eBay Foreign Transaction for Local Item (Priced in AUD)

mudkipz on 30/08/2019 - 15:59

Hi,

I purchase a few items from various sellers on eBay. I specifically selected items that were listed as located in Australia, because I wanted quicker shipping.

Out of the items I bought, after following through the transaction, I realised that one of them charged me an additional GST cost. I understand that eBay adds GST for overseas items. That one item was located in NSW, and priced in Australian dollars. I then realised that my credit card charged me a foreign transaction fee. The charges are very small, but I'm very curious as it's never happened to me for items bought locally. I might add that the item was delivered very quickly, so it's unlikely that they are drop shipping from overseas.

So my question is, why and what's up with these charges? Has it happened to others?

Please let me know if this topic shouldn't belong here. I couldn't quite fit it into other categories and I and couldn't find exactly the same relevant topic answered already.

Regards

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Comments

  • plmko on 30/08/2019 - 16:02
    +3

    Are you absolutely sure your item was from 'Australia', because it's common knowledge now the item location feature means jack squat these days on Ebay.

    • mudkipz on 30/08/2019 - 16:08

      I know there's heaps of sellers that do this, but the item was very low cost and I would think it'd be uneconomical to express ship it from overseas. The item arrived in 3 business days.

      That being said, of course, there's no way I can definitively know it was from 'Australia'. But it just seems likely, given the cost and shipping timeframe.

      • Morien on 30/08/2019 - 18:24
        +1

        Being low cost probably makes it more likely to be from overseas, but arriving within 3 business days leads me to conclude like you do. Contact ebay support and ask.

      • Clear on 31/08/2019 - 15:21

        Seller profile will normally say their actual location. Best way to filter them out.

  • jimbobaus on 30/08/2019 - 16:03

    Possibly Local warehouse/seller.. more likely not though
    banking processed off shore hence the FTF on your credit card
    could also be a foreign entity with a local presence so the GST would of been added by default regardless of where it was shipped from, might of been a chance it would of shipped from China etc

  • fishball on 30/08/2019 - 18:08

    Some useless banks (cough big 4 cough) charge a foreign exchange processing fee if the processor is overseas even if it is in AUD.

    I've seen it happen if the seller is overseas even if you go through paypal AU.

    AMEX doesn't do this. Also of course the usual no FX fee cards like 28D/Macquarie/Bankwest/ING Debit etc also do not.

  • Ocker on 30/08/2019 - 18:36

    What is the eBay item number on which you copped the charges. It may be possible to offer a better explanation if I can see the listing.

  • [Deactivated] on 30/08/2019 - 19:35

    A similar thing happened to my husband a couple of weeks ago - no GST was charged however the bank charged a foreign transaction fee (FTF ~75c) on an eBay item that was listed as being located within Aus.

    Referred to eBay as a 'please explain' - our issue wasn't with the amount that was imposed as it was a low price item that was purchased on this occasion. Our main query was why a supposedly local eBay seller was transacting in foreign currency and also how to avoid such a scenario in the future, especially when purchasing higher priced items.

    eBay had no explanation other than it must have been an error and should not happen again. Requested a copy of the bank statement showing the FTF & advised that they will refund the amount.

  • ibuy on 30/08/2019 - 20:58

    As the other commenters have advised, the seller may charge you in AUD but if their credit card processing is based overseas then a fee will apply. Most of the time it is best to pay using paypal and have your credit card as the funding source so normally you are hit with the one fee.

    You can sometimes be double hit where the payment is in a foreign currency and you get lousy exchange rates and then you are also hit with a transaction fee by the bank.

  • JimmyF on 30/08/2019 - 22:00

    Banks charge a Foreign Transaction fee if its 'billed' from outside of AUS. The sellers paypal account must have been an overseas one, and to your bank, paypal bills from overseas for that seller.

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