Those Growling Medieval Guys Might Be Right

A new report says those Capital One growling medieval guys might just be right when it comes to choosing which credit card to travel with. One insider has some tips on why and how to travel internationally with finesse.

I recommend the Capital One Venture Rewards credit card, or any other Capital One card, for travel abroad; [because] none of their cards carry foreign transaction fees,” says personal finance blogger David Seaman in a Business Insider report.

Seaman agrees with the common notion that using a major credit card is a good idea to get a better exchange rate. But urging travelers to check the fine print in credit card agreements, he warns, “many credit cards now charge a ‘foreign transaction fee’ on every single one of these purchases, which usually is around 3% to 4%. Although this isn’t bad for a cup of coffee, if you spend $200 or $300 in a weekend, that added fee begins to pile up rapidly.”

Another card not charging foreign transaction fees is the Discover card, also noted by Seaman. He suggests taking along a reasonable amount of currency, which can be converted into local currency, just in case there is a problem with a card – an issue that can happen to anyone.

Travel agents commonly advise calling the card company to let them know our plans any time travel takes us out of our normal spending area to avoid a red flagged transaction for secure card companies.

[Flickr photo by Images_of_Money]

Germany bans Ryanair from charging credit card fees

Ryanair has been handed a nasty blow to its business model in Germany when their federal court banned the budget airline from charging credit card fees on flight reservations.

The case was brought against Ryanair by the German consumer protection agency who complained about the fee. Every ticket booked for Ryanair flights comes with an additional fee, varying between $2 and $5, and there is no way to avoid paying it.

Because Ryanair does not offer an alternative payment method, the courts dismissed the Ryanair argument that the bank processing fees are simply being passed on to consumers. In their verdict, the courts said the airline must provide an “established” payment method that does not require any extra effort or cost.

This verdict is just another blow to Ryanair in Europe – recently the airline was hit with a three million Euro fine for not aiding stranded passengers. In the end, if Ryanair does start including credit card fees in their ticket prices, it’ll most likely mean ticket prices will simply go up.

Ironically, the court verdict came at the same time Ryanair boss Michael O’Leary was in Germany to announce a major investment in Frankfurt for a new maintenance facility.