Foreign Transaction Fee!!!

[LHT28]

I'm sorry but I seriously doubt you are getting a 1% spread. I can't get that rate even when converting >$100,000US at a time.

 

Today I can buy USD for 1.007 through ING

 

good enough for me

[caribbeansun]

All you've done is post a link to the same wording for CIBC that says they charge a premium of 2.5% for foreign currency conversion. I know that and I said that in my first post that CC companies AND banks charge to convert foreign currencies.

 

This is NOT a FTF. What people are posting about is a separate charge to their CC for transactions denominated in their domestic currency ie. US residents being charged in US$ and being charged a FTF - which you've agreed doesn't happen on Cdn denominated transactions for Canadians - it's the same thing.

 

It's not really worth arguing about so if you'd prefer to hold to your belief then I won't waste any more time trying to convince you otherwise.

 

However if you charge something in USD or other foreign currency they do charge an FTF but it is hidden in the conversion rate... correct

http://www.cibc.com/ca/visa/article-tools/credit-card-rates-n-fees.html

[LHT28]

It's not really worth arguing about so if you'd prefer to hold to your belief then I won't waste any more time trying to convince you otherwise.

If you go back to my post #61

[caribbeansun]

I'd be quite happy with that as well.

 

Just so I'm understanding you (using the previous example) - are you saying that $1,000 US is costing you $1,007 or $993?

 

 

 

Today I can buy USD for 1.007 through ING

 

good enough for me

[LHT28]

It's not really worth arguing about so if you'd prefer to hold to your belief then I won't waste any more time trying to convince you otherwise.

 

Go back & read my post #61

 

Have a good day

[burm]

I have just ordered a $US Master Card and have decided that the easiest way to get the answer to my question is to go ahead and use it, and when the first bill comes in go to the bank and ask how much it would cost me purchase the exact same amount in cash.

 

Before I ordered the card, the bank rep assured me that I would automatically save 2.5%, even if I paid from my Canadian bank account. I was sceptical. I figured I would get ****'d on conversion somewhere along the line.

 

I have always regretted that Americans have an unfair advantage in booking cruises. They don't automatically lose in conversion if they cancel. This means they can put deposits on more than one cruise and just swing the money over to their final choice before final payment.

[caribbeansun]

I was asking about the ING rates because I've long been curious as to whether ING provided better rates on certain items. If you're getting those kinds of rates on US then I might dump Scotia and move some things over to ING.

 

 

Go back & read my post #61

 

Have a good day

[caribbeansun]

Depends on the bank.

 

Seems like you'll save a few points with TD and ING (apparently) and get hosed by Scotiabank.

 

Banks are quite adept at extracting the maximum $'s from your wallet if you aren't careful.

 

Before I ordered the card, the bank rep assured me that I would automatically save 2.5%, even if I paid from my Canadian bank account. I was sceptical. I figured I would get ****'d on conversion somewhere along the line.

[LHT28]

I have just ordered a $US Master Card and have decided that the easiest way to get the answer to my question is to go ahead and use it, and when the first bill comes in go to the bank and ask how much it would cost me purchase the exact same amount in cash.

 

.

Is it a Canadian USD Mastercard or from a US credit card company?

It may make a difference

Just read the fine print

 

DH ordered something from the US to test out our US Visa ..it worked fine :D

We used it a lot in Florida last year for buying groceries then I just went online & paid it off from my USD account

[burm]

I can see why ING should offer slightly better rates. As a virtual bank they have no overhead. You would think that there should be no significant difference between TD and Scotiabank.

 

It is so easy to get lost on semantics. Whether they call it a foreign transaction fee or bury the cost in the conversion rate, the bottom line is that we lose in converting, even when our $ is above the US.

[burm]

Is it a Canadian USD Mastercard or from a US credit card company?

It may make a difference

 

 

 

Canadian USD Master Card. That seemed a lot safer.

 

I figured I may as well try it. The $25 fee is waived for the first year, but in any case they don't charge you if you spend more than $1000. We always pay for our cruises in US, so that amount would never be a problem.

[Cookie1]

I have the same set up as LHT28. A TD USD Visa card, and a USD bank account, all hooked into my regular account as well.

 

I check the exchange rate frequently, and when the Canadian dollar is strong, I buy US and put it in my US account. Last week I picked up 5000 for 5007 Canadian dollars (I just went into my account to check to make sure that is what I paid.) All US charges when we are in Florida, or booking cruises, I pay on my american CC Visa. I just simply transfer the funds back and forth online so the only thing I am paying extra, is when I actually buy the american, I pay the exchange rate, plus the small service charge which is a percentage -I think it is 1%.

 

True, I get no points, but I think I come out ahead doing this system (and - if a cruise is cancelled, I dont get hosed both ways!)

 

Side note - This is WAAAYYY better then taking the RCCL conversion to buy the cruise in Canadian vs the US price -- substantial savings! (In fact, in our upcoming allure cruise, I know for a fact that the prepaid tip option for my time dining was 420 CAD or 350 USD. Imagine the difference in paying the cruise in CAD!)

 

I have heard that TD has a much user friendly banking set up for people who spend time in the states and need/ want US accounts and CC's. Perhaps the scotiabank user should compare banking options? (disclaimer - I am in no way associated with TD bank, or anyone in the family either)

[LHT28]

Canadian USD Master Card. That seemed a lot safer.

 

I figured I may as well try it. The $25 fee is waived for the first year, but in any case they don't charge you if you spend more than $1000. We always pay for our cruises in US, so that amount would never be a problem.

 

Must be BMO

Just the deposit for an O cruise would get you over the limit for the no fee;)

 

It is a bit of juggling but worth the effort to some

 

Lyn

[burm]

Must be BMO

 

Yes.

 

I collect enough Air Miles thru BMO for a flight every year. :)

 

I would never use Air Miles for hotels though. (Referring back to an earlier comment) They are not good value for that. And long distance flights are better value than short flights to popular US destinations that frequently have sales.

[caribbeansun]

I bank at both which I why I only buy US through TD ;)

 

 

I have heard that TD has a much user friendly banking set up for people who spend time in the states and need/ want US accounts and CC's. Perhaps the scotiabank user should compare banking options? (disclaimer - I am in no way associated with TD bank, or anyone in the family either)

[emairs]

The misinformation on this thread is amazing.

 

The Canadian *wood Amex DOES NOT charge a 2.5% foreign transaction fee. They charge a spread on the conversion from US to Cdn. You will pay the same spread when you go to the bank and buy US.

 

Since you are quoting me in this post, I don't know what you mean by misinformation. I'm well aware that it is a foreign EXCHANGE fee, NOT a foreign TRANSACTION fee.

[caribbeansun]

Unfortunately I recomposed my message and added to it thereby resulting in a misquote.

 

My original message had only discussed the difference in the exchange premium for Amex and CIBC as well as the rather odd process of changing first into US and then into Canadian with other currencies.

 

My apologies.

 

 

Since you are quoting me in this post, I don't know what you mean by misinformation. I'm well aware that it is a foreign EXCHANGE fee, NOT a foreign TRANSACTION fee.

[Rainbow3fe]

I didn't look at this thread either. Was shocked when I did (we are new cruisers). However I found our Marriott Visa (issued by Chase) did not charge a transaction fee on our deposit. Will check with them before we put the rest of the fare on the card. Thanks for the info!

 

Hi, Like your Marriott card, our new Hyatt Signature Visa card, from Chase, has no international 3% transaction fee. I think it's a good idea for CC members and all international travelers to find a fee free credit card.