Reducing barriers to international commerce is one small step toward boosting the world economy. The United States has long relied on consumer spending to help bolster the economy in the wake of financial down turn. However, extending the impact of consumer spending internationally has faced numerous challenges, including expensive foreign currency transaction charges in addition to less than favorable exchange rates. With this new Premier Visa Card from Chase it seems that Canadians are being given an incentive to extend their purchasing power outside of Canada, which could set a precedent for stimulating the world economy.
The new Chase and Marriott Rewards Credit Card does not assess the typical 2.5 percent foreign currency charge on purchases made outside of Canada. Additionally, there is no restriction on the type of purchase, as the program applies to purchases made in-person or online.
The card payment industry, as a whole, is facing numerous changes as the Durbin amendment continues to shift the way fees are being assessed. This announcement by Chase is just an example of how card issuers are finding creative ways to entice a new group of consumers. How this foreign currency transaction charge really impacts the end consumer remains to be seen, but the idea that card issuers are willing to drop some of their age-old transaction fees is a positive move. If the adoption goes well in Canada, maybe Chase and Marriott will extend the offer to other countries.
Although, this new Marriott Rewards Premier VISA Card from Chase waives the typical foreign currency transaction fees, you can bet the card issuer is still making money on the foreign exchange rate and the annual interest rate of 19.99%.