Credit card foreign transaction fees

If you plan on using your US/foreign credit card in the UK, you might be interested in the foreign exchange fees charged.

Here is a recent list I found of card issuers and their foreign exchange fees

http://www.creditcards.com/credit-card-news/foreign-exchange-fees-going-up-1267.php#foreignfeecharts

Meanwhile you may soon find your non-US credit or debit card refused entirely in the US.

Sen. Carl Levin D-MI has attached an amendment SA1818, to the Senate Transportation bill S 1813 that will cause all credit/debit card payments from non-FATCA compliant banks to be refused.

Should do wonders for the tourist business!

My CC fees added a chunk to the visa application fees...not nice, given that it was paid in US$.  Had I realized, I would have paid the Visa app fees with my UK card...I've had it since 1993 when I first lived in the UK.

I try to pay US$ charges (goods/presents shipped to my parents) with my US card and anything here with my UK card.

There are specialist credit cards in the UK and US that don't charge foreign exchange fees (eg Halifax Clarity in the UK.).   Well worth considering.

True, re: the no-fee cards, but in my case I've held one card since 1993 and the other longer than that, and have no real desire for any more.

if you want a dollar credit card (because you have dollars and want to spend them in pounds), the one many people use is Capitol One Visa. You need to use an american address for it (brother, etc). They don't have a foreign transaction fee. Short of the interbank rate - which mere mortals can't get -  Visa and Mastercard are about the cheapest exchange rates around. After lots of currency maneuvering, I find this the best and easiest way to change dollars to pounds. Very happy to hear of better arrangments.

What I'm looking for is a dollar bank account with a debit card (Visa or Mastercard) that doesn't charge the foreign transaction fee when you take out pounds at a UK ATM. My Credit union adds 1%. (You can do it with your capital one credit card, but you incur interest.)

I'm a little concerned that this subject might not be correct for this tax forum but maybe belongs on a different one. ?

From a tax perspective, the use of a US based credit card where some of the bill is paid out of "relevant foreign income" (eg the bank account in the US has interest credited to the account used to pay the bill) could constitute a remittance of that "income" to the UK, resulting in additional UK tax bills.

sorry, should have mentioned that. It's no longer relevant to me so I forget about it.

The Capital One card is great for Americans traveling abroad. I got one just for last year's month in Iceland. No foreign fees and you also get cash back on some purchase including gas.

What I'm looking for is a dollar bank account with a debit card (Visa or Mastercard) that doesn't charge the foreign transaction fee when you take out pounds at a UK ATM. My Credit union adds 1%. (You can do it with your capital one credit card, but you incur interest.)

Charles Schwab Bank doesn't charge a foreign transaction fee. Plus they refund any charges assessed by the ATM owner. I have been a very happy customer for 5 years.

many thanks. that's very helpful!
someone should write a book with all this stuff. Or, it exists and I've missed it?