Most credit card issuers charge currency conversion
fees for foreign purchases made with their credit
cards, debit and check cards, and ATM cash withdrawals.
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The fees are twofold: Visa and MasterCard have a standard 1 percent charge on foreign purchases and the issuing bank adds another fee.
Bankrate recently surveyed the top credit card issuers
to find out what they charge for these transactions. The banks were:
American Express, Bank of America, BB&T, Capital One, Chase,
Citibank, Commerce Bank, Discover, Fifth Third Bank, HSBC, National
City, PNC, Royal Bank of Scotland, Regions, Simmons, SunTrust, US
Bancorp, Wachovia, Washington Mutual, Wells Fargo and Zions.
The percentage shown for each credit card issuer
is the total of the fees: the amount charged by the issuer, plus
the charge by Visa or MasterCard for a foreign purchase. For that
1 percent fee, Visa or MasterCard converts your foreign-currency
purchase to U.S. dollars. All Visa or MasterCard cards carry that
1 percent charge.
The credit card issuer or bank often charges an additional
fee, usually 2 percent, which adds up to a 3 percent total charge
on foreign purchases.
The percentage posted under debit- and checking-card
purchases is the charge assessed by both Visa or MasterCard and
the credit card issuer or bank. A fee is also assessed by each card
issuer and bank for ATM cash withdrawals. ATM charges vary for each
card.
The lowest conversion fees are from Capital One, at
zero percent, and Zions Bank, which charges 1 percent for its conversions.
(Commerce Bank currently has a zero percent fee, however, its acquisition
by TD Banknorth will change that. TD Banknorth credit cards have
a 3 percent transaction fee for purchases made in a foreign currency.)
The table of major credit
card companies and their currency-conversion-fee policies was
correct as of August 2008. Write to editors@bankrate.com
if you are aware of an update not shown here.
Currency conversion
American Express
•
ATM withdrawal: 2% currency conversion plus fees ATM owner may charge. Cardmembers can enroll in Express Cash, which allows them to link their card to their bank account and us ATMs around the world.
•
Credit card purchase: 2%
•
Debit card purchase: N/A
•
Credit card cash advance: 3% per transaction with a minimum of $5 and no maximum. Cardmembers can enroll in Express Cash, which allows them to link their card to their bank account and us ATMs around the world.
