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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 three possible places where you can get hit for 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. 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.
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.[2]
[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 forex 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 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.
- 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.
[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. Depending on the country and the system that you are using, your US-issued debit card may or may not work. It is common in Europe for a PIN to be entered for transactions where their is no clerk (train ticket kiosks, etc.). This would present a problem if you plan to use a credit card as it likely has no PIN (and if it does it may be prone to Cash Advance fees). Using a debit card with a PIN in such a circumstance may work perfectly well (it works a "debit charge", but sometimes it may not work. It is not necessarily a given that you can make PIN-based transactions overseas with your US-based debit card in every circumstance.
- 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:
- Your bank's 3% foreign purchases 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 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 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 September 6, 2008 (As of November, 2008, reports indicated some personal cards are going to 2.7%. More to come...) Update, all Amex cards are reporting to move from 2.0% to 2.7% as mentioned in the November 2008 statement. This new policy takes effect January 11, 2009. |
| 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 America/MBNA | 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 | ??? | 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 November 2008 flyertalk user psychtobe. 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. One user reported in August 2008 being charged 1%, but the report remains unconfirmed. Please contact flyertalk user themicah if you are that anonymous user. |
| Chase/BankOne/FirstUSA | Visa/MC | All cards reported so far | 3% | Reconfirmed Jun 2008 |
| Citibank | Visa/MC/AmEx | All cards except Chairman's AmEx | 3% | Reconfirmed Nov 2008 |
| 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 (TD Bank) | Visa | All cards post TD Bank acquisition of Commerce Bank. | 3% | Reconfirmed September 2008 - 3% foreign transaction fee (including foreign purchases and foreign cash advances). See small print at http://bank.commerceonline.com/personal_banking/promos/promo_personal_credit_card.cfm |
| 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." The 0% exchange rate appears to apply to HSBC US Premier cards only. |
| 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 | 3% | Confirmed to be 1% by phone May 10, 2008. Not yet confirmed through purchase. 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 Bank | Visa | Schwab Bank Invest First Visa Credit Card | 0% | Also 2% cash back to Schwab One brokerage account. http://www.schwab.com/public/schwab/banking_lending/credit_card |
| 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/AmEx | All cards reported | 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 and Peru), 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) |
| Bangor Savings Bank (bangor.com) | Visa/Plus | Benefit Checking/Benefit Plus Checking | 0% | Reimburses ATM-owner fees without limits worldwide within three business days. No residency requirements. No monthly fee. No minimum balance. Update as of 8/28/08: Now requires at least part-time residence in Maine |
| Capital One | Visa/Plus | Any that offer an ATM card | 0% + $1.50/transaction | $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 | 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 | 0% | Effective August 1, 2008. See Citibank Client Manual link below. |
| Citibank | MC/Cirrus | All other US-based customers | 3% + $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. Forex fee effective August 1, 2008. |
| Commerce Bank (based in NJ) (TD Bank) | Visa/Plus | Checking | 0% or 1% | Reconfirmed November 2008 - 0% on checking account withdrawls from ATMs with Visa or Plus logo. May or may not pass on the 1% charge from Visa |
| E*Trade Financial | Visa/Plus | linked to investment account via money market | 1% | Confirmed August 2008. One user disagrees. According to secure communication, ETrade "reserves the right to charge 1% but currently does not." On a trip November 2008 to Spain, no 1% was charged. |
| Everbank.com | Visa/Plus | Checking | 1%; 0.8% for USD transactions | Reimburses ATM-owner fees up to $6 per month. |
| 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. $750 daily withdrawal limit. |
| 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) | 2% | Confirmed by INGdirect customer service. Some users report only 1% being actually charged. |
| Meriwest Credit Union | Plus | checking | 1% | observed 10-7-2008 using straight ATM (not debit) card |
| 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) | 2.5% + $3.50/transaction | PNC fee waived and ATM-owner fees reimbursed (up to a monthly limit) if avg. monthly balance is at least $2500. Confirmed 8/08. |
| Presidential Online Bank | Visa/Cirrus | Checking/Savings/Money Market | 0% | Verified over the phone on December 15, 2008. $550 daily withdrawal limit. |
| 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. $500 daily withdrawal limit ($2000 for Platinum Check Card). |
| 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. $1000 daily withdrawal limit. |
| 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 | Checking or Asset Management Account | 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 (2% + $5/transaction starting in Dec. 2008) | $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 |
| Addison Avenue FCU | Visa | Checking | 0% | (9/11/2008) Confirmed via CSR for Dividend Reward Checking. Need confirm for other account types, but under impression that applied to all of their checking accounts. |
| 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 or "decoupled" Debit Card | 0% | Capital One checking is only open to customers in states where they do branch banking which requires visiting a branch office in Connecticut, Louisiana, New Jersey, New York, Texas, or the headquarters branch in McLean, Virginia. |
| Chase | Visa | Checking | 3% | |
| Commerce Bank (based in NJ) (TD Bank) | Visa | NY Yes Checking | 0% | Confirmed 10/2007, (they "eat" the 1% from Visa) prior to TD Bank acquisition of Commerce Bank. Cards issued since the acquisition may be 3% and older cards may be going to 3%, so confirm with the bank before using your card overseas. |
| INGdirect Electric Orange | Cirrus/Maestro | Electric Orange Checking(US) | 3% | Some users report only 1% being actually charged |
| 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% | |
| Umpqua Bank (based in Oregon) | Visa | Checking | 0% | Confirmed 11/2008 |
| University of Michigan Credit Union | Visa | Basic Checking | 1% | Confirmed 04/01/08 |
| USAA | MC | Checking or Asset Management Account | 1% | Rebates 0.5% of debit card purchase amounts or grants proprietary rewards points |
| Washington Mutual | MC | WaMu Free Checking | 3% | Terms and conditions as of Sep 1 2008: 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% | Confirmed 08/04/08 |
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.
