Using your plastic wisely on vacation
Posted in Advice on July 3rd, 2008 by: LisaDid you know that if you are traveling abroad, Visa and MasterCard charge issuing banks a standard fee of 1% percent of the total price for items purchased outside the country. This “currency conversion charge” is then passed onto you the customers. For ATM cards, there is the same currency conversion fee. However, they also charge you a transaction fee of up to $5 per withdrawal. Some countries have have low withdrawal limits, so you will be having that charge on multiple transactions to get the amount of money out that you want. There are ways to minimize foreign transaction fees or eliminate them altogether. It all depends on where you bank, which ATM you use, and where you are when you use it.
Citibank customers traveling in 46 countries can use Citibank ATMs and pay a 2% conversion charge but no transaction fee. At other places in the world, customers still pay the 2% conversion charge, but the transaction free is $1.50.
Bank of America belongs to the Global ATM Alliance. Their customers can withdraw local currency from ATMs in eight foreign countries and pay absolutely no transaction fees. The alliance includes Barclays Bank (United Kingdom), BNP Paribas (France), China Construction Bank (China), Deutsche Bank (Germany), Santander Serfin (Mexico), Scotiabank (Canada) and Westpac (Australia and New Zealand). At banks not listed, their customers pay a $5 ATM withdrawal fee and 1% currency conversion charge.
Now, if you have a Capital One card, you are in luck. They don’t charge you the currency conversion fee. You still however have to pay $1.50 per transaction fee.
American Express is another alternative. Cardholders can walk into any of 2,200 American Express Travel Services locations worldwide. They can then write a personal check for as much as $1,000 per card. This service is free.
Before you travel abroad, make sure you contact your ATM and credit card company. You don’t want to be surprised on vacation after you have run out of cash.
Did you know that if you are traveling abroad, Visa and MasterCard charge issuing banks a standard fee of 1% percent of the total price for items purchased outside the country. This “currency conversion charge” is then passed onto you the customers. For ATM cards, there is the same currency conversion fee. However, they also charge you a transaction fee of up to $5 per withdrawal. Some countries have have low withdrawal limits, so you will be having that charge on multiple transactions to get the amount of money out that you want. There are ways to minimize foreign transaction fees or eliminate them altogether. It all depends on where you bank, which ATM you use, and where you are when you use it.
Citibank customers traveling in 46 countries can use Citibank ATMs and pay a 2% conversion charge but no transaction fee. At other places in the world, customers still pay the 2% conversion charge, but the transaction free is $1.50.
Bank of America belongs to the Global ATM Alliance. Their customers can withdraw local currency from ATMs in eight foreign countries and pay absolutely no transaction fees. The alliance includes Barclays Bank (United Kingdom), BNP Paribas (France), China Construction Bank (China), Deutsche Bank (Germany), Santander Serfin (Mexico), Scotiabank (Canada) and Westpac (Australia and New Zealand). At banks not listed, their customers pay a $5 ATM withdrawal fee and 1% currency conversion charge.
Now, if you have a Capital One card, you are in luck. They don’t charge you the currency conversion fee. You still however have to pay $1.50 per transaction fee.
American Express is another alternative. Cardholders can walk into any of 2,200 American Express Travel Services locations worldwide. They can then write a personal check for as much as $1,000 per card. This service is free.
Before you travel abroad, make sure you contact your ATM and credit card company. You don’t want to be surprised on vacation after you have run out of cash.
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