New Mercury Bank Changes (Avoid Extra Fees!)

Summary

The video discusses Mercury's new 3% fee on international transactions starting December 1st, 2024. The host compares Mercury's new fees with those of other popular banks, such as Charles Schwab, HSBC, and Bank of America, as well as alternative financial services like Brex, Wise, and Chime. The video offers insights into the pros and cons of various options, highlighting the impact of foreign transaction fees, ATM fees, and card usage. Additionally, it provides tips for businesses and individuals navigating these charges, emphasizing that the best choice depends on personal or business needs.

Takeaways

• 😀 Starting December 1st, Mercury will charge up to 3% international transaction fees on business debit and credit card transactions in currencies other than USD.
• 😀 Mercury's international fee applies when making payments abroad or in non-USD currencies, but the bank's daily exchange rate will still apply.
• 😀 You can check how much you would have paid in fees based on your past usage in Mercury's email update.
• 😀 Charles Schwab offers reimbursement for international ATM fees and has no fees for card usage, making it a top choice for international transactions.
• 😀 HSBC's Premier Debit Card has no international transaction fees, though opening an account requires a higher deposit, making it more difficult for some users.
• 😀 Major banks like Bank of America, Chase, Citi Bank, and Wells Fargo charge $5 plus a 3% fee on international transactions, which can add up quickly.
• 😀 Brex is a good option for software businesses, offering no international fees and providing a unique business-focused account for startups.
• 😀 Wise no longer provides cards to non-residents but remains an option for those looking for no international fees on transactions.
• 😀 Relay offers lower fees on international transactions and could be a good alternative for those who want to minimize transaction costs.
• 😀 Payeer charges up to 4% on credit card transactions, which can be directly paid by clients, but this can be an expensive option for some users.
• 😀 American Express offers a range of cards with no foreign transaction fees, including the Platinum and Gold cards, which are ideal for travel and cash-back rewards.

Q & A

What is the new fee that Mercury is introducing starting December 1st?

Starting December 1st, Mercury will charge a 3% international transaction fee on business debit and credit card transactions made in currencies other than US dollars.

What information did Mercury provide regarding fees for previous non-USD transactions?

Mercury included information in their email about how much fee you would have paid based on your past international transaction usage, giving users transparency into what they’ve been charged.

How does Charles Schwab handle international transaction fees?

Charles Schwab offers reimbursements for international ATM fees and does not charge any fees for using their debit or credit cards internationally, making it a fee-free option for foreign transactions.

What are the international transaction fees for Bank of America and Chase?

Both Bank of America and Chase charge a $5 fee plus a 3% fee for international transactions made with their debit or credit cards.

What are the international fee policies for Wells Fargo and Citi Bank?

Wells Fargo charges a $5 fee plus a 3% international transaction fee, while Citi Bank charges a 3% fee without any additional fixed fees for international debit or credit card transactions.

What does Wise offer in terms of international transaction fees?

Wise does not charge international transaction fees; however, they have recently stopped offering cards to non-residents, limiting their availability.

How does Brex handle international transaction fees?

Brex does not charge any international transaction fees, which makes it an attractive option for businesses, especially those in the software sector. However, opening a Brex account can be more challenging compared to traditional banks.

Are there any fees associated with using Payeer for international transactions?

Payeer has international transaction fees that can be as high as 4%, and this fee is typically paid directly by clients making the transactions.

What options does American Express offer for international transactions?

American Express offers several cards that waive international transaction fees. Popular choices include the Platinum Card (which has a high annual fee) and the Gold Card (which is favored for cashback and points on ad spend).

How can someone with an American Express card in Canada get access to a US-based card?

To transition from a Canadian American Express card to a US-based one, you must have a US address. You can call American Express and use their Global Transfer program to facilitate the process.