Watch Those Foreign Exchange Rates on Credit Cards
According to Sandra Block at USA Today everybody taking a vacation should be keeping their eyes peeled for expensive currency conversion deals on credit cards:
Here are some examples:
Currency conversion fees charged by major banks and credit card providers
Capital One: None
Washington Mutual: 1%
American Express: 2%
Bank of America: 3%
Chase: 3%
Citibank: 3%
US Bancorp (U.S. Bank): 3%
Wells Fargo: 3%
Sandra goes on to say:
“These fees are calculated as a percentage of your overall credit card purchase, usually in U.S. dollars. If, for example, you spent 100 British pounds, and it converted to $198 in U.S. dollars, a 3% currency-conversion fee would add about $6.
But this additional insult to your travel budget is avoidable. According to a new survey by IndexCreditCards.com, there’s a lot of variation in the conversion fees that credit cards charge (see box). The most notable example is Capital One, which doesn’t charge any of its own fees and absorbs the Visa or MasterCard fee.”
Vigilance is the name of the game. Make sure you check with your provider before you go on a foreign vacation. You could just save yourself a few dollars.
This entry has been viewed 201 times.
READER COMMENTS:
No comments yet.
