I picked up a travel guide because I'm planning a trip to Europe. The guide points out that using credit cards abroad can get expensive because of currency conversion transactions fees which many US banks charge for purchases. In addition to the one percent fee that Visa and Mastercard charge (a fee that you cannot escape if you use visa or mc), many banks charge another two percent on top of that. I examined my cardholder agreements (I keep all of them) to figure out which cards to use and which to avoid. This is a list of the banks that charge a fee and the ones that don't. BofA platinum--yes BofA business--no Fleet--no Citibank (all cards)--yes Advanta--agreement does not say that it charges a fee but says vaguely that it "may" charge one. Doesn't say how much the fee it may charge would be. First Natl Omaha--no MBNA--no This may not be accurate as to every cardholder since terms may vary. I wish I could use my Citibank Aadvantage which is my favorite card but obviously the benefit of the miles is offset by the extra two percent charge. Knowledge is power. Don't let them get over on you.
When traveling overseas: I suggest you to use MBNA, Cap one or target Visa, Don´t know about Fleet. Avoid Citi, BofA and Amex. I also suggest you to bring your cash in Euros(No $). And if you have travelers checks, change it on the diferents Amex Offices in Europe to avoid HUGE exchanges comissions on other agencies or banks.
When DH travelled all over, his best luck on exchange rates was with banks. Hotels are the worst. The airport exchange kiosks you can shop - sometimes they are very competitive. Stay away from Thomas and Thomas (I thinks thats their name) they will rape you. Look in the newspaper and online and find what the pure exchange rate is, then work from there. Interestingly, I have to send money monthly via Western Union to pay Amex. They give a pretty darn competitive rate, but you will need to check the "fee" for the amount you send. Last month, I still saved money sending WU rather than paying Amex's rate at the travel office. You can WU yourself online, and pick it up at the nearest office. You might also investigate C2it. I think they charge a flat fee, and will give you a local bank to pick up the money at. You do not have to use a Citi card. (I wonder if that would also get you around the exchange fee and you can use your AA?) When I checked them out, they were pretty competitive as well, but the local bank wasn't convenient for the person receiving the wire for me
Jlynn: I wonder why don´t you pay your Amex US account online. no comissions or conv rates?. I assume that you also have a US Bank account.
Its been my experience the commission/% you pay to the credit card company is often DWARFED by the exchange rate differential you will pay at commercial banks or amex or thomas cook or hotels (vs. the differential you pay your credit card company which is usually around 4%). I was utterly BLOWN AWAY by the spread. At banks it usually starts at EIGHT percent and goes up from there. Add bank fees on top of this. The best advice is to call places and get the buy AND sell rates for the foreign currency. Now do the same with your bank and ask about ATM rates. Now do the same with your credit card company, and c2it. Its time consuming, but that's precisely why banks screw folks on the exchange rates.
Our Amex is MX not US. I can pay the platinum at the travel office, no problem. The green card has to be paid in pesos. Although sometimes its a PITA, its also hidden credit
It's Thomas Cook Exchange. And yes, hey will rape you. Also, stay away from the exchange offices in Train stations.
Barring the security concerns I use my bank's regular check card tied to my checking account. They pass along Visa's 1% conversion premium and charge nothing more. As soon as I land I hit the ATM. Rates are always within 1% of the current interbank rate listed on oanda.com. I've found that *no one* can come close to this conversion rate unless it is grey/black market. (ie I was offered 50 Indian Rupees to the dollar by a merchant when the official rate was just under 48) I've done this in Japan, Australia, Singapore, India, and all over Europe with great success.
