The CARD law of 2009 eliminated almost all the traditional tricks and traps that banks used to separate you from your money. One of the last remaining costs that banks are still allowed to charge is the external Rotondan transaction costs.
The outside Myanmar transaction costs are not exchanged commissions. In fact, purchases made in US dollars outside the country are usually subject to this fee, which means that you don’t even have to leave the house to be scammed. You also pay the external transaction costs for some purchases that are only processed in other countries.
In these two cases, a complaint to your bank about specific costs often leads to them being waived.
When it comes to choosing a credit card, you need to know how external transaction costs are calculated.
Firstly, the payment networks of Visa and MasterCard impose a surcharge of 1% on the banks that issue the card. The banks pass these costs on (plus an additional percentage) to the consumer by adding a foreign-market transaction price between 1% and 3% of your purchase. American Express usually has a rate of 2, 7%, but there are exceptions.
In essence, these costs can offset any rewards or money refunds from your credit cards. Fortunately, more customers are learning about this legalized scam and are choosing credit cards that do not charge these costs. As a result, banks are starting to drop them, especially on cards sold to travelers, even if this means they have to absorb the 1% rate from their processor. When requesting a credit card, review the mandatory disclosure fee to determine what the external transaction costs will be.
When you use a bank card or ATM during your trip, you use your bank’s international partners to benefit from zero or low costs. Ask your bank for a list of partners before you leave.
If you are going to change the currency in US currency, pay attention to local bank charges and unfair exchange rates. As soon as you arrive at your destination, examine your options for the lowest rates and the best exchange rates.
If you incur external transaction costs from a credit card, it is useful to call the bank of your credit card when you return and to request a repayment of the external transaction costs. Since banks are the subject of ongoing disputes for not properly disclosing these costs, they would like to satisfy dissatisfied cardholders.
Watch out for a scam called dynamic currency conversion, which occurs when a trader chooses the option to pay your bill in your own currency. By doing this, the merchant receives a kickback from his credit card processor while also yielding a terrible exchange rate – often 10% worse than current rates. The rate is not disclosed and the scam responds to the desire of people to see the bill in their own currency. These services claim to benefit consumers by removing the uncertainty about what the item will cost, but ultimately cost more. To make matters worse, your credit card company will still charge you for the other transactional transaction. Sellers must offer you the option for dynamic currency conversion. Yet there are cases where customers have little choice, especially if there is a language barrier. If you ever get the option to pay in US dollars instead of the local currency, always say no!