AOPA MBNA Mastercard/Visa foreign transaction question

[Jessica Taylor]

MBNA recently decided to surcharge foreign transactions on some of their
Mastercard and Visa credit cards. Previously, MBNA was one of the very
few banks that did not add their own surchage on top of the M-C/Visa
network exchange 1% fee.

I received a notice that one of my MBNA credit cards (not AOPA) would be
subject to the new 2% MBNA bank foreign transaction fee (plus the old 1%
network conversion fee for a total of 3%). However I never received a
notice for my AOPA card. Is this a fluke--have others received a fee
notice for their AOPA card? I know that MBNA's AAA (american automobile
association) does not have this charge due to an agreement AAA has with
MBNA, so I'm hopeful maybe AOPA has the same agreement and no extra fee.

Credit cards are still one of the cheapest way to convert money, but
banks adding their own fees after the network converts it to US dollars
is something I'd rather avoid. (Many credit unions do not do this,
although I don't want another credit card at this time.) Some of the
new fees apply for all foreign transactions, even if it was already in
US Dollars.

[Ron Natalie]

Jessica Taylor wrote:

> Credit cards are still one of the cheapest way to convert money, but
> banks adding their own fees after the network converts it to US dollars
> is something I'd rather avoid. (Many credit unions do not do this,
> although I don't want another credit card at this time.) Some of the
> new fees apply for all foreign transactions, even if it was already in
> US Dollars.

I used my ATM card in France in September twice and there was no service
charge and the Euro->Dollar conversion wasn't too far off (certainly
less than 3%) from the rate in the newspaper.

[Jessica Taylor]

Ron Natalie wrote:
> Jessica Taylor wrote:
>
>> Credit cards are still one of the cheapest way to convert money, but
>> banks adding their own fees after the network converts it to US
>> dollars is something I'd rather avoid. (Many credit unions do not do
>> this, although I don't want another credit card at this time.) Some
>> of the new fees apply for all foreign transactions, even if it was
>> already in US Dollars.
>
>
> I used my ATM card in France in September twice and there was no service
> charge and the Euro->Dollar conversion wasn't too far off (certainly
> less than 3%) from the rate in the newspaper.

Yes ATM cards a great way to exchange money (as long as there isn't a
big power/computer failure a la Italy a few summers ago). Generally the
transactions take place over Visa's PLUS or MasterCard's CIRRUS network,
and the networks charge 1% over the wholesale exchange rate, a good
deal. Bank of America doesn't charge fees if you use an international
bank in their "global alliance" network, i.e. Barclays (UK), BNP Paribus
(FR).

Some banks charge extra fees for ATM transactions out of the country,
but many do not (far less widespread than extra bank charges for credit
cards).

The newly raised fees for MBNA credit cards mentioned earlier have been
taking place since March 2005, before that MBNA didn't charge fees for
foreign transactions for all of their VISA or MasterCard credit cards.

[Jim Austin]

I had a fraudulent charge appear on my MBNA/AOPA Mastercard this month
from Germany (it's been disputed) and a 2% "Foreign Transaction Fee" was
added (also disputed).

Jim Austin

Jessica Taylor wrote:
> MBNA recently decided to surcharge foreign transactions on some of their
> Mastercard and Visa credit cards. Previously, MBNA was one of the very
> few banks that did not add their own surchage on top of the M-C/Visa
> network exchange 1% fee.
>
> I received a notice that one of my MBNA credit cards (not AOPA) would be
> subject to the new 2% MBNA bank foreign transaction fee (plus the old 1%
> network conversion fee for a total of 3%). However I never received a
> notice for my AOPA card. Is this a fluke--have others received a fee
> notice for their AOPA card? I know that MBNA's AAA (american automobile
> association) does not have this charge due to an agreement AAA has with
> MBNA, so I'm hopeful maybe AOPA has the same agreement and no extra fee.
>
> Credit cards are still one of the cheapest way to convert money, but
> banks adding their own fees after the network converts it to US dollars
> is something I'd rather avoid. (Many credit unions do not do this,
> although I don't want another credit card at this time.) Some of the
> new fees apply for all foreign transactions, even if it was already in
> US Dollars.