[Tom]

Beware if you use your REI Visa card abroad you will get hit with a 3% foreign exchange fee. I just bought some gear online from Telemark-Pyrenees and noticed the ridiculous charges. I was expecting 1% based on what they zinged me with a few years ago when I went to Asia, but now they've upped it to 3%. I called REI Visa to complain about the 2% increase and asked them to reverse the charge or I'd likely be canceling my card. They said they could reverse it this time but in the future they wouldn't be able to do anything about it. I told them they didn't have to worry about that - I'll never use their card again for foreign purchases. Hidden fees on foreign credit card charges (REI Visa is one the greedy ones)

[JimK]

A timely thread. I was in Canada last week and I've been trying to find out why I seem to have had such lousy currency exchange rates. Three percent in fees explains a lot.

[Tom]

I just don't understand why they do it. They're just going to lose my business when I travel abroad. At least now they have to separately disclose the fees (thanks to class action lawsuits a few years ago). The 1% fee was ridiculous to begin with, but I could live with it because I get 1% back. It used to be you got the best exchange rates by using credit cards. Not any more. When I traveled to Asia a few years ago, I got the best exchange rates by using my BECU ATM card in the subway ATMs. There were no ATM fees or foreign exchange fees, and the merchants much preferred cash. It was also safer to pay with cash... A few months after that trip enough fraudulent charges started showing up that I had to get a new credit card. Perhaps that's why they charge the fees, but it should be covered by the 1% Visa charge (and the fees Visa charges the merchant), not the additional 2% of pure profit going to issuing bank.

[Stefan]

Dude, stop buying anything. Buying anything contributes to global warming.

[marta]

The 3% for international purchases is getting to be really common with credit cards. Right now, the best are USAA, Capital One and credit unions.

[Canuck]

We had the same thing with our credit cards in England last week. It's doubly bad because the exchange rate was miserable. Things were already double the price. We got zinged no matter what we did -- credit or debit card, vs. taking cash out and getting the ATM fee from a bank overseas. Crappy deal.

[kiliki]

REI isn't any different than almost every other card. My understanding is that the ONLY credit card that does not charge this overseas fee (and they are almost always 3% fees now) is Capital One, and a lot of people expect this to change at some point. We got a CO card because we travel overseas every year, and it seemed like the best way (at least for now) to pay for the big things like hotels or nice dinners. This has gotten a lot of press in recent years, and there's lots of articles that give tips for dealing with credit and ATM cards overseas, like this one from CNN.

[Tom]

Depends on the issuing bank. Most major banks tack on the extra 2%, but many credit unions don't.

[Riverside Laker]

BECU charges, but less that 1%.

[Billoutwest]

[mike]

We could not get a chipped card for the account we wanted to use (for the miles). A bit of a hassle to use a non chipped card as not everyone knew how to run our card. Our card had a very high %rate on balances but we kept it paid off ahead of time. And the exchange was very good. Cash is still a good way to travel.

[Randito]

[Billoutwest]

XE.COM is an excellent site. Thanks

[Billoutwest]

REI is offering a new card with a chip but still the same 3% foreign surcharge. I ordered a new chipped card just to get ahead. We see how this pans out but I like the idea of better European style security. Our American Express 'Costco Card' does not offer anything better than a 2.7% unless one goes long and pays for a better AE card. New chip card is available from them also. CapitalOne will not start sending out chipped cards till a month + from now. They're still at 0% for purchases. Plus they are now easy to work with on claiming Award Miles etc. ========= It looks like we'll be traveling BC and Alberta with CapitalOne for buying. Bank of America for ABM's in Scotia Bank or their ABM's in 7-11. B of A hits us for 1% on ATM but not sure what, if any, charges Scotia may tack on. I'll have the REI card that my wife doesn't have as an emergency backup in chase she loses/gets robbed of her purse. She'll have a JPM Chase Visa that will cover me. Curious how cheap we can get that one for cash withdrawals.

[Randito]