Credit Card Foreign Transaction Fees

[caribbeansun]

I'd suggest you do the following:

 

a) Find out if they charge a foreign currency transaction fee - many here have posted that they don't but you should confirm.

 

b) Take a look at the terms and conditions (likely somewhere on their website) regarding the fee they charge as a "commission" - usually this around 2.5%. I don't think you'll get around the commission but it's nice to know.

 

c) Check the spread (in %) between the US$ and AUD$ on the site you were looking at.

 

If c-(a+b)> 0 then you should charge to the CC in AUD. If c-(a+b)< 0 then have them do the charge in US$

 

 

 

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.

[Paulchili]

If c-(a+b)> 0 then you should charge to the CC in AUD. If c-(a+b)< 0 then have them do the charge in US$

 

Very impressive! Now, if I could only follow that(lol).

Are you a mathematician?

[caribbeansun]

LOL - no I'm not, thought that approach would be easier to follow.

 

In English without the math equation:

 

If the fees related to the CC are more than the spread on the purchase then have them charge the CC in US$

 

If the spread on the purchase is more than the fees on the CC then have them charge the CC in AUD$

 

Hmmm...I guess that would have been easier to follow after all.:o

 

Very impressive! Now, if I could only follow that(lol).

Are you a mathematician?

[Aruba]

I"m a math geek. Your formula was clearer to me than the English version. ;)