Credit Card Without Overseas Charges

[questions]

I just received a notice from Citibank MasterCard with a change in their charges. One of the disturning items is that they are now going to be adding a charge for goods purchased in other currencies.

I would like to find a Visa or MasterCard that does not have additional charges for people who travel and buy things overseas and also has at least a 25 day billing cycle.

Any suggestions would be appreciated.

[poundwise]

What a rip.

http://overseasdigest.com/foreign-cr...rd-charges.htm

I think Citibank is the king of these types of fees and terms, though Bank of America and Chase certainly give them a run for the money.

From the above-linked article:

"Bank of America charges a 2-percent fee each time a customer uses an ATM card, debit card or credit card outside the country...

Other issuers charging a 2-percent surcharge on foreign transactions on top of the 1-percent charge from Visa and MasterCard include Citibank, Bank One/First USA, Chase Manhattan, Providian and Wells Fargo, according to a recent phone survey by Bankrate.com.

Who's not charging these sneaky, new fees? A handful of big issuers and lots of smaller ones. Capital One, MBNA America, FleetBoston and Wachovia Bank are not charging extra fees on foreign transactions at this time.

None of the nation's credit unions charge these kinds of fees. Most community banks don't either.

[neatdesign]

I would like to find a Visa or MasterCard that does not have additional charges for people who travel and buy things overseas...

You're not going to find one. Visa International and MasterCard International both apply currency conversion fees automatically to purchases made in foreign currency. Their conversion fees is 1% of the purchase price.

Now, that said, more and more credit card companies are tacking on their own "foreign transaction fees" on top of what Visa Intl and MC Intl already apply to purchases. Some companies charge an additional 1%, some 2% and even 3%.

If you think about it, it's probably just easy money for them to make. For one thing, Visa Intl and MC Intl are the ones converting the charges into US dollars, not their member banks -- but it's the member banks who are getting the extra 1-3%, aren't they? Also, with more and more people buying things online in foreign currency, they have more incentive to introduce and/or increase these fees.

There are probably some banks still out there that don't charge anything on top of the 1% conversion fees from Visa Intl and MC Intl. I know for a fact that USAA does not. They don't even charge for foreign wire transfers. (I know from experience.)

Not everyone is eligible for USAA membership, but if you can see if you are by visiting their website (http://www.usaa.com). I strongly recommend USAA, because they are a GREAT company. I've done business with them -- banking, investing and insurance -- for over 15 years and have yet to be anything but extremely impressed.

Don't assume that you have to be in the military to be eligible for membership. My husband, who is British, became a USAA member through his marriage to me; I got my USAA membership because my father was a career Army officer. People can even be eligible for USAA membership via an ex-spouse, for instance. Definitely look into it!

~ Jenney