HSBC Overseas credit card fees

Franconian on 13/05/2013 - 18:33

Hi all,

I used my HSBC Visa credit card for payment of some Groupon.com.au transactions and also for a Scoot flight booked on scoot.com.au

For me it was a transaction in AUD on an Australian website, however HSBC charges overseas transaction fees on the AUD charges. According to them the merchant is registered overseas therefore the charges:

When you use your Credit Card to make an international purchase (either
transaction happens overseas or the merchant is located overseas), an
international transaction fee applies, which is 3.0% of the total value
amount of each such transaction. For more information, please refer to
"Personal Financial Charges for HSBC Credit Cards" guide by clicking on
the below link:

I queried this as it was not possible for me to see that the merchants were registered overseas, but HSBC disagrees.

I just closed my account with them. What is your view on this?

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Comments

  • retiredfeline on 13/05/2013 - 18:39
    +1

    Have you asked Groupon and Scoot for their take on this? What about all the other Aussies using those two merchants, were they also charged?

    I don't think I've been charged international fees on Groupon purchases, but then maybe that's I've never bought anything more than a few bucks using Paypal.

    • jacklynhydejr on 13/05/2013 - 20:16

      I get charged the cc fee with Groupon every time.

  • lostboi on 13/05/2013 - 19:18

    groupon will refund the fees. they process the transaction internationally. but contact them and they will refund any fees you incur

  • Franconian on 13/05/2013 - 19:19

    It's not Groupon or Scoot taking their cut. There should not be an additional fee if the payment is processed in the local currency.
    It even says "GrouponAU" and Scoot.com.au on the statement

    • retiredfeline on 13/05/2013 - 19:21

      What I mean is are they doing the processing the charge here or overseas? What the website domain is and where they process it may be different.

      PS: I hope you understand "their take" is slang for "their story"?

  • lostboi on 13/05/2013 - 19:58
    +1

    even groupon state themselves that payments can be processed overseas

    so HSBC haven't done anything wrong

    http://www.groupon.com.au/terms_and_conditions

    section 6

    In certain circumstances you will be entitled to a refund:

    d) Our payments are processed via an overseas gateway and from time to time, your financial institution or payment provider may charge you an additional fee for transacting with us because of this. If this occurs, please contact our customer care team who can arrange a refund for this fee.

  • lostboi on 13/05/2013 - 20:12

    also with Scoot the following is on the payment page

    Note: Additional charges may be imposed by credit card issuing banks for all international transactions.

  • verio on 13/05/2013 - 20:59
    +1

    Unfortunately, HSBC and most major banks will take any opportunity to charge you extra fees. Now it is not just about the currency, but also there is a fee for transactions originating from overseas.

    Use bankwest platinum credit card, 28 degrees or citibank plus debit card to avoid any international fees.

  • vipulrm on 14/05/2013 - 09:51
    +3

    I only discovered this after buying something online and paying in AUD using my HSBC issued Woolworths Everyday Money Credit Card via PayPal. I specifically used PayPal assuming that since I am authorising PayPal AU to deduct money (and not the international merchant) I wouldn't need to pay the overseas transaction fees but HSBC still charged the fees. When I called the customer care, they said, if the merchant was overseas I will be charged the fees and it is in T&C. I tried to explain that for all practical purposes I only authorised PayPal AU and should not occur any overseas charge. No amount of haggling helped. I said, "This is a ripoff", disconnected the call and got myself a 28 Degrees MasterCard.

    So just to warn the rest of the clan:
    1) HSBC will apply the fees even if you pay via Paypal
    2) This is also applicable to Woolworths Everyday Money Card

  • tensai on 14/05/2013 - 11:05

    sorry didnt see anything wrong with HSBC here, as all the banks will do the same.
    Except ozbargainers recommended - 28degrees card or citibank or bankwest.

  • goms on 14/05/2013 - 11:13

    Happened to me few years ago with aussie mastercard for paypal payments. Cancelled credit card straight away

  • Franconian on 14/05/2013 - 16:38

    Thanks for your replies!

    I was not aware that it would be common practice here in Oz. Will cancel my HSBC card and only use 28degrees from now on.

  • ethan16 on 14/05/2013 - 16:52

    I got ripped off using a ANZ c/c in paying for a flight with Royal Brunei airline, found out later it was actually the Visa group who hit me for a overseas transaction fee

    Changed to 28 Degrees Credit card with no fees on overseas transactions, check it out

  • Bargain4U on 15/05/2013 - 10:26

    Unfortunately ING DIRECT also charges their "International Purchase" fee of 2.5% on transactions made in Australian Dollars! Since there is no conversion involved they shouln't be charging anything, it's ludicrous! When I rang them up, they told be that because the merchant's bank was located overseas, I'll always be charged. Citibank Plus next time.

    PS. From my research, card companies only charge the banks a 1% fee on cross-border (non conversion) transactions.

  • redslert on 15/05/2013 - 14:23

    Same thing happened to me with woolworths cc which is operated by hsbc.

    I emailed groupon and they credited my groupon account for 10cents, that is the charge. I said not good enough and they direct deposit into my bank account.

    Happened again for a purchase of contact lens from .au website processed in New Zealand. Contacted the company and they refund the fee…

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