In today's mail, I received a notice from Citibank:
Transaction Fee for Purchases Made in Foreign Currencies:Well yes, it would do that, wouldn't it....
For each purchase made in a foreign currency, we add an additional FINANCE CHARGE of 3.0% of the amount of the purchase after its conversion into U.S. dollars. The foreign currency transaction fee will be added to the appropriate purchase balance with the foreign currency purchase. The foreign currency transaction fee may cause the annual percentage rate on the billing statement on which the purchase made in a foreign currency first appears to exceed the nominal annual percentage rate.
So are my eyes deceiving me? I contacted Citibank:
I want to make sure I understand your changes in terms:They replied:
For purchases made in a foreign currency, you will assess a 3% finance fee, even if payment in full is made at the end of the billing period such that no other finance fees are charged?
That is, this "finance fee" cannot be avoided, if one makes a purchase in a foreign currency?
Thanks for your clarification.
If you make payment in foreign currencies you will be charged 3% finance fee on that. As such this fee can not be avoided.Um... gouging?
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