Using credit card overseas or paying tax property?

[villemiami]

Later, I will apply for a Capital One Venture visa credit card, then I will be in France for several months. To reach the minimum purchase requirement to get the signup bonus, I have 2 options: either use the Capital One credit card to make all my purchases in France, either not do that and use a French debit card instead and pay my US Tax Property with my credit card and I will be charged a 2.55% fee for using a credit card.

Which option should I use? To know the response, I would need to know the average currency conversion fee for using he Capital One credit card in France. 

Also, is there a difference in fee between using a US credit card in a French store and using a US credit card in a French web site?

[K-in-Boston]

The Venture card does not have foreign transaction fees.  The important thing is to make sure you are charged in Euros in France.  Especially in the tourist areas, many unscrupulous merchants will default to doing dynamic currency conversion to US dollars, along with pocketing a nice 3-15% fee for themselves to make it "convenient" for you.

Paying the fee for your taxes will only make sense if the rewards outweigh the fee (if you are otherwise unable to meet a SUB it likely would), or you need the cash float and are willing to pay a small premium.

There would not be any difference in using a card in-store vs online provided the merchant does not charge extra for using a card.

[Anonymous]

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@K-in-Boston wrote:

The Venture card does not have foreign transaction fees.  The important thing is to make sure you are charged in Euros in France.  Especially in the tourist areas, many unscrupulous merchants will default to doing dynamic currency conversion to US dollars, along with pocketing a nice 3-15% fee for themselves to make it "convenient" for you.

Paying the fee for your taxes will only make sense if the rewards outweigh the fee (if you are otherwise unable to meet a SUB it likely would), or you need the cash float and are willing to pay a small premium.

There would not be any difference in using a card in-store vs online provided the merchant does not charge extra for using a card.

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Just to clarify to address the point about exchange rates:   if, as in this case, there is no foreign transaction fee, credit card exchange rates are pretty good.   Because of the volume involved, they get better underlying rates than a consumer would get and even with some invisible internal markup (before any FTF)  they remain competitive.    And certainly much cheaper than paying a fee for tax payments.

[lmuethi]

Check with your credit card issuer to understand if they charge foreign transaction fees. Some credit cards charge a percentage fee for transactions made in a foreign currency, which can increase your costs. Consider using a credit card that offers favorable terms for international use, such as low or no foreign transaction fees. Paying property tax with a credit card may offer opportunities to earn rewards or benefit from credit card perks. For example, if you have a cashback or travel rewards credit card, you may earn rewards on your property tax payment. Review your credit card's terms and rewards program to determine if it's advantageous to pay property tax using your credit card.

[NAVYCHOP]

You have really inserted some wild cards into your proposition with the use of a French debit card that just about makes it impossible to answer your question.  My assumption is that you are implying your income is U.S. dollar based.  However, if you are paying all your expenses with a French debit card, you would need to convert all your expenses into Euro and deposit onto the account to use the debit card.  Thus, you could come out a big winner or loser depending on swings in exchange rate simply depending on when you exchange the funds into Euros.  The factors you need to consider are:  (a). the Capital One may not have a FOREX fee but will be dependent on the exchange rate on the date of your spend; (b). if you use the French debit card: (i). the exchange rate on the date you transfer dollars to your French bank may be more or less than what it would have been on the dates you used the Capital One card; (ii) what expenses will you incur for an international wire or SWIFT transfer to your French account, the lower your spend the more that will adversely impact your exchange rate; (iii) does the French debit card have transaction fees?  

Unless you want to make a bet that the dollar exchange rate will drop against the euro in the months ahead, I'd just put the foreign spend on the Capital card and not deal with foreign bank transfers and other expenses.

[villemiami]

I am earning a small income in France so that's why I have a French debit card.