soltero

Well, there are exchange rates, and there are foreign transaction fees. To figure exchange rates, you have to find out whose rates your credit card provider is using; a difference of just half a point can be a big deal, especially on larger purchases. Note that this does not apply to US people in Panama, however, since our currency (the Balboa) is pegged to the US dollar. Foreign transaction fees are *usually* a flat fee per transaction, ranging from $1-3. However, there are some companies that charge a percentage. The only commercial vendor that does not charge foreign transaction fees is Capital One (no, I don't work for them). But some credit unions, as well as some brokerage houses, do not charge foreign transaction fees. And when it comes to Panama, banks vary: Some *still* charge foreign transaction fees (which is a rip, since we use the dollar), and some don't. As one poster said, these fees are often buried. The best way to check is to call them in advance, and give them some examples: If I were to make a MXN$1,000 charge on my Visa/MC/Amex in Guadalajara today, what total charges show up on my credit card bill? Unfortunately, getting to someone who can give you the answer is often very difficult...