Credit Card Foreign Transaction Fees

[rheasue38]

We recently used my Citibank card to make final payment on a cruise and also used it for a deposit on a cruise on the Marina. When I received my charge statement, there was a foreign transaction fee of over $200. We called Oceania and were told all credit cards go through a bank in Ireland and that all cards will be charged with a foreign transaction fee.

Oceania is issuing us a check for the amount of the fee.

Has anyone had this problem recently? I know past boards have discussed this matter but it seems under the new credit card bill which was recently passed, more companies are involved in charging fees.

Any suggestions? I want to book tours online but don't want to get it with fees.

rhea

[orchestrapal]

We also had this charge recently and had it refunded by Oceania however when we booked our excursions there was no charge. I believe these are charged locally rather than in Ireland.:)

[Benita]

Rhea, There are no foreign bank fees or transaction fees with the Capital One card - we have one that we only use for trips out of the US, as the rewards program is not too good. We paid for previous Oceania trips with the Citibank Advantage card, because they did not have the foreign bank fee, but I guess they changed that. All charges we made for excursions both online and on the ship, as well for purchases made on the ship were billed through the Miami office, not Ireland, so there were no fees. You may want to check with Oceania before you book anything now, because that might have changed.

[hondorner]

You're correct that things are changing with the new credit card laws; we have never had a fee assessed by American Express, even out AmEx card issued by Bank of America. but we have heard that some of that is changing.

 

One card that I'm certain does not charge the Foreign Transaction Fee is the Gold Visa issued by Schwab Bank, part of the Schwab brokerage company. They also have a hi-yield checking account that issues a debit card in which all ATM fees are reimbursed, world-wide.

[Rickey 88]

We recently used my Citibank card to make final payment on a cruise and also used it for a deposit on a cruise on the Marina. When I received my charge statement, there was a foreign transaction fee of over $200. We called Oceania and were told all credit cards go through a bank in Ireland and that all cards will be charged with a foreign transaction fee.

Oceania is issuing us a check for the amount of the fee.

Has anyone had this problem recently? I know past boards have discussed this matter but it seems under the new credit card bill which was recently passed, more companies are involved in charging fees.

Any suggestions? I want to book tours online but don't want to get it with fees.

rhea

 

I must tell you that this subject has been discussed over and over and over again! If interested, do a "search" by clicking the box at the top and entering "Foreign Transaction Fee".

 

Past cruisers with Oceania have been used to this situation and have avoided the bank issued charges by using cards that DO NOT charge this ridiculous fee. Capital One, American Express and others such as Charles Schwab have never charged a "Foreign Whatever Fee".....

[susiesan]

We should not have to use another card to book with Oceania because they want to use a bank in Ireland. Although I used an AmEx card for my deposit because I get FF points from it, if I could not use the card of My choosing because I was to get hit with a fee I would take my business elsewhere. Why is O continuing to bank in Ireland when it impacts their customers so unfairly? I don't get it.

[Rickey 88]

That's a question that you'll have to ask them to answer. However, the point is not where they choose to bank - that's a business decision and I'm quite sure there are more than sufficient reasons to justify it.

 

The point of this whole situation is not where Oceania banks, but that the whole problem has been created by a number of credit card banks who, anxious to improve their bottom line, have dreamed up a number of ways to assess new charges to their customers. Very few of these charges, one of which is this Foreign Transaction Fee, have any justification.

 

It is certainly within their prerogative to bank wherever it benefits them to do so. And "it doesn't impact their customers unfairly" - there has been enough discussion in these boards to give easy alternatives. And, whenever it causes a customer problem, they have been more that proactive to credit the amount of that "Transaction Charge" to the customer. Something that not many other firms would do in a similar situation....

[ronnie64]

Along these sames lines about foreign transaction fees...I am planning on getting a Capital One card before our Med cruise as they all state no foreign fees. Is there a better card in europe...Visa vs. Mastercard?

[orchestrapal]

Along these sames lines about foreign transaction fees...I am planning on getting a Capital One card before our Med cruise as they all state no foreign fees. Is there a better card in europe...Visa vs. Mastercard?

 

In many places in Europe the only American cards accepted are Visa and MasterCard.:)

[lcand1923]

We've found that a Visa card is more widely accepted in Europe than the MasterCard.

[caribbeansun]

Probably because not all of their customers have this issue, only the ones that have credit cards that think nothing of impacting THEIR customers in this way.

 

Why is O continuing to bank in Ireland when it impacts their customers so unfairly? I don't get it.

[happy cruzer]

Well, this issue is a bit of pain for those of who travel internationally about once a year. And I agree it has been discussed for a long time but the credit cards companies are changing and so are our options so we probably will keep determining what works best.

 

I did have a captial one card that I used last time. Have since discontinued it. Now do I get another card just to charge my O final payment? Everything else on the cruise will be paid in cash. My OBC is large enough already thanks to my TA. I have heard I can pay the final payment with a check which I will persue, but what a bother.

[lord of the seas]

I have two cards in the UK that do not charge a foreign transaction fee,I use them to purchase anything that is in another currency.it is the same for US citizens,just apply and get one for foreign purchases.

[Benita]

Well, this issue is a bit of pain for those of who travel internationally about once a year. And I agree it has been discussed for a long time but the credit cards companies are changing and so are our options so we probably will keep determining what works best.

 

I did have a captial one card that I used last time. Have since discontinued it. Now do I get another card just to charge my O final payment? Everything else on the cruise will be paid in cash. My OBC is large enough already thanks to my TA. I have heard I can pay the final payment with a check which I will persue, but what a bother.

 

If you are planning on making purchases outside the country, Capitol One is one of the only ones that won't charge a currency conversion fee, which can be up to 3%. We keep one around just for foreign travel. As far as whether it is worth the bother to get one - only you can decide.

[RetiredFL]

With the change in banking regulations I think we will all see many more fees.

We are booking hotels, etc in Europe for upcoming trips and every deposit on our card carry's a transaction fee, even those cards who did not last year.

Our cards just sent notices of a new fee schedule and I suspect they all will or increase their commission or exchange rate to recoup their lost charges.

It will just be a fact of life unless the Government changes the rules again.

[rm40p]

I'm purchasing an airline tkt. from Jetstar online. After entering my credit card info., I am given a choice to pay in USD or AUD. Which is more advantageous and what is the difference? Is the exchange rate different for each? Also, the exchange rate that shows up is higher than the rate I get when I use a currency exchange website (by almost 3% higher). Why is this?

[caribbeansun]

There's no possible way to answer your question about which is more advantageous with the limited info you provided as there are too many variables.

 

The exchange rate will always be more - a fairly common exchange commission is charged of 2.5% although it can be higher or lower than that depending on the card. And for returns they take the same piece on that. If you buy something in a foreign currency for $100 and return it the same day - you'll see a charge go through for $102.50 and a credit go through for $97.50 - you lose 5%. I had this happen to me with a deposit on O because they wouldn't transfer it from one cruise to another - I lost 5% on $1,500 for doing nothing other than changing cruises on the US$->Cdn$ conversion.

 

There's usually as much as a 4% spread between exchange rates on the buy and sell side vs. government posted rates on cash transactions as well- read bank profit.

 

Some cards, like AMEX, which double convert ie. if I have a charge in Euro, they convert it first to US$ (charge their fee), then convert to Cdn$ (charge their fee). So I won't use AMEX for anything other than US$ or Cdn$ using instead Visa since they convert directly to Cdn$ from any foreign currency.

 

The moral of the story is educate yourself about your cards or you may pay much more than you need to.

 

 

 

I'm purchasing an airline tkt. from Jetstar online. After entering my credit card info., I am given a choice to pay in USD or AUD. Which is more advantageous and what is the difference? Is the exchange rate different for each? Also, the exchange rate that shows up is higher than the rate I get when I use a currency exchange website (by almost 3% higher). Why is this?

[Aruba]

There was a time in the not too distant past when there were options for cards that did not charge foreign currency transaction fees. Now to the best of my knowledge there is only one option: CapitalOne.

 

Besides saving the 3% foreign transaction fee, we get 1% cashback on all purchases. It goes straight into what we call the "Adventure Jar" and gets used for shore excursions.

[Paulchili]

There was a time in the not too distant past when there were options for cards that did not charge foreign currency transaction fees. Now to the best of my knowledge there is only one option: CapitalOne.

 

Besides saving the 3% foreign transaction fee, we get 1% cashback on all purchases. It goes straight into what we call the "Adventure Jar" and gets used for shore excursions.

 

Does CapitalOne have an annual fee?

[Benita]

Does CapitalOne have an annual fee?[/

 

It is free. I don't believe it can be used at ATM machines, so if you want to pull out cash (that is how we get our foreign currency), bring along your bank ATM card - also notifiy the bank, and for that matter, the credit card company if you leave the country, so they don't deny the use.

[hondorner]

There was a time in the not too distant past when there were options for cards that did not charge foreign currency transaction fees. Now to the best of my knowledge there is only one option: CapitalOne.

 

Besides saving the 3% foreign transaction fee, we get 1% cashback on all purchases. It goes straight into what we call the "Adventure Jar" and gets used for shore excursions.

Open a Schwab One brokerage account (no fee, no minimum balance, no minimum number of trades) and then open a Schwab High Yield Checking Account (and optionally, a High Yield Savings Account). You will automatically be given a Schwab Bank Visa Check Card (debit card) that you can use to pull funds from the checking account at any ATM, anywhere in the world, and all ATM fees will be refunded to you.

 

Then, apply for a Schwab Bank Gold Visa credit card, earn 2% cash back, and there are no foreign transaction fees, ever.

[Paulchili]

I guess the choice of CC depends on personal preferences.

With Citi we do not have annual fees, with SPG Amex I get 1.25 AA miles for every $ spent (Citi is 1:1). My objective is to collect as many miles as I can to be able to fly in Business for all overseas trips. For that I'll gladly pay any conversion fees that they may charge me for foreign transactions as I could not buy anywhere near the miles I get for the fees they may charge. With Oceania you can convert these fees into OBC (or a refund, AFAIK).

Whatever floats your boat.

[Aruba]

Does CapitalOne have an annual fee?[/

It is free. I don't believe it can be used at ATM machines, so if you want to pull out cash (that is how we get our foreign currency), bring along your bank ATM card - also notifiy the bank, and for that matter, the credit card company if you leave the country, so they don't deny the use.

You never want to use a credit card to get cash from an ATM, except in the case of a dire emergency, because that is considered a cash advance -- ie. a loan, not a withdrawal as would be the case with a debit card. You'll immediately get socked with high interest charges even if you pay off your bill in full each month.

[Aruba]

Then, apply for a Schwab Bank Gold Visa credit card, earn 2% cash back, and there are no foreign transaction fees, ever.

2% beats 1% any day!

[rm40p]

CarribeanSun,

 

Don't know what info. you need. I will be using a CapitalOne MC. From what I've read, I should ask to be charged in AUD rather than USD. I plan to join a local credit union or get a BoA atm card, or like the other poster suggested, open a Schwab acct. to use to get cash once I'm in Australia. Thanks for the explanation of the exchange rates. Is my understanding above correct? Thanks.