fredaevans
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Reged: 06/12/03
Posts: 3902
Loc: Upper Rogue River- Oregon
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I don't know how "universal" this may be .... yet ... but MasterCard and Visa appear to be hitting you with a new fee for credit card usage OUT SIDE the United States. It's called a "Foreign transaction charge" of 1% based upon the 'purchase' of goods/services outside of the USA. Yes, that would include Canada and Mexico.
First time I got one of these was our trip to Canada this past November for a tackle purchase at 'Fred's Custom Tackle' (yes, it's a very big/good shop) in Chilliwack, BC. It was an extra $6.50 some cents on a $215.00 Canadian purchase. Math suggests that's waaay over 1%, so there may be some 'base charge,' plus 1%.
What brought this to my attention was a credit card application I just got from USAA and the following was included in the 'fine print.'
"Foreign Transaction Charge. MasterCard and Visa charge us up to 1% of the amount of any transaction made on your Account in a country outside of the United States of America. As a result, we charge you a !% Foreign Transaction Charge ... and add it to the amount of the transaction."
So, a few questions you may want to ask your credit card issuer ... 1) Do you charge this fee? 2) do you charge an additional fee above and beyond this as a 'handling fee? 3) If I make a purchase outside of the US how/what basis is the 'exchange rate' computed for your billings.
Why three? First one is obvious, second one - per the terms of your credit account - could entail an additional fee not based upon the amount of the purchase/credit transaction, the third is are you getting the best international rate, or an adjusted "buy/sell" rate set by the card issuer. This 'spread' can be considerably different than the "posted" exchange rate.
Be Aware!!
Fred
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Fred A. Evans
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Tony1831
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Native slab
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Reged: 07/20/05
Posts: 3169
Loc: near DC
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Fred
You know the bank issuing the card is going to low-ball you on the exchange rate, so point #3 is definitely going in favor of the bank.
I've never seen this on my statements, but am not surprised as to the greed of banks. One good solution is cash$$$, but it may be difficult to carry enough on you for the trip. Travelers checks are another good alternative.
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<---- "Jihad this!"
Team 10%
Semper fi, PGR member
Bocephus for President 2012
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BobK
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Reged: 07/17/03
Posts: 2139
Loc: Upstate NY, Lake Ontario Tribs
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I agree. Cash ain't trash, but the banks charge the lowest "exchange rate" and are usually up-to-the-minute.
BobK   
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