Hi all,
Just have a question but can't find the answer anywhere. Finally looking at shopping on Amazon.com.au, but not sure whether I will get charged foreign transaction fees on my local credit card or am I better off using a no-foreign-transaction-fees credit card instead?
Thanks.
You're both right and wrong.
Charged currency does not matter for transaction fees. You could be charged in AUD and still be charged a foreign transaction fee. Eg. Airbnb for overseas accommodation even when paid in AUD. What matters is where the payment is processed.
Amazon AU processes payments in Australia so does not charge foreign transaction fees.
Thanks. That was the answer I was looking for. Cheers.
No AMEX card charges a foreign transaction fee for accounts that are in AUD and the transaction is AUD, even if the transaction is processed overseas.
I don't understand how what you're trying to say is relevant to this subthread!?
Your statement is true and correct, but how is it connected to my response? are you replying to @KBZ?
This was a specific question about Amazon AU. So which part am I wrong.
Lol, you are not wrong mate, just a bit incomplete. I guess I owe you some thanks too? As we all know, transactions in AUD do not always mean that there are no foreign transaction fees, it just means that there are definitely no currency conversion fees.
Foreign transaction credit card fees are made up of 2 components, 1.5% currency conversion fee(which doesn't apply here) and 1.5% foreign transaction fee.
FirstWizard and a few other people later confirmed that Amazon AU processes their transactions in AU, therefore will not have any transaction fees if I use a normal credit card. It is always hard to tell with foreign owned sites whether they have foreign transaction fees or not because it really depends on where they process their transactions.
@geek001: I understand what you mean, I probably should have added all my transactions on my AMEX were processed in AUD to just highlight that no fees were charged.
@geek001: Well all the banks I bank with charge the full 3-3.5% foreign transaction fee for overseas processed purchases even if the transaction is originally in AUD.
It's the first time I heard that they charge 1.5%. Could you please confirm which bank are you talking about?
@FirstWizard: I have had credit cards with HSBC and NAB. The charges I mentioned are stated are line items on my statement on the rare occasions that I get stung because I wanted to pay for air tickets and be covered under my credit card's travel insurance.
The two charges together add up to 3%. I cannot confirm what you get charged if the transaction is in AUD though.
@geek001: Fair enough, I try to use a card that does not have foreign transaction fees for any purchase in foreign currencies.
But still gets caught sometimes because of some companies who process their transactions overseas, in AUD.
You're probably best off connecting to PayPal if you're concerned about this. I use Amazon US too and wouldn't have even though to have check for this, as it's all converted to AUD and charged locally via PayPal. I'd be surprised if exchange rates varied far from actual rates with PayPal.
PayPal exchange rates are abysmal. They can sometimes be close to 5% off the market rate.
Amazon Australia process their transactions in Australia, even for products from Amazon US.
If you purchase from the the US website (i.e. amazon.com, not products sold by Amazon US on the Amazon AU website), then it is processed in the US, even if you opt to be charged in AUD.
Australian Sites that can incur a fee for transactions
Says there is a charge. Is this still correct?
Have been using my amex for awhile on Amazon au and haven't been charged a foreign transaction.
What did amazon/au say when you asked them?
They said it depends on my credit card provider, which basically translates to "I am not sure, but if you did get charged, it is your credit provider, not us".
So I thought I would ask people who has actually bought stuff off Amazon AU, which is here.
Sorry to bring up an old thread, anyone have a Citibank Credit Card (I have the Signature) and wondering if Amazon AU charges a foreign transaction fee?
Since you're on Amazon AU you will be charged in AUD. Safe to use your AMEX/Point accuring card.