Question
o.k., so I got this much overrated card because some much overrated thread on some eccentric internet bulletin board convinced me.
I thought for a paltry $400 that I'd be able to walk across the Atlantic Ocean thus saving on international airfare.
That thread convinced me that once I had a chairman card that Angelina Jolie
would be at my beck and call and that every Monday, Wednesday and Friday she would wake up in my bed. I figured it a chip shot that Jennifer Aniston would not be able to get enough of me. My intent was to be gracious enough to throw her a bone and let her have Tuesdays and Sundays. I thought once I had a Chairman card that I might try Phoebe Cates on a strictly trial probationary basis on Sundays.
--- Saturday, I'd rest up. Hey, I'm not what I use to be. Chairman card or no Chairman card.
Low and behold NONE of the above happened.
What did happen was this:
1-I had pleasant and courteous USA based phone reps.
2-When I want to buy something the card worked. -- But I still had to sign a piece of paper promising to pay in accordance with my card issuer’s agreement.
3-This little quirk puzzled me. As a Chairman Card holder, I naively expected Cartier to throw Rolex watches at me every time I walk by the entrance.
4-And to top it all off, Citibank actually sent me a BILL each month and wanted this funny thing called MONEY for the things I bought!!!! Imagine that!
5-Now while I am sure that Citi would have preferred that I paid only PART of my bill each month, I paid ALL of it each month.
Today, I get my statement.
My Nominal APR remains 14.240. My periodic daily rate is 0.03901
However my ANNUAL PERCENTAGE RATE IS NOW 36.00%I thought with CREDIT CARDS Nominal APR and APR were the same?
(With deposit accounts naturally the APR is a little higher because of the effects of compounding)
I made some charges in Mexico and was charged in Pesos.
Strangely enough, the citi vig on F/X charges posted as "finance charges".
So at best it seems Citi wants to charge me 36% on the rip off vig foreign currency charges portion only. I interpret no grace period, ala a cash advance of ‘casino transaction’
At worse, if I don't pay in full Citi will impose the 36% finance charge.
I'm a little concerned because now that Angelina, Jennifer & Phoebe are not flocking to me , I have to resort to plan B.
Plan B is a Hair transplant and a personal trainer 5X a week. These two items cost big bucks so I am concerned that I won't be able to pay in full always on an on going basis.
Will I be paying 36%???
I know a guy in Jersey in the waste management industry who will lend to me at similar rates.
Answer
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If I can't post attachments then how do others post scans and jpegs?
who can figure out these computer things anyway?
well good thing that they are a fad like the pet rock or the hula hoop.
If a FT'er of good reputation and tenure sends me a message via e mail, I am comfortable sending a PDF of the non personally identifying relevant portions of my chairman statement.
BY MY SENDING YOU THE PDF, PREMISSION IS GRANTED TO POST IT,
I'd actually welcome interpretation and analysis.
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Citi charges 3% for foreign currency transactions. To my knowledge they do this on all Mastercard and VISA products. Citi shows this fee separately as a "transaction" based finance charge, it is a fee for converting currency not for borrowing. There would also be a transaction based finance charge if you were to draw a cash advance, have a payment rejected, etc. Citi annualizes (3 x 12 =36%) these charges to comply with some consumer legislation, but this has nothing to do with the rate you would pay if you carried a balance.
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Relax, they are not changing your rate to 36%. They are just showing you what the amount of fees and interest for that months statement would be if it were annualized. So the forex fee if charged every month for 12 monts with the same charges would be 36%. Now I don't know if I helped, but that is how the basic explanation could go. If you need a more elaborate detailed explanation, I will post it.
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36% --- AND?
remember that other poster...if you are paying any Interest on a rewards card, you are plain dumb .... especially after 2000+ posts
finance charge on foreigh exchange transactions are a different deal...
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It will say 36% everytime there is a foreign transaction in a billing statement, but it doesn't apply to transactions occuring in the US.
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Citi charges 3% for foreign currency transactions.
to comply with some consumer legislation, . [ [/B]
I've been abroad once or twice;) always paying with Amex, Amex shows their surcharge on each transaction and does not report or list it as its own , stand alone transaction.
My recollection is that the APR never went higher on the statements.
Dennis , I doubt you are saying that Citi is more compliant than Amex?
Between the two, which do you think is the more consumer friendly company?
It MUST be to Citi's advantage to do this. I just can't figure out why.
Do other MC/VISA cards itemize and report this way.
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Amex shows their surcharge on each transaction and does not report or list it as its own , stand alone transaction.
My recollection is that the APR never went higher on the statements.
It MUST be to Citi's advantage to do this. I just can't figure out why.
In the past all card issuers hid the foreign currency fee in the exchange rate. The American Express International Dollar Card, which is issued in the UK, still does it that way but there is a disclosure in the fine print. After a set of class action suits US card issuers agreed to itemize the fees. American Express chose to break it out in the description of each transaction which makes it difficult to see the total amount you are paying for this service. Citi chose to aggregate the fees as a single amount on each statement, which makes it difficult to see the total cost of an individual transaction.
By classifying this fee as a Finance Charge Citi is able to exclude it from earning points or miles, they need not refund it if the charge is reversed, and they apply payments to Finance Charges before purchases. Citi divides Finance Charges into several categories and displays periodic and annualized rates for each, but the APR is meaningless for Finance Charges other than interest. The APR for foreign currency transactions has no affect whatsoever on the interest rate if you carry a balance.
I have no recent experience with other card issuers' treatment of foreign exchange transaction because my Merrill+ account still has none :cool: .