Avoid the extra 2% fee most credit cards charge on foreign transactions
Written: Jan 20 '03 (Updated Apr 07 '07)
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Pros: Doesn't charge the extra 2% that most credit cards charge for foreign currency transactions.
Cons: No different from any other credit card: mediocre interest rates, high fees.
The Bottom Line: Another tool for your credit card toolbox. Use this one when traveling in foreign countries to avoid the extra 2% fee charged by most cards.
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| jsquarejj's Full Review: MBNA Platinum Plus (Mastercard and Visa) |
[Bank of America has acquired MBNA. Thus, the terms of MBNA's credit cards may have changed. Then again, they may not have changed. Check carefully before you rely on the information in this review.]
Rather than reviewing the usual stuff like interest rates, customer service, etc. I'd like to make the case for a special reason you might want this credit card.
My US Bank REI Visa Gold Card is my main credit card. I use it for all my normal credit card transactions because it has no annual fee, pays 1% cash back on all purchases, and guarantees a full patronage refund for purchases at REI, the outdoor goods retailer. Nevertheless, I also have an MBNA Platinum Plus Visa Card, even though it's not very highly rated by ePinions reviewers. Here's why:
Foreign Travel
I travel quite a bit outside the USA. If you do too, consider this:
Whenever the holder of a USA-based Visa or MasterCard makes a purchase in another country, the credit card association translates the charge into US dollars, and charges you a fee of 1% of the dollar amount. Seems reasonable, since they have to do currency exchange, an inherently risky business. But here's the "screw the consumer part." Most card issuers (Citigroup, Bank of America, etc.) then tack on an additional 1% to 3% (most commonly 2%) of the dollar amount just because they can get away with it; they don't actually do anything to earn the 2% "fee."
In particular, my REI Visa Card charges a total of 3% (the 1% Visa association charge plus the 2% "ignorant sucker" charge). That's why I don't use it for foreign transactions.
So here's the good part: the MBNA Platinum Quantum Card does not charge an additional fee for foreign purchases. You still pay the 1% Visa association surcharge, but that's it. On a recent trip to Europe, where I charged about $2,500 on my MBNA card, I saved $50 in fees, enough for a modest meal with wine or a small gift or two.
For the details of how most credit card issuers rip you off when you make foreign purchases, see my epinion Card issuers hide their dirty billing secret: GREED .
Other Pros
This card has all the usual Platinum level features including travel insurance and emergency services, fraud protection, purchase protection, etc. The interest rate is variable, and currently at a moderate 14.99% (since I pay my bill every month, I don't really care about that).
Customer service has been excellent. The two times I've called, the phone was answered immediately by a person who handled my inquiry competently. MBNA also has toll free customer service numbers in the most visited countries of Western Europe.
MBNA says it will make credit line increase decisions in 15 minutes, and it will also change your monthly billing date for your convenience. Their web site provides convenient access to your account; it's easy to use, but not very fast.
Cons
The usual. MBNA, like everyone else, charges outrageous fees for late payments, over limit, returned check, etc.
Furthermore, although MBNA regularly reevaluates your credit limit and automatically raises it if warranted, some people have reported that they can also lower your credit limit without telling you.
This particular card does not offer any other perqs like cash back or travel miles, although MBNA has cards that do.
Once you get an MBNA card, you will start getting tons of email and snail mail offers from MBNA and other organizations that have access to its mailing lists.
Caution!
As with any credit card issuer, MBNA may change its terms and conditions at any time after giving proper notice to card holders. Therefore, you should check the latest terms on any credit card--including this one--before you apply and before you use it for a particular purpose.
Furthermore, MBNA offers a wide variety of credit cards, including various "affinity" cards. Each distinct card has its own terms, which may be different than the ones discussed here.
Recent Experience
I spent two weeks in Italy in June 2004, and I used my MBNA Quantum Visa card extensively, paying for hotels, train tickets, restaurant meals and a rental car. With the subsequent MBNA statement and daily exchange rate information available on www.x-rates.com , I was able to verify that MBNA consistently charged just 1% above the competitive exchange rate, exactly as advertised.
Related Links
For every day use at home in the USA, this no-fee credit card pays 1% cash back on all purchases: REI Visa card.
For the details of how most credit card issuers rip you off when you make foreign purchases, click Card issuers hide their dirty billing secret: GREED .
Recommended:
Yes
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Epinions.com ID:
jsquarejj
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 - Top 200 |
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Member: Jim J
Location: Santa Cruz, California
Reviews written: 190
Trusted by: 78 members
About Me:
#7 in Personal Finance, #14 in Travel. My goal? Saving you money.
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