My wife Chelsea and older daughter Ashleigh are currently in Paris attending the Olympics. As someone who studies the payments industry, I’m understandably interested in how they’re paying for things during their trip.
The intrigue actually started even before they left. I went to our local Citibank branch, where we have a checking account, to try to obtain some Euros that they could bring with them. Airports and tourist centers usually charge especially high foreign exchange fees, so I wanted to take care of this ahead of time. We envisioned them using a credit card for most purchases, but figured it would be helpful to have some small bills for tips or small-dollar transactions.
Unfortunately, Citibank told me there is a $100 minimum for foreign currency exchanges, so we decided they would try to use credit cards for everything.
Foreign transaction fees
Our three cash back credit cards all charge foreign transaction fees, ranging from 3 percent on the Wells Fargo Active CashⓇ Card and Chase Freedom FlexⓇ* to 2.7 percent on the Blue Cash PreferredⓇ Card from American Express. Our Citibank debit card also assesses a 3 percent foreign transaction fee.
I considered signing up for a new credit card that doesn’t charge foreign transaction fees, but we’re happy with our current three-card lineup and don’t travel abroad often. Adding another card simply wasn’t worth the hassle. Plus, the Active Cash gives 2 percent cash rewards on every purchase, so that essentially knocks the foreign transaction fee down to about 1 percent. That’s not so bad.
Many of Chelsea and Ashleigh’s purchases were made in advance via U.S. dollars, which further softened the blow. We had an interesting experience paying for their Disneyland Paris outing. The website says Visa and Mastercard credit and debit cards are accepted, but when I clicked to pay, I repeatedly received error messages before I was even able to type in the card numbers. It seemed like a case of a faulty website rather than something specific to our cards (since I couldn’t even enter our card info).
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Using PayPal as a workaround
I was about to panic because the next course of action seemed to require an international phone call, and I wasn’t sure how to do that or what kinds of fees that might incur. But then I noticed PayPal was accepted, and that miraculously worked! The transaction was processed in U.S. dollars, an added bonus since it enabled us to avoid foreign transaction fees.
I paid via PayPal with my Freedom Flex card as the underlying source of funds, since live entertainment is among its Q3 2024 5 percent cash back categories (activation is required and the 5 percent payout applies to up to $1,500 in quarterly spending; cardholders earn 1 percent cash back after that).
Chase’s press release specifically says amusement parks are included, but unfortunately I only got the standard 1 percent cash back rate, not the 5 percent bonus. Apparently since the park tickets were bundled with a hotel stay, that no longer counts as live entertainment. We recently bought standalone park tickets to Disney World in Orlando and that did qualify for 5 percent back.
A cross-border refund
One other notable payments experience was that they had prearranged a couple of nail salon treatments but the salon unexpectedly closed for the day and they weren’t able to find another mutually available time. It took a few awkward emails facilitated by Google Translate, but the salon eventually refunded the money to our Freedom Flex card. I found it impressive that Chase went the extra mile by refunding the foreign transaction fee. This shows their commitment to providing excellent customer service and making the overall experience better for their clients.
Contactless payments have become a common practice in France, with Chelsea noting that she taps her credit card more frequently than in the U.S. This technology is also available in the U.S., but many Americans still prefer dipping their cards into the payment terminals. It’s interesting to see the differences in payment preferences between the two countries.
Automated ticket machines in France have also been easy to use for Chelsea and Ashleigh. In the past, Americans often faced compatibility issues with European machines due to the difference in credit card technology. However, it seems that this issue has been largely resolved, making travel more convenient for visitors.
As Chelsea and Ashleigh continue their trip, they have found that cash is not necessary thanks to the seamless functionality of their U.S.-based credit cards. They are able to enjoy the Olympics in Paris and effortlessly tap their way through payment terminals in the City of Lights.
If you have any questions about credit cards or travel experiences, feel free to reach out to me at ted.rossman@bankrate.com. I am here to assist you with any inquiries you may have.
Please note that the information about the Chase Freedom FlexⓇ card has been gathered independently by Bankrate and has not been reviewed or endorsed by the issuer. Thank you for reading and stay tuned for more insightful content.