I just got this alert in my Fidelity account: Fidelity is dropping the foreign transaction fee on its debit card. They already did that on their credit card a few months ago. I use both cards on my foreign trips, so this is certainly a good news.
Your debit card is getting an upgrade—new look, no foreign transaction fees
Starting in September 2024, Fidelity will begin sending a free, upgraded replacement debit card to our Cash Management Account, Fidelity Account, and Youth Account customers.
Your new card will have all the same great features and security you already enjoy—now without foreign transaction fees.
Keep using your current card until your new card arrives.
We'll notify you when your new card is on its way. All reissues should be completed by March 2025.
Don't worry, you'll still be able to manage your debit card online and in the Fidelity Investments app during this change.
Of course it's important to always pay in local currency, otherwise the exchange rate is chosen by the merchant's bank and could be less favorable.
foglifter wrote: Fri Oct 18, 2024 2:01 pm
I just got this alert in my Fidelity account: Fidelity is dropping the foreign transaction fee on its debit card. They already did that on their credit card a few months ago. I use both cards on my foreign trips, so this is certainly a good news.
Your debit card is getting an upgrade—new look, no foreign transaction fees
Starting in September 2024, Fidelity will begin sending a free, upgraded replacement debit card to our Cash Management Account, Fidelity Account, and Youth Account customers.
Your new card will have all the same great features and security you already enjoy—now without foreign transaction fees.
Keep using your current card until your new card arrives.
We'll notify you when your new card is on its way. All reissues should be completed by March 2025.
Don't worry, you'll still be able to manage your debit card online and in the Fidelity Investments app during this change.
Of course it's important to always pay in local currency, otherwise the exchange rate is chosen by the merchant's bank and could be less favorable.
Idle curiosity...why does eliminating the foreign transaction fee require issuing a new card?
foglifter wrote: Fri Oct 18, 2024 2:01 pm
I just got this alert in my Fidelity account: Fidelity is dropping the foreign transaction fee on its debit card. They already did that on their credit card a few months ago. I use both cards on my foreign trips, so this is certainly a good news.
I just got the notification today. Annoying as I had an overseas trip in November and have another one coming in 2 weeks. I doubt I'll get the card before that. It must have been a very staggered roll out.
Does that mean that now it matches the Schwab debit card (no foreign transaction fees and ATM reimbursements)? I looked at the Fidelity website and it doesn't say US ATMs for reimbursement of fees (I think it did at one time).
michaeljc70 wrote: Fri Jan 10, 2025 5:05 pm
I just got the notification today. Annoying as I had an overseas trip in November and have another one coming in 2 weeks. I doubt I'll get the card before that. It must have been a very staggered roll out.
Does that mean that now it matches the Schwab debit card (no foreign transaction fees and ATM reimbursements)? I looked at the Fidelity website and it doesn't say US ATMs for reimbursement of fees (I think it did at one time).
I've used the Fidelity debit card the past two summers abroad and used it last December domestically. Every transaction that was charged a bank fee was reimbursed promptly by Fidelity.
I still feel Fidelity had the edge over Schwab since I don't need to have the cash sitting earning 0.5% and can leave it in a Fidelity MMF to earn more interest and they will auto liquidate to cover my ATM transactions.
michaeljc70 wrote: Fri Jan 10, 2025 5:05 pm
I just got the notification today. Annoying as I had an overseas trip in November and have another one coming in 2 weeks. I doubt I'll get the card before that. It must have been a very staggered roll out.
Does that mean that now it matches the Schwab debit card (no foreign transaction fees and ATM reimbursements)? I looked at the Fidelity website and it doesn't say US ATMs for reimbursement of fees (I think it did at one time).
I've used the Fidelity debit card the past two summers abroad and used it last December domestically. Every transaction that was charged a bank fee was reimbursed promptly by Fidelity.
I still feel Fidelity had the edge over Schwab since I don't need to have the cash sitting earning 0.5% and can leave it in a Fidelity MMF to earn more interest and they will auto liquidate to cover my ATM transactions.
This is the main reason I switched to Fidelity. The downside was the foreign transaction fees but I figured in the long run that was minor. It is nice that Fidelity has definitively taken the lead now (IMO). Doing transaction to move to the MM fund left and right to get a decent interest rate with Schwab was very annoying.
well9boy9 wrote: Fri Jan 10, 2025 5:36 pm
Why would anyone use debit card instead of credit card for a foreign transaction?
Not everywhere takes credit cards. In fact, what I've found in many foreign countries is that at restaurants you can use a credit card for the bill but not for the tip. Some places refuse to take credit cards for small purchases. Do you really travel without one euro/peso/etc. in your pocket?
I didn't want a cash advance against a credit card for a cash withdrawal from an ATM.
But that's not a purchase, so the new foreign transaction fee policy doesn't apply.
Never would I use a debit card for a purchase. Didn't care of there were FX fees as it didn't affect my spending. Just responding to why I would use a debit card for a foreign transaction. For cash withdrawals.