Fees Charges & Exchange Rates for Foreign Credit Card & ATM Transactions

billrubin said: I'm going to Europe next month so I got a Schwab Visa credit card to use there. I also decided to open their High Yield Checking account to get a card that refunds ATM fees so I could easily get euros. Now here is my question. Given that I will get the ATM fees refunded, does it matter where I get money? Obviously if I am cashing travelers checks (as I normally would) I would want to check the exchange rate and if I were paying ATM fees I'd look at that. But I'm assuming that the currency conversion is done at the Visa level and the rate will be the same no matter where I get cash. Is my assumption correct?

Also, their paperwork claims that the fee rebate does not include currency exchange fees. Is that true in practice? I just checked the Flyertalk wiki and it does confirm that it's 0% fees so I don't know what they are talking about. They did say that they sometimes do not notice (and thus refund) the ATM fees on foreign transactions so I need to save my receipts in case I need to call.That is correct, it does not matter where you get cash. On a recent trip to the Netherlands, I withdrew money from ATM's in Amsterdam and the Hague belonging to ABN AMRO and ING, respectively, on the same day; I was charged the same conversion rate for both transactions. The conversion rate was slightly worse than the spot rate, and the credit card exchange rate (which in my experience was very close to or even better than the spot rate - see here for specifics), but the difference between the conversion rate and the spot rate on ATM withdrawals was less than 0.8%. When possible you should obviously try to use the credit card because not only will you get a better conversion rate, but you'll also get 2% CashBack. I must say it was quite exhilarating knowing I was getting 2% CashBack with no foreign transaction fees when the people I was traveling with were getting charged 3% for their purchases with little or no CashBack. Of course, being a nice person, I allowed them to make purchases on my card and reimburse me at the spot rate

billrubin said: I'm going to Europe next month so I got a Schwab Visa credit card to use there. ...
Also, their paperwork claims that the fee rebate does not include currency exchange fees. Is that true in practice?

I've used the Schwab VISA cc and debit cards in Spain, UK, and Argentina, and there have been no fees added at all, and I've always gotten an incredibly good exchange rate.

I've never had ATM fees in Europe or S America -- the ATMs are free, unlike the US.

2cheap4ebay says TD/Commerce charges 1%, Flyertalk says no. Who is correct?

2cheap4ebay said: MoneyMINTR said: I thought the commerce bank visa card was the best for foreign transactions? now that it's TDBank, have things changed? I'll be in europe this summer and need a good credit card and atm.
They must have recently changed their policy and are now no longer eating the 1% Visa fee for old Commerce Bank cards. This has at least been my recent (mid April) experience with their ATM card.

I have switched to using the BoA debit card at "Global Alliance Banks" for now.

I just spoke to customer servive at TD. Both and old Commerce Debit Card or a TD Debit Card (they are equivelant in all ways now) have any foreign ATM fees refunded, as well as the bank absorbing the 1% Visa conversion fee.

LeonS said: I just spoke to customer servive at TD. Both and old Commerce Debit Card or a TD Debit Card (they are equivelant in all ways now) have any foreign ATM fees refunded, as well as the bank absorbing the 1% Visa conversion fee.

doesn't TD Bank now require that you have at least $2,000 in the Checking Account at all times during the month, in order to get atm surcharge rebates? That is what i read on their website....The old TD Bank North Debit Card gave unlimited atm rebates regardless of balance...but once they merged with Commerce bank, i believe that original card was phased out for all customers....

LeonS said: Actually, $2500 . BUT!!! They are the ONLY ATM/Debit card that I know of that refund fees from ANY ATM AND "eats" the VISA 1% fee, so for me, the minimum balance is well worth it.

P.S. In the interests of accuracy, Commerce also had the $2500 minimum.

Oh yes...sorry, you are quite right...i hadn't been to their website in awhile..it is $2500 minimum.....
right...Commerce always had the minimum...so when TD took over Commerce, unfortunately, they adopted Commerce's way of doing it, rather then the way they had it (with the "no atms fees: debit card" product).......

ludhianvi said: Hi!

Experts of FW, please bear with me, I have tried to read before posting. If I have missed something, please point me in the right direction.

I am planning to visit India in December, and stopping over in Amsterdam for a day or so. I am trying to find a good credit card (dont need a debit card that is tied to my bank account).

Here is what I have gathered so far:

Two types of fees are common when the credit card is used to make a foreign transaction:

1. Visa / MC have standard 1% on foreign purchases (is this same as forex fee)?
2. Issuing bank adds another fee.

There seems to be a currency conversion fee mentioned by some, is it same as # 1 or different?

I am planning to use the card for purchases only, and no cash withdrawal (hopefully).

So, I am interested in a card that offers best conversion rate, has no foreign transaction fee or basically any fees that can be avoided. From the flyer talk wiki, Schwab Bank Invest First Visa Credit Card has 0% total fee (does this include both visa /mc fee as well as issuing banks fee?), and also unlimited 2% Cash Back on purchases. If this is true, it seems like a great card to have.

There is a mention of Capital One card that has 0% fees as well, but I could not find which card is that.

Someone mentioned in a thread on another forum that Capital One refunds the 1% that Visa/MC impose, but Schwab just doesn't impose it's own, is it true? If this is, then why go with Schwab and not Capital One?

TD Bank has a card that refunds fees from ANY ATM AND "eats" the VISA 1% fee without any limits. This looks like to be a debit card, so I will not be interested as I will be losing on 2% CashBack from Schwab.

I hope I have covered pretty much everything. Based on this, and my requirements, which card should I opt for? Anything that I need to know before I fill my application for the card?

Please advice.

You are right,the best card indeed is Schwab Bank Invest First Visa Credit Card.

Thanks ShakuniMama (nice screen name, though)!!

ludhianvi said: Hi!

So, I am interested in a card that offers best conversion rate, has no foreign transaction fee or basically any fees that can be avoided. From the flyer talk wiki, Schwab Bank Invest First Visa Credit Card has 0% total fee (does this include both visa /mc fee as well as issuing banks fee?), and also unlimited 2% Cash Back on purchases. If this is true, it seems like a great card to have.

There is a mention of Capital One card that has 0% fees as well, but I could not find which card is that.

Someone mentioned in a thread on another forum that Capital One refunds the 1% that Visa/MC impose, but Schwab just doesn't impose it's own, is it true? If this is, then why go with Schwab and not Capital One?

I hope I have covered pretty much everything. Based on this, and my requirements, which card should I opt for? Anything that I need to know before I fill my application for the card?

Please advice.

- Schwab Invest First Signature Visa is my card of choice.

- I think all the Cap1 cards are 0%, but not 100% sure...I know the one I have is.

- Schwab doesn't impose a fee, but Visa does. Schwab doesn't pass the fee on you though, so it's truly 0%. You go with Schwab because it offers 2% Cash Back and they have great CS.

ShakuniMama said: You are right,the best card indeed is Schwab Bank Invest First Visa Credit Card.
Is this still available? The link from FlyerTalk is now dead, and I couldn't find how to apply to any credit cards on the Schwab site.

I have a Capital One card but the $500 limit they gave me is nearly useless.

bluechalk said: I just came back from a trip to Argentina. There were no fees for my Charles Schwab Bank Invest First credit card, their new 2% back card. Also no fees for my ATM/Visa debit cards from E*Trade (brokerage) or Fidelity (mySmart Cash Account).
In regard to the lack of forex fees for your mySmart Cash Account debit card, was that for purchases or ATMs?

thanks

Great info. I will check with a couple of Credit Unions to see what they charge.

Yes, and I think you pay the forex fee both ways.

I currently have a mysmart Cash account with Fidelity, but have been thinking of switching to Schwab bank for the higher interest rate. Do you guys think it's a good idea and what would I loose / gain? Seems like Schwab charges for foreign ATM's while Fidelity doesn't? Is that correct. Also, it seems that you have to put 2% Cash Back into a brokerage account(instead of the checking) with Schwab while you can put it into a mySmart Cash Account with Fidelity? Did I miss something? Rest of it seems to be pretty equivalent.
Thanks and would love to have a prompt reply as I am getting ready to do the switch soon if I can.

and that includes the Investor Checking of course as well...it's just initially deposited on the brokerage side and you can move it over to their Investor Checking or an outside bank you have linked to as well...

I've had both accounts (originally My Smart Cash and then later switched to Investor Checking) and prefer the Schwab account...
I also prefer Schwab as a brokerage over Fidelity (but that is a separate matter)...

mshnayde said: What do you like better about the Schwab account?
Also, are the two accounts otherwise identical?
Thanks.

Better interest rate..nicer looking debit card (lol)...they have an actual bank (Schwab Bank) so they don't have to use a 3rd party bank...You can actually do a Balance Inquiry at an atm (with Fidelity you can't...relates to the 3rd party bank business apparently)...Much nicer banking interface with same great Checkfree Bill Pay....like the brokerage side better also...
Friendlier Customer Service...and they also have the unlimited atm rebates and free unlimited checks as well...

Hey guys,
Just reviewed the rules on Fidelity's website and it looks like they are charging 1% foreign fee.
Here is a quote from their site "Please note there is a foreign transaction fee of one percent that is not waived, which will be included in the amount charged to your account. " Is this new?
Thanks.

Here is the link.
https://scs.fidelity.com/accounts/services/content/aoaccountselect.shtml.cvsr
Does Schwab charge this as well?

mshnayde said: Here is the link.
https://scs.fidelity.com/accounts/services/content/aoaccountsele...
Does Schwab charge this as well?
According to the FlyerTalk wiki:
"some users report not seeing any foreign transaction/currency conversion fees when using it overseas even though Fidelity's terms state a 1% fee might be charged by Visa, although it is not always actually charged."

I will be using it in France in 1.5 weeks, so I'll report my experience.

btw, Schwab has similar verbiage at their website:
http://www.schwab.com/public/schwab/banking_lending/checking
"ATM fee rebates do not include currency exchange fees"

But people report that neither seems to charge a forex fee.

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