Best credit cards for foreign currency purchases?

Question

It used to be a good deal to use a credit card to make purchases overseas because they gave a current (and fair) exhange rate. However, I was surprised to recently find out that my credit card issuer (Chase) charged me a 3% service fee on all foreign currency transactions.

Is this now a convention among credit card companies? Or are there better credit cards out there for foreign currency purchases?

Thanks.

Answer 1

The credit card networks (Mastercard and Visa) have always charged the banks a 1% surcharge on foreign currency transactions, almost all banks pass on at least this surcharge. As you mention, many banks are also adding an additional surcharge on top of this (typically about 3%)



Capital One is the only major bank in the US that literally adds no surcharge (not even the 1%). HBSC, USAA and Washington Mutual pass along only the 1% charge.

Answer 2

the citicards mastercard that I use charged me about 7 bucks for all the purchases I made which was about 3-400$ worth in japan. don't know about others