Tuesday, January 8, 2008

Papers please!

Watch those cross-border fees when using MasterCard in 2008.  MasterCard, feeling pressure to continually grow earnings now that it's publicly-held, has increased cross-border transaction fees from 20 to 40 basis points as of January 1st.

This means that your most recent fees update from your bank will show an ability for them to charge more for the "foreign fee" (for transactions outside the U.S.A.) this year and forward.

What does this mean to you if you travel internationally?  Check your credit card T&Cs before you go overseas and find the cards with the lowest "foreign fee."  Consider using travelers checks, at least in countries where it's pretty safe.  
And remember when you're visiting the Great White North that those bar tabs in Toronto are most definitely "foreign" to your bank and MasterCard.

1 comment:

Anonymous said...

What a racket! Why should there be an additional charge. How can I find out what the charge will be? How can I tell if one credit card is better than another?