Unexpected Foreign Transaction Fee When Purchasing Online

Lfoodsnob on 06/12/2024 - 11:06

Got hit by a foreign transaction fee by my bank which was unexpected.
Purchased an item online which was on the Australian part of the website and was charged in Australian dollars.
No warning was provided saying a fee may be charged (not that I could see).
However, on my statement, it came from a Limited company, so overseas.
Hence, my bank has wacked me with the fee.

If I had known there was a fee, I would have used my other card that doesn't charge the fee.

Anyone been in this situation before and know what to do?

ACCC has a page that says to raise it with the bank and report to ACCC if the retailer didn't give you a warning saying fees may be applicable.
I don't think the dispute with bank will go well since it is obvious the payment was charged overseas. Otherwise I was thinking contact the retailer get them to refund me and charge me locally?

Entertainment

Comments

  • askbargain on 06/12/2024 - 11:06

    Westpac?

    • foodsnob on 06/12/2024 - 11:08
      +2

      yes

      • askbargain on 06/12/2024 - 11:42
        +3

        Perks of being a loyal customer :)

        • HeWhoKnows on 07/12/2024 - 10:27
          -2

          Regardless this is what counts…

          Purchased an item online which was on the Australian part of the website and was charged in Australian dollars.

          My question is:

          What currency did it say on the ORDER page?
          Does OP have a copy of the order/invoice?

          but regardless if it shows prices in AUD, then the order should go through in AUD.

          This is NOT a bank issue.
          Its an issue with the way the website has charged the price at the order stage.

      • Captain Musty on 07/12/2024 - 10:48

        In a global marketplace like the Internet, advertisers should be encouraged (made) to stipulate what currency they are advertising.

        There are quite a few countries that use the dollar as a unit of currency eg. Canada, New Zealand, Australia, US etc. so just because an item is advertised in Australia, we cannot assume it in Australian dollars

        Some advertisers rely on NOT advertising the currency so they can charge in US dollars and make more money, by exchange rate.

        The practice should be outlawed.

  • jv on 06/12/2024 - 11:07
    +1

    Purchased an item online which was on the Australian part of the website and was charged in Australian dollars.

    Payment was probably processed overseas though…

    • foodsnob on 06/12/2024 - 11:12
      +2

      very handy thanks

  • Xyzzy on 06/12/2024 - 11:08
    -8

    Not sure the retailer is likely to set-up an Australian billing system, just for you.

    • geekcohen on 06/12/2024 - 11:12
      -1

      But if they have an AU website, you would assume it is an AU payment gateway.

      If it was a global site that shipped to Australia, you could understand the fee a bit more.

      • DoctorCalculon on 06/12/2024 - 23:45

        But if they have an AU website, you would assume it is an AU payment gateway.

        You as a savvy buyer should make no such assumption.

        Skype, Spotify, eBay Membership, etc. all pull the same stunt with their overseas payment processors.

        • geekcohen on 07/12/2024 - 10:55

          Skype, Spotify, eBay Membership, etc. all pull the same stunt with their overseas payment processors.

          Yes, because they are global and should you expect that.

          If I am buying on an AU website and expecting it to be shipped from AU, I would expect an AU payment processor.

          • DoctorCalculon on 07/12/2024 - 17:33

            @geekcohen:

            If I am buying on an AU website

            Ebay membership is from ebay.com.au with amount presented in AUD.
            Any other purchases (in AUD) from ebay.com.au, you don't get slugged with a fee.

            • burningrage on 07/12/2024 - 22:35

              @DoctorCalculon: It may not be as clear as that.

              As an example, Apple Australia is done in AUD with no International Transaction Fee but its Apple Itunes are NOT as I mentioned below.

              With online purchases, there are always that risk and one can only find out by starting with using cards that are exempting international fee and if the suffix in your bank statement says anything other than AU, then you'll know it would have charged the international transaction fee had you used another non-exempt cards.

    • foodsnob on 06/12/2024 - 11:12
      +1

      i am pretty certain they do have it. They have physical stores in Australia.

      • geekcohen on 06/12/2024 - 11:16

        Contact the retailer and contest it. Why should I get a fee online when if I go into store, I have no fee?

        Or see how many others were impacted and launch legal compensation (maybe get ACA onto it).

        • Xyzzy on 06/12/2024 - 11:36

          The retailer isn't the one who applied the fee.
          This needs to be argued with the bank, who shouldn't be charging a hidden fee for transactions in $AUD.

          • Baysew on 06/12/2024 - 12:20
            +4

            @Xyzzy: The retailer has made the decision to use a payment processor based overseas.
            The retailer is misleading with their prices.

          • geekcohen on 06/12/2024 - 12:34
            +2

            @Xyzzy: Well the retailer kinda is because they are using a non AU payment gateway and not disclosing it. And because it is an overseas payment gateway, the OP got a oversees/international transaction fee.

            • Xyzzy on 06/12/2024 - 12:52

              @geekcohen: Unless I've completely misread the OP, the bank is applying the fee. Not the retailer.

              • geekcohen on 06/12/2024 - 15:53

                @Xyzzy: Yes, that is right. Because the *retailer** is using a non AU payment gateway and not advising so. Because the retailer is using an overseas gateway, the bank classified the transaction as an international transaction fee, so the fee from the bank.

                The OP wasn't advised by the retailer about the overseas gateway. If they did, the OP said they would've used a different card to avoid this fee.

                • Xyzzy on 06/12/2024 - 16:39

                  @geekcohen: Yes, retailers can use overseas gateways. If your bank chooses to apply a surcharge even when the transaction is in $AUD that's between you and the bank.
                  The money doesn't go to the retailer and I'd be astonished if contacting the retailer to contest it, as was suggested, will achieve anything at all.
                  But happy to be proven wrong, hopefully the OP will try and report back on their success.

                  I don't think these charges by the banks should be allowed. I don't believe that the additional costs they wear for processing an international transaction in $AUD is anywhere near the surcharge they apply.

                  • Baysew on 06/12/2024 - 17:37
                    +2

                    @Xyzzy: What the ACCC says:

                    The ACCC says retailers may be engaging in misleading and deceptive conduct if Australian consumers are given the overall impression that the transaction is processed here, when it is actually processed outside of Australia.

                    Businesses should clearly inform consumers when they are likely to be charged an international transaction fee, the ACCC says, and has issued guidance to retailers about how price information should be presented to consumers.

  • pharkurnell on 06/12/2024 - 11:19
    +1

    How much is the fee?

    • foodsnob on 06/12/2024 - 11:32

      in this case, it wasn't a lot. less than $5. but thought would be good to know what to do in the future if it was big and for anyone else who ends up in the same situation.

  • djkelly69 on 06/12/2024 - 11:20
    +1

    Maybe name the retailer so others can try and avoid, and discuss their experiences with the same company?

    • foodsnob on 06/12/2024 - 11:33

      rapha.cc i've added it to the link above with the table of retailers that potentially charge fees

  • skid on 06/12/2024 - 11:21

    Anyone been in this situation before and know what to do?

    Yes. Live and learn. I also submitted a "suggestion for improvement" to the bank to abolish foreign transaction fees but it fell on deaf ears.

    • geekcohen on 06/12/2024 - 12:36
      +3

      I also submitted a "suggestion for improvement" to the bank to abolish foreign transaction fees but it fell on deaf ears.

      100% agree. But how else will they make money? Oh, thats right, charge people $3 to access their own money in the country when going to a teller.

  • Jimothy Wongingtons on 06/12/2024 - 11:26

    Was it actually a .com.au or similar?

    I know Bambu lab has their website

    https://au.store.bambulab.com

    So some may assume it’s the Australian website but most people will be subject to overseas fees despite pricing showing as aud

    • foodsnob on 06/12/2024 - 11:35

      not .com.au it was /au. fair enough. but because the retailer had physical stores in Australia, I assumed otherwise.

      • Jimothy Wongingtons on 06/12/2024 - 11:49
        +1

        Maybe worth reaching out to them for clarification or reimbursement- every time I’ve tried the customer service people fob it off as being related to the payment processor so it’s out of their hands

  • wannagrababargain on 06/12/2024 - 12:47
    +2

    A disgusting practice that has been allowed to go on far too long. Please take the time to make a complaint. ACCC have put the retail industry on notice about this. Rapha does have a physical retail presence in Australia and advertises it's retail products in AUD. Two out of three. The fact they don't use .com.au is more of an aesthetic choice to use the more hip and memorable ".cc" TLD globally rather than as an 'excuse' to not notify you of hidden charges. I think the ACCC would see it that way too.

    • foodsnob on 06/12/2024 - 13:03

      thanks for that. i agree and i think I will do that. i don't see much point dealing with the bank.

  • burningrage on 06/12/2024 - 15:29

    Experience will eventually tell you which company uses overseas payment system and which aren't.

    As a matter of principle, I would use international transaction fee free cards for companies that I am NOT 100% sure they are Australian. An example of this would be Apple (NS), Agoda (DE), Crunchyroll (TX), Traveloka (SG), and Accor (hotel dependent - if Singapore then SG, if Australian hotel like Ibis, then AU). Google is another suspect.

    Only when they are proven to be utilizing local payment system, then I'd switch to Australian cards. Recent pleasant surprises include Bookings.com (AU), Mytrip (AU), GotoGate (AU), and Singapore Airlines (AU).

  • WoodYouLikeSomeCash on 06/12/2024 - 15:58

    They offer PayPal, why didn't you just use that?

    • DoctorCalculon on 06/12/2024 - 23:53

      You will still be charged the fee by your bank if you use a card that has overseas transaction fees, unless you use PayIn4.

    • foodsnob on 07/12/2024 - 12:50

      can confirm. i paid via PayPal. the bank still charges the fee

      • burningrage on 07/12/2024 - 22:37
        +1

        Yes. Same with Paypal. With Paypal, there is an added "fee" unless you change the setting to charge in source currency which elevates the foreign exchange. Similar to DCC.

  • Chewy2221 on 07/12/2024 - 09:23
    +1

    I think that the bottom line is that you should have been warned about the overseas transaction charges PRIOR to completing the purchase. ACCC & fair trading (NSW) will be very keen to see if this warning was issued - good luck

  • Chriscairns on 07/12/2024 - 10:55

    Recently i bought tickets from Scoot airlines (.com.au) using NAB debt ViSa card, lately found an overseas transaction charge $100 in account statement. Contacted Scoot & NAB to reimburse the money without any luck. Scoot checkout never shows additional transaction fees.

    • geekcohen on 07/12/2024 - 10:56

      This is misleading and what I have been trying to say. You expect that buying via an AU website it would be an AU payment gateway. If it was not, it should advise otherwise.

    • burningrage on 07/12/2024 - 22:38

      Scoot is SG. Singapore Airlines however, will charge in AU so it would be safe.

  • Chriscairns on 07/12/2024 - 11:01
    +1

    Scoot manager said they are not an Australian company, so all transactions are made from Singapore. No indication whatsoever at the checkout, Scammers.

  • SlickMick on 07/12/2024 - 13:43

    I'd be doing chargeback, presuming you did due diligence and legit thought you were paying in AUD.

  • benchia on 07/12/2024 - 16:59

    Same happened to me when I bought flights from Sydney to Kuala Lumpur. I routed with the cheapest possible deal which is currently a Sydney Don Mueang airport in Bangkok to Kuala Lumpur. Lo and behold I get stung $100+ in foreign charges. Air Asia Bangkok apparently. I bought Sydney to KL direct for my daughter and no foreign fees. Go figure. So be aware Sydney to Bangkok has foreign fees. Unless it’s Bangkok to KL which stung me for the entire trip.

    • burningrage on 07/12/2024 - 22:42

      It depends on which TA you bought the tickets from. I have experimented lately and found out…

      If you bought tickets from:
      Mytrip (not Trip.Com), GoToGate, Hotels.com, and Bookings.Com - They are all AU tagged in my bank statement so international transaction fee free.
      AirAsia, Scoot, GarudaIndonesia, Agoda, Accor (non AU hotels) - They are tagged as non-AUs and would have charged the international transaction fee had I used my non-fee exempt card.

      It didn't matter where I went. In the case of GoToGate, my tickets were all overseas to overseas and it was safe.

      • benchia on 10/12/2024 - 10:48

        Thanks. Good to know.

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