[sleeper]

I have just reviewed my MasterCard statement for last month's charges, and noticed that there is a foreign transaction fee finance charge (piddly $1.49 but still annoying). So I called the bank and found out that - and I guess it depends on your MasterCard or Visa issuing bank - they will charge a fee each time you fund your Sparks account because the charge is in roubles first, and converted to dollars later, and because MP3Sparks is based in Russia. In fact, the line item for the transaction is listed as "MP3Sparks.com shop Moscow Russia", then date I added funds to the account, then "1280.04 rub" which is then equivalent to $50.03.

I am not complaining at all - even with this piddly charge, it's a small price to pay for DRM-free downloads. However, if you can avoid it by using a Visa or MC from a bank that doesn't charge you that fee, do that if you can.

[aom3]

I believe whenever there is a currency conversion in a transaction, there will always be a small fee.

Annoying, but i guess something you have to live with

[sleeper]

Originally Posted by aom3

I believe whenever there is a currency conversion in a transaction, there will always be a small fee.

Annoying, but i guess something you have to live with

Yeah. It's not a big deal though, but I thought I'd let everybody know - so what the heck, fund the highest amount you can, if it's the same transaction fee, it'll be spread over a higher amount, right?

[Cornutopian]

Originally Posted by sleeper

Yeah. It's not a big deal though, but I thought I'd let everybody know - so what the heck, fund the highest amount you can, if it's the same transaction fee, it'll be spread over a higher amount, right?

No, because it is a percentage. What you want to do is find the bank that charges the lowest percentage, but really for such a small sum, it isn't worth the hassle.

It USED to be that credit cards were the way to go for all international spending, because you didn't USED to pay a fee and you got the up to the minute best exchange rates. But a couple years ago the either the credit card companies or the banks all at once (not sure which) started imposing this fee. It sucks and makes credit cards much less attractive for international purchases.

When I travel to Canada, I try not to use credit cards at all any more, because of these fees. Now I use ATMs (which are just a flat ATM fee and pay cash for everything)

[koenfucius]

Originally Posted by Cornutopian

It USED to be that credit cards were the way to go for all international spending, because you didn't USED to pay a fee and you got the up to the minute best exchange rates. But a couple years ago the either the credit card companies or the banks all at once (not sure which) started imposing this fee. It sucks and makes credit cards much less attractive for international purchases.

I don't think that is always the case. My credit cards are in sterling, and much (if not most) of my expenditure is in EUR or USD, and I've not seen this kind of 'fee' appear on my statements. Of course, there is a conversion spread (i.e. you'd pay more to buy a currency than you get from selling it), but that is almost always much better than the cash spread.

For instance, my payment to MP3Sparks of USD 25 on 21 August has appeared as a charge of GBP 12.95, or a conversion rate of 1.93; the interbank rate was 1.98 on that day (which would have bought me USD 25 for 12.61, so the 'premium' was 34 pence). Anyone interested in playing around with exchange rates could do worse than look at OANDA, The Currency Site: Foreign Exchange Services and Trading

[Remm]

I seem to remember seeing a slight charge that had more to do with the exchange rate or something, but that was a long time ago and I was using my B of A card. Just now I checked my statement from the $20 I put on my Chase MC a couple weeks ago, and there is nothing but the $20. Maybe Chase is a kinder, gentler bank.

[download222]

The practice of adding 2-3% on top of the traditional 1% charged by Visa/MC has recently become very common. One of the most comprehensive sources for info on this practice is this wiki (Bank listings primarily/all are in the USA).

Credit/Debit/ATM Cards and Foreign Exchange - FlyerGuide Wiki

If you travel overseas, I would take a serious look at the wiki.

Download222

PS Many credit unions do not charge the extra fees.

PPS If you have info on USA based banks and non-USA based banks, please add the information!

[download222]

Originally Posted by Remm

I seem to remember seeing a slight charge that had more to do with the exchange rate or something, but that was a long time ago and I was using my B of A card. Just now I checked my statement from the $20 I put on my Chase MC a couple weeks ago, and there is nothing but the $20. Maybe Chase is a kinder, gentler bank.

Hi Remm,

I would not count on it, I understand that Chase charges an additional 2% (3% Total).

Download222

[koenfucius]

Originally Posted by download222

The practice of adding 2-3% on top of the traditional 1% charged by Visa/MC has recently become very common. One of the most comprehensive sources for info on this practice is this wiki (Bank listings primarily/all are in the USA).

Credit/Debit/ATM Cards and Foreign Exchange - FlyerGuide Wiki

If you travel overseas, I would take a serious look at the wiki.

Download222

PS Many credit unions do not charge the extra fees.

PPS If you have info on USA based banks and non-USA based banks, please add the information!

Well it looks as if us Europeans should count ourselves lucky...

[Remm]

Originally Posted by download222

Hi Remm,

I would not count on it, I understand that Chase charges an additional 2% (3% Total).

Download222

Not in my case. There was a zero balance when I put $20 on through the AllTunes interface and eCentru. My online statement showed up as $20 and I paid $20 online. The statement currently shows zero.

I have excellent credit and have had two cards with Chase for many years. At times they had high balances, but I always paid them off. So maybe it depends on each person's type of account and whether or not they are a preferred customer? This is also a Platinum card. I don't know. But I wasn't charged a penny.