Credit Cards...

[yakitori]

Hello---Can anyone recommend a credit card that does not charge exorbitant fees if used abroad?

[Tsuru]

A card from a foreign bank?

(This was a serious reply by the way... I can use my cards in Japan and other foreign lands without any extra fee or without getting a weird exchange rate up the @$$)

[yakitori]

Yes (foreign meaning American). I was using a Citi Bank visa card the last time I was in Japan and they charge ridiculous foreign transaction fees. I used my card twice in England this past month and was charged over ten dollars in fees...Any suggestions????

[Taro Toporific]

Yes (foreign meaning American). I was using a Citi Bank visa card the last time I was in Japan and they charge ridiculous foreign transaction fees.

I've had no exchange problems with either Japanese- or American-issued MasterCard or Visa---the fees are about same at the bank. My AMEX Red-Kryptonite Card actually offers a better exchange rate than offered to a person walking into a bank to exchange money. (HEY, I just checked my credit card bill for buying gas in the US, the "official" rate in late September was 117.90 yen = US$1, the credit card rate was was 118yen = $1 USD, and the LA CitiBank rate was crap.)

Occasionally, when currencies are undergoing wild swings (like now with the US dollar) small cafes and hotel owners will hold credit card receipts for several weeks in to make money on a dropping currency like the dollar. Also, getting cash advances from Japanese ATM machines will cost you an additional $3.00 fee for each transaction on top the currency exchange fees. Hint: If you need to use an ATM, use your US credit cards in the Japanese Post Office ATMs that offer the fair exchange rates with the lowest fees (and the J-Post ATMs are bilingual).

Bottom Line: The next time you travel, you need to check your credit cards to find out which ones have the best exchange rate/fees before you use your card, OR get another credit card with a better deal.

[Kuang_Grade]

This article may help you out, although you should call up your credit card companies and asking them what they charge, since fees may change over time.

http://www.marketwatch.com/news/story/going-overseas-these-cards-have/story.aspx?guid=%7B34CEBDA7-6FEA-454D-A7C8-1BFA910A5B5D%7D

Like Taro, I've had good experiences with Amex (2% fee) with exchange rate, while with other cards I've had some surprises (it looked like they delayed posting the purchase for a few days to get a better exchange rate, but maybe they were just slow to post) and unlike some of my other credit cards, Amex hasn't freaked out when I tried to actually use the card more than once in a 24 hours period while Japan.

On a simliar note, for those with US issued visa, MC, or Diners Club credit cards, there was a settlement in a lawsuit over this issue that may get you back some of those fees charged over ten year period. The paperwork hassle is not insignificant (although not too bad for those of you who use something like quicken). Deadline to file is 5/30/2008.

http://www.ccfsettlement.com/

The lawsuit is about the price cardholders of Visa-, MasterCard-, or Diners Club-branded payment cards were charged to make transactions in a foreign currency, or with a foreign merchant, between February 1, 1996 and November 8, 2006. Plaintiffs challenge how the prices of credit and debit/ATM card foreign transactions were set and disclosed, including claims that Visa, MasterCard, their member banks, and Diners Club conspired to set and conceal fees, typically of 1-3% of foreign transactions, and that Visa and MasterCard inflated their base exchange rates before applying these fees. The Defendants include Visa, MasterCard, Diners Club, Bank of America, Bank One/First USA, Chase, Citibank, MBNA, HSBC/Household, and Washington Mutual/Providian. They deny the Plaintiffs' claims and say they have done nothing wrong, improper, or unlawful.

Who is affected by this settlement?
Any person who held a Visa-, MasterCard- or Diners Club-branded credit, charge or debit/ATM card issued in the United States as of November 8, 2006 is a member of the Settlement Injunctive Class. Those persons who made a foreign transaction on at least one of those cards between February 1, 1996 and November 8, 2006 are members of the Settlement Damages Class. Only members of the Settlement Damages Class may seek refunds by submitting a claim. If you are only a member of the Settlement Injunctive Class because you did not make a foreign transaction between February 1, 1996 and November 8, 2006, you will still benefit from the settlement, which requires certain disclosures to cardholders concerning the rate used to calculate the U.S. dollar amount owed for a foreign transaction and any fees applied in connection with a foreign transaction.

[Mulboyne]