Many have posted here about the high transaction fees (2-4%)we pay on our credit cards for purchases in euros or other foreign currencies. Would those of you that have a credit card that charges 1% or less kindly let me know which card you use? Many Many thanks!!
Paying with a credit card isn't the stupidest thing to do. Gives you good tracking if you can use the trip for the IRS. Allows you the security of recovering your money if those dishes you ordered from Deruta never show up. (like that never happens - yeah, right).
However, as mentioned you do pay more for that piece of mind.
Capital One Visa charges NO transaction fee. I don't think there is any card that is better for international purchases. With the No-Hassle Miles card, you also get at least 1% back in rewards, and there is no annual fee for the card.
Capital One Visa charges NO transaction fee. I don't think there is any card that is better for international purchases. With the No-Hassle Miles card, you also get at least 1% back in rewards, and there is no annual fee for the card.
Roz is absolutely correct. We are basically using our capital one card to live here this year (and ATM.) No fees.
Originally posted by Jane: We are basically using our capital one card to live here this year (and ATM.) No fees.
Capitol One is a credit card, is that right? So when you use it at an ATM it just goes on your balance, as opposed to coming out of a bank account? If that's the case, you'd incur no interest as long as it's paid off each month.
One last question, as for their exchange rate, is it the Interbank rate, or close to it?
A cautionary note on Capital One (and other cards too). They are very quick to flag purchases for fraud. A friend of ours traveling to Italy with us last year found her Capital One card suspended after a couple purchases in Italy. The fact that she had charged air fare to Italy and a hotel in Italy prior to leaving the US didn't seem to indicate to the company that use of the card in Italy might be valid.
My wife ran into the same problem on another trip later in the year.
We have gotten in habit of writing to our card company's security group in advance of trips to tell them where we are going to be and inclusive dates.
Posts: 533 | Location: Northern Virginia | Registered: 22 May 2006
We have had this happen with our citibank mastercard as well. I think it is recommended across the board for credit cards that you notify them of travel.
I call even when we are travelling out of town with major purchases planned. We live in Texas and had driven to Big Bend in a rented Motorhome one Christmas. Stopped to fill that guzzler up and the gas station would not take the card! We were still in Texas....I guess they thought we were making a run for the border......
Originally posted by Jane: We are basically using our capital one card to live here this year (and ATM.) No fees.
Capitol One is a credit card, is that right? So when you use it at an ATM it just goes on your balance, as opposed to coming out of a bank account? If that's the case, you'd incur no interest as long as it's paid off each month...
Fees apply to purchases and cash advances and are basically a percentage of what was charged on the card.
If you took cash out of the ATM the interest would start accumulating immediately unlike purchases which would be interest free until the date of payment on your statement.
I think Jane is saying she uses the Capital One card for purchases and a separate ATM card for cash.
Andrew--yes, of course that is right. A credit card is not an ATM card. Credit cards will give cash advances but that is a foolish thing to do as interest begins accumulating the moment you do that.
Ad mentioned already, it is imperative to let credit card companies and banks with whom you have ATM or debit cards know that you will be abroad. We have no problem with our Capital One card or any others as that is what we have done.
The other thing to know in Italy, is that it is not unusual to have an ATM withdrawal denied. That normally is not a reason for panic. Just go to another machine which will probably dispense money with no problem.
Thanks...that's precisely what didn't make any sense to me. I'd never advise using a credit card in an ATM, this was going to be something new.
But about the Capital One card, there is interest on an unpaid balance, should you have one (they have to make money somehow), and, do you notice the exchange is about even with the Interbank rate, or if not, what percent to they add there?
But about the Capital One card, there is interest on an unpaid balance, should you have one (they have to make money somehow), and, do you notice the exchange is about even with the Interbank rate, or if not, what percent to they add there?
Yep - interest on unpaid balance (plus if your payment is late, a late payment fee). I found their conversion though to be pretty darn close to Interbank if not exact. I've been happy with my card.
Re the exchange rate: Capital One always prints the exchange rate at the time of the charge on your bill. I have checked the rates against the rates shown online for those dates, and they are always pretty much spot on. So they don't jack up their exchange rate either.
I got a credit card from Target and have been using it for international purchases because of the 1% fee. I called the other day to make sure that this would take me through this trip and was informed that it would go up in May, so I'll use it until then, and then switch to the one that gives me miles.
Posts: 21 | Location: Northwest Indiana/Chicago area | Registered: 04 January 2006
I have meant to get a new card and this post reminded me to take care of it. I applied for a CapitalOne card online and was approved in minutes. Just thought those of you who are considering it would like to know it is easy to do and the response was quick.
hey.. I just signed up too.. tired of paying those fees! before I had no fees as a BOFA business account.. but now everything I do is a charge!! NO WAY JOSE!
I just hope Capital One keeps their nice traveler-friendly policy. I heard on the news this morning that they had a bad quarter, profit-wise, and I have this fear that they are going to be looking for new revenue sources and join all the other companies who charge this fee.
I used a Paypal debit card while in Italy. No fees when used to purchase items like a credit card and a $1.00 fee to use the card as a ATM card. The card worked at all the ATM's I tried. I was very happy with the Paypal debit card. If your Paypal account is a money market account, earn 5% interest on your funds to boot.
I am getting my paypal ATM cna opening an account with citibank in florence as well. My brother just moved to Belgiu, and he said it is only $10 to transfer funds too...
Citizen's bank has an ATM card with no transaction fees (I checked this one out on my trip last October). Don't use their credit card, however. That carries a whopping fee for some reason. ---Marlene
Posts: 567 | Location: Boston, MA | Registered: 11 May 2004
Several of us in another thread have tried to use our debit cards to purchase items while outside our own country. While we had used the debit cards at ATMs to get money, we could not buy anything with them.
While I was in Sorrento the last time, after three withdrawals, my ATM/debit card would not work in any of the ATMs in Sorrento. The message said to call my bank. When I calculated from the projected 40 minute wait how much that would cost me on my cell, I got a cash advance on my American Express. When i returned home I did call my bank and they did not see a block on my debit card, and they did not see why it was not working. So the moral is to have a backup plan, and not rely on any one card.
Posts: 3761 | Location: St Paul, MN | Registered: 10 February 2006
Topic Closed
