I bought something for $3.22 from Dealextreme and just noticed that my credit card has an extra $0.10 overseas transaction charge, being 3% of the purchase cost. I haven't noticed this charge on my other credit card when I've used it so is the charge bank specific or are all banks charging an overseas transaction fee for PayPal purchases now?
Thanks. It was $3.24 USD so $3.22 AUD.
If you use a bank account as PayPal funding, do you get hit with any fees?
Cheers
that's an interesting question
If you use paypal to pay in USD via your credit card then you will get hit with transaction fees. Using Paypal this way protects you against the international seller misusing your credit card, plus its a little easier than having to enter all the card details on the site.
If you use paypal to be the primary exchange facility. ie have them pay in USD but charge your credit card in AUD then their shouldn't be a fee.
However I do notice that often when I pay DealExtreme I get an email from service (at) paypal.com.hk Note the .com.hk address, so the credit card payment might be processed via Hong Kong, rather than Australia as such this might trigger a OS transaction fee with the bank.
In my case I use the 28Degrees card and paying in USD so there are no fees.
I have never used another card, that charges OS fees to make any OS payment via PayPal in USD or AUD so I cant give advice there.
Call the bank to query like zephram said. Please post any response etc you get here to help others
I don't think I could be bothered ringing for the sake of 10 cents…does that mean I lose my OzBargainer status? :) The PayPal transaction from DX shows USD so I don't think I have a case anyway.
I dont know about DE, but I have purchased few things from meritline in $US and I have linked my debit card to it. I have never been charged any transaction fee. Thats said, still I think its the bank, who is doing it.
Some Credit Card companies try and charge you a fee for "overseas" transactions even if they're via Paypal and in Australian dollars. I got hit with one when booking an Australian hotel, via expedia.com.au, using Paypal in Australian dollars.
I rang the CC company and they refunded it, but it was still outrageous enough for me to ditch them immediately.
most banks charge you for foreign visa card purchases, regardless of whether it is in aud or not.
i use my ing visa debit card to pay for things using paypal.
for dealextreme, i get hit with an extra 2.5% on top of the transactions, regardless of whether it is in aud or not.
however, for meritline, buyincoins, tinydeal, dinodirect i do NOT get charged an overseas transaction fee using paypal's local currency conversion. therefore using paypal's exchange rate is generally more favourable for these sites.
there must be some difference in the way the transactions from these companies are processed.
also, paypal's rates are only periodically updated so sometimes when the exchange rate is flucuating quickly they can be grossly favourable/unfavourable.
I also have a debit card from NAB and never got charged.
HSBC (Woolworths Credit Card) do this. Even if the transaction itself is in AUD. It's a blatant cash grab.
Most of the others are at least subtle about it, and ping you with god-awful exchange rates.
Yep, that's the card I have. I'm glad the original purchase amount wasn't huge! I swapped over the PayPal funding from a VISA debit to the Mastercard and the VISA debit never had any fees like this. I think I'll be just using a bank account in PayPal next time.
It's interesting to hear that your HSBC Woolies card has charged you those fees, because I was just about to write a post telling everyone they didn't charge them. I recently stopped using my GE Money (Coles) credit card on PayPal for just that reason and since doing so I haven't had one instance of o/seas transaction fees when I've told PayPal to charge my HSBC card in AUD.
The GE card on the other hand, charged me something like 20c for an AUD transaction valued at around $3.00 and unlike the poster above, I did call up to query it.
Me: "Why have you charged me this fee?"
GE: "Because it's an overseas transaction"
Me: "But it was charged by PayPal Australia in Australian dollars, how's that an overseas transaction?"
GE: "Well the retailer is overseas"
Me: "I repeat, it was charged to my card in Australian dollars, by an Australian company, operating in Australia, so how is that an overseas transaction?"
GE: "OK, we'll refund your 30c this time."
Me: "Thank you. Now do you happen to have the address of the Australian Banking Ombudsman as I think they'd be interested in hearing what you're doing here."
GE: "…ummmmm"
actually, thinking about it, dealextreme site prob says A$ but they charge you in USD$. their internal computer calculates the $A and it looks like you are buying in $A but really, its buying the US$ equivalent in A$ so the fee is prob by the bank as D/E is charging in USD
No one can follow international transaction fees or bank, systems. I guess the best to calculate to 3 percent with and if there is none be happy.
Couldn't have said it better.
Greedy Banks and Dodgy businesses doing shady deals…
Im looking to pay for something from a usa site that offers overseas shipping. Options are cards and paypal.
When going to checkout obviously they are going to charge me in usd.
My question is or i believe my bank will charge 3% for it being overseas purchase right?
Im with westpac.
So as i have option of card or paypal i wanted to use paypal for extra cover im taking paypal dont charge more or extra than the 3%?
Im bit confused as when buying on ebay you see the amount paypal take from your account in aud.
But obviously as the amount is in usd im not sure what im going to be charged.
They do have paypal and card as payment but wanted to pay with paypal.
I do have a fee free card but just don't have the funds to cover the amount.
But i dont get what paypal get from this if im paying with through my bank account which is on paypal? Yes maybe website gets less from fees but what am i charged? The amount i see in usd plus say 3% i think bank charges on top.
I would hate to see other charges as well i never knew i be charged for.
It be simple if it just had shown what you be charged like you do when paying on ebay.
i think paypal give you 2 options:
they can charge you their equivalent in AUD (typically 2.5-3% to official rate)
they charge you in USD and your credit card company charges you a %age (typically anywhere from 1.5%-3%, but some are 0%)
Are you talking $3.22 USD