This just angers me to no end, companies charging 2% on purchases made overseas. I kept questioning American Express why a phone card I purchase weekly always shows up on my statement as a $51 charge when I was quoted $50 from the company. Here I was angry with the phone company this whole time! Shame on credit card companies. Here's the whole story:

http://www.bankrate.com/brm/news/cc/20010416a.asp
http://www.bankrate.com/brm/news/cc/20010416b.asp

I posted on this subject last year: One of the big ones, First USA Bank, NA took over my Visa account - they add their 3% 'Foreign Currency' surcharge to the standard 1% Visa & MasterCard charge for purchases made abroad. I try not to use their Visa in Europe anymore.
My C.U. doesn't charge any ATM fees, so I try to pay with cash as much as possible. If I must use a credit card, I use my Sears National Bank MasterCard. I called and was assured that they don't add any additional foreign currency transaction charges.

You know, I remember that thread but thought it was only about ATMs and didn't pay much attention. I just think it's criminal the way our society promotes credit card usage and then gets you any way they can. I just cancelled my FirstUSA and American Express today. I guess by not participating, I can fight back. I'll just stick with my Credit Union as well.

Do the good exchange rates generally offered by credit card companies generally make up for the extra percentage?

You'll find that previous thread regarding this topic in the "Packing" forum under the
\"what to take for money\" thread.

Saludos, MadridMan

Of the major credit cards we have, we know for sure that MBNA does not charge additional fees for purchases in foreign currency. And that's the card we'll be taking to Italy in two weeks.

Be aware that some banks are charging these fees on ATM cards too. My bank (Chase) does not but charges $3 per foreign withdrawal.

Majesty, When compared to cash or traveler's checks, the better rates do make up for the extra percentages. But your best bet is card that doesn't charge these horrible fees.
We've found that even though our ATM card doesn't have additional fees, the rates are still better with the MBNA credit card.

[ 05-24-2001: Message edited by: caminante ]

I'm sorry to hear that AmEx is tagging a foreign currency charge onto credit card purchases because they have been the best to deal with in case of error. A friend who bought Lladro but was sent Nao, for example, contacted AmEx who took the charge off because the merchant was responsible for providing the correct merchandise! Other credit card companies have told people that they had to contact the merchant in Europe to make things right...not always easy or possible! It may be worth it to pay the extra for peace of mind in those little shops you find off the beaten path.
My CU doesn't charge for ATM use overseas, so I'll use that for cash. I'm going to have to do some serious thinking about the credit cards, though, since I have a personal bone to pick with MBNA!

Regarding the comments on credit cards, I am English and have an English card that can be used abroad without being charged extra. I paid my hotel bill in Zaragoza and was not charged a percentage, I also used ATM card at local banks without charge and got a very good exchange rate. Could be because of the EU alliance, if so, I feel sorry for you guys not being able to benefit too! Will be using same cards on my visit to Madrid so here's hoping.

I have 3 credit cards and before my trip I called to know about the fees, only one has no fees for using overseas, it is a VISA from Nordstrom. I had no problems using that card in Spain, and had an ATM from Wells Fargo Bank that I kept just in case I needed cash. There were no extra charges.
And because that credit card has a high interest, once I got the statement I made a transfer to the other credit card that charges for using overseas but has a very low interest.

Rafael