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Credit Card Currency Conversion Costs

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John Hunter

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Currency conversion costs from bankrate.com:

Visa and MasterCard have a standard 1-percent charge on foreign purchases; in exchange, Visa or MasterCard converts your foreign currency purchase to U.S. dollars. All Visa or MasterCard cards will carry that 1-percent charge.

However, your credit issuer or bank often charges an additional fee, usually 2 percent, which adds up to a 3-percent total charge on foreign purchases. Bankrate contacted several credit card issuers, and all refused to explain the reason for the charge.

Follow the link for a list of how much each company charges. Until the credit card companies compete on trying to serve customers well instead of trying to trick customers well such articles are extremely important. The companies have more resources to invest in tricking you than you have to try and find all of the tricks they use.

Related: Don’t Let the Credit Card Companies Play You for a Fool – Hidden Credit Card Fees – Too Much Personal Debt

Comments

3 responses to “Credit Card Currency Conversion Costs”

  1. finance guide 101 Avatar
    finance guide 101

    Hello CCIE,

    An interesting article one credit cards’ hidden costs by Kathleen Day. And this example “Half of the companies surveyed charge interest on debt consumers have already paid. For example, if a consumer charges $500 and pays off $450 before the billing cycle ends, these companies will charge monthly interest for the entire $500, not just the remaining $50.” is enough to tell us about how credit card providers charging us.

    Reply
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