bleeb
Contributor
Hm. Does it cost the card company money if you just sit on a card and don't use it? That alone might make it all worthwhile.
Credit Card Foreign Transaction Fee
- Thread starter DeputyDan
- Start date
Please register or login
Welcome to ScubaBoard, the world's largest scuba diving community. Registration is not required to read the forums, but we encourage you to join. Joining has its benefits and enables you to participate in the discussions.
Benefits of registering include
- Ability to post and comment on topics and discussions.
- A Free photo gallery to share your dive photos with the world.
- You can make this box go away
Hm. Does it cost the card company money if you just sit on a card and don't use it? That alone might make it all worthwhile.
fairybasslet
Contributor
One of the biggest determining factors of your credit score is the amount of available credit that you have available compared to the amount you have used.
The larger the amount of available credit that you have, coupled with a low amount of purchases that you charged, translates into a better score. If canceling a card will significantly lower the amount of your available credit, you are cutting off your nose to spite your face. Having a card that you never use doesn't hurt the banks (except that they're not making any money off you or the merchants) and only helps you.
BTW, I also pay my credit card balances in full every month because I hate paying interest. This doesn't really hurt the banks that much because, don't forget, they are charging merchants a fee for every transaction. The banks obviously like me because I am constantly getting those "free checks that are just as good as cash" except if you use them and don't pay off the balance before your bill is due, you will be charged the cash advance interest rate rather than the purchase interest rate, and that is usually much higher. Those checks go straight in the shredder.
Also, be aware of banks changing the billing cycle of your accounts. I had Bank of America do that to me (surprise surprise) and I wound up being charged interest. I called them and complained and it was reversed.
DISCLAIMER: I am not a financial adviser. I just read a lot about how consumers can protect themselves.
The larger the amount of available credit that you have, coupled with a low amount of purchases that you charged, translates into a better score. If canceling a card will significantly lower the amount of your available credit, you are cutting off your nose to spite your face. Having a card that you never use doesn't hurt the banks (except that they're not making any money off you or the merchants) and only helps you.
BTW, I also pay my credit card balances in full every month because I hate paying interest. This doesn't really hurt the banks that much because, don't forget, they are charging merchants a fee for every transaction. The banks obviously like me because I am constantly getting those "free checks that are just as good as cash" except if you use them and don't pay off the balance before your bill is due, you will be charged the cash advance interest rate rather than the purchase interest rate, and that is usually much higher. Those checks go straight in the shredder.
Also, be aware of banks changing the billing cycle of your accounts. I had Bank of America do that to me (surprise surprise) and I wound up being charged interest. I called them and complained and it was reversed.
DISCLAIMER: I am not a financial adviser. I just read a lot about how consumers can protect themselves.
vladimir
The Voice of Reason
- Messages
- 44,725
- Reaction score
- 65,451
- # of dives
- I just don't log dives
Really? What laws? I'm not being argumentative, I am truly curious. Because it is my impression that usury laws and other consumer protections pretty much fell by the wayside during the financial deregulation of the past 20 years or so. And credit card issuers and banks are pretty notorious for gouging their customers with fees--usually the customers least able to afford them.
Last edited:
siikik
Contributor
scubamickey
I'm a GIRL!
American Express charges 2% transaction fees but not for foreign transactions in US Dollars. This is what I will be using in Bonaire for the truck rental so as long as they charge in US dollars then at least that will one charge that I don't get hit with fees with on this trip.
My ATM card doesn't charge either but it is issued through my local bank.
On next month's trip to Bonaire, almost 100% of our expenses were paid through Caradonna. This is one of the reasons that I opted to go through them instead of my normal process to go directly to the source. I just paid off the balance and it is all in Dollars. So the only expenses that will incur this surcharge will be meals and incidentals.
Have to get creative to avoid paying through the nose.
My ATM card doesn't charge either but it is issued through my local bank.
On next month's trip to Bonaire, almost 100% of our expenses were paid through Caradonna. This is one of the reasons that I opted to go through them instead of my normal process to go directly to the source. I just paid off the balance and it is all in Dollars. So the only expenses that will incur this surcharge will be meals and incidentals.
Have to get creative to avoid paying through the nose.
Willar
Contributor
From the research I did last year, Capital One is the only major bank card that does not charge a large (2-3%) foreign transaction fee. They also have a very good rewards program that pays merchandise, travel or cash back. I use the CapOne card for lots of purchases for my personal and my company's purchases and get some great perks back. I love my golf bag, iPod, and cashback from CapOne!
vladimir
The Voice of Reason
- Messages
- 44,725
- Reaction score
- 65,451
- # of dives
- I just don't log dives
My girlfriend and I were in Singapore the weekend before last. As we were checking out of the Fullerton Hotel my girlfriend presented her Capital One card and they asked, "Do you want to settle the bill in US dollars or Singapore dollars." My girlfriend said US dollars and they ran up the bill: $820. I took a look at it and the receipt had the conversion rate on it (kudos for transparency): 1.41. I knew the conversion rate was ~1.46 so I asked them to redo the charge in Singapore dollars: S$1156. The charge on her Capital One bill: $792, for a savings of $28. Well, not so much a savings as a $28 scam avoided. So don't let the hotel convert to dollars--let Capital One do it; you'll get a much better rate.
Last edited:
OP
DeputyDan
Contributor
Bumping this thread cause it has excellent information......
dvrliz1
Guest
On the merchant end, AMEX is getting really expensive to accept. They also hold on to the money much longer. MC/VISA/DC all post to our accounts with 48 hours of settlement, but AMEX can take up to a week. Yikes!!!!
Similar threads
