According to a press release from Acxsys and NYCE, during the four month period from December through March 2008, Canadian shoppers spent record amounts and made significantly more cross-border purchases in the US than last year.   » Continue Reading

Glenbrook's Russ Jones is in London this week - and files this field report on his first encounter with dynamic currency conversion in action - at Harrods.

Binyamin Appelbaum writes for the Charlotte Observer about fees imposed by credit card issuers on purchases made outside the US. Some issuers (Bank of America is the example he cites) are charging 3%. Others, including Capital One, don't surcharge at all.

First Data Corp. and Chase Paymentech Solutions have announced a five-year global e-commerce processing agreement in which First Data International, utilizing its OmniPay processing solution, will provide payment processing services to Chase Paymentech's portfolio of global e-Commerce merchants. The OmniPay merchant processing platform, located in Dublin, Ireland, will process transactions for Chase Paymentech's merchant portfolio, in most major currencies on a single platform in all markets where Chase Paymentech's merchants are based.   » Continue Reading

Plaintiff law firms Berger & Montague and Lerach Coughlin have announced that a nationwide settlement agreement has been reached in a consolidated federal class action lawsuit about use of certain payment cards for foreign transactions. Defendants in the case include Visa, MasterCard, Bank of America, Bank One/First USA, Chase, Citibank, Diners Club, HSBC/Household, MBNA and Washington Mutual/Providian. MasterCard this morning has filed an 8-K with the SEC stating it "has agreed to pay $72.48 million, which constitutes its share of defendants' $336 million settlement." As an aside, MasterCard also reported that it had agreed to settle the "Schwartz Matter for $13.44 million, which is expected to be paid in 2007."   » Continue Reading

What a mess the card industry has made of one of its former features - being able to use your bank cards when traveling internationally and knowing that they'd work and that you were getting the best possible deal on foreign currency conversion in the process. That simple and consistent value proposition went out the window a couple of years back when credit card issuers began aggressively surcharging international transactions and more recently as some bank debit card issuers have limited international acceptance and access to local cash at ATMs because of fraud concerns. David Kelly writes in today's New York Times Travel section about what the experts currently recommend for international travelers and their financial needs while on the road. Kathleen Pender also shares some tips for international travelers in the San Francisco Chronicle.

Sandra Block writes for USA Today on what consumers can do to manage the costs of currency conversion when traveling overseas and using bank cards.

David Robinson writes for the Buffalo News about currency conversion fees applied to international card transactions by Visa, MasterCard, and, in additon, by many card issuers.

Jane Kim reports for the Wall St. Journal on the issue of currency conversion fees for credit card transactions overseas.

Although there are advantages to using plastic because of the favorable wholesale rate on currency exchanges, in some cases it may make sense to use an automated teller machine and pay cash instead, says Robert McKinley, chief executive of CardWeb.com, a payment-card industry Web site.

Carol Pucci of the Seattle Times writes about the financial effects of dynamic currency conversion being increasingly used by merchants overseas.

Visa has announced the launch of a new currency conversion website to help cardholders prepare for international travel.   » Continue Reading

David Lazarus reports in the San Francisco Chronicle about new currency conversion fees being imposed on credit card usage by US cardholders when they use their cards outside of the US.

Nova Information Systems has announced the availability of its dynamic currency conversion solution.

Dynamic Currency Conversion allows international cardholders in the U.S. the option to have their purchases instantly converted at checkout into their local currency. Currency conversion is calculated at a competitive exchange rate, and the U.S. dollar amount, conversion rate, and home currency amount are all printed on the receipt. Merchants, MSP's and other NOVA partners have the opportunity to share in the revenue generated from conversion fees.

David Lazarus writes a follow-up to an earlier column in the San Francisco Chronicle regarding the currency conversion fees charged by credit card issuers.

Nearly all readers shared my bewilderment with how the likes of Bank of America and Wells Fargo justify tacking an extra 2 percent fee onto credit card transactions, above and beyond the 1 percent foreign-currency conversion charge levied by Visa and MasterCard.

David Lazarus writes in the San Francisco Chronicle about the various fees charged to credit card holders when they use their cards for purchases abroad.

Beginning next month, Visa is switching from charging 1 percent above and beyond any currency conversion costs to charging 1 percent simply for using your credit card in another country.

Tami Luhby reports in Newsday on American Express' settlement of a lawsuit that challenged Amex's disclosure of its 2 percent fee levied on foreign currency conversion.

The company agreed to pay up to $75 million to U.S. cardholders who made purchases in a foreign currency from Mar. 28, 1997 to Oct. 15, 2004, according to a preliminary class action settlement. In addition, the credit card company agreed to include information about the fees on its monthly statements and other mailings to cardholders.

Melbourne's Herald Sun reports on the launch by Travelex of a dynamic currency conversion system that allows travelers in Australia to pay by credit cards in their own currency. With the new system, revenues from currency conversion fees that used to go to the card issuers are now split between Travelex and participating merchants.

Vital has announced an agreement with Planet Payment to offer dynamic currency conversion services.

Reuters reports on California Superior Court Judge Ronald Sabraw's decision today ordering MasterCard and Visa to pay millions in refunds to customers after failing to properly disclose currency conversion fees. Both MasterCard and Visa said they would appeal the decision.

Jennifer Bayot reports in Tuesday's New York Times on the tentative ruling by a California judge regarding currency conversion fees.

Visa said in a statement that it was disappointed with the preliminary ruling in the case, Adam A. Schwartz v. Visa International, Visa International Service Association, Visa U.S.A. and MasterCard International. "The court decision flies in the face of common sense," said Stephen C. Theoharis, senior vice president of Visa U.S.A. "Visa pioneered today's currency conversion system that protects consumers from exorbitant rates when traveling abroad. The decision is fundamentally flawed, has no basis in fact or law, and we will appeal."