Rick Estrin, the hilarious singer/songwriter for one of America’s best blues bands, Little Charlie and the Night Cats, can always count on his Dump that Chump to get the crowd fired-up. The tune’s lyrics, of course, refer to a cheating boyfriend or husband. In my case, however, it’s time for the “chump,” me, to dump my Citibank credit card. I pay $80 a year for the privilege of earning what I’m coming to believe are worthless miles with American Airlines' AAdvantage program—miles I’m finding almost impossible to use to travel to Europe.
Beside the questionable value of accumulated miles, what’s pushing me over the edge with Citibank is the 3 percent charge they add to every transaction made outside the USA. Last year I spent two weeks in Canada and almost four in Europe. Let’s assume my wife, Liz, and I averaged $250 per day for 38 days on food and lodging charged to the card. That means I paid an additional $285 in foreign transaction fees to Citibank (it’s more when I include fuel, gifts and other charged items). And what service was provided for that approximately $300? None. That such charges are a useless rip-off is demonstrated by the fact that Capitol One is able to offer a credit card that treats foreign purchases the same as those made in your hometown. It doesn’t charge extra for them.
Keep your frequent flyer credit card if you must (you can always use the miles for magazine subscriptions), but don’t be a chump the next time you go abroad. Avoid that extra 2 or 3 percent by carrying a credit card that charges no foreign transaction fees.
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