Commonwealth Bank Mastercard Charged Me $5 Transaction Fee to Pay eBay Australia Fees in AUD

drspy00 on 23/11/2018 - 17:19

Ebay automatically took payment out of paypal for fees, I was unsure of the date and had not enough funds in Paypal balance and it took the remainder out of the credit card. The fee was 3% and $5. Commonwealth bank claim even if I pay the fees with bank deposit or direct debit it will still charge a transaction fee as they are a foreign company. I am really confused as never noticed a charge before and dont want it to ever happen again. I am changing cards.

I buy lots on ebay, and other websites all around the world, even Aliexpress which is a foreign company the recent order has not charged a transaction fee. Bought $1000 worth of stuff in one order on ebay from China and America and no transaction fee was charged. This is what confuses me. If I can pay someone in China or America without paying a fee, why would it cost me a transaction fee to pay an Australian company, Ebay "Australia" Nothing is mentioned on their site that it could cost.

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Comments

  • holdenmg on 23/11/2018 - 17:23
    +2

    Tell the Royal Commission then. lol

    • drspy00 on 23/11/2018 - 17:39

      Do you think they would open a royal commission into my $5 fee? LOL

      • holdenmg on 23/11/2018 - 17:45
        +1

        Nuh-uh.

      • ausdday on 23/11/2018 - 18:27
        +2

        Tell your local MP then. lol

  • Xetrok on 23/11/2018 - 17:36
    +1

    We charge you an international transaction fee when you make a purchase or obtain a cash advance (whether in a foreign currency or Australian dollars):

    While overseas; or
    In Australia (for example online) where there is an overseas connection, as the merchant, or the financial institution or entity processing the transaction, is located overseas.

    https://www.commbank.com.au/personal/credit-cards/fee-change…

  • FiXXXeR on 23/11/2018 - 17:39
    +7

    Yeah Aussie banks have an annoying habit of charging a fee if the payment is processed overseas - which we often have no knowledge of or control over. Even for $AUD transactions.

    Google are the same if you subscribe to any of their services. They charge in $AUD but process it overseas like eBay.

    It is much simpler in the UK where the banks there charge a fee if something other than GBP, and no fee if using GBP. When I was living over there I never had to care where the payment might be processed.

    Some like ING will reimburse these fees if you meet requirements, so my only suggestion is perhaps look at switching banks.

    • drspy00 on 23/11/2018 - 17:42

      I never knew ebay Australia was not somehow located in Australia to process those payments. Been selling 16 years never been charged a fee, but I do usually pay by bank or by paypal funds. They told me it would also be a fee to pay by direct debit, but im hoping thats wrong. What I dont get is the fact I buy stuff from other countries, by paypal and other means and not charged any fee but Paypal is also not an Australian company.

    • drspy00 on 23/11/2018 - 18:00

      No, My post was about international transaction fees for international sites, thats obvious there will be a charge. This is about ebay Australia having a fee to pay fees, but no fees when actually buying from ebay.

      • Baysew on 23/11/2018 - 18:04
        +4

        As per Australian Sites that can incur a fee for transactions -

        ebay.com.au Charges (for seller fees only)

        ebay User agreement

        The entity you are contracting with is:
        eBay Marketplaces GmbH, Helvetiastrasse 15/17, 3005 Bern, Switzerland if you reside in Australia;

  • Seraphin7 on 23/11/2018 - 19:51
    -1

    it took the remainder out of the credit card

    Sounds like this is a cash advance fee and nothing to do with FX.

    • drspy00 on 23/11/2018 - 20:29

      If you make a paypal payment it usually uses the funds within paypal there was about $50 in paypal, and it paid the rest from the credit card which is meant to be just like if you pay for anything else with paypal. The same if I had of bought something for $150 from China, it would do the same but not have charged me a transaction fee. Thats why im confused.

      • Seraphin7 on 23/11/2018 - 20:33

        Yeah, you need to check the details of your card. I've seen some credit card companies treat payments to things like Paypal as a cash advance so you need to be careful. I reckon this is where you've got caught. I think it's entirely to do with CBA treating this as a cash advance, nothing to do with the currency.

        • skinner on 23/11/2018 - 20:38

          No Xetrok has the right info above straight from the T's & C's. It's because it's a charge from an overseas based company. Paying eBay seller fees is the same as paying any other bill (phone, electricity etc).

  • fishball on 23/11/2018 - 23:47
    +2

    Yes a lot of CC charge a fee even though you get charged in AUD if it's processed overseas. It is moronic but it is what it is.

    I bought something from a Chinese website through an ozbargain deal, charged me in AUD via PAYPAL and still got hit with international fx fees lol. It was 8 cents on a 10 dollar purchase, which isn't 3% but still.

    10/08/18 09/08/18 V1234 PAYPAL *<REDACTED> 9.88
    10/08/18 09/08/18 V1234 NAB INTNL TRAN FEE - (SC) 0.08

    Nowadays to be safe I either use 28 degrees or a similar card which guarantees there are no fees like this or oddly enough, AMEX doesn't seem to do this either. I've done some hotel bookings through US/HK websites before that billed me in AUD and I didn't get hit with an FX fee. YMMV.

  • HeWhoKnows on 24/11/2018 - 15:04

    Get the Bankwest Zero Platinum Mastercard or any other that doesnt charge foreign exchange fees

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