What Exchange Rates Do Credit Cards Use?

Dear Liz: Are nan paper companies required to usage a definite speech complaint for overseas transactions? I’ve utilized 2 different cards for purchases abroad, and nan 1 that charges a interest utilized a amended speech complaint truthful nan full costs to me, including nan fee, was less. How tin I find retired what speech rates are used?

Answer: Credit paper issuers tin take nan speech rates they use, though galore employment nan rates selected by their costs networks, specified arsenic Visa aliases MasterCard. These rates are typically adjacent to nan wholesale interbank rate.

Issuers tin besides take erstwhile to make nan exchange. The issuer whitethorn usage nan complaint successful effect erstwhile nan transaction is processed, for example, which whitethorn beryllium different from nan clip of purchase. So moreover if you utilized nan 2 cards nan aforesaid day, you mightiness not get comparable speech rates.

You tin find much accusation astir really your cards process overseas transactions successful nan cardmember statement you received erstwhile you sewage nan card. If you nary longer person that document, you tin petition nan issuer message it to you aliases cheque nan Consumer Financial Protection Bureau’s credit paper statement database.

Since astir issuers usage near-wholesale speech rates, recreation experts typically urge utilizing in installments cards without overseas transaction fees to prevention money. You should besides beryllium wary of “dynamic conversion” — nan connection you often get astatine nan constituent of waste to person nan transaction processed successful your location rate alternatively than nan section currency. Dynamic conversion rates are typically unspeakable pinch large markups, truthful ever take nan section currency.

Dear Liz: I’m alert that assets held successful tax-advantaged accounts, specified arsenic an IRA aliases 401(k), debar superior gains taxes connected nan waste of an asset. However, will those superior gains taxes person to beryllium paid later erstwhile it is clip to retreat money from those accounts? If yes, tin I offset it pinch immoderate superior losses?

Answer: Traditional status accounts specified arsenic IRAs aliases 401(k)s alteration really finance gains are taxed. You don’t salary taxation erstwhile investments wrong nan accounts are sold, but withdrawals from nan relationship are typically taxed arsenic mean income, not arsenic superior gains. So you won’t person an opportunity to straight offset superior gains pinch losses arsenic you would pinch nonretirement accounts.

However, if your losses transcend your gains successful your nonretirement accounts, you tin usage up to $3,000 of superior losses to offset mean income each year. Any remaining losses tin beryllium carried guardant to nan adjacent twelvemonth wherever it’s rinse and repeat: superior losses offset superior gains, pinch up to $3,000 of immoderate remaining nonaccomplishment utilized to offset mean income. This goes connected until nan losses are yet utilized up.

Dear Liz: My ex-husband and I were joined for 10 years. I joined again, but americium now a widow. I was told I could cod benefits connected my anterior matrimony erstwhile my ex-husband passes. But, now that I’m a widow, I americium wondering if I’m eligible to cod connected my ex-husband’s record, though he is living. I’m presently getting my precocious husband’s benefit.

Answer: You could beryllium entitled to a divided spousal use based connected your ex’s earning’s record. The divided spousal use could beryllium up to half of your ex’s use astatine his afloat status age. You would only cod that magnitude if it was greater than what you are presently receiving, however. You tin telephone Social Security to cheque if you’re entitled to a larger benefit.

To recap: Survivor benefits are up to 100% of what nan superior worker received astatine their death, while spousal benefits are up to half of what nan (still living) superior worker would person astatine afloat status age. Someone who is divided tin beryllium entitled to benefits based connected their ex’s’ activity records if nan matrimony lasted astatine slightest 10 years.

Liz Weston, Certified Financial Planner, is simply a individual finance columnist. Questions whitethorn beryllium sent to her astatine 3940 Laurel Canyon, No. 238, Studio City, CA 91604, aliases by utilizing nan “Contact” shape astatine asklizweston.com.