Spotify Subscription - Bank Charging International Transaction Fee

Chloebj on 12/12/2024 - 12:37
Last edited 12/12/2024 - 12:44 by 1 other user

Hi all, I just subscribed to Spotify, and an international transaction fee appeared in my bank statement from my subscription. I contacted Spotify support and the guy was nice, he gave me a month's free premium - but he kept just saying it was the bank's issue and not explaining WHY Spotify came up as an international transaction. (I called the bank previously, they told me to contact Spotify).

Other relevant info - I paid via PayPal, not sure if that has anything to do with it.

I guess I'll just change my payment details to a debit card which doesn't charge international fees (I paid by credit card) - but I shouldn't have to do that to be honest!

I feel like consumers should be warned that this might occur. There are more people who have had the same issue on the Spotify community pages, other forums, etc - it seems like Spotify don't want to do anything to fix it.

Thoughts?

Financial Music Streaming Spotify

Comments

  • scrimshaw on 12/12/2024 - 12:40
    +2

    Spotify is in our list of "Aussie sites that charge an overseas transaction fee"
    https://www.ozbargain.com.au/wiki/australian_sites_that_char…

    it seems like Spotify don't want to do anything to fix it.

    But… Is it really spotify's fault? The bank is the one that charges you the fee, not Spotify.

    • Settero on 12/12/2024 - 13:38
      +4

      While I don't agree with international transaction fees, don't think it's the banks fault, they don't control where it's processed, they don't trick customers into thinking they are being charged domestically.

    • LVlahov on 12/12/2024 - 14:42
      +4

      It is definitely Spotify's fault. They are billing you from a business/account registered offshore in order to avoid paying Australian tax essentially.

      Reason enough not to use them at all. Although many of their competitors do what they can to avoid paying an appropriate amount of tax in Australia also.

      • scrimshaw on 12/12/2024 - 16:08

        Interesting, never thought about the tax avoidance part.

    • Baysew on 12/12/2024 - 15:41

      It's Spotify's fault -

      ACCC

      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.

      • Chloebj on 12/12/2024 - 22:33
        +1

        Agreed that they should let us know! I was doubly confused as I've previously had Spotify, but wasn't charged the fee then. If they've changed something that's going to affect consumers, we have a right to know so that we can take it into account when choosing a service.

  • jv on 12/12/2024 - 12:45
    -1

    WHY Spotify came up as an international transaction.

    Spotify process the payments from overseas…

    Spotify don't want to do anything to fix it.

    There's nothing to fix.

    • LVlahov on 12/12/2024 - 14:44

      There is something to fix if they don't want to add friction to their customer experience - just like with any service issue that negatively affects customers doing business with them and is within their control (or at the least ability to influence and resolve for most).

      • jv on 12/12/2024 - 14:54

        There is something to fix if they don't want to add friction to their customer experience

        Hasn't seemed to affected them so far… It's not something new…

      • jv on 12/12/2024 - 14:55

        and is within their control

        Moving their payments processing centre is likely to increase their costs therefore increasing customer subscription fees.

  • MS Paint on 12/12/2024 - 12:58
    +1

    I pay via PayPal and don't get the fee.*

    *Well I don't think I do.

  • icekopii on 12/12/2024 - 13:04
    +1

    open up a bank account with no international fees - problem solved

    • Chloebj on 12/12/2024 - 22:34

      Yep I have one of those and will be switching the payment to that card - it would be nice for all my direct debits to be coming out of one account/one bank though!

  • vorsprung on 12/12/2024 - 13:07

    This confused me too initially. Thought it was odd that I can be charged in AUD, yet still pay an international transaction fee.

    Recently I switched to a different Commbank card that no longer charges an international transaction fee. Other transactions it says "International transaction fee $x.xx saved", yet it doesn't say anything for Spotify.

  • askbargain on 12/12/2024 - 13:09
    +3

    Big 4 banks loyal customers be like

    • Chloebj on 12/12/2024 - 22:30

      I'm with Bank of Melbourne! But will be switching it to my Macquarie debit card

      • ol mate on 17/12/2024 - 23:08

        Bank of Melbourne = St George = Westpac’s cheaper brand. Still a big4.

  • FirstWizard on 12/12/2024 - 16:12
    +1

    My HSBC credit card has a toggle to turn off any international transactions.

    To my surprise, this also disables any AUD payments that attract international fees.
    It's been a lifesaver.

    I first attempt everything with that card as it gets me QFF points, and when it fails, I use a card without TXN fees.

  • st1ng on 12/12/2024 - 23:59

    Spotify can keep processing my Turkish Lira account on a Bendigo Bank credit card as long as they want to.

    • areallyfatsum on 09/01/2025 - 13:40

      Does that still work? Even Turkey is geo locked by bank account location now. Your existing account may not work for much longer :/

      • st1ng on 17/01/2025 - 16:32

        Signed up in late 2023, and Google is still happily charging me each month.

  • goodfella on 13/12/2024 - 10:31

    Is it something new or not happening to everyone? I've been using Spotify for ages, through various credit cards, never had this issue. Just checked November transaction, says Sydney AUS as a place of processing.

    • MrGarciaA on 15/01/2025 - 13:09

      It's been happening for a while since around 2021 from memory. I havent used Spotify in years but I do recall getting slapped with a forex fee before I cancelled my subscription. From memory it still turns up on your CC as "Spotify AU" as the merchant name, but I think around 2021 they started processing all payments made by Spotify AU in the UK, thus many Australian subscribers starting getting slapped with the forex fee by their banks.

      The forex fee charge is charged by banks and it's been gradually expanding since around 2020 so at the start people may not have experienced it until their banks updated their T&Cs to include it. However, I do know that Amex is one of the few institutions left that dont charge a forex fee even if the merchant processes payments O/S - Amex only charges the fee if the transaction itself is in an overseas currency.

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