International Transaction Fees Question For Popular Sites like Aliexpress

drspy00 on 01/06/2018 - 16:53

Having a discussion on facebook with someone about International Transaction Fees, and Currency Conversions on credit cards. They seem to be unaware they exist. Every time I've made an order on sites other than ebay, there's always been an international transaction fee plus a poorly converted currency conversion at the rate of MasterCard had on that day. I was wondering, if ordering on sites like Aliexpress and its set to Australian Dollars, do you still get charged that fee? All my orders seem to be in USD so not sure if I set something up differently.

I've also noticed on sites where the currency conversion and transaction fee is charged, if there is a problem, like a cancellation we can often lose out. My Mum lost $80 in currency conversion and transaction fees when she booked on a site a while ago where the seller turned out to be fraudulent. It was the bank that would have profited over it but we called Commonwealth bank who couldn't help with it!

Financial

Comments

  • zonra on 01/06/2018 - 17:01
    +1

    I believe International Transaction Fees are charged by your banks or the credit card companies.
    Stores have no role in this.
    The person you were talking to is most like using an ITF free card like Coles or 28 degrees.

    Also it isn’t charged basing on the currency, but on where the transaction is processed.
    For example if Aliexpress is charging you in AUD, but the payment is processed offshore, and your bank does charge the fee, then you get charged.

    • drspy00 on 01/06/2018 - 17:46

      Would that be a transaction fee or a currency conversion even if its in AUD? I know most sites will allow it to be in AUD but many have worse rates than MasterCard even.

      • zonra on 01/06/2018 - 18:07

        You get charged international transaction fees if the payment is processed offshore (e.g. Aliexpress is offshore) and if your bank decides to charge it. This happens regardless of you paying in AUD, USD or rupees etc.

        The conversion fees happens when the payment currency is different to your card’s, and again, depending on the banks/card companies, some don’t charge this (eg coles or 28d).

        As a guide, I’d never let the online stores do the conversion, as their rates are horrible (for you, it works out very well for them). The same with Big 4 cards, their rates suck too, and from memory they charge conversion fee as well. So you can get hit with both ITF and conversion fee from one single purchase.

        Get yourself a fee free card that doesn’t charge ITF or conversion fees (e.g. Coles or 28d, their conversion rates are pretty spot on as well)

        P/s: it sounds like Im plugging those cards but truth is they’re the ones I know and have, I’m sure there are other better/just as good options out there.

  • GraceF on 01/06/2018 - 17:10

    Happy children's day

    GraceF on 01/06/2018 - 17:10 (Collapsed - Offtopic. Show)
  • chrisie on 01/06/2018 - 17:24
    +1

    If you get a Citibank debit card you won't get charged any International Transaction Fees.

  • altomic on 01/06/2018 - 20:28
    +2

    you are doing it wrong.

    I've made over 800 transactions on aliexpress.

    I never buy in AUD from Aliexpress (I never set pricing to AUD).

    I use a 28 degrees card and have never paid International Transaction Fees

    Cards with No Overseas Transaction Fees

  • hasselbladsnapper on 01/06/2018 - 21:37

    I also use AliExpress often, with a Citibank debit card … however I have it set to AUD. Is it better to set and pay in USD or Chinese RMB?. Advice appreciated - Thanks.

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