Discover Drops Foreign Currency Fees

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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sticf
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Discover Drops Foreign Currency Fees

Postby sticf » Fri Oct 07, 2011 3:13 pm

From a message I recieved from Discover today:

"We are pleased to inform you that, effective 11/06/11 we will no longer charge a Foreign Currency Fee on any international purchases made with your Discover® card. Additionally, we will no longer charge a Research Fee for any copies of billing statements or receipts that you request."

Looks like FCFs are out. Now they just have to be accepted in more locations outside the US and it would be useful.


DavidNY
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Postby DavidNY » Fri Oct 07, 2011 6:04 pm

sticf wrote:Now they just have to be accepted in more locations outside the US and it would be useful.


Right. I just need a Discover Visa now and I'll be good to go.

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Postby Money card » Tue Oct 11, 2011 10:46 pm

I just got my statement today and on the second page at the top it metions as of Nov 6 no more foreign transaction fees.
what sticf said.

zapper_89
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Postby zapper_89 » Wed Oct 12, 2011 2:29 am

Amazing! I was wondering what I was going to do in Europe next summer.

DavidNY
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Postby DavidNY » Wed Oct 12, 2011 10:26 am

zapper_89 wrote:Amazing! I was wondering what I was going to do in Europe next summer.

Discover is accepted in Japan (on the JCB network) and China (on the UnionPay network) and where Discover Card International is accepted. I don't know about Europe.

http://www.discovercard.com/customer-service/faq/international.html

Discover might be OK in a touristy place, but I'd opt for taking cash from ATMs whose banks are affiliated with the Global ATM Alliance.

zapper_89
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Postby zapper_89 » Wed Oct 12, 2011 7:48 pm

DavidNY wrote:Discover is accepted in Japan (on the JCB network) and China (on the UnionPay network) and where Discover Card International is accepted. I don't know about Europe.

International Credit Card FAQ : Using Your Discover Card Internationally

Discover might be OK in a touristy place, but I'd opt for taking cash from ATMs whose banks are affiliated with the Global ATM Alliance.


I am more concerned with hotels and transportation; I.E. Major purchases. Also, I never do cash advances on a credit cards.

Iroquois
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They are perceived as a domestic shopping card dropping that fee has some potential

Postby Iroquois » Thu Oct 13, 2011 5:28 am

For most people who have a Discover there is probably the perception that dropping these fees is a yawn at best or WTF , I can't use the card overseas anyway so why not focus on something meaningful?

Now if this move is part of an overall strategy rather than just a transactional event it would make sense. If Discover wants to expand its overseas use and acceptance then removing barriers to use , which fees clearly are, is a good move. If they ultimately want to "own" the position of no fees as Southwest airlines is doing, or analogous to "owning the consumer perception of Discover equals cash back, then could be moving in a very interesting new direction.

Since there is no advertising support for international use or no fee positioing and these notices were sent similar to mere legal disclosure though, it would seem to imply that this just an isolated event rather than the launch of something interesting. Or they just move very slowly or in a disjointed way ( something I've seen from them operationally).

sticf
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Postby sticf » Thu Oct 13, 2011 7:39 am

I agree with you Iroquois. This is not that big of an issue for travelers. However, Discover may be targeting something besides travel with this move.

They may be looking to capture some of the international web commerce. I have noticed that more international web sites accepting Discover than ever before. By dropping the fees Discover is trying to get more usage over the web. People using Discover's cards would avoid some extra charges.

I am not associated with Discover in any way, so what I say is only an outsiders view. In my experience credit card companies rarely (think never) do something that they think will cost them money. If they are dropping a fee, they think they are going to make up for it somewhere else.

DavidNY
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Postby DavidNY » Thu Oct 13, 2011 9:13 pm

zapper_89 wrote:I am more concerned with hotels and transportation; I.E. Major purchases. Also, I never do cash advances on a credit cards.


Cap One and PenFed are the only Visa credit cards I know of that don't have FTFs.

Just to be clear, I would never suggest using an ATM if there's going to be a fee of some sort. I would use a checking account linked to an ATM card to get cash.

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Postby DavidNY » Thu Oct 13, 2011 9:15 pm

sticf wrote:They may be looking to capture some of the international web commerce.
Good point, if of course, thay take Discover (or JCB, UnionPay or DCI)



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