Whats the catch to using debit and credit cards in foreign countries?
Credit cards usually pencil out several percentage points better than trading cash or travelers’ checks. But keep in mind that when you use your card abroad — either credit or debit — you may get stuck with a 3% currency-conversion or “foreign-transaction fee” on your statement — 1% charged by Visa or MasterCard and 2% by your credit-card issuer. (With an American Express card, that fee is 2%.) And when you withdraw from an ATM, you’re likely to face a fee of up to $5, or 1% to 3% of the withdrawal or both. The devil is in the details, which vary by bank. At Bank of America, for instance, you avoid flat or percentage fees if you use a machine in its Global ATM Alliance (which includes major foreign banks such as Barclays and Deutsche Bank). But if you use a non-alliance machine, you’ll pay not only a $5 fee but also a 1% foreign-transaction fee. For a comparison, try www.bankrate.com/brm/news/cc/20050624b1.asp. The dollar is weak against the euro and the pound. Where can Americans g
