Credit card Fees...everything you know may be wrong

[jerry]

I guess it bears repeating: it's not enough to look at simply the fees charged or lack of fees charged. You have to look at fees and exchange rates all along the way; from transfers from your primary account to the conversion.

From a poster on San Carlos Forum...good information.

Ballenamar, MasterCard charges a 1% international transaction fee. Your bank MAY be absorbing that, based on many factors (your type of account, your minimum balance, the interest or lack thereof they are paying you on your account, etc.) but MasterCard DOES charge the fee. It's the same as Visa's. Discover and Am Ex dont utilize Visa or MC but they also have intl transaction fees.

Credit card foreign transaction fees going up - but a few issuers drop them

All banks are good at hiding the ways they make money from you. They know that many people wont compare their overall costs all along the process but will instead point to a lack of upfront fees as a reason to stay with a bank. Capital One is famous for this. Their exchange rates tend to be very favorable........to THEM. All the while they tout "no fees".

Bombero, the problem with using a TRUE credit card at an ATM to get cash is that most all credit cards consider this a CASH ADVANCE. And if it's at an ATM outside the U.S., you will pay their cash advance fee (usually 2% of the total) PLUS the international transaction fee by the card issuer (1% for MC and Visa) and probably a transaction fee by the bank itself (often 2%). So, assuming that your bank is not absorbing some of these fees on your behalf, it's possible that you might be paying 5% for the privilege of taking cash out of an ATM with a credit card. Assuming a typical withdrawal down here of about 5000 pesos, that's 250 pesos every time you use a credit card at an ATM. That's 20 bucks.

And they still could be screwing you on the dollar to peso exchange rate.

To make matters worse, IF you happen to allow that cash advance balance to go past your due date (usually 25 days past your billing date), it is treated like any charge on a credit card. You'll pay the interest rate you'd normally pay on your credit card purchases that you dont pay off. This can be anywhere from 12-25% per annum these days.

 

[DeniseAck]

Hi all--I've got some more to add to the fee structures:


Bank ATM (debit) cards--find out if your bank is affiliated with any banks in Mexico. For instance, we have a small account at Bank of America because they are affiliated with "Santander Serfin" in Mexico. So if we use a Santander ATM, we don't have to pay the $5 withdrawal fee. ATM's seem to give the best exchange rate, but fees could negate your savings. IMPORTANT--Mexican ATM's use only the*FIRST* 4 digits of your PIN number. Also, many ATM's don't have letters on the number pad. So make sure you know what numbers correspond to the letters in your PIN. Our code was a series of numbers and letters and when we used a Mexican ATM for the first time, we had no idea why it kept saying our code was wrong. Be aware that some machines will suck up your card if you enter the wrong code 3 times.


Amex--2.7% transaction fee for changing currency. If billed in USD, no transaction fee

Bank issued Visa--usually a 3% foreign transaction fee (Ours is a Chase Bank issued Visa and it was 3% in April 2012)

As Jerry said, DON'T USE YOUR CREDIT CARD TO GET CASH AT ATMs. Just as in the U.S., you will be charged a large fee (like 5% of the amount) just to use the machine. In addition, you will be charged a rip-off interest rate on the cash you receive STARTING WHEN YOU GET THE CASH.

Also, sometimes it's worth paying that foreign transaction fee to get the benefit your cc offers. For instance when renting a car, American Express covers theft, damage and collision. Liability IS NOT covered. You can decline the LDW (loss damage waiver), CDW (collision damage waiver), and theft.

• Use your eligible American Express Card to reserve and pay for the entire rental​
  · Decline the car rental company's Collision Damage Waiver and Theft Protection
  · There is no liability coverage provided with your American Express Card
  · American Express provides Excess coverage to all other insurance policies
  · Coverage is provided for vehicles rented for 30 consecutive days or less
  · The Card member must be the primary renter of the vehicle
  · All additional drivers must be listed on the rental agreement
  · Cargo Vans, Custom Vans, Pick-up Trucks and moving vans such as U-hauls are not covered
  · Compact Sport Utility vehicles are covered, however, there is no coverage provided for full size sport utility vehicles such as a Ford Expedition

I have the details in an email from American Express, but the pdf is too large to attach. PM me if you'd like it.




I don't have any experience with Capital One Visa, but I copied this from their site:

​

Capital One® Venture[SUP]SM[/SUP] Rewards Credit Card

• Minimum Credit Required:
  
  Excellent, Good
• Annual Fee:
  
  $0 for 1st yr, $59 after
• Network: VISA
• Rating:4.74.7 / 5 from 128 votes - Cast your vote!

Rewards: Yes Type:

Miles - Any Airline

Initial Bonus 10,000 miles

Base Earn 2 miles / $1

Max Earn 2 miles / $1

Earn / Redeem Limit No

Reward Details:

• Money® Magazine's "Most Rewarding Card if you crave free airline flights".
• With Venture, earn 2 miles per dollar on every purchase, every day.
• Earn 10,000 bonus miles, equal to $100 in travel.
• Redeem your miles for ANY travel expense.
• No limit on the miles you can earn and miles won't expire.
• Fly free on any airline, any time with no blackout dates.
• No foreign transaction fees.

Purchases:

Intro Rate Not Offered

Intro Period N/A

Regular Rate 13.9% - 20.9% (V)

Balance Transfers:

Intro RateNot Offered

Intro PeriodN/A

Regular Rate13.9% - 20.9% (V)

Balance Transfer Fee None

Cash Advances:

Cash Advance Rate 24.9% (V)

Cash Advance Fee 3% (min $10)

Additional Info:

• $0 intro annual fee for the first year; $59 after that.
• Exclusive award-winning customer service.
• Visa Signature® benefits like complimentary concierge and travel upgrades.
• Your Visa Signature card gets you special access and preferred seating at events like the Super Bowl™ and Olympic Games™.
• $0 Fraud Liability if your card is lost or stolen.
• Receive complimentary upgrades and special savings at hotels, resorts and spas with your Visa Signature card.
• 24-hour travel & emergency assistance gives you a replacement card and cash advance.
• 24-hour roadside assistance.
• Auto rental insurance -- use your card to rent a car and you're covered for collision, damage and loss.
• Image Card -- personalize your card with an image of your choice.