www.CostaRicaTicas.com

does anyone know if there is any way around paying the 3% juice that the bank charges as foreign transaction fees on ATM withdrawls and credit card usage?
for my first year of retirement, i will split my time between CR and the US. I would prefer keeping my $ in my US accounts and didn't want to go thru the hassel of opening an account in CR. I can do most everything regarding banking via internet including paying my rent in CR to a US account.
i do have a citibank account and credit card and there is a citibank in san jose. is it possible to do my business with citi in san jose through my US accounts? I was planning to talk to the citi folks in the states but just haven't gotten around to it.
thanks,

Depends on what it's worth to you. I have a Continental card, though mine's the Presidential Plus @ $500 a year or so (I do a LOT of traveling & it includes membership in the President's Room & extra mileage). With that card there's zero additional points for foreign transactions.

Two years ago, before our president & congress scared my clients into cancelling most projects, I accrued more than 40,000 miles in one month & 105,000 in the next month. It's a bit lower now, but if you travel quite a bit it can still more than pay for itself. I think there's a lower-cost alternative as well that doesn't include the lounge annual fee. Plus it may be tax deductable, depending upon your individual situation.

The card is put out by Chase so they may have other options as well.

/dddick

I don't have a transaction fee with my credit union and the foreign transaction fee is less than 1% at BCR when I withdraw.

You may want to open an account with >$1000 here in case your debit card is compromised, lost, stolen or unusable. Or have two accounts in the States with two seperate debit cards.

There is a money market acct that doesnt charge fees for currency exchange, I have a friend living in spain and he uses it.

I think its this acct

Schwab Investor Checking:
0% Currency exchange markup
0% International Service Assessment (Visa "fee")
$0 ATM withdrawal charge
$0 Annual fee

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I will be back soon, trust

By all means speak w/ them but don't be surprised if they don't know, or you get wrong, or conflicting info - in most cases, the international subs are run as separate enties from the domestic - should not be the case in todays electronic age, but often is - so be prepared. The eager, fresh face 26 year old - yes, even in Chicago - may have zero clue where to direct you - and look for them to give you written policy.

OTOH, Citi is the leading international bank in the US - so they may surprise you - please post back your experience.

Regardless, you are likely going to have to open an account in CR; however the balance requirements are modest, and you can open it in USD.

I have a Capital One Venture card that doesn't charge a foreign fees, thats what I use when visiting SJ. I bank with Bank Of America, and when I placed my last travel notification they told me they charge a 1% fee on atm withdraws and 3% on all other transactions.

They charge $5.00 + 1% on the ATM transactions

When I first moved to Costa Rica 6 years ago I did all of my banking with Banco Cuscatlan.... now re-named to Citi Bank.

DO NOT assume your Citi Bank card from the U.S. will NOT charge you foreign transaction fees. I believe they will.

Here is my understanding of how it works, and this is as a business owner in Costa Rica.

Almost ANY hotel, store, etc should be able to charge you in either U.S. Dollars or Colones. If you are charged in U.S. Dollars there is NO foreign transaction charge. If they charge you in Colones you will pay the foreign transaction fee. The fee comes into play because the exchange rate changes on a daily basis and because the banks CAN.

Until several months ago I also worked at a Four Seasons hotel and I do know that we could charge all guests in any outlet in either dollars or Colones (however, in accordenance with Costa Rican law all of our books were kept in Colones). The reason we did this was that we are talking about high dollar value transactions and that 3 to 5% charge would add up a lot faster if your room was as much as $18,800 (plus 25% in taxes and service charge) PER NIGHT of your stay and before any of your daily spend.

In my former position it was a big deal but bottom line is how much would you actually be charging on your card while you are here? $1,000.... that is $30 in transacation fees. Reality is also that you SHOULD be withdrawing Colones from the ATM (BCR and Banco National atm's will give you the best combination of good exchange rate as well as convenience factor). You will actually SAVE MORE money if you withdraw the Colones from the ATM and pay for things in colones.... this will keep you from paying bad exchange rates (with the exception of New Fantasy, however they may be a few places you can add to that list).

Just my two cents.