Currency conversion costs from bankrate.com:
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 Comments so far
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.
When interest rates were 10% on long term bonds if the USA had an extra $800 billion in currency floating around outside the USA they saved $80 billion every year in interest payments…
As Transfer Wise says “Banks charge 5% in hidden fees. People on TransferWise pay 0.5%.”…