2% travel rebates on this card don't apply to foreign transactions. All foreign transactions earn a 1% rebate. I learned this the hard way after racking up lots of hotel and restaurant charges in Hong Kong. I could find nothing in their written materials or website about this. I spent over a half hour with an Amex CSR and her supervisor to get it properly credited, to no avail. I was told that Amex can't usually verify the type of transaction on foreign charges, so all foreign charges earn a blanket 1%. YMMV.

I did have that problem with a hotel in BCN. They asked me to fax the hotel folio, which I did. The credit was given the following month.

I wish I was given that option, although I had quite a few restaurant receipts, some only in Chinese. I guess it depends on the CSR you get. Now I use my Fidelity 1.5% rebate card on foreign transactions.