International purchases: Capital One IS no fee

[Capsu78]

Ok, no time to go through all the posts again:

Bottom line this for me- Cap One should be my first option, yes?

[xpcdoojk]

Anytime you are charging something that involves a foreign currency exchange. I am very comfortable to say, yes, Capital 1 is your best choice.

 

I sure hope they read this and send me a check! Look out David Spade!:D

 

jc

[pcur]

BofA doesn't even try to bury their 3% fee. It shows as a completely separate charge, and it's exactly 3%. I charged some online bus tickets in the UK, and they were really inexpensive. There were two little charges for under a dollar each that were exactly 3% after the conversion to US dollars.

[Trece]

Xpcdoojk, As the "cynical one" you are referring to (I think), I appreciate your taking the time to do the math & report on it. It was exactly what I was looking for, conducted the way I did my research on the ATM cards (which proved the opposite in my case). I know you'll note I was careful to say I did not know for sure about Capital One - but neither did anyone else. It was the jumping on the bandwagon without any analysis that was my concern. As a rule there's way too much misinformation out there and things begin to take on a life of their own after a while.

 

However, given the controversy surrounding how Capital One reports credit limits (which is unlike most other credit card companies & can result in lower FICO scores), and the fact that we personally have gotten away from using credit cards out of the country, I probably still wouldn't get a Capital One card & will continue to pay the few extra bucks (and groan about it), but you totally answered my question in the way I was looking for - thanks! :D

[xpcdoojk]

Trece, being cynical is a good thing. I have been known to be a complete cynic at times, just ask Peggy. I have struggled with Cap 1 a few times with the online paying of bills, because they don't give you a way to pay the bill on the due date. They send out the electronic statement and then they give you an option to pay then, but not other dates. So, I just put a note in my palm pilot a few days before it is due and I then pay it. This cost me a few dollars early on. Having said that Bof A has a habit of doing an automatic when I make a payment. So, I have paid twice a couple of times until I figured out they were making an automatic payment. Online banking has a way to go before it is foolproof.

 

Unless you are spending a fortune on your credit card 3% isn't going to change anyone's life, on $2000 it amounts to $60. Of course, a major trip to Europe can run a lot more than that, and pretty soon we are talking about actual money that is noticeable. I don't like money (that is carrying it on me), so I use the credit card all of the time.

 

 

jc

[Trece]

I agree about being cynical - I wasn't apologizing for it, haha - I think you and I believe that people should THINK and not just accept what they are being told. Sometimes it means you're barking up the wrong tree, but at least you're barking!

 

I agree about the 3% not amounting to much in the long run unless one is a very big spender, though we all agree, I'm sure, that "it's the principle" to avoid paying extra if possible. And I don't like carrying cash around either, but at this point in weighing things we've chosen to go the ATM route more often than the credit route. My friend is still straightening out a drugstore cough medicine charge that should have converted to $9.00 that converted to $9000, which she was unaware of until her credit card was declined at her next stop. Since the merchant has a signed slip she's had more than simple hassles about making it go away, though I'm sure it will. I know it could just as easily go the other way and she could have been pickpocketed outside the ATM getting cash. I use a credit card 99% of the time at home and never use an ATM, so I'm not consistent either.

 

Again, from one cynic to another, I'm really happy you shared your research! :D

[xpcdoojk]

Cynics of the world unite! :D I think Peggy is back from her trip to Europe, so I am waiting to hear all about it. Don't forget to tell us dear PCUR!:D :D

 

jc

[pcur]

Yes, I am back! Been posting bits and pieces of helpful info on various threads. At least the Bilbo mystery of "how the heck do we get to the city from the port of Getxo?" was solved. Free shuttle!!!

 

Anyway, Capital One turned out to be great. Conversion rate to US dollars and no extras. Also, it's a very popular card in Europe, so no suspicious looks when using it, either.

[FinelyRetired]

Hi Peggy:

 

You've been a wealth of information to us and I thank you.

 

I have used both my Capital One CC and my Citizens Bank Debit Card to purchase brochures from a website in Scotland on the same day this Spring. No 3% from either card, so these will be the cards I will take.

 

Here in the States we are all accustomed to the "foreign" ATM fees we must sometimes pay when we are forced to use an ATM not within our bank's system. It is always disclosed unfront at the ATM whose cash we are getting(1.50/2.00 or so) and payable to the bank whose ATM provides the service/cash.

 

Does this happen over there? If so, which bank's ATM's in GB did you access cash from with your Capital One card?

 

Thanks, Martha

[whogo]

Hi Peggy:

 

You've been a wealth of information to us and I thank you.

 

I have used both my Capital One CC and my Citizens Bank Debit Card to purchase brochures from a website in Scotland on the same day this Spring. No 3% from either card, so these will be the cards I will take.

 

Here in the States we are all accustomed to the "foreign" ATM fees we must sometimes pay when we are forced to use an ATM not within our bank's system. It is always disclosed unfront at the ATM whose cash we are getting(1.50/2.00 or so) and payable to the bank whose ATM provides the service/cash.

 

Does this happen over there? If so, which bank's ATM's in GB did you access cash from with your Capital One card?

 

Thanks, Martha

Bank ATM machines in the UK do not charge a fee. Private ATM machines in convenience stores/newstands/service stations may add a fee.

[FinelyRetired]

whogo:

 

Thanks so much! That's great to know. I'll stick with banks' ATMs.

 

Martha

[MacThespian]

Trece: Capital One offers Visa cards. Capital One would use the same Visa network that other credit card suppliers use. The foreign exchange rate is set by the Visa network, not by Capital One or Citibank or the other card issuers. I have to trust Capital One on their no fee claim. They would lose more in lawsuits than they would make by cheating on the claim. See the link: https://www.ccfsettlement.com . I have seen Capital One recommended on so many sites by so many people that I think someone would have blown the whistle on any scam.

 

The way that the Visa network sets the foreign exchange rate remains a mystery to me, but it is lower than any other rate available to me.

 

Capital One also offers Mastercards. You may substitute "Mastercard" for "Visa" anywhere above.

No, the exchange rate is NOT set by Visa. It is set by the individual banks.

[whogo]

No, the exchange rate is NOT set by Visa. It is set by the individual banks.

I disagree and stand by my statements above.

 

"The foreign exchange rate is set by the Visa network, not by Capital One or Citibank or the other card issuers."

 

"The way that the Visa network sets the foreign exchange rate remains a mystery to me, but it is lower than any other rate available to me."

 

"For most transactions in foreign currency on a US-issued card, Visa and MC will tack on a 1% charge."

 

"Capital One does not charge a fee for using your credit card for foreign currency transactions. Foreign purchases will be converted at the foreign exchange rate in effect at the time of posting the charge. Typically other credit card issuers charge a fee between 2% and 3% of the purchase amount."

 

"You may substitute "Mastercard" for "Visa" anywhere above."

 

The banks do not determine the underlying exchange rate, they decide whether or not to tack on an extra percentage or so.

[MacThespian]

I disagree and stand by my statements above.

 

"The foreign exchange rate is set by the Visa network, not by Capital One or Citibank or the other card issuers."

The banks do not determine the underlying exchange rate, they decide whether or not to tack on an extra percentage or so.

 

Sorry, perhaps I was oversimplifying. I had made purchases with two different Mastercards while overseas, on the same day, and the conversion rate (when I got my statements) was different. Whether it's because all MC/Visa charges use the same underlying rate, with extra fees tacked on (or not), or whether the individual banks set individual rates, nets out to exactly the same result: the amount you spend is determined by your bank, not by MC/Visa.

That said, of course it makes sense to use the card with the lowest net rate, whether it's from Capital One or another issuer.

[whogo]

The rate changes constantly throughout the day. With the exchange rate given out to about 10 or 12 decimal points, it is possible that no two transactions have the exact same exchange rate.

[FinelyRetired]

whogo:

 

What you're saying may well be right. As I said earlier. I used both my bank debit card (Citizens) and Capital One to purchase brochures from the same website in Scotland...on the SAME day. 15 minutes apart. My major concern was the 3% fee which NEITHER Capital One CC of Citizens Bank DC showed.

 

I DID however see a very tiny exchange rate difference, amounting to a bit less than 1% that showed up........in favor of Citizens, NOT Capital One. Nothing I'd ever get very excited about. But there was a tiny difference....15 minutes or whatever was the cause.

[pcur]

I do not use my Capital One Visa for any currency transactions, only for purchases. Cash comes out of the checking account.

 

In Europe I use my Bank of America debit card at Barclays bank ATMs for cash. Even though the ATMs in the UK do state they will not charge a fee, when using a US issued debit card, they will display a message about your home bank (or equivalent description) charging a fee. However, I know that with Barclays we pay no ATM fee, because they partner with Bank of America.

 

So, between the two cards: Capital One and our Bank of America debit card hooked to our checking account, we end up only paying the currency exchange rate.

 

If I was to use my BofA debit card at a non-Barclays ATM, then BofA would charge me a fee for using an "out-of-system" ATM.

 

Check your bank where you keep your cash and see what banks in Europe they partner with.

[FinelyRetired]

Thanks, Peggy:

 

On this end here, my Citizens Bank Gold Debit Card will charge me nothing for ATM, no matter where I am in the world. My bank will charge nothing for ATM use anywhere.

 

It is only the "foreign" ATM or "Convenience" ATM fee, for some other machine, which would be specified up front that I will need to be concerned about when using some other entities' ATMs. The owner of the ATM charge off the top.

 

Soooo..you didn't ever use Capital One for ATM cash? Just for purchases? And, just your BofA Debit Card for ATM cash?

 

If so, I'll use my Citizens Bank Debit Card for the cash too. And, since RBS owns them, I'll just look for Royal Bank of Scotland ATMS.

 

Thanks.

[BurBunny]

If you use *any* credit card for ATM cash, you're charged it as a cash advance, at the higher (usually MUCH higher) interest rates, usually assessed from the day of withdrawal., i.e., no grace period. You should never use a credit card of any type for ATM cash unless it's an emergency. That's what ATM/Debit cards are for.

[lambs2]

Anybody know how the ATM's in Italy work in regards to charging fees for debit card use? Any recent examples of the fees?I know that BoA has no partners in Italy, so that was problematic for me as that is my main bank and I was spoiled from using it in Great Britain at Barclays with no fees. I also have a Paypal Mastercard debit that charges a flat $1. per transaction which is better that the $5. BoA charges for non-sytem withdrawals. But I am curious about the ATM costs from the banks in Italy. The Mastercard site showed 0 non-fee ATM's in Venice, for example. That is my first stop in Italy this Friday. I've got a Capital One credit card, but our hotel wants Euros only.

[pcur]

Check with Barclays, BofA's partner. We found them all over Europe just a few weeks ago, and their web site shows branches in Italy, too. I think you might find ATM's in Italy for Barclays.

 

Yes, I agree about not using Capital One or any other credit card for cash: it triggers the dreaded "cash advance" fee.

[xpcdoojk]

If you use *any* credit card for ATM cash, you're charged it as a cash advance, at the higher (usually MUCH higher) interest rates, usually assessed from the day of withdrawal., i.e., no grace period. You should never use a credit card of any type for ATM cash unless it's an emergency. That's what ATM/Debit cards are for.

 

Gosh, Burbunny, I haven't seen you around these boards in ages. Hope you are well!:)

 

Peggy, you are very thorough, and I for one appreciate that!:D

 

jc

[whogo]

Check with Bank of America about Barclays. "No fee at Barclays (United Kingdom), BNP Paribas (France), Deutsche Bank (Germany), Santander Serfin (Mexico), Scotiabank (Canada), Westpac (Australia and New Zealand). Rules may vary, so be sure to check. No fee at the above listed banks only valid in the bank's home country." My underlining, quoted from: http://flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange

[lambs2]

That is what BoA told me, too, Whogo, when I called and had several long conversations about using my debit card in Europe. There are NO ATM partners for Bank of America in Italy..period - so every withdrawal will have an automatic $5. fee + the conversion fee + whatever the Italian ATM's choose to charge (and I can find no hard information on that, anywhere)!

[pcur]

Thank you, JC. I always think if my research doesn't benefit more people than DH and I, then I'm kinda wasting my time. More than 2 people should benefit.

 

What I was most interested in on this trip regarding the Cap One Visa was not getting charged an extra 3% for purchases in the UK. It's so darned expensive there, the currency exchange basically sucks for Americans, and we were charging hotels, cars, meals, entrance fees, etc. in the UK. So, the extra 3% that BofA would have charged us if we used their Visa, would have added up to a tidy sum.

 

If Cap One wants to use a slightly higher exchange rate (not sure that they do), I'm still ahead of the game.