I didn't mean my prior post to imply that I approve of DCC- I think it's a big scam getting the merchant to cram fees down your throat.

At this risk of repetition, I suggest that, if possible, you never sign a chit in USD when overseas as that implies acceptance of that surrency. If presented with a chit in dollars, ask them to change to one in local currency and if they can't, pay another way like cash.

If you're in a situation where you the charge shows up later in dollars, I think you do have a valid objection with your CC company if you can show you were supposed to be billed in local currency, so keep your paperwork-eg. rate sheet upon checking into hotel, etc.

Finally, the Hertz deal. I haven't looked at Hertz overseas but I did rent from Avis in Europe a little while ago. They use an "opt-out" system where they have a box you can check on the rental agreement if you want to pay in local dollars, otherwise they use DCC and you pay in expensive dollars. I thought I read where Hertz was doing this toom though I can't say for sure. Technically, you can opt out of these but renting a car overseas, often in a foreign langauge, is confusing enough. If this happened to me, I would write Hertz and tell them to stop goosing their customers.

I have noticed in reading the terms of the BMW card that it has absolutely no fee for foreign transactions listed in its terms and conditions. I have read it completely word for word and it looks to me like foreign transaction fees are not included. If that is the case then the BMW card is a great card to use internationally. The customer service is good at BMW. The only other card that is free of fees is apparently crap one and their customer service is bad, actually awful. So between the cards I would prefer the BMW card.

Exercise your billing error correction rights under the Fair Credit Billing Act as outlined on every statement you get.

Send a letter (only a letter will do--no 'phone calls, faxes, or emails) to the special billing error correction address on your statement (hidden away somewhere) and dispute the charge. More info at http://www.bankrate.com/brm/news/cc/20031111a1.asp

Note that a charge in the wrong amount is a billing error under the Act. And, once you assert a billing error in writing the burden of establishing the correctness of the charge shifts to the merchant.

If some FTers start doing this with DCC I suspect that will give, e.g., Hertz a costly kick in the ... and an incentive to stop. Billing error disputes are costly for the merchant. Plus, you are very likely to get your money back.

I know I can try the billing error route regarding the Hertz DCC billing.

However, the amount involved is less than $10 in absolute dollar. Not worth the time and effort, even for the common good, imo.

Furthermore, it does show the CORRECT GBP amount, except it used an exchange rate that is 3% higher than the prevailing rate to convert it to USD.

I am not sure this can be called billing error in a strict sense. How do you dispute the exchange rate?

There is NO opt out box to check on Hertz contract we signed at Edinburgh - and that is a Corporate location, if that means anything.

The return location is at Liverpool airport, and is a franchisee location. In fact the information on the contract about return is so vague - no description of physical location at all, just Airport terminal, gave us some worry at first - it could have been Airport terminal at any airport, right?!

Recently I bought tickets on Virgin Blue Australia, at the check-out, it does have box for you to check which type of billing you want - DCC or Local Currency. The local currency billing turned up on my Schwab card with exactly 1% padding in the conversion rate being used.

Can anyone compare the exchange rates used by Capital One 1% cash back card versus the exchange rates used by Pentagon Fed. 1.25% cash back card? Pentagon Fed. charges a 1% fee for foreign currency exchange while Capital One doesn't charge a foreign currency transaction fee at all. My question is whether Capital One makes back the 1% in the exchange rate? I'm about ready to get one of these two cards for use during a family trip to Europe over the summer. Any thoughts would be appreciated. Thanks.

When the amount of the rip-off is small, a class action may be the answer. Perhaps you need to contact a good class action lawyer? @:-)

As to the correct GBP being shown, doesn't matter. An incorrect exchange rate has been used to rip you off. No problem to call it a billing error (because it is). As to disputing, just send in a letter saying that a billing error related to the Hertz transaction appears to be on your bill of whatever date and you would like it corrected. If you want to bother, look up correct rate for date at issue and compute the difference. Let Hertz cook up what ever their story is and tell it to the crtedit card company. As I mentioned above, there have been some very big payments over various forex ripoffs when a suit is eventually brought. ^

By the way, after a few letters back and forth, I have often seen the foreign merchant just drop the disputed charge. I know someone who got some Prada glasses in Milan who was taken in a variety of ways. Eventually, she did not have to pay for her glasses. She talked to the store manager later and he told her they did it all the time, she was the first to ever complain. Guess it is usually pretty easy to steal from foreigners.

I've found CapOne uses an exchange rate extremely close to the average interbank rate on the day of the charge. For example, on Saturday I charged 17,400 Hungarian Forints to my CapOne card. The effective rate I got from CapitalOne was 194.696 HUF/USD, which is less than 0.25% off of the average interbank rate of 194.996 the day of the charge, according to Oanda.com. Given that Oanda lists the hi/lo exchange rates for that day as 195.09/193.21, I'd say CapOne treated me just fine.

Their customer service does suck, though.

how does one get one of these cards and can you recommend specific cards? thanks

Here's what I found:
http://www.ccfsettlement.com/faqs/#id56

http://www.barclays.com/internationalpersonal/

one credit card which i have never seen discussed here is the visa signature card from wells fargo. i spend an inordinate amount of time overseas and i consider it to be the best card in my wallet.

the card has no forex fee whatsoever on foreign purchases (not even the standard 1%). foreign purchases are simply converted into us dollars using the official exchange rate on the date the purchase is made. the card's customer service is top rate (almost as good as that which i get from citibank with my chairman card) and i earn double points on all travel and entertainment related charges (the bulk of my charges). if you choose to exchange the points you earn for cash (e.g. selecting their $600 cash reward for 50,000 points) you can end up making 2.4% cash back.

my card is from their private banking division but i believe all the wells fargo signature visa cards have similar terms and conditions.

if you charge a lot overseas, this card is well worth the effort and fee to obtain (wells fargo will waive the annual fee for you if you keep a high balance with them).

here is the link if you want to know more:
https://www.wellsfargo.com/jump/visa_sig_card

note: the only wells fargo credit card without the forex fees is their signature visa described in the above link. their other cards have a 3% forex fee.

Thanks alemdohorizonte! I have a Wells Visa ATM card which I'm pretty sure has a forex charge, but I will look into the Signature.

How much is the annual fee? I can't find it anywhere on the site. Another advantage of these cards: it looks like the rewards cards effectively earn 1.2% back, as you get 1 point per dollar and 50,000 points earns a $600 cash rebate. Not bad if you spend enough...

it's $70.

Is that for the Enhanced Rewards, Prime Rewards or By Invitation Only version?