Charge cards and foreign transaction rates

Geez, I thought we spoke the same language in Canada.

I said that we are billed in USD "as per the original billing". I also said we pay "no fees". If there are no fees, there are no transaction fees.

I did mention the annual fee which is waived if you purchase $1000.00

Anyway, enough of this conversation, have a good day in beautiful British Columbia.

Harvard wrote:
Who cares what it is called, the bottom line it is a fee we pay to exchange money.

I care since I pay no transaction fees on my Visa card vs transaction fees on my Amex (US based cards). Exchange rate fees are paid by all including getting cash from a foreign bank.

.... and Royal Bank is also at 2.5%

From the Royal Bank WEB site:

Transactions in a foreign currency will be converted into Canadian dollars no later than the date we post the transaction to the Card at an exchange rate that is 2.5% over a benchmark rate Royal Bank of Canada pays the payment card company on the date of the conversion.

Just a note to those that have been reading this...BOM M/C has just raised their Foreign Transaction fees to 2.5%.


Gary Haupt

I just checked into an Alaska USA Federal Credit Union cc no annual fee for members and 1% foreign transaction fee plus the same in exchange rate. Not free but better than using my other cards.
dennis

I use TD, I have a US $ account and a US $ Visa CC.

I pay no annual fee, nor any 'transaction' fees. I choose when to buy US $$$ and just pay my CC bill out of my US $ account, no big deal.

Since I have more than their minimum balance in both CDN and US $ accounts I pay no service charges and get very favourable exchange rates.

Yeti...I made enough noise with BOM M/C that they chopped my annual fee by 50%. You might like to consider giving that some thought. Kind of tells the tale tho, when they bury the fee charged to the consumer.


Gary Haupt

Gary, I found out about the Foreign transaction fee several years ago.We usually go into the US for a week or two at a time. we crossed at Windsor/ Detroit one time with $1000 cash between the 2 of us and the guard asked how much cash we were carrying. (First and only time for the question) He wanted to know why so much, told him about the foreign transaction fee on CC and he looked amazed. I told him to check the back of his bill the next time he got one, it is on the back of my PC Mastercard bills. I check all my transactions on the bills and lately they have the USdollar amount and the CAD dollar amount, but no actual foreign transaction amount, just all hidden in the CAD amount! So the unsuspecting consumer would look at the bill, shrug their shoulders and pay the bill.
I have been thinking of getting a US Mastercard or Visa to avoid the 2.5 % that PC charges. But that means dealing with one of the big banks and paying account fees and all the other fees. Probably cheaper at this time to just use cash and pay the Foreign transaction fee when we head to the US. In about 2 years when I retire and will be travelling more then I will look closer at it, because some of the banks have seniors accounts that are more flexible and with reduced fees.
Brian

And this has what, to do with the topic? It's not about the EXCHANGE rate...it's about the TRANSACTION FEE....

Well, I suppose that it does have something to do with the topic as the 'fee' is included in the rate that is used.

I know that the Capital One card in the US does not have a foreign exchange 'fee', (the Canadian issued one DOES).

Who cares what it is called, the bottom line it is a fee we pay to exchange money.