CBA Now Charging International Transaction Fees on AUD Purchases

50cent on 27/10/2016 - 00:04
Last edited 27/10/2016 - 00:34 by 1 other user

Absolutely disgusted that CBA is now charging 'International Transaction Fees' on purchases that are made in AUD but where the merchant 'processing the transaction, is located overseas'. Recently made a purchase from nike.com.au and they had the audacity to charge me another $6.60 International Transaction Fee even though the purchase was made in AUD on there Australian Website. Sounds like another ploy to suck as much extra money from customers as they can. Think it may to be time to start looking for another bank.

I have written to them asking for an explanation of why they have started charging this when no other banks that I know of do the same. Hoping they will decide to change this fee, otherwise will have to find another credit if anyone can recommend one?

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Comments

  • [Deactivated] on 27/10/2016 - 00:27
    +2

    I think The Checkout TV did a segment on this.

    • 50cent on 27/10/2016 - 14:49

      Do you have a link to this but maybe on YouTube?

  • [Deactivated] on 27/10/2016 - 00:29
    +2

    I doubt this is a recent change … has been the case for years. The fault seems to be on the merchant side, where they aren't disclosing that an overseas entity is doing the billing.

    I'm surprised the regulators haven't cracked down on it. I'm guessing the merchants are using it as a tax avoidance racket.

    Out of interest, does your invoice from the merchant show GST?

    • eatwell365 on 27/10/2016 - 06:43

      agree, not new. cannot remember exact which one - living social?
      I stop shopping as the result. Personally do not want to chase money or dispute with an overseas account/company.

    • 50cent on 27/10/2016 - 14:51

      That may be the case, but lrrespective the transaction is meeting Australian dollars, then they shouldn't be charging an international fee as there's no conversion required on their side.

      • [Deactivated] on 27/10/2016 - 17:08

        Nah - everyone in the whole transaction chain wants to take their haircut.

        For example, when you use an Australian credit card in the US, most terminals will prompt you whether you want to pay in USD or AUD. When you select AUD, the conversion will be done by the merchants' bank. Surely CBA (or any other bank) is allowed to collect an 'international fee' in this case? It follows that internet transactions processed by an overseas merchant in AUD should also be subject to the international fee.

      • Baysew on 27/10/2016 - 18:10

        Whilst there is no conversion fee, there would be an interchange fee on a transaction processed overseas.

  • ozpat on 27/10/2016 - 06:18

    Other big banks have recently started charging this fee. It started showing up in my NAB statement about a month ago. I've now opened a Citibank account and use it for my non-PayPal overseas transactions. Apparently Macquarie Bank is another one that doesn't charge this fee.

    • 50cent on 27/10/2016 - 14:51

      Yeah, I've noticed a lot of them are starting to do it now, probably trying to cash in on the fact that a lot of people are shopping online now. Surely they have enough money already.

  • Geewhizz on 27/10/2016 - 07:51

    I'd be talking to the ombudsman and dept fair trading about it. That sucks!

  • linxus on 27/10/2016 - 09:28

    its nothing new :( - Choice from 2015. You can either find out where the retailer's merchant bank is located, or get a credit card that doesn't charge the fee.

    • 50cent on 27/10/2016 - 14:53

      Interesting, it says this is been happening since 2015 however I have never been charged the fee before when purchasing from Australian websites and paying Australian dollars. When I spoke with them they said it was a recent change.

  • iamw0man on 27/10/2016 - 09:32

    Sadly nothing new. Was incredibly frustrated when I visited Japan earlier this year and took care to get a CBA travel card with the right amount in JPY for all my accom costs (since that was the largest expense) and then wound up not having enough at the end after realising the hotels were able to choose to charge me in USD and I'd been copping exchange fees and int. travel fees on a travel card :(

    • 50cent on 27/10/2016 - 14:54

      I was under the impression that the travel card was free of any international transaction fees?

      • kylebb on 27/10/2016 - 19:05

        No, it has extremely high fees

        They're just hidden better

  • ohadnaim on 27/10/2016 - 10:05
    +2

    If anything I would be annoyed with nike.com.au for not disclosing that they are charging you from overseas.

    • 50cent on 27/10/2016 - 14:55
      -2

      It's actually not their fault, I've made multiple purchases from them before and never been charged this fee. It's Commonwealth bank you have decided to charge this fee, and I've spoken with multiple people there and they can't explain why it's been charged since it's an Australian dollars. I've made a formal complaint so I'm waiting to hear back and will see how it goes.

      • Baysew on 27/10/2016 - 18:12
        +2

        Well nike.com.au could chose to process the transaction via an Australian bank, and be more upfront that you may incur a fee before the transaction is completed.

  • Luminary on 27/10/2016 - 11:59
    +1

    I noticed this on some recent purchases too. I was going to go in and ask them about it. I'm not sure if it's a recent thing or if it's CC specific.

    • 50cent on 27/10/2016 - 14:56

      You should definitely ask them and make a complaint as well. The more people that stand up to them the less likely they are to think they will get away with this. they did end up refunding my fees however I make a lot of online purchases so now I need to find another card

  • flipsahoy on 27/10/2016 - 14:42

    I have a debit card with Suncorp and they don't charge this fee. I'm guessing it would be the same with their credit cards too but best to check first.

    • 50cent on 27/10/2016 - 14:56

      Great thanks I'll check it out

  • Olga on 27/10/2016 - 15:13

    Iam pretty sure 28degrees mcard does not charge the extra fee, and when converting from a foreign currency it uses pretty good rates too…
    https://www.28degreescard.com.au/

    • 50cent on 27/10/2016 - 15:16

      perfect thanks ill have a look, do the have any rewards or annual fee?

      • pgcs on 29/10/2016 - 13:08

        no rewards or fee.
        watch how you make the payments though, as they now charge for some types.

  • gunnie on 27/10/2016 - 18:07
    +1

    Commonwealth Bank started charging this fee since 28 August according to http://forums.whirlpool.net.au/archive/2567701
    I got stung buying from the book depository. One week it was fine and the next week got hit with this charge.
    When in doubt where the merchant is located, I started to use my 28 degrees more often now.
    They even called me up saying that there seems to be more transactions going to this card since I have only ever used it when purchasing in amounts not in AUD.
    Good to know that they keep an eye on things.

  • bobkin on 27/10/2016 - 19:02

    I posted about this recently but it was a duplicate thread so was removed. I got charged this fee three times paying via PayPal for airbnb accommodation in Australia in AUD. The first two charges were because my identity wasn't verified in time and the bookings were refunded, but unfortunately the currency conversion charges were not. Total $66. CommBank phone staff no help. Waiting until I have a chance to talk in person. Will close all accounts if they won't refund the fees

  • HYX on 01/11/2016 - 17:07

    I'm with NAB and I'm not sure when they started charging the fee. I used to shop on ASOS where the site displays AUD and I've never been charged this fee in the past. Only for transactions in the past few months has this happened, and I was unaware until I checked my netbank transactions :\

    It's hard to tell which companies process the payments overseas especially when they display the currency in AUD, as per the case with Nike.com.au, which is even more confusing as the site ends in 'au'.

    Does that mean we have to use cards that don't incur international transaction fees?
    Which means no points? :(

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