Not sure if you pay attention to the little slips of paper that credit card companies like to include in their bills (along with idiotic ads for junk that makes me think they assume I'm cheap and daft, but that's another story) but we just got a notice from Citibank that they're changing their Terms of Service, Right to Opt Out, and more...

They say: "We are adding a transaction fee for purchases made in foreign currencies, and we are changing the balance transfer transaction fee, the minimum amount due calculation, and the arbitration provision. These will become effective April 2, 2005."

I see this as a way for Citibank to bleed us cardholders a bit further, actually. I mean, when I buy something in a foreign currency, I already know that I'm not going to get the best exchange rate and I assume that the bank is adjusting the exchange rate in their favor, to offset currency fluctuations and the expense of the transaction. The obvious question: since Citibank is going to add a foreign currency transaction fee, do you think that we'll see a better exchange rate in return? No, I don't either, somehow.

Oh, and this isn't just some tiny fractional fee either, it's 3% of the transaction value after being converted into U.S.Dollars. That's a lot considering it's over and above all the other fees levied on my bill!

My favorite is the explanation of how they're now going to calculate the Minimum Amount Due on your Visa/Mastercard from Citibank:

Got that? Sheeesh. Looks more like a math question from the SAT than an explanation from a company trying to be transparent with its customers.