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Contributed by mm | September 2, 2005 10:03 AM PST
It is good news ... still, card issuers can charge extra fees for international transactions. Therefore, I primarily use my credit union's card since they charge nothing.
From Wall Street Journal:
In a move that gives Americans traveling overseas a temporary reprieve, MasterCard International Inc. delayed plans to charge fees on every card transaction made abroad. Currently, it only charges fees when it converts to dollars those purchases made in a foreign currency.
MasterCard, which separately announced plans to pursue an initial public offering of shares, planned to start charging issuers in October a fee of 0.8% on all cross-border transactions and an additional 0.2% whenever a merchant's foreign currency needed to be converted into dollars.
The move -- which would have raised costs for transactions conducted in U.S. dollars at foreign merchants -- would have given consumers an incentive to use Visa-branded cards over MasterCard. Visa USA Inc. recently suspended an earlier decision to charge card issuers a 1% fee on every charge made outside a cardholder's country, including purchases in which a merchant already had converted a transaction to U.S. dollars.
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