Do you consider 'International Transaction Fee' unfair?

aaronaldo on 28/10/2020 - 12:35
Last edited 28/10/2020 - 12:36

I didn't mean you shouldn't be charged, but more the fact that there needs to be more visibility of it prior to transaction being made.

Backstory: So I received another unexpected 'international transaction fee' in my credit card statement, even though:

  • I was charged in AUD
  • The company appears to have an Australian presence

I understand the reason for the charge is because the payment processing was done overseas, but as an end user, I believe this needs to be more visible on the payments page. I can see how this can be a bit tricky as the merchant is not the one charging the fee, but I feel there needs to be more clarity on what is being charged prior to the transaction being made.

Is there some way of easily determining where a merchant processes your payment?

EDIT:
Found the following on ACCC Website:

If you are charged an unexpected international transaction fee for a purchase in Australian dollars from a business that appeared to be located in Australia, it could be considered misleading under the Australian Consumer Law. You should contact your card issuer (for example, your bank) or the international card scheme (for example, Mastercard or Visa) to request a refund.

I still think this is not good enough. It should be more preventive rather than reactive. I think I'll raise a complaint to the ACCC

Financial

Comments

  • PissLUR on 28/10/2020 - 12:39

    yeah i was caught with that too.. purchasing from ebay australia. from an australian seller.

    i think its because their paypal accounts are HK/China based.

    • aaronaldo on 28/10/2020 - 12:41
      +1

      Yeah, eBay is another culprit.

      i think its because their paypal accounts are HK/China based.

      Most likely. However, I still believe it should be our Consumer right to have this made more visible to us.

  • toniyellow on 28/10/2020 - 12:46
    +1

    There is no easy way to find out

    Some are listed in the wiki, but it is not exhaustive. You should add the site you were impacted by if it is not there.
    https://www.ozbargain.com.au/wiki/australian_sites_that_char…

    • aaronaldo on 28/10/2020 - 12:55
      +1

      Yeah, I believe this is an issue wider than OzBargain though.

      I've just raised a complaint to ACCC :)

    • aaronaldo on 28/10/2020 - 13:00
      +1

      Also, thanks for the Ozbargain link. I've added a new entry.

  • bazingaa on 28/10/2020 - 12:49
    +1

    use ING card, there was a "international transaction fee" even for eBay Plus payments

    • aaronaldo on 28/10/2020 - 12:57

      I try my best to do this with my 28 degrees card, but there is still the odd occasion where I get caught out.

      Thing is, I do want to earn CC points where I can with my day to day CC.

  • Headless on 28/10/2020 - 14:20

    I just got stung paying $6 fee for an "australian" purchase by Bank of Melbourne… grumpy i am

    • OzCheapo on 28/10/2020 - 14:36
      +1

      Banks are hitting it tough. Need to tax everyone

  • Baghern on 28/10/2020 - 14:31

    Interesting.

    I checked the list of Charge sites.

    I noticed Amazon.com.au on it

    .
    Checked my multiple Amazon receipts for items bought overseas, no international charges
    Cross checked with credit card, no international charges

    Linked with that site should be the credit card one that reverse/refunds international charges

    I know my old CBA Diamond card did that

    • aaronaldo on 28/10/2020 - 14:48

      I don't think that OzBargain page gets much traction. It didn't mention about eBay sellers who registered with non-AU eBay site either (I just updated it today).

  • netjock on 28/10/2020 - 15:08
    +2

    Unfair, considering merchants get charge extra fees for accepting international credit cards. Banks are trying to have their cake and eat it at the same time.

    Credit card surcharge was suppose to solve all of this because fees are transparent. Much like a website saying I am a US company, I can charge you AUD and acceptance fee is 1.5% (because it is what it costs) vs local of 0.95%. Not then the bank turning around and saying to the customer, well you paid 1.5% I am here to take another piece of the cake.

    Even when you are not charged a surcharge it is absorbed by the business, it didn't disappear by magic.

  • newjerseydamo on 28/10/2020 - 15:14
    +3

    I find this with a lot of gaming companies, i.e. Steam.

    It's advertised as Australian currency, you make the purchase, then you get hit with the fee.

    To me, that's false advertising.

    • burningrage on 28/10/2020 - 16:59

      And BookDepository, and others…

      It comes with experience.

      • aaronaldo on 28/10/2020 - 17:09

        Yup, that's where I got stung this morning

  • whooah1979 on 28/10/2020 - 15:44

    So I received another unexpected 'international transaction fee' in my credit card statement,

    Almost every traditional financial institution in the world have been skimming this cream for decades. This is about to change because of covid. This year saw the rise of Fintech and the way they can provide services online with the use of Apps and Dapps.

    Consumers can now settle commercial transactions, send and receive $1000s from anyone in the world using a mobile device or a browser. The transactions can cost as little as a few cents and settles in a matter of seconds or minutes.

    • aaronaldo on 28/10/2020 - 17:11

      Isn't the backbone of most commercial transactions via Visa or Mastercard though? I could be wrong, but I thought they also have a slice of the pie in terms of the international transaction fee.

  • mrdng on 29/11/2023 - 12:02

    Just got hit twice by International Transaction Fee with NAB Visa card…

    It's completely unfair. There's no way for me to tell whether a merchant is processing my payment "oversea" or "domestic"… All I see is amount in AUD…

    Looks like a lot of us Aussies were hit with this for years and useless ACCC just tell us to "be aware"… Us consumers can only find out whether or not the merchant is international AFTER the fact that we were charged International Transaction Fee

    I guess it's another tax for living down under…

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