Credit Tips: Credit Card Currency Exchange Fees

Posted On: January 1, 2006

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Posted: Tue Aug 17, 2004 2:07 pm
Post subject: Credit Card Currency Exchange Fees

Michael Moran
Date: 6/6/2001 1:50 pm CDT

I have seen many places where it says to use your credit card to get a good exchange rate - Better then you usually get by using cash. I know credit card companies are also adding in conversion fees of up to 3%, but I am more curious about the exchange rate computation.
How does the credit card company compute the exchange rate? Are they using a published rate and then giving you a slightly worse rate. I assume it varies by the bank that issued the credit card.
Does anyone know?

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Posted: Tue Aug 17, 2004 2:07 pm
Post subject: Credit Card Currency Exchange Fees

Eugene
Date: 6/6/2001 10:21 pm CDT

I am not sure if the bank or Visa / MasterCard set the exchange rates, but I do know that V/MC add 1% to this rate. Some banks (MBNA is one example) do not impose any additional exchange fees. Others add 2% to 3%. You can call your bank and they will be able to tell you what their fee is, as well as what the exchange rate for a certain currency is today (just to get the idea).

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Posted: Tue Aug 17, 2004 2:07 pm
Post subject: Credit Card Currency Exchange Fees

Joe
Date: 6/9/2001 2:48 pm CDT

I have been looking for cards with low currency exchange fees. Is there anywhere, on this site or elsewhere, a place where this information can be obtained easily without calling each bank?

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Posted: Tue Aug 17, 2004 2:08 pm
Post subject: Credit Card Currency Exchange Fees

Board Monitor-CS
Date: 6/11/2001 7:40 pm CDT

Joe,

Try http://www.cardrevolt.com/resources/conversion.php . Scroll to about the middle of the page for a list of issuer’s sorted by exchange rate.

Take Care,
C.L. Smith
http://www.cardrevolt.com

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Posted: Tue Aug 17, 2004 2:08 pm
Post subject: Credit Card Currency Exchange Fees

Eugene
Date: 6/12/2001 0:06 am CDT

Casey, MBNA does not charge anything for currency conversion. That table needs correction.

That is also the answer to your question, Joe. Zero is the lowest currency conversion fee you can get. You could probably get it at some other banks, too, but that is the only prime card issuing bank I know that does not charge that fee. Another card is Aspire Visa but it’s not prime.