Right! I want that dinner in Europe, and I don't feel like giving it to Citibank or MBNA! It seems that Capital One is all that is left (or USAA if you happen to be in the US military).

MC determines what exchange rate to use, so they probably still make a tiny bit in the conversion. But that cannot be avoided as VISA (and everyone else) does the same thing. At least MC and VISA both no longer add the additional 1% that they did in the past.

I thought PayPal Debit earned 1.5% cashback. Mine does.

Hmm, would be interesting to see. I dont know for sure that MC will always find a more favorable rate than VISA, it could depend on day etc. And since the difference is probably less than 0.3%, wouldnt matter much.

HSBC has an Online Savings account paying 3%, like PayPal has just a $1 foreign ATM fee on non-HSBC branded ATMs, AND has a large international presence so that you can avoid that $1 every so often by using their ATM.

MBNA foreign currency fee
 

I just got the written notice for one of my MBNA cards (both of mine are generic, non-affinity MasterCards). Basically, this sucks:

(Fee Change) - FOREIGN TRANSACTION FEE
Summary of Change: We are changing the way that you will be charged for transactions outside the United States and transactions in a foreign currency. There will be a new 3% Foreign Transaction Fee on these types of transactions. Your statement will list the transactions separately from the Foreign Transaction Fee. For transactions you make in a foreign currency the conversion rate will be reduced by one percent compared to the way it was previously determined.

Amendment: We are adding the following to your Account Terms Transaction Fee section. Effective for all transactions outside of the United States or in a foreign currency that post to your account on or after May 25, 2005 we will assess a transaction fee (FINANCE CHARGE) equal to 3% of the U S dollar amount of each such Foreign Transaction. This fee will be in addition to any other applicable transaction fees.

We are also replacing the paragraph entitled "Transactions Made in Foreign Currencies" with the following:

If you make a transaction in a foreign currency the transaction will be converted by Visa International or MasterCard International, depending on which card you use, into a U S dollar amount in accordance with the operating regulations or conversion procedures in effect at the time the transaction is processed. Currently those regulations and procedures provide that the currency conversion rate to be used is either (1) a wholesale market rate or (2) a government-mandated rate in effect one day prior to the processing date. The currency conversion rate in effect on the processing date may differ from the rate in effect on the transaction date or posting date.

I agree, it sucks. Were there any other changes in the cardholder agreement? Or was this the only change?

The reason I ask, earlier in the thread I noted that I have the Fidelity MBNA card, and just received a notice of several changes in the cardholder agreement, but nothing about a foreign transaction fee. I know others with the Fidelity MBNA card say they have had notice of this change, but apparently not my card.

I am puzzled. Would MBNA change the agreement for some people with some affinity cards, but not for other customers with the same card?

I am trying to figure out if I will have to go back to relying on my USAA card when overseas. The rewards are not as good, but I'll do anything to avoid paying banks unnecessary fees.

BTW, I just dropped the Citi AA card. The 3% fee was the last straw, and I was tired of the annual fee. I figure I am better off earning $$ with the Fidelity card and buying tickets than earning miles with the AA card. It finally dawned on me that an off-season ticket to Europe cost not only 40,000 miles but the 10,000+ miles that I was not earning because I didn't buy the ticket! LOL

You dont have to be in the US military to join USAA.

If you're not active-duty military, you have to be the spouse or child of someone who is a USAA member.

This applies to the insurance arm of USAA; I've heard that anyone can use the banking services of USAA (subject to credit approval for the Visa card, of course) due to federal anti-discrimination laws.

Ahh, now I actually know the real reason I was able to open a checking account there.

It was part of an individual mailing with a host of other changes designed to give MBNA more money: changes to the APR, a shortening of the grace period, higher late fees and fees for cash advances, etc.

Of course, the day before I got this mailing, I got an MBNA offer for an affinity AmEx with a 1% commission applied to the converted amount. Go figure.

RE:other changes to card
 

I just got the same increased foreign transaction fee charge on my MBNA Amtrak Great Rewards card.

The other big changes are to APR default pricing(the default rate may be applied earlier), grace period, and to late fees(earlier and higher) and to processing of payment checks(electronic conversion), and transaction fees for cash equivalents(a bunch of things are now considered cash equivalent transactions rather than purchases, thereby incurring fees.

All in all, I think it's time to reject the changes and cancel this card.

All in all, I think it's time to fill out the rejection

Interesting. I believe the change for payment checks is not just for cc -- it's part of a big change throughout ACH, they don't move the paper around any more but do EFT.

There was nothing in my cardholder agreement notice about changes in processing cash equivalents. So that is another change, besides the foreign transaction fee, that apparently does not affect my Fidelity MBNA card.

Maybe you could open a Fidelity account and switch MBNA cards? The rewards are good -- I look at the 1.5% as freq flyer miles good for any airline.

Very true! But you DO have to be in the military to join the USAA credit card cash reward program. Without that, Capital One seems better.

I have been told by phone on several occasions that my Fidelity Rewards MBNA card will attract the 3% conversion fee. I don't plan on taking any risks on this front and will be stopping all use of it as of mid-May.

I have read similar comments here. But they have to give you 30 days notice in writing. And as I noted earlier, I just got a written notice of changes in my Fidelity MBNA cardholder agreement, but foreign transaction fees were conspicuous by their absence.

Has anyone gotten WRITTEN notice of changes in Fidelity MBNA card? If so, please post details.

MBNA rarely allows conversions from one affinity card to another affinity card. I have never read of a success and tried myself 3 times.