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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: ild who wrote (30217)4/7/2005 3:07:49 PM
From: Elroy Jetson  Read Replies (1) of 110194
 
I obtained a $25k Visa card from MBNA which does not charge additional fees for foreign purchases. Specifically, I obtained their "Motley Fool 1% Cash Back" Visa card, which once a year pays you a flat 1% of what was charged.

The banks which do charge the typical 2% additional fee for foreign purchases, do so even if the purchase was billed in US dollars. One Visa issuer I spoke with claimed this was because of the costs created by problems like charge-backs where they have promised me they will conform with US law while the merchant is operating under the laws of another nation. Apparently in some cases they need to pay for local counsel. Visa international arranges for this, but the issuing bank pays the bill supposedly. Since MBNA is already one of the largest Visa card issuers in Europe, Canada, and the US they have a better handle on these costs.

There is one aspect of MBNA which I do not like, so life is not perfect. Unlike my other two Visa cards, and most other vendors, MBNA has no program which automatically deducts either your Statement Balance or Minimum Payment from your checking account. They have their own online bill payment, just as my bank does, but this requires your personal action online to discover the amount due and authorize the payment. This necessitates either taking your laptop when you travel, or calling them and authorizing a payment for their $15 fee phone payment fee. In a world where all of my bills are paid automatically, this aspect of MBNA rankles me enough that, after three months of use, I no longer use this Visa card domestically.
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