Mon Dieu! Credit card issuers broadening foreign transaction fees
You may find out that your next online order will cost you more than you expect. That's because credit card issuers have added to or expanded their foreign transactions fees to include transactions processed outside the U.S. Since February, Discover, Citigroup, Simmons and Bank of America expanded their fees, according to Bill Hardekopf of LowCards.com. Prior to this change the 3% fee was charged primarily when you traveled and bought something outside the country. With the new rules the foreign transaction fee now includes all transactions made or processed outside of the United States.
The big problem with this fee is that you won't know you're being charged the fee until the transaction shows up on your credit card bill. So what should watch out for when buying something online:
- If the online merchant is based in another country, you could end up paying 3% more. Check carefully to be sure you're being billed in the U.S.
- If you purchase airline tickets or a hotel room with a foreign based company, you could end up being charged an extra 3%.
"If you purchase a high priced item, that additional fee can be quite a surprise," Hardekopf told me in an e-mail interview. "Before you order anything from a merchant that is not based in the United States, it is a good idea to call your issuer and ask about this fee. You can save yourself a little money by using a credit card that doesn't charge a fee for foreign transactions. CapitalOne is one of the few cards that still does not charge a foreign transaction fee."
While credit cards are convenient to use when traveling outside they country, they are costly. "Every transaction that you put on your credit card while in another country could be charged an extra 3%, including lunch, T-shirts, books, artwork and souvenirs. It is a good idea to keep this charge in mind to know the true price of the item you are buying," Hardekopf added.
Lita Epstein has written more than 25 books including "The Complete Idiot's Guide to Improving Your Credit Score."
Reader Comments (Page 1 of 2)
5-14-2009 @ 5:16PM
c e said...
I did a few business transactions with a company I have previously done business with using Discover Card and to my surprise when the bill came all the transactions had these foreign currency fees. I didn't know this company was in Canada and hadn't been charged the fees before. It was a shock. Next time I'll have to find another company to do business with and make sure they are in the U.S., or perhaps switch cards to the one named above.
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5-14-2009 @ 3:22PM
Grey Mist said...
God damn banks! When are we going to get relief from these thieves. The take our money and then screw their customers for more. Fuck them.
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5-14-2009 @ 3:26PM
John said...
NANCY PELOSI'S PATRIOTIC DRUNK DRIVING ILLEGAL MEXICANS KILL 25,000 AMERICAN CITIZENS A YEAR, NO LICENSE, NO INSURANCE, NO HABLA ENGLISH
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5-14-2009 @ 4:10PM
floyd said...
It's absolutely amazing. You retards complain and complain until you get the government to pass a new law effecting the credit card companies. The credit card companies have to then put a blurb in their terms and conditions regarding that law. Then when the terms and conditions get so large that you don't want to read them anymore, you complain that they are too hard to follow and ask for even more laws. What do you want, someone to read the agreement for you before you sign. I know you want someone to pay the bill for you, you're probably all on welfare... Of course, we can't refuse to give you a credit card when you apply if you ARE on welfare, because that would be discrimination. Jeez, get a job people, and take some responsibility. Quit calling in and complaining every time you get hit with a late fee or a huge finance charge. Here's an idea: read the terms and conditions, and then follow along with what YOU agreed to.
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5-14-2009 @ 4:21PM
Roberto said...
Se puede escribir "No hablan inglés"
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5-14-2009 @ 4:32PM
navyvp24 said...
OK, you have 2 choices; either (1), learn English, or (2) get your ass back across the boarder - unless you are here legally, then you have an obligation to learn the English language. And obey all our laws, such as; get a valid drivers license in the State you are in, carry the reguired insurance and, get a job, pay your taxes as we all must do.
You are either with us, or you are against us.
5-14-2009 @ 4:25PM
ryanoback said...
If you deal with crooks, you will get robbed. DON'T DO THAT.
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5-14-2009 @ 4:31PM
pat said...
I don't know how many states do this but in Tennessee if you order something say from HSN or some other place you get charged TAX ON YOUR SHIPPING AND HANDLING, which is a ripoff since our tax is already 9.25%. Before you order anything online or over the phone to be shipped to you check your state law on the tax issues.
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5-14-2009 @ 4:36PM
Ironhead said...
Hey Grey Mist: Shut your pole hole, if you don't like the
cards then don't use them ! ! Moron
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5-14-2009 @ 4:40PM
Mike said...
I know you like to believe anything you see on hte internet, but your figures are completely false, they have no legit source.
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5-14-2009 @ 4:37PM
sicntiredofbeingsicntired said...
Have any of you welfare haters ever thought about the poor individual who has been laid off or lost his job for no reason of his/her own? Everyone out there who has worked hard all of their lives and are now faced with unemployment are entitled to some "welfare" if that is what you want to call it. Instead of hating these people give them a hand out and a hand up if you an afford to do it. There is a BIG difference between a welfare queen and a person who needs welfare to feed the family and keep a roof over their heads.
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5-14-2009 @ 4:43PM
SC said...
Amen to that Grey Mist!!!
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5-14-2009 @ 4:55PM
Totally Fed Up said...
Right on, Grey Mist, could not have said it better myself.
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5-14-2009 @ 4:54PM
Walt said...
I took the family to Mexico and was charged 3% by Mexico and 3% by my credit card company. Cost me $250
I switched to Capital One they don't have these charges yet.
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5-14-2009 @ 4:59PM
Dave said...
I must be the odd man out as I have never had a problem with any of my credit cards but then again I read the agreement I signed and also I pay my bills on time which seems to be a strange thing today. I have never stiffed anyone and I have busted my butt over the years to get what I want. Today it seems like there are a lot of people that think they are "owed" something for some strange reason. I have never charged anything on my cards unless I had the money to back it up. It's about time that some out there took responsibility for their own actions and stop blamming someone else. If you can't afford it don't buy it and then expect the rest of us to bail you out.
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5-14-2009 @ 5:41PM
Spanish said...
To Navyvp24. Before you ask us foreigners to learn English you should make sure you know how to spell in your own damn language.
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5-14-2009 @ 5:55PM
mike said...
back to using travelers checks when traveling out of the US.
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5-14-2009 @ 6:26PM
ME said...
Finally someone with a brain. You people who do the griping should be careful you could be the next unemployed looking for some type of assistance. I'ts OK to ask for help when it is truly needed and not a lifestyle.
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5-14-2009 @ 6:36PM
KIM said...
BOYD YOU MUST BE ONE OF THOSE NASTY CHASE BANK PERSONS, THEY ARE THE WORST!!
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5-14-2009 @ 6:50PM
Lewis said...
The banks are taking in all it can in a bad situation, the money loaned to them by the tax payers of this country will be paid back by the tax payers that are late paying and those that are charged higher fees. The banks were never going to pay that money back....you and I are....as for the people that say all those mean things to the people who are complaining, the chances are they work for those banks, Congress knew all this and are a bunch of crooks and idiots...you ever notice when they want something the bill passes almost over night....but anything for the AMERICAN people takes months if not years..
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