Wednesday, June 21, 2006

More Hidden Charges on your Creditcards

When you make charges on your creditcards in a foreign country, there are fees hidden in the currency exchange. Exchange rates fluctuate all the time, but the charge is made to your account in U.S. Dollars. When that is done, the bank charges a 1% currency-exchange fee, then on top of that, they most likely tack on another 2% for overseas purchases. The fees are extremely difficult to find on your statement because they aren't listed. They also don't make it easy to see in the cardholder agreement either. Like many other creditcard company policies, they aren't clear. Sometimes they aren't even expressed to you until you complain about them. reports that there are currently a number of lawsuits over this currency exchange policy. However, don't believe their propoganda that creditcards are still cheaper. If you understand what simply having the account open is costing you, it is cheaper to avoid creditcards.

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