nickled and dimed by the man
Today I am going to spout off about foreign currency transaction surcharges imposed by credit card issuers, because this practice PISSES ME OFF.
First let me explain how things used to be.
When you used your Visa or Mastercard overseas for a purchase in a foreign currency, Visa and Mastercard converted the amount to your own currency in order to bill you, and gave you a favorable exchange rate. They also charged you a small fee, amounting to 1% of the purchase amount, for providing this service. That was reasonable, and it still got you nearly the best exchange rate possible.
What credit card issuers are doing now:
At some point, at least six years ago, the credit card companies began tacking on their own foreign currency transactions surcharges, on top of the 1% levied by Visa and Mastercard. The credit card issuers do not provide any services to justify the additional 1% to 3% surcharge (varies by card issuer). The currency exchange is handled by Mastercard/Visa. Mastercard and Visa provide toll free phone numbers in foreign countries in case you have a problem with your card, whereas most card issuers do not.
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