Credit Cards w/o Foreign Transaction Fees

The following blog entry appeared in the NYTimes last week:
http://bucks.blogs.nytimes.com/2010/11/14/3-credit-cards-without-foreign-exchange-fees/

My credit union charges no foreign transaction fees on their credit cards while Wells Fargo charges a 3% fee on international debit card transactions.

Whatever credit or debit card(s) you plan to use, be sure to contact your bank at least a week prior to traveling to let them know when & where you'll be abroad so that they won't shut down your account for fraud.

What card advice do you have for your fellow NAFA tour participants?

//Lisa


November 14, 2010, 7:20 am

3 Credit Cards Without Foreign Exchange Fees

By TARA SIEGEL BERNARD

Attention international travelers: there are a few more credit cards worth tucking into your wallet before you take off.

Earlier this month, Chase said it would begin waiving the pesky foreign transaction fees on its British Airways Visa Signature Card. And two of its new cards introduced earlier in the year, the Hyatt Card and the Priority Club Select Visa Card, will also waive all foreign transaction fees.

Most American banks levy these currency conversion charges, typically up to 3 percent, every time a merchant processes your credit or debit card transactions outside the United States. You may also be hit with the fees if you’re buying something denominated in a currency other than dollars on the Web. (You also pay conversion fees when withdrawing money from a foreign A.T.M.)

“This is a significant announcement, and could potentially save consumers millions in foreign exchange fees as this is a ‘monkey see, monkey do’ industry,” said Curtis Arnold, the founder of CardRatings.com. “And other reward cards, particularly co-branded airline cards, are likely to follow suit.”

Let’s hope so. Given that these fees amount to a pure profit for the banks (see Ron Lieber’s column, which chronicles the history of the foreign exchange fee), more banks should eliminate these charges, or at least reduce them to the 1 percent that MasterCard and Visa charge the banks.

Capital One doesn’t charge any foreign exchange fees (it absorbs the 1 percent MasterCard/Visa fee). Nor does this card from PenFed. Cards from smaller banks and credit unions may have similar policies.

Chase said it decided to get rid of the fees after having direct conversations with a group of Chase cardholders and Hyatt guests. (Quick aside: The new Hyatt card offers a really sweet deal. After you use the card once, cardholders will receive two free nights in a standard room at any Hyatt in the world. There are no blackout dates, limits on available rooms, and no resort or redemption fees, a Hyatt spokeswoman said. You just need to redeem within one year. The card does charge a $75 annual fee.)

So it may pay to speak up. What other cards should eliminate these fees? (Besides the obvious answer: all of them.) And what cards do you carry in your wallet when traveling abroad?