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[edit] Introduction
There is a thread on Flyertalk called "Best card for foreign exchange?" that is now far too long for anyone to reasonably read. Here is a comprehensive summary of that thread, including how credit, debit, and ATM cards work overseas, and which accounts charge the lowest fees.
Please note that this page is intended for people based in the US who have US$ accounts and are traveling to other countries. Including information for every country and currency would make this page too unwieldy, so we have deleted references to cards issued in countries or currencies other than the US and the US$.
[edit] Where you can get hit with fees
For any given card transaction, there are three possible places where you can get hit for foreign exchange fees:
- By the merchant/ATM-owner
- By the card-issuing bank (Bank of America, Citi, Chase, etc...)
- By whoever calculates the actual exchange rate underlying everything
[edit] A note on dynamic currency conversion
Many merchants overseas have the ability to convert your purchase to the currency of the card's country of issue for you before charging it to your credit card. If a merchant offers this "service," you should almost always decline it, since the rates of conversion used are frequently much worse than any fees you'd incur for having the charge run in the local currency. Examples of rates up to 6.5% worse than those subsequently charged by the card company have been seen.
Some merchants (particularly higher end restaurants and merchants in more-developed parts of Asia and Europe) may even convert your purchase without asking you, and conveniently pre-print text similar to this "I declare that I have been offered a choice of payment currencies and my choice is final." on top of the signature line. Always check your receipt, and if you see anything involving your home currency in a country that doesn't use that currency, ask the merchant to re-do the transaction in the local currency.
In some cases, the merchant may claim that their credit card terminal automatically does the conversion, but local laws and Visa/MC merchant agreements generally require the merchant to offer transactions in local currency. If the vendor claims that they don't know how to do it differently, cross offending text away, write down "charge in xxx currency" and sign ABOVE any pre-printed text; if the transaction still goes through in the wrong currency dispute it with the credit card; the merchant will most likely have to pay a fee/fine for this.
Visa's spokeswoman has been quoted in the media saying that Visa "requires the merchant to disclose the fee and must provide the consumer with a choice" of getting the bill in dollars or the local currency.[1]
[edit] Credit/charge cards
Traditional credit/charge cards are cards that are NOT linked to a bank account, but that instead charge against a credit line.
- Most big issuing banks (Citi, Chase, Bank of America, etc.) will charge a foreign transaction fee of generally 3% on their Visa/MC, many of them even if the charge is made in USD. A few card issuers do not tack on this additional fee. See the charts below for details.
- AmEx cards issued by AmEx will charge 2.25-2.7%; other banks (Bank of America, USAA, Citi, etc.) work according to that bank's policies.
- In general Visa/MC cards seem to get slightly better exchange rates than AmEx, although the difference is not material.
[edit] ATM (Automated Teller Machine) transactions
Issues involving ATM transactions:
- If you withdraw from an ATM using a credit card (i.e., a card NOT linked to a bank account), you will typically be hit with a 3% (or greater) cash advance fee on top of whatever foreign exchange fees your credit card already charges you (see above). Some card issuers, such as Citi, will also start charging interest on your cash advance the second you pull money from an ATM (i.e., they won't give you a grace period). Some credit card issuers may allow you to avoid paying interest on cash advances if you have a credit balance in your account (i.e., you send in a payment before you make the cash advance). This will not exempt you from cash advance fees, however.
- If you want to use your ATM card overseas, first confirm that it has a Visa, MasterCard, Cirrus, or Plus logo on it. Most other ATM networks (NYCE, Star, MAC, Shazam, etc.) are regional, not global, and will not work outside the US. A list of interbank networks is available here
- For most ATM transactions in foreign currency on a US-issued debit or credit card, the issuer will tack on a fee charge (typically 3%).
- When using an ATM, you may get hit with an ATM owner fee. Outside North America, ATM owner fees are uncommon at bank ATMs, but are becoming more common at private ATMs inside shops, convenience stores, etc.
- When using an overseas ATM with a US-issued card, most big banks charge a per-transaction fee. Citi, Chase, Wells Fargo, Bank of America, Wachovia, etc. all typically charge their customers $1-10 for each non-affiliated foreign ATM transaction. Some premium customers might be exempted from those fees, but check with your bank. Many smaller regional and internet-based banks do not charge anything for foreign ATM withdrawals. See the charts below for details.
- Prior to travel, verify that your financial institution participates in all the networks listed on the back of the card. One user reports that when he went overseas recently, he obtained a cash card from a credit union to avoid fees. Even though it had a "Plus" logo on the card, however, he could not withdraw cash because the credit union had recently terminated its relationship with the Plus network.
- Prior to travel, check whether your bank has an ATM agreement with a local bank in the country you're going to. At Bank Of America, for example, their "Global ATM Alliance" avoids local fees in 8 countries (as of 2009.)
- It is also a good idea to carry ATM cards for more than one bank just in case there is a problem with one. In the spring of 2006, for example, Commerce Bank (now TD Bank) ATM cards (which are usually reliable overseas) did not work in China, but other ATM cards did. Some cards also may work at certain local banks' ATMs, but not at others. One should never rely on a single method of obtaining cash overseas.
[edit] Debit Card Transactions
Debit card transactions are purchases with cards that ARE linked directly to a bank account and immediately withdraw the purchase amount from the account.
- Most US-issued Visa/MC debit cards can only be used in "credit" mode (i.e., swipe-and-sign, as opposed to PIN-based "debit" mode), but keep in mind two things when using a debit card this way:
- Your bank may charge fees. See the "Point of Sale Fee" column in the ATM / Check / Debit Cards chart below for details.
- When traveling, it's usually better to use a credit card, since if your card is stolen you can easily dispute the charges on a credit card, while a stolen debit card may lead to an overdrawn bank account requiring many additional hassles.
- PIN-based networks do exist overseas, and many Europeans use "Maestro" or "Visa Electron" cards that work similarly to US debit cards, but many US-issued debit cards do not work reliably overseas in "debit" (PIN-based) mode. If you are faced with a situation where a PIN is required (such as certain unmanned train ticket kiosks in Europe), it is certainly better to use a debit card than a credit card, as PIN-based transactions with a credit card usually incur hefty cash advance fees (in addition to any foreign exchange fees). But there is no guarantee that a US-issued debit card will work for PIN-based transaction overseas in every circumstance.
[edit] The List
The charts below are a compilation of data culled from Flyertalk.com threads and by word of mouth of users of the accounts. The information may contain errors. Flyertalk.com, Flyerguide.com and the authors of this page make no warranty as to the accuracy of this information. Please check with your card issuer before using your card overseas, and if you find our information is in error, please let us know or edit the page yourself (it is a wiki, after all).
[edit] Credit and Charge Cards
| Card Issuer | Network | Card Name(s) | Total Fee | Notes |
| Advanta | MasterCard | All cards | 3% | |
| Affinity Federal Credit Union | MasterCard | All cards | 1% | |
| American Express | AmEx | All personal cards | 2.7% | Reconfirmed June 20, 2009. |
| American Express | AmEx | All corporate cards (charge only) | 2.5% | as of April 10, 2007 |
| Bank of America | Visa / MC / AmEx | All cards, unless otherwise noted below | 3% | Reconfirmed June 17, 2009 |
| Bank of America | Visa | AAA Visa (Automobile Association of America) | 2% | as of May 1, 2007 |
| Bank of America | MC | The Ohio State University Alumni Assn - Platinum Plus | 4% | Confirmed with a representative on November 28, 2008 (1% foreign txn fee, 3% exchange fee) |
| Bank of the West | Visa | All cards | 1% | unconfirmed |
| Barclays | MC | EmigrantDirect Platinum | 3% | |
| Barclays | MC | USAirways/America West | 3% | |
| Barclays | MC | Harvard Alumni Association World MC | 1% | |
| Barclays | MC | Ameriprise World Elite MC | 2% | |
| BB&T | Visa | All cards | 2% | |
| BMW Bank | Visa | BMW Platinum Visa | 2% | See BMW Credit Card Disclosures. Cards opened prior to March, 2007 may be grandfathered at 0% fee. Call to inquire regarding your account. |
| Capital One | Visa / MC | All Visa / MC cards reported so far | 0% | Reconfirmed May 2009 (past reports of 1% appear to be errors based on currency market volatility). Suggested you call before each trip to authorize charges, although their security software may still block international card usage depending on past usage and country card is used in. |
| Chase / Washington Mutual | Visa / MC | All cards | 3% | Reconfirmed Jun 2008 |
| Citibank | Visa / MC / AmEx | All cards except Chairman's AmEx | 3% | Reconfirmed May 2009; As of March 2009, 3% fee is confirmed to also apply to charges in USD made outside the USA. |
| Citibank | AmEx | Chairman's Amex Card | 0% | unconfirmed (0% applies only to new Chairman's AmEx card and may have been limited time offer; older Chairman's MC = 3%) |
| Department Stores National Bank | Visa | Macy's / Bloomingdale's Visa | 1% | |
| Diners Club | Diners Club | All issued in US / Canada (start with '5') | 3% | |
| Diners Club | Diners Club | All cards issued outside US / Canada (start with '36') | 0% | |
| Discover | Discover | All | 2% | Changed from 0% to 2% on May 1, 2009. Accepted only in North/Central America, Caribbean and China |
| E*Trade | Visa | All cards | 1% | |
| Farm Bureau Bank / Juniper | Visa / MC | All Visa / MC cards | 3% | |
| Fifth Third Bank | MC | All MC cards | 3% | |
| HSBC | MC | All US-issued MC cards except Premier World MC | 3% | Note that some private-label cards actually issued by HSBC (Example: "Union Plus") may have better terms |
| HSBC | MC | HSBC Premier World MC | 0% | "To qualify for HSBC Premier, you need to maintain $100,000 in combined personal deposit and investment balances... A monthly maintenance fee of $100 will be incurred if minimum balance requirements are not maintained." The 0% foreign exchange rate appears to apply to HSBC US Premier cards only. |
| JCB USA | JCB / Cirrus / Star | JCB Card | 0% | Not widely accepted outside Japan. For US, holder must be resident of CA, CT, IL, NV, NY, NJ, OR, WA, or HI. |
| Lexus Financial | Visa | Lexus Pursuits Visa | 3% | |
| Michigan State University Federal Credit Union | Visa | Platinum Plus Visa | 3% | |
| NASA Federal Credit Union | Visa | Visa Classic; Visa Platinum with cashRewards; Visa Platinum With CURewards Points | 1% | |
| National City | Visa | Cashbuilder Visa | 3% ($1.50 minimum) | If the 3% commission works out to less than $1.50, a "finance charge" is added to bring the fx cost up to $1.50. Verified 4/19/09 |
| Nordstrom Bank | Visa | Nordstrom Platinum/Signature Visa | 1% | |
| Patelco Credit Union | Visa / MC | All cards | 1% | |
| Paypal Plus/GE Money Bank | MC | 1% Cashback MasterCard | 3% | As per CSR Apr 2009 |
| Pentagon Federal Credit Union | Visa | Visa Platinum Cash Rewards; Platinum Travel Rewards | 1% | |
| PNC Bank | Visa | All | 3% | |
| Principal Bank / InfiBank | Visa | Low Rate, Rewards Passport, Cashback Rebate | 3% | |
| Schwab | Visa | Schwab Bank Visa | 3% | Unconfirmed: reported to be 1% by phone May 10, 2008, but website as of September 24, 2008 indicates 2% fee in addition to any other fee, so presumably that means 3% with the Visa fee. |
| Schwab | Visa | Schwab Bank Invest First Visa | 0% | Confirmed 4/2009 by purchase. |
| Simmons First National Bank | Visa | All cards reported so far | 3% | |
| Stanford Federal Credit Union | Visa | Visa Credit Cards | 0% | Confirmed 4/2009 |
| State Farm Bank | Visa | All cards reported so far | 1% | |
| SunTrust | Visa | Platinum Visa & Preferred Visa | 3% | |
| SunTrust | Visa | Signature Visa | 1% | |
| Target Bank | Visa | Target REDCard | 3% | |
| The Golden 1 Credit Union | Visa | Platinum Rewards | 1% | |
| TD Bank | Visa | Cards issued after TD acquired Commerce | 3% | See Credit Card Disclosure |
| TD Bank | Visa | Cards issued by Commerce before TD acquired Commerce | 0% | Reconfirmed 2/2009. Some users report getting charged 3% and others report receiving notice as of 4/2009 that old Commerce credit card accounts are being converted to new TD accounts with the 3% fee. |
| TruWest Credit Union | Visa | Platinum Points | 1% | Foreign transaction fee of 0.8% for USD purchases overseas. Confirmed May 2008. |
| U.S. Bank | Visa | All cards | 3% | |
| USAA | MC / AmEx | All cards | 1% | |
| Verity Credit Union | 1% | |||
| Wells Fargo | Visa | all Visa cards | 3% | As of January 2009 all Wells cards are 3% (including Signature Visa for Private Bank customers, which were previously 0%) |
| World's Foremost Bank | Visa | Cabela's Club | 1% | See Terms and Conditions |
[edit] ATM / Check / Debit Cards
| Card Issuer | Network | ATM Fee | Point of Sale Fee | Notes |
| Addison Avenue Federal Credit Union | Visa | 0% | 0% | Confirmed 9/2008 via CSR for Dividend Reward Checking. Unconfirmed for other account types. |
| American Bank Online | Visa / Plus | 1% | 1% | Reimburses ATM-owner fees within limits (up to $6 per month for e-checking account holders); n.b.: blocks ATM access to funds if traveling in many countries (e.g. China, Hong Kong) |
| Bank Direct | Visa | 0% for ATM-only card (not Visa); 1% for Visa | 1% | Reimburses ATM-owner fees within limits (they say they do not reimburse foreign ATM-owner fees, but an FT user reports having one reimbursed) |
| Bank of America | Visa / Plus | 1% at partner banks; 1% + $5 per transaction at other banks | 3% | Confirmed as of June 1, 2009. No flat fees for ATM withdrawal at the following banks in the following countries only: Barclays (UK), BNP Paribas (France), China Construction Bank (China), Deutsche Bank (Germany), Santander Serfin (Mexico), Scotiabank (Canada and Peru), Westpac (Australia and NZ), but a 1% transaction fee still applies. See Bank of America Locations for more details. All fees may be waived for Premier Banking and Private Clients with a call to customer service. |
| Bank of Internet | Visa / Plus | 0% | 0% | Reimburses ATM-owner fees within limits (maximum $8/month as of March 2009) |
| Bangor Savings Bank | Visa / Plus | 0% | 0% | Reimburses ATM-owner fees without limits worldwide within three business days. Requires at least part-time residence in Maine |
| Capital One | Visa / Plus | 0% + $1.50 per transaction | 0% | $500/day limit. Fees appear to vary depending on the account-holder's state of residence and/or how the account was opened. Branch-based customers in NY report a $1.50 fee, for example, while accounts opened through CapOne Direct Banking in regions without CapOne branches do not have a $1.50 fee. Be sure to check the terms for your particular account before traveling. |
| Chase / Washington Mutual | Visa / Plus | 3% + $3 per transaction | 3% | Confirmed 1/2009 |
| Chevy Chase Bank | Visa / Plus | 3% + $2 per transaction | 3% | |
| Citibank | MC / Cirrus | 3% + $1.50 per transaction for all accounts except for Citigold, Private Bank, International Personal Banking and Global Executive Banking customers which pay 0%; | 3% for all accounts except Citigold, Private Bank, International Personal Banking and Global Executive Banking customers which pay 0%; | $1.50 waived at Citi ATMs and may not apply to accounts opened in certain states; $1000/day limit. See Citibank Client Manual for more details. |
| Citizens Bank | MC / Cirrus | 3% | 3% | May be an additional $2.00 fee for non-circle checking accounts. |
| E*Trade | Visa / Plus | 1% | 1% | Significant disagreement/lack of concensus. According to secure communication, ETrade "reserves the right to charge 1% but currently does not." May 2009 there was no fee for overseas usage. |
| Everbank | Visa / Plus | 1%; 0.8% for USD transactions | 1% | Reimburses ATM-owner fees up to $6 per month. |
| Fidelity Investments | Visa / Plus | 0% if linked to mySmart Cash account; 1% otherwise | 0% if linked to mySmart Cash account; 1% otherwise | Reimburses ATM-owner fees; some users report not seeing any foreign transaction/currency conversion fees when using it overseas even though Fidelity's terms state a 1% fee might be charged by Visa, although in practice users have demonstrated it has the exact same rates as Schwab Investor Checking, which has been shown to be 0%. |
| First Citizens Bank | Visa / Cirrus | 1% only (no ATM fee?) | 1% | According to their Disclosure of Products and Fees foreign ATM transactions are 1%. Bank staff insist there is no additional ATM fee. In practice, however, this has not yet been confirmed. |
| First Internet Bank of Indiana | Visa / Plus | 3% | 3% | Reimburses ATM-owner fees within limits (up to $6/month). This reimbursement includes the 3% fee. $750 daily withdrawal limit |
| FNBO Direct | MC | 3% | 3% | See FAQ at: Online Savings FAQ |
| GMAC Bank | Visa / Cirrus | 1% | 1% | Reimburses ATM-owner fees within limits |
| HSBC | Cirrus / Maestro | 3% at HSBC ATMs; 3% + $1 per transaction at non-HSBC ATMs | 3% | As of 11/7/07, Some fees waived for Premier accounts. See see EFT facility charges |
| HSBC Direct | Cirrus/ Maestro | 0%-3% | ? | HSBC Direct "Online Payment Account" reportedly does not charge at HSBC-owned ATMs, but charges 3% at other ATMs. Also rebates up to three third party ATM-owner fees per month. |
| ING Direct | Cirrus / Maestro | 3% | 3% | Confirmed with ING Direct customer service (effective April 2008). A separate line labeled "Foreign Transaction Charge" equal to 2% of the withdrawal will appear in account activity (on top of the standard MC 1%). Some users report not being charged the ING 2% (just the MC 1%). |
| Meriwest Credit Union | Plus | 1% | 1% | observed 10-7-2008 using straight ATM (not debit) card |
| Pacific National Bank | Visa / Cirrus | 1% | 1% | Reimburses ATM-owner fees; $500/day limit |
| PayPal | MC/Cirrus | 1% + $1 per transaction | 1% | $1/transaction waived on PayPal Business Debit. Verified 3/1/09. Note the 2.5% fee on PayPal's fees page is related to transferring money between PayPal accounts of different denominations, not ATM withdrawals in foreign currencies. |
| Philadelphia Federal Credit Union | Visa | 1% | 1% | Confirmed December 2007 |
| PNC Bank | Plus | 2.5% + $2 per transaction for Free Business Checking; 0% for other business accounts; 2.5% + $3.50 per transaction for personal accounts | ??? | PNC fee waived and ATM-owner fees reimbursed (up to a monthly limit) if avg. monthly balance is at least $2500 in certain account types. |
| Power Financial | Visa | 0% | 3% | Confirmed 06/15/09. |
| Presidential Online Bank | Visa / Cirrus | 0% | 0% | Verified over the phone on December 15, 2008. $550 daily withdrawal limit. |
| Schwab | Visa / Plus | 0% | 0% | Confirmed 6/2009 by use & by phone for Investor Checking & High Yield Savings. Reimburses unlimited ATM-owner fees, but often fails to automatically reimburse overseas ATM-owner fees that are not broken out from the withdrawal amount (you will need to call customer service to get these fees reimbursed--save your receipts and hang up and call back if you get a customer service rep who is unfamiliar with the issue). Daily withdrawal limit = $500 for basic card, $2000 for Platinum Check Card (which most customers seem to automatically get with the checking account). Savings account has transaction limits on non-ATM transactions. Note 1% may be charged (unconfirmed) for ATM withdrawals directly from SchwabOne Brokerage. |
| Simmons First National Bank | Visa / Plus | 1% | 1% | |
| State Farm Bank | Visa / Plus | 0% (plus $10 handling charge as of 3/09) | 0% | Reimburses ATM-owner fees within limits (As of June 2008, up to $10 per statement cycle but no limit if there is a direct deposit or ACH credit within 45 days prior to the foreign ATM transaction). Performs hard pull from all three credit agencies during checking account application process. $1000 daily withdrawal limit. |
| TD Bank | Visa / Plus | 0% | 0% | Reconfirmed 5/2009. Reimburses unlimited ATM-owner fees if you maintain a minimum balance of $2500. |
| The Golden 1 Credit Union | Visa / Cirrus | 1% + $1.25 per transaction | 1% | |
| Tomato Bank | Visa | 1% | 1% | |
| TruWest Credit Union | MC | 1% | 1% | Confirmed May 2008 by phone. |
| UFB Direct | Cirrus | 1% | 1% | Reimburses ATM-owner fees within limits |
| Umbrella Bank | Visa / Cirrus | 1% | 1% | Reimburses ATM-owner fees within limits |
| Union Bank of California | MC | 0% + $5 per transaction | 0% | Confirmed Jan 2009 by email with bank customer service |
| Umpqua Bank | Visa | 0% | 0% | Confirmed 11/08 |
| University of Michigan Credit Union | Visa | 1% | 1% | Confirmed 4/08 |
| U.S. Bank | Visa / Plus | 3% + $2 per transaction | 3% | |
| USAA | MC / Maestro / Cirrus | 1% | 1% | Reimburses ATM-owner fees within limits. |
| Valley National Bank | Visa / MC | 3% + $3 per transaction | 3% | |
| Verity Credit Union | Visa | 1% | 1% | |
| Wells Fargo / Wachovia | Visa | 0% for PMA Checking; 3% + $5 per transaction for all other accounts | 3% | Confirmed 04/02/08. Some non-PMA accounts may be exempt from the 3% ATM fee (but still subject to the $5/transaction fee). |
Note:
Please feel free to edit this page if you have confirmed, accurate information to put in it. If you are unsure about the accuracy of your information, please do NOT edit this page, but rather contact user 'themicah' using the private message feature at Flyertalk.com. If you make edits, please explain the changes you made in the "summary" field on the edit page.
