Credit card exchange fee

[Ann-Marie]

Since we will be putting LOTS of charges on my credit card for the wedding, I just called AMEX to check about an exchange fee. It is my understanding that St. Thomas uses American dollar. AMEX told me to ask for the charge transaction to be done in American dollar every time I use the card. Not sure why there would even be a transaction fee. I can use my Bof A travel card that waves the fee, but it is new and I may not have enough credit line available, however I could just prepay to the card the week before to have a + balance. So, the bottom line is, is there any other dollar used except American, and will I be charged an exchange fee on AMEX? Thanks

 

[classiclincoln]

OK, so here's how it works. When in a foreign country, they put the charge through in their currency. So, if you are in Europe, they'll put the charge through in Euros. Then, the credit card company charges a fee to convert the Euros to dollars. If a country uses US dollars and they put the charge through in US Dollars, there will not be a conversion fee. If the merchant can put the charge through in US dollars instead of their currency, then there is no conversion fee. When we are in Aruba, they have Florins and Dollars, but they put charges through in dollars, so no exchange fee.

 

[bobpark56]

It doesn't work that way

It doesn't work that way. If you ask the merchant to charge you in US $, he will make the conversion from his currency into $ AND charge you an exchange fee for doing so...a fee that is usually a good bit higher than what your credit card would charge.

 

[tashamen]

Since we will be putting LOTS of charges on my credit card for the wedding, I just called AMEX to check about an exchange fee. It is my understanding that St. Thomas uses American dollar. AMEX told me to ask for the charge transaction to be done in American dollar every time I use the card.

St Thomas is in the US, so there is no need to worry about this. However, if you make some side trips to the British Virgin Islands then the fees come into play.

 

[Ann-Marie]

Thanks. Since St. Thomas is considered US territory I didn't think there would be an exchange fee.

 

[Passepartout]

That is correct. No exchange of different currencies=no exchange fees. However, DO NOT use a CREDIT card for cash advances, because those are charged at your card's full bore interest rate from the day of withdrawal. No grace period.

Jim