Question
There's a thread under the UA board that First USA is jacking up foreign currency charges from the current minimum 1% to (gag) 3%.
Has anyone received a notice from First USA on this?
Answer
I probably tossed it, but I called them and they verified that effective April 1st that both the United MP Visa and the Marriott Rewards Visa would have a 2% FUSA markup on foreign transactions. (In addition to the 1% Visa USA markup on the wholesale exchange rate effective on the day the charge is processed.)
-David
Answer
In the February account statement on my First USA Mariott Rewards VISA card, included with the bill was an "Important Notice".
Effective April 1, 2002,
FOREIGN CURRENCY TRANSACTIONS: We and MasterCard or Visa (or their affiliates) will convert transactions in foreign currencies into U.S. Dollars. MasterCard or Visa will use their then-current currency conversion procedures. Currently, they use either a wholesale market rate or a government-mandated rate in effect under those procedures and add a conversion charge determined by them. We then add an additional two percent to the amount provided to us by MasterCard or Visa. The currency conversion rate used on the conversion date may differ from the rate in effect on the date you used your Card or Account.
I’m unhappy about this, since it is a blatant 2% surcharge not in any way related to the currency conversion itself, since the currency conversion is done by Visa and First USA does nothing except add 2% to the dollar amount forwarded through the Visa system.
What next, a 5% surcharge for all grocery transactions? It makes as much sense.