I can verify that Capital One, or at least the Miles card, does not charge a transaction fee. Although the rewards are pretty crappy.

As far as rewards cards, I did earn 5% through dividends card in supermarkets and gas stations in Canada.

Emigrant Direct
 

Try the Mastercard from Emigrantdirect (www.emigrantdirect.com), issued by Jupiter Bank. It charges 2% for foreign currency transactions but it offers 1.5% cash back so your net cost is just 0.5%, as cheap as it can get.

Are you sure that card only charges 2% and not 3%?

Regardless, CapitalOne's Cash Rewards Visa is still a better deal, since they charge 0% and give 1% cash back, for a net of -1%.

Also, the Emigrantdirect card is not 1.5% cash back. It's 0.5% cash back unless you have an Emigrantdirect savings account with an average daily balance exceeding $10,000, in which case you'll earn 1.25%. Where did you get 1.5%?

http://www.juniper.com/app/japply/lp...req=CCMPS06982

What's your source for this? I switched from a different MBNA card to Schwab because of this issue. Just spoke to a woman in their customer service department named Betty Brayburd who said that the Schwab card is 1 per cent for all foreign transactions and nothing's changing.

How about cash?

As of January '06 there was no foreign transaction surcharge for using my Amtrak MBNA Mastercard in both UK and France. Checked my statements carefully...what I was charged corresponded exactly with the exchange rate at time of transaction.

Citi Dividend card gave me the usual 5% for supermarkets and gas stations in Canada, and then another 5% - it must be some computer error - the bonus rebate portion I received on that statement cycle is much larger than I expect. Upon some analysis, I found that the spending in Canada earned double the bonus. So it was more than offset the net 2% charge (3% charge minus 1% rebate) on 1 night of Best Western on Vancouver Island. (We stayed with relative in Vancouver).

I dont have Capital One card now but if their policy remains the same, I might get one prior to our trip to Europe in September.

You pay far more in currency exchange fee if you use, say, Travelers Check.

Even ATM withdrawals using debit cards incur the foreign currency conversion fee. It has been discussed many times on this thread.

ATM conversion rate
 

I did two experiments in hong Kong with my b of a ATM card and the citi ATM at their respective bank owned ATM machine... both without any aTM fee charge.

the exchange rate for HK$500 at each terminal on the same day, within 2 minutes (3/2 and 3/13 twice). BofA has the best rate of $7.76 (at the official exchange rate published by the Asia Wall Street Journal) while citi is only $7.68 which is 1% less than the official rate.

If you need Chinese YMB$, the best way is to get it from the bofA ATM in hong kong, the exhange rate is at the official rate too... Y$8.02. I can only get $7.9 inside China using cash. ATM rate are usually lower at Y$7.8 Citi has ATM at all major cities within China.

As to credit card, I get the offical rate of Y$8.02 and HK$7.76 using my charless Schwab credit card without any surcharge.

Once again, the Harvard Alumni card issued by Juniper. NO foreign currency or foreign transactions cost period. They do have a rewards program and no you don't actually have to be an alumnus. That is as cheap as it gets. :) www.haacard.com

There was a WSJ article abt this very topic in February. I blv it said that Capital One was the best - with a card that has no exchange rate % fee.

I have the 1% cash rebate Capital One, and it's great. NO exchange fees. See the wiki for others:

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

You apparently can't read. Even though Juniper does not charge any foreign transaction fee, mastercard does and they pass it on. Just like everyone else. However, some banks add onto this fee and make it 2%, 3%, 4% or 5%. Read the last line here:
Terms and Conditions
Annual Percentage Rate (APR) for Purchases 9.49% variable*
Other APRs Balance Transfers and Convenience Checks APR: 0% fixed* is effective for the first six billing cycles after you open your account. After that, 9.49% variable.*
Cash Advance APR: 21.74% variable.*
Default APR: 19.99%*
Variable Rate Information Your APR may vary. The rate is determined monthly by adding the Prime Rate and:
1.99% for Purchases and this rate will not be lower than 7.99%.
1.99% for Balance Transfers and Convenience Checks after the introductory period and this rate will not be lower than 7.99%.
14.24% for Cash Advances, and this rate will not be lower than 19.99%.
See explanation below.**
Grace Period At least 20-days Grace Period for Purchases from the date of the periodic statement (provided you pay your previous balance in full by the due date). The Grace Period does not apply to Cash Advances, Balance Transfers or Convenience Checks.
Annual Fee $0
Minimum Finance Charge $1.00
Method of Computing the Balance for Purchases Average Daily Balance (including new purchases)
Transaction Charges Balance Transfer and Convenience Check Charge: 0% of the transaction amount.
Cash Advance Charge: 0% of the transaction amount.
Late Payment Charge: $25 for balances < $100; $29 for balances $100-$999.99; $39 for balances >= $1,000
Over Your Credit Line Charge: $0
Returned Check or Convenience Check Charge: $0
Purchase of money orders, travelers checks, foreign currency, lottery tickets, gambling chips, or wire transfers: 0% of the amount of the transaction amount.
Foreign Country Transactions: 0% of the U.S. Dollar Amount; however MasterCard will charge a Foreign Currency charge - currently 1%

See https://wwwa.applyonlinenow.com/USCC...=A000001VLY#tc

"Effective for accounts opened after April 30, 2006, a Transaction fee equal to 3% of the U.S. Dollar amount of any transaction made outside of the United States, or in a foreign currency. This fee will be in addition to any other applicable fee."

There is a great difference between not being able to read and simply not reading a specific item. Pointing out one is needlessly insulting, while pointing out the other is not.

I do hope this forum is not reverting to its old, rude ways. The moderators and all of the regulars have done so much to transform this place a pleasant place to discuss miles.