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[edit] Introduction
There is a thread in the MilesBuzz forum on Flyertalk [1] called "Best card for foreign exchange?" that is now far too long for anyone to reasonably read. Here we have put together 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 transaction, there are four possible places where you can get hit for fees:
- By the merchant/ATM-owner
- By the network (Visa/MC/AmEx)
- 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. 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 Visa/MC merchant agreements generally require the merchant to offer transactions in local currency.
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.
[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.
- For most transactions in foreign currency on a US-issued card, the network (i.e. Visa/MC) will tack on a 1% charge. A few banks/card-issuers "eat" the fee (notably CapitalOne). Most pass it on either as a line item on your statement or "built in" to the exchange rate. Discover and JCB do not charge a fee, and American Express card fees depend on who issues the card. See the charts below for details.
- In addition, most big issuing banks (Citi, Chase, Bank of America, etc.) will tack on an additional 2% on top of whatever the network charges (for a total fee of 3%). AmEx cards issued directly by American Express have a 2% to 2.5% total fee for US-issued cards. AmEx cards issued by other banks (Bank of America, USAA, Citi, etc.) work according to that bank's policies. A few card issuers charge nothing other than the 1% Visa/MC fee (notably USAA), and a very few (notably CapitalOne) even eat the Visa/MC 1% for a total fee of 0%. See the charts below for details.
- Even for US-issued US$-billed cards, for some US$-denominated transactions overseas, Visa/MC may charge up to 1%.
- Last, there is the issue of the exchange rate itself. Unfortunately, that's not really something we seem to be able to control, but in general Visa/MC cards seem to get slightly better exchange rates than AmEx (although in recent years the difference has been shrinking).
[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 forex fees your credit card already charges you (see above). Some card issuers (Citi is one) 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). So, unless your card issuer does not charge such a fee, stay away from credit card cash advances overseas.
- Note that 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 and will not work outside the US. A list of interbank networks is available here
- Note that the ATM card doesn't need to be a Visa/MC debit card and in fact you may avoid the Visa/MC 1% fee by using a Cirrus/Plus card without a Visa/MC logo.
- 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 (in addition to any Visa/MC 1% conversion fee). 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.
- 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 (of NJ) 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.
- Some US banks state that they do not charge FX fees when their ATM cards are used overseas, but this doesn't protect you from FX fees charged by Visa/MC or the foreign ATM owner.
[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.
- PIN-based networks do exist overseas, and many Europeans use "Maestro" or "Visa Electron" cards that work similarly to US debit cards. But most US-issued debit cards will not work with these networks, so you should not expect to make PIN-based transactions overseas with your US-based debit card.
- Most US-issued Visa/MC debit cards can only be used in "credit card" mode (i.e., swipe-and-sign), but keep in mind two things when doing this:
- The Visa/MC 1% (for US-issued cards) and your bank's 1-3% extra fees (if your bank charges them) will still apply. See the charts below for details.
- When traveling, it's usually better to use a credit card, since if it gets stolen you simply have to dispute the charges, while if a debit card is stolen you may find your bank account totally cleaned out or overdrawn.
[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 bank 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 reported so far | 3% | |
| Affinity Federal Credit Union | MasterCard | Rewards Mastercard and probably all others | 1% | |
| American Express | AmEx | All personal cards (charge and credit) reported so far | 2% | Reconfirmed July 2008 |
| American Express | AmEx | All corporate cards (charge only) | 2.5% | as of April 10, 2007 |
| Bank of America/MBNA/FIA Card Services | Visa/MC/AmEx | All Visa, MC, and AmEx cards, unless otherwise noted below | 3% | Reconfirmed January 2, 2008 |
| Bank of America/MBNA | Visa | AAA Visa (Automobile Association of America) | 2% | as of May 1, 2007 |
| Bank of America/MBNA | AmEx | All AmEx | 1% | |
| Bank of America/MBNA | Visa | Fidelity Investment Rewards Signature Visa | 3% | Reports indicate all accounts are now 3% (previously some older accounts temporarily grandfathered at 0% or 1%) |
| Bank of the West | ??? | All cards reported so far | 2% | unconfirmed |
| Barclays Bank/Juniper | MC | EmigrantDirect Platinum | 3% | |
| Barclays Bank/Juniper | MC | USAirways/America West | 3% | |
| Barclays Bank/Juniper | MC | Harvard Alumni Association World MasterCard | 1% | |
| Barclays Bank/Juniper | MC | Ameriprise World Elite MasterCard | 2% | |
| BB&T | Visa | Platinum Visa | 2% | |
| BMW Bank N.A. | Visa | BMW Platinum Visa | 0%-2%? | Reports indicate that as of March, 2007 new cardholders have a 2% "processing" fee for forex transactions, although cards that were opened prior to March, 2007 may be grandfathered at 0%. Call to inquire regarding your account. |
| CapitalOne | Visa/MC | All Visa/MC cards reported so far | 0% | Reconfirmed July 2008, but suggested you call before each trip to authorize charges. Proprietary security software may block card usage depending on past usage and country card is used in. |
| Chase/BankOne/FirstUSA | Visa/MC | All cards reported so far | 3% | Reconfirmed April 2008 |
| Citibank | Visa/MC/AmEx | All cards except Chairman's AmEx | 3% | Reconfirmed October 2007 |
| Citibank | AmEx | Chairman's Card | 0% | unconfirmed as of 5/8/07 (0% applies only to new Chairman's AmEx card; older Chairman's MC = 3%) |
| Commerce Bank (of NJ) | Visa | Visa Platinum Credit Card | 0% | Confirmed it's truly 0% (they "eat" the 1% from Visa). Only available in certain states. |
| Department Stores National Bank | Visa | Bloomingdale's Premier Visa | 1% | |
| Diners Club issued in US/Canada (start with '5') | MC | All US-issued cards reported so far | 3% | |
| Diners Club issued elsewhere (start with '36') | Diners Club | All cards reported so far | 0% | |
| Discover/Morgan Stanley | Discover | All cards reported so far | 0% | Accepted only in North/Central America, Caribbean and China |
| eTrade | Visa | Platinum Rewards Visa | 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% | |
| 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." |
| JCB USA | JCB | JCB Card | 0% | Exchange rates are based on the posting date, not the transaction date. They seem slightly higher (less than 0.5%) than interbank rate. Not widely accepted outside Japan. For US, holder must be resident of CA, CT, IL, NV, NY, NJ, OR, WA, or HI. |
| Lexus Financial Savings Bank | Visa | Lexus Pursuits Visa | 3% | |
| Michigan State University Fed'l CU | 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 | All cards reported so far | 3% | |
| Nordstrom Bank | Visa | Nordstrom Platinum Visa, Nordstrom Visa Signature | 1% | |
| Patelco Credit Union | Visa, MasterCard | Visa Gold; Platinum 1% Cash Rebate MasterCard | 1% | |
| Pentagon Federal Credit Union | Visa | Visa Platinum Cash Rewards; Platinum Travel Rewards | 1% | |
| Principal Bank/InfiBank | Visa | Low Rate, Rewards Passport, Cashback Rebate | 3% | |
| Schwab Bank | Visa | Schwab Bank Visa | 1% | Confirmed by phone May 10, 2008. Not yet confirmed through purchase. |
| Simmons First National Bank | Visa | All cards reported so far | 3% | |
| 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 Golden1 Credit Union | Visa | Platinum Rewards | 1% | |
| TruWest Credit Union | Visa | Platinum Points | 1% | 0.8% for USD purchases overseas. Confirmed May 2008. |
| U.S. Bank | Visa | All cards reported so far | 3% | |
| USAA | MC | Cash Rewards | 1% | |
| Verity Credit Union(WA) | 1% | |||
| Washington Mutual/Providian | MC | Washington Mutual Platinum MasterCard | 1% | |
| Wells Fargo | Visa | Visa Signature | 0% | Available only to WF Private Banking customers. Note: Foreign conversion fees may apply if you do not have a grandfathered PMA account with Wells Fargo. |
| Wells Fargo | Visa | all other Visa cards (non-Signature) | 3% | |
| World's Foremost Bank | Visa | Cabela's Club | 1% | Confirmed April 2008 |
[edit] ATM/Check/Debit Cards (used at ATM)
| Card Issuer | Network | Account Name | Total Fee | Notes |
| American Bank Online (pcbanker.com) | Visa/Plus | Checking | 1% | Reimburses ATM-owner fees within limits; unconfirmed: may have some sort of additional service fee? |
| Bank Direct | Cirrus | Checking with ATM-only card (not Visa) | 0% | 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 Direct | Visa | Checking with Visa debit card | 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 | Checking/Advantage | 1% + $5/transaction | Confirmed as of April 25, 2008. You are charged only the interbank exchange rate at Bank of America's correspondent banks: Barclays (UK), BNP Paribas (France), China Construction Bank (China), Deutsche Bank (Germany), Santander Serfin (Mexico), Scotiabank (Canada), Westpac (Australia and NZ). The $5 and 1% fees are waived at these banks. See Bank of America Locations for more details. |
| Bank of Internet (bofi.com) | Visa/Plus | Senior checking (other account types similar) | 0% | Reimburses ATM-owner fees within limits ($7 as of June 2008) |
| Capital One | Visa/Plus | Any that offer an ATM card | 0% | $500/day limit. Confirmed April 2008. NOTE: ATM fee when using a Capital One credit card (as opposed to dedicated ATM card) is 3%. |
| Chase | Visa/Plus/Interlink | Checking | 3.5% + $3/transation | |
| Chevy Chase Bank | Visa/Plus | Checking | 3% + $2/transation | |
| Citibank | MC/Cirrus | Citigold, Private Bank, International Personal Banking and Global Executive Banking customers | 1% + $1.50/transaction | $1.50 waived at Citi ATMs |
| Citibank | MC/Cirrus | All other US-based customers | 2% + $1.50/transaction | $1.50 waived at Citi ATMS; $1000/day limit; $1.50 not applicable to all US Citi accounts, depends on the state of the home branch. See Citibank Client Manual for more details. Update: foreign transactions are charged 2 % fee - a customer service agent confirmed as of 6/08 that this fee previously "hidden" in the foreign conversion. As of August 2008, the fee will be raised to 3%! Yes, even at Citibank branches throughout the world. |
| Commerce Bank (based in NJ) | Visa/Plus | NY Yes Checking | 0% | Reconfirmed April 2008; reimburses ATM-owner fees within limits if you maintain minimum balance of $2500 |
| E*Trade Financial | Visa/Plus | linked to investment account via money market | 1% | |
| Everbank.com | Visa/Plus | Checking | 1% | |
| Fidelity Investments | Visa/Plus | linked to investment account via money market | 1% | As of 10/2007. Reimburses ATM-owner fees for certain accounts |
| Fidelity Investments | Visa/Plus | linked to mySmart Cash account | 0% ??? | 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. |
| First Internet Bank of Indiana (firstib.com) | Visa/Plus | Checking/Savings | 3% | Reimburses ATM-owner fees within limits. Raised from 1% in February 2008 - FirstIB claimed fee is imposed by Visa and they charge nothing |
| GMAC Bank | Visa/Cirrus | Money Market Savings | 1% | Reimburses ATM-owner fees within limits |
| HSBC | Cirrus/Maestro | most US-based checking and savings accounts | 3% at HSBC-owned ATMs; 3% + $1/transaction at non-HSBC ATMs | As of 11/7/07, Some fees waived for Premier accounts |
| HSBC | Cirrus/Maestro | HSBC Direct online savings and payment (US) | 3% | as of 11/07 - see EFT facility charges |
| INGdirect Electric Orange | Cirrus/Maestro | Electric Orange Checking(US) | 3% | Some users report only 1% being actually charged |
| Pacific National Bank (pacificnational.com) | Visa/Cirrus | Value Checking | 1% | Reimburses ATM-owner fees; $500/day limit |
| PayPal.com | Visa/Plus | Premier/Premium | 1% + $1/transaction | |
| Philadelphia Federal Credit Union | Visa | 1% | Confirmed December 2007 | |
| PNC Bank | Plus | Business checking and money market accounts (except Free Business Checking) | 0% | |
| PNC Bank | Plus | Free Business Checking | 2.5% + $2/transaction | |
| PNC Bank | Plus | Free Checking (personal) | 0% + $3.50/transaction | PNC fee waived and ATM-owner fees reimbursed (up to a monthly limit) if avg. monthly balance is at least $2500 |
| Presidential Online Bank | Visa/Cirrus | Checking/Savings/Money Market | 0% | |
| Schwab | Visa/Plus | Schwab One | 1% | Reimburses unlimited ATM-owner fees |
| Schwab | Visa/Plus | Schwab Investor Checking | 0% | Reimburses unlimited ATM-owner fees and many users report 0% forex fees applied by Schwab and customer service reports the same. Will not refund additional fees, on top of the transaction fees, applied by bank or atm you are withdrawing from. Confirmed on phone July 2008. |
| Simmons First National Bank | Visa/Plus | Checking/Savings | 1% | |
| State Farm Bank | Visa/Plus | Personal Checking/Interest Checking | 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. |
| The Golden1 Credit Union | Visa/Cirrus | Free Checking | 1% + $1.25/transaction | |
| TomatoBank International | Visa | International | 1% | |
| TruWest Credit Union | MC | Share Savings or Simply Checking | 1% | Confirmed May 2008 by phone. |
| UFBDirect.com | Cirrus | Absolute Savings | 1% | Reimburses ATM-owner fees within limits |
| Umbrellabank.com | Visa/Cirrus | Basic Interest Checking (other account types similar) | 1% | Reimburses ATM-owner fees within limits |
| Union Bank of California | MC | Free Checking with Interest | 0% + $5/transaction | unconfirmed |
| U.S. Bank | Visa/Plus | All accounts | 3% + $2/transaction | |
| USAA | MC/Maestro/Cirrus | No Fee Checking with Rewards | 1% | Reimburses ATM-owner fees within limits |
| Valley National Bank (NJ/NY) | 3% + $3 fee | |||
| Verity Credit Union(WA) | 1% | |||
| Wachovia | Visa | Checking/Savings | 2% + $2/transaction | $800/day limit |
| Washington Mutual | MC | All accounts reported so far | 1% + $2/transaction | Fees listed are as of 3/01/07. As of May 2008 it appears things are changing, with phone reps saying it's 1% or 2% (+ $0/transaction) and possibly going to 3% in June 2008. $500/day limit. Fees may vary by account type (unclear). Update 6/13/08: 1% + $2/transaction See here. Teller confirms $500/day limit. Update 6/20/08: 3% + $2/transaction ($2 fee waved on Wamu Free Checking Account). Confirmed with two different customer service representatives. |
| Wells Fargo | Visa | PMA Checking | 0% | Confirmed 04/02/08 |
| Wells Fargo | Visa | Checking (not PMA) | 3% + $5/transaction |
[edit] Check/Debit Cards (used at point of sale)
| Card Issuer | Network | Account Name | Total Fee | Notes |
| Bank Direct | Visa | Checking | 1% | |
| Bank of America | Visa | Checking | 3% | According to e-mail communication from customer service representative on June 24, 2008 |
| Capital One | MC | Checking | 0% | Requires visiting a branch office in Connecticut, Louisiana, New Jersey, New York, Texas, or the headquarters branch in McLean, Virginia to complete the process |
| Chase | Visa | Checking | 3% | |
| Commerce Bank (based in NJ) | Visa | NY Yes Checking | 0% | Confirmed 10/2007 |
| PayPal.com | Visa/Plus | Premier/Premium | 1% | |
| PNC Bank | Visa | Free Checking | 0% + $3.50/transaction | Reported 5/13/08; previously reported to be 2.5%; awaiting confirmation from a non-anonymous source. |
| Umbrellabank.com | Visa | Basic Interest Checking | 1% | |
| University of Michigan Credit Union | Visa | Basic Checking | 1% | Confirmed 04/01/08 |
| USAA | MC | No Fee Checking with Rewards | 1% | |
| Washington Mutual | MC | WaMu Free Checking | 3% | A sheet from Wamu dated 6/13/08: ATM/Debit Card Foreign Transaction Fee: ATM Transactions 1%/Other Transactions 3% |
| Wells Fargo | Visa | PMA Accounts | 3% | Confirmed 4/2/08 |
| Wells Fargo | Visa | Non-PMA Checking | 3%+$5/purchase | Confirmed 03/01/08 |
Note: Please feel free to edit this page if you have 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.
