Foreign Fee Free Credit Cards

elchrist · Posted: 07 Dec 2005 09:27 AM Post subject: Foreign Fee Free Credit Cards

I'm not sure how many of you are aware of the following, so if you're not read the fine print of your terms & agreements for your credit card.

Most credit cards charge you an additional fee whenever you make a purchase outside of the United States. It's generally referred to as a "foreign charge" or "foreign fee," which is absolute nonsense and is unnecessary. The fee ranges anywhere from 1% to 3% on top of the actual cost of sale and it's automatic.

Being so close to Mexico, this should be something that we should all be aware about. Most of us go out to Mexicali to shop, eat, or "party" and there are times when you have to use your Visa, MasterCard, or American Express card. Well when you do, your credit card company is most likely charging you a foreign fee. Yeah, it sucks, but that's the way credit card companies are making money off you nowadays.

Using your Visa check/debit card doesn't appear to incur the foreign fee, so I tend to use it more often, but I wouldn't be surprised that banks will start to charge you a fee in the future in hopes to make an extra buck off their customers.

So right now I'm looking for a new credit card that I can use with confidence which won't end up adding on these foreign fees to my purchases. It's been a tough search, but I know some do exist. MBNA (who just got bought off by BofA) used to have one, but they've started charging too.

Is anyone aware of any?

Mars · Posted: 07 Dec 2005 10:22 AM Post subject:

I've noticed that my bank does not charge me when I use my debit card in mex but what i have noticed is that if I use my Atm card to withdraw cash in Mex I get charged currency exchange fee. Not sure how it is different withdrawing is different than charging but it sucks.

elchrist · Posted: 07 Dec 2005 11:38 AM Post subject:

berimbau · Posted: 08 Dec 2005 10:05 AM Post subject:

elchrist · Posted: 08 Dec 2005 10:42 AM Post subject:

Thanks for the link to the Flyertalk Wiki page. Although it does seem as if it's a little bit outdated, it does provide quite a bit of useful information on one single page.

It makes a bit of sense as to why the issuing bank would also charge the foreign exchange fee due to "x-rate fluctuations," but every other site I've read on about the fee seems to refer to it as just a bogus addition.

"It's just 1 or 2 percent of greed, really,..."
http://www.bankrate.com/brm/news/cc/20010416a.asp

"...many credit card issuers and banks are cashing in by adding up to a 2-percent charge on top of that 1 percent without doing a thing to earn it."
http://www.bankrate.com/brm/news/cc/20050624a1.asp

elchrist · Posted: 12 Dec 2005 01:20 PM Post subject:

Just out of curiousity, do Mexicans with (Mexican bank issued) credit cards get charged a foreign charge when shopping in the US?

I assume they do, but just wanted to confirm.

JackintheBoxster · Gots My GED Joined: 05 Oct 2004 Posts: 118 Location: LA

A perfect example of more American greed. We just can't get enough of it.

Consumers are the problem here for not causing an uprise in the credit card industry. Why don't you cash that free $15 check from your card issuer? Such generosity.

The real solution: Don't make a purchase you can't afford to pay off in within your "grace" period.

elchrist

Did anyone recently receive a "U.S. District Court Approved Refund Notice" in the mail?

I did and it's for an easy $25 refund for any of the foreign currency conversion fees you may have incurred outside the US while using your debit/credit card.

I knew we were getting swindled by the banks and credit card companies.

I filled it out online. Clark Howard confirmed this is a legit refund.

spic-ole