Credit card companies penalizing US visits overseas?

[cynatnite]

That's what I'm reading out of this.

http://biz.yahoo.com/brn/050624/16435.html?.v=1

Your credit card company is making a killing off the money you spend on your foreign vacation, and you might not even know it.
This extra profit is called a "foreign currency-conversion fee," and you could be paying up to 4-percent extra when you make an overseas purchase with a credit card.

One percent of that charge comes from the Visa or MasterCard networks, which charge a 1-percent fee for converting your foreign-currency purchase into American dollars.

snip:

"People who travel to foreign countries are outraged by this charge. It's pure gouging that credit card companies know they can get away with," he says.

Bankrate contacted four credit card issuers -- Bank of America, MBNA, Citibank and Chase -- to get an explanation for the additional charge. All refused to explain the reason for the charges.

[BlueEyedSon]

1. I had always hear that you get the best exchange rate if you use your CC

vs. changing money locally.....

:wtf:

[AllegroRondo]

2. you do

a local bank will charge you 3-5%. a hotel will charge much more.

and a credit card will usually give you the better exchange rate between the day of the purchase and the day it hits your account.

[lenidog]

4. That is the way I understand it

They do exchanges in blocks of money which gets them a better exchange rate. More or less its more legalized extortion fron the CC companies.

[Suich]

3. I just switched to a Working Assets Visa because I travel to Canada often

They don't charge a fee. AAA Visa charges 1% and all the other applications I've gotten in the mail charge 3%.

[Rainbowreflect]

5. That's funny considering they are sending our jobs overseas!