Just to add more uncertainty to what everyone is saying, I was told by a MNBA phone agent today that they have been collecting the 3% foreign exchange fee since January since that is what Visa now requires, and Visa gets to keep the whole 3%! She said they sent out a disclosure notice last November. Is there any way to get a definitive answer to this question other than to just wait until the bill comes and see what they do? Every time I call MNBA I get a completely different answer, so calling them doesn't work. Maybe it's time to get a fresh new card from somewhere else, with a fresh new set of printed terms and conditions. Then at least I 'll know where I stand - for a while at least.

same story
 

I called MBNA again and insisted upon being connected to someone who would know the right answers. That person went offline and came back a while later with the same list of 1% cards I posted above (plus First Financial Credit Union). She stated that the MBNA World Points scheme (a very weak rewards program) can be attached to any of the cards. She also stated that although the MBNA American Express cards are officially 0%, AMEX itself will add 1%. These MBNA AMEX cards have their own specific rewards scheme, different from both World Points and Membership Rewards.

Capital One and USAA are both still claiming that they will go to a total of 0% when VISA and MC drop their charges. Capital One has a rewards scheme; USAA does too, but only for the military.

I have a Fidelity card. I called to ask about the foreign exchange fee, and was told that a new fee will be in effect on and after May 25. She told me that I'll be receiving a letter explaining this change soon.

If this is true, then so long Fidelity card, an quite likely, so long MBNA. Paying 2-3% cash for FF miles is pretty dumb from where I sit.

I agree, but I can't find any satisfactory solution. Perhaps the MBNA American Express Platinum card, with a total of 1% for foreign charges? This seems to be attached to MBNA's World Points program, which above $15,000 spending gives a 1% cash rebate. The trick is that the Platinum card gives 2.5 points per dollar (for travel-and-entertainment type expenses, 1.5 for the rest) during the year 2005 and the first year fee is waived. It might be good for a year, until the situation with these new foreign fees becomes clearer.

All the CSRs give different answers, but that list above must be printed on something and not just a made up CSR response. Odd that Merrill and Schwab are exempted and Fidelity isnt, but who knows whats in their affinity contracts.

Instead of the going to an AMEX branded MBNA CC eventually pay a fee for the measly Worldpoints program, you might want to consider the no annual fee Merrill + MBNA VISA. WRT to redemption ease, it aint no Starwood, but its OK. After accruing 20k points in a year, you get a free Ritz Carlton nite w/o spending points. MBNA probably wont allow conversion to it, so a new app is required.

My suggestion is to have a different credit card for the foreign country or region you might travel to alot.

If you go to Europe, figure out a way to have a Euro based credit card.

I have a couple Hong Kong credit cards, as also my US ones. So I don't always have to pay a foreign exchange rate fee.

How did you get Hong Kong issued CCs w/o living or having a legitimate mailing address in Hong Kong or China ? Mailbox place ?

Does anyone know how a foreignor can get a foreign currency credit card (preferably miles earning)

For example I was wondering if I could walk into a Bank of America, open up a USD account and then apply and get a Visa checking Alaska Airlines credit card?? Possible?

What about other countries like England? China??

Can't do it unless you have a positive, established US credit history and a Social Security Number.

The only credit cards you're likely to qualify for as a new US resident, even if you had hundreds of thousands of dollars in the bank, are "secured" credit cards, where your credit limit (usually $500 to $10,000) is linked to the amount of money you have in a savings account. You're essentially borrowing against your own money with a secured card in order to establish credit. After a year or so of on-time payments, you'll be able to switch to an unsecured card and withdraw your linked savings account if desired.

Bank of America offers one of the best secured card programs out there, with minimal fees. And they're likely to approve you for one of their mileage-earning cards once you've established a secured credit card account with them for a year or more.

I certainly hope they'll communicate these changes to all cardholders in writing before the new fees (if any) take effect! :rolleyes:

But then you have to pay the bill in that foreign currency. How do you get it at a better rate that that offered by the credit card company?

I have bank accounts with attached credit cards here in Israel, in the U.S., and in Germany. I use the Israeli credit card only for domestic purchases, the German card anywhere in the Euro Zone, and the U.S. card everywhere else (and in cases, such as airplane tickets, where the original charges are in dollars).

Transferring between banks is not expensive as long as it is done in fairly large amounts (say $2000 or so). The problem is that non-US banks generally charge both for account maintenance and annual credit card fees.

In fact, I had considered closing my German account but when I take into consideration not only the savings on conversion fees but also savings on auto rental insurance it became worthwhile for me to keep it open.

Atm Fees
 

If you use ATMs and debit a lot you should check to see what other banks your's has international agreements with. ScotiaBank in Canada has agreements with Bank of America, BNP Paribas (France), Barclay's Bank (UK), Deutsch Bank and some Australian Bank. Also, ScotiaBank has branches in many places in Latin America and the Caribbean. At any of these banks you won't be charged any service charges on withdrawels so it is a pretty good bank to use.

I think they also have US dollar accounts so you wouldn't have to lock into Canadian dollars and potentially lose a lot of money, even though right now you may make money...

The drawback to Scotia is that the cards only run on the Plus and Interac systems and I've found that most international banks run on Cirrus which can make it frustrating if you're in an area where there are no ATMs that take Plus and you have no other card.