Question
I have a Citibank AAdvantage Mastercard. I called Citibank to check if there is a service charge on foreign purchases. The lady told me there is indeed a 3 percent service charge. Can anyone confirm this? Thanks!
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Yep, it's true. There's a 3 percent charge beyond the exchange rate that they use.
Why wouldn't you believe them? :)
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It's because my Bank of America debit/credit Visa card doesn't have any service charge on foreign purchases.
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Are you sure? My B of A debit card, which I always use when out of the country does not seem to have a fee other than the ATM fee. My B of A Visa credit card, different card, I think has a 2 or 3 percent fee. Please help me on this.
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Both Citibank and B of A charge a rip off 2% for currency conversion on their credit cards, in addition to the 1% Visa or Mastercard charges. You won't see this as a separate fee. It is just built into the currency conversion rate.
The only miles earning credit cards I know of that do not charge this 2% fee are those issued by MyPoints. Their Amtrak card is the only credit card I use outside of the U.S.
Info on all of these cards can be found on my website, Free Frequent Flyer Miles (http://www.freefrequentflyermiles.com/index.htm)
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My BA ATM card charges 1% plus the $3 transaction fee for ATM withdrawals. I haven't tried using it as a Visa card.
QL
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They actually charge 3% above the wholesale rate that Visa (or MC) charges. Visa already charges a 1% markup over the excellent wholesale rates they use, and every card uses that rate as a base. So the 3% extra markup charged by Citibank is above the wholesale rate + 1% base rate.
Capital One is one of the better issuers to use for foreign transactions. They don't charge a markup over the wholesale rate + 1%.
-David
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Last month I use my BA ATM card to withdraw cash from Canada. Just before our trip we received a little mailing from BA saying now there is no ATM fee among foreign banks that belong to their network. In Canada it is Scotia Bank. (Barclay in U.K. and a handful of other names in different countries). I did not verify how much was built in the rate which looked very competitive to me at 1 CND = 0.7875. There is NO ATM fee, just as if I withdrew money from any BA branch domestically.
In March I only got charged $2.00 when making withdrawal at Narita airport, Tokyo.
OTOH, my JP Morgan Chase ATM card imposed a $3.00 international withdrawal fee starting 3 years back.
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I keep a S&H Greenpoints Visa card for my foreign currency transactions. No annual fee, Only the 1% Visa mark-up. And I earn 5 points per $, every $600 earns me a free tkt to a UA movie that in NY (not manhattan) is at least $9. so $9 is 1 1/2 % of $600 so net cost is a gain of 1/2% of my purchases and having to pay the extra 2 - 3 % that other banks tag on.
sign up via greenpoints.com for bonus points, sign up 1st for a greenpoints acct so that you'll get the bonus pts.
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FWIW, my Bank of America checking account charges $3 a pop for foreign ATM withdrawals. My Wachovia checking account (linked to a money market account and some CDs to avoid fees) allows two fee-free ATM withdrawals worldwide per billing cycle.
I don't really trust debit cards from a security risk standpoint (if the card is stolen or the number is compromised somehow, real money can come out of my account and cause a huge hassle), so for me it's cash or credit cards when abroad.
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FWIW, my Bank of America checking account charges $3 a pop for foreign ATM withdrawals.
That's going up to $5 soon. I hope they aren't setting a trend.
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I don't really trust debit cards from a security risk standpoint (if the card is stolen or the number is compromised somehow, real money can come out of my account and cause a huge hassle), so for me it's cash or credit cards when abroad.
Either do I. In fact, I don't use them domestically for the same reason. One nice thing about Wells Fargo is that they still issue "regular" ATM cards that allow for ATM transactions and POS debit transactions (i.e. PIN-based transactions), but does not have a Visa/MC logo and cannot be used as a credit card. I think they keep this card around to issue to new accounts that may have questionable credit histories (as there is some risk to the bank even with a MC/Visa debit card tied to a checking account), but anyone can get one if you ask.
My other bank (a smaller one), doesn't have such a product, and they can't figure out why I refuse to have a card issued to that account.
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The only miles earning credit cards I know of that do not charge this 2% fee are those issued by MyPoints. Their Amtrak card is the only credit card I use outside of the U.S.
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I have used my Citibank AAdvantage card in Europe and have been charged the 3% fee. However, my Washington Mutual Debit card does NOT charge the (when using it like a credit card), although the do charge for the ATM withdrawls; so I try to use a mix of both - to get miles and save $$. Weird, huh?
PEACE!
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I have been curious, so I used my MBNA Mastercard for one $150 charge in Italy last week,the last charge, rate received as calculated from the charges on my statement was 1.28+ . For all other transactions I used myVisa PNC debit card from Fidelity (first five ATM's are free) and the rate on my statements all week was 1.3+ .
Sylvia
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I have been curious, so I used my MBNA Mastercard for one $150 charge in Italy last week,the last charge, rate received as calculated from the charges on my statement was 1.28+ . For all other transactions I used myVisa PNC debit card from Fidelity (first five ATM's are free) and the rate on my statements all week was 1.3+ .
Sylvia
Same day?
Thanks.
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Same day?
Thanks.
Over 8 days the charges were all 1.3+ , including the last day when I made a purchase ($40) and paid the hotel balance ($144). This was a Saturday, not sure when they cleared/processed and also know there can be a difference in rate when the amount is larger. This is anecdotal only. My own conclusion is my best deal is with my Visa PNC debit card attached to my brokerage account.
Sylvia
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The currency exchange rate for my Amtrak Mastercard has always been the interbank rate + 1% or less. Sometime the rate was better than the interbank rate on or within a few days after the purchase. I didn't ask, and didn't tell. That card is the only card I use outside of the US for credit card transactions.
For those few readers who don't know about the Amtrak card, you may read about it on the Free Cards page of the Credit Card section of my website, Free Frequent Flyer Miles (http://www.freefrequentflyermiles.com/index.htm).