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Brokerage conversion fees

Can anyone tell me what this statement is saying regarding foreign cash ATM withdrawls and currency conversion fees? When using your Schwab Bank Investor Checking Account Visa Debit card, we do offer unlimited ATM fee rebates when using an ATM on the Plus or Visa ATM network. We do not charge a International Service Agreement fee, previously known as a Foreign Currency Conversion fee. Keep in mind, however, we do not rebate fees that are imposed by merchants for point of sales transactions, or foreign exchange conversion fees. Do you know by any chance the difference between a International Service Agreement fee, previously known as a Foreign Currency Conversion fee, and a foreign exchange conversion fee? Or is the later of the two in regards to dealing with merchants not ATM machines for whatever reason?

Posted by
687 posts

Looks to me that it's saying that if you use the card as an ATM card there are no foreign conversion fees (by whatever name) but if you use it as a debit card there might be. I never use my ATM cards as debit cards, I use credit cards for purchases.

Posted by
2876 posts

The 'foreign exchange conversion fee' is the fee charged by Visa or Mastercard for a foreign purchase (as opposed to a foreign ATM withdrawal). Thus, if you follow Kathy's advice, you'll be fine.

Posted by
296 posts

Thanks to both of you. I agree with your answers.

Posted by
687 posts

Tom - well, you can indeed pay foreign conversion fees on ATM withdrawals, just not with this card. AFAIK Schwab and Capital One are the only outfits that don't charge a foreign conversion fee on ATM withdrawals. Credit Unions usually charge 1%, and everywhere else up to 3%.

Posted by
2876 posts

I think it's a just question of confusing semantics. Perhaps what Schwab calls a "foreign exchange conversion fee" would be more accurately described as a "POS fee." As you say, virtually all ATM/debit cards charge a foreign CURRENCY conversion fee for ATM withdrawals.

Posted by
23177 posts

Kathy's statement saying that only Schwab and Capital One do not charge a conversion fee is a little narrow. There many card issuers that do not charge. Some credit unions (mine does not), it is reported that the Ally Internet Bank does not, so it is really matter of asking.

Posted by
9363 posts

My local credit card company doesn't charge any foreign conversion fee, but Ally Bank does charge 1% (I have both, so I have checked).