Do debit cards also have foreign transaction fees?
Yes, many debit cards charge foreign transaction fees for international transactions and ATM withdrawals. You can ask your bank for its specific fee structure. The fee structure is similar to that of credit cards, and it's advisable to check with your bank for the specific fees applicable to your debit card.
Does my credit card have a foreign transaction fee?
How can I find out if my credit card charges foreign transaction fees?
You can find out if your credit card charges foreign transaction fees by reviewing the card's terms and conditions, checking the fees section of your credit card agreement, or contacting your card issuer directly for information.
I've been using my "no foreign transaction fee" credit card in Europe all year. Little did I realize no foreign transaction fee only means there's no fee by the bank for making a charge in a foreign currency. They can still charge a "currency conversion fee", or use a distorted exchange rate in the banks favor, which doesn't seem to be disclosed anywhere by the bank.
Looking at recent transactions on my card (usbank visa altitude reserve) in polish zloty, euros, and norwegian krone, it looks like I'm paying an additional approximately 3% for purchases in euros and zloty and additional 5.2% for purchases in norwegian Krone. Just now booked a plane ticket for 4679 Krone which equals 426.22 usd according to google and transferwise exchange rate. Charge went on my card for $448.53 usd. 5.23% extra. US Bank won't say if that's a fee for currency conversion or they just use some special exchange rate in the banks favor but I feel they should have to disclose this especially if they're goin to advertise a card with "no foreign transaction fee". I've been out here paying a 3-5.2% premium for almost everything all year without realizing it.
What's especially annoying is flights are usually charged in the currency of the origin country, so if I fly from Europe round trip it will be billed in whatever local currency is used in the origin country, even if the Airline is an American one like Delta. I'm not sure there's any way around taking the 3-5.2% loss on flights originating outside the US. If anyone has any ideas to avoid this I would love to hear them.
Edit: since people think I’m paying for dynamic conversion here’s screenshot of an airline ticket I just purchased https://imgur.com/a/FjLCTNL
Here’s another charge I just made in polish zloty. https://imgur.com/a/RB1La4U 139 polish zloty = $35.32 usd. 36.47 / 35.32 =1.0326 so 3.26% premium. The card was charged in zloty there’s no dynamic conversion going on
My understanding, if your bank charges 2.5%, then it will use the mastercard/visa conversion rate (which is market rate plus a very small amount like 0.4% based on mastercard currency converter), plus 2.5% from your bank.
so my question is, is this always the case, or can one bank use some other conversion rate other than the mastercard/visa one, THEN charge the extra 2.5%?
From CIBC: https://www.cibc.com/ca/pdf/credit-cards/d8419-cibc-dividend-sumbox.pdf
Foreign currency transactions, except Convenience Cheques, are converted to Canadian dollars on or after
the transaction date and before the posting date. You are charged the same conversion rate CIBC must pay,
plus a fee of 2.5% of the converted amount
so this "same conversion rate CIBC must pay" , is that the same mastercard/visa rate, or is it something else?