International transaction fees on flights sold in AUD

[4lex]

Bought some return flights ex PER on MK. Advertised in AUD, can't spot any small print saying they'll charge in any other currency, and transaction value on statement is identical to the displayed value, to the cent - however the bank have charged an excessive transaction fee. Anyone successfully argued a similar case?

 

[jetpack]

I am not sure if there is any consumer protection with regards to the non disclosure of AUD purchases processed overseas. I fear the bank and MK will just blame the other. Prevention is probably better in this instance by switching to a card with no FX fees. I hope the bank shows some goodwill anyway and give you a refund.

 

[Danger]

Bought some return flights ex PER on MK. Advertised in AUD, can't spot any small print saying they'll charge in any other currency, and transaction value on statement is identical to the displayed value, to the cent - however the bank have charged an excessive transaction fee. Anyone successfully argued a similar case?

Unfortunately this isn't limited to airlines but includes any businesses which is based overseas, even when charging in Australian dollars.

I've had this issue with ANZ and Skype several times in the past. The normal re-charge is AUD16. AUD16 is charged to my card but then there's been a foreign transaction fee. I've successfully disputed it a couple of times but in recent months I recall seeing something from ANZ in writing that talks about such situations. Of course, it's often not easy to know whether or not you're dealing with a foreign business.

 

[burmans]

Bought some return flights ex PER on MK. Advertised in AUD, can't spot any small print saying they'll charge in any other currency, and transaction value on statement is identical to the displayed value, to the cent - however the bank have charged an excessive transaction fee. Anyone successfully argued a similar case?

The problem here is that the transaction fee you are referring to is charged by the bank and not the vendor. The vendor is not party to the card issuer's T&C's and if I was a vendor I certainly wouldn't want to or be taking responsibility for these card terms over which I had no control.

The card issuer, now that may be a different story. But what has been noted previously is that some cards charge a foreign transaction fee based on the location they have recorded for the merchant, not the fact that it is charged in AUD. If the card issuer is doing this they almost certainly have it in their T&C's and hence the chance you can argue it is low. You may not like it but if they have declared they can do this then generally they in fact can unless its contrary to law (and I don't believe it is). But worth checking to see they really do say this.

 

[TheRealTMA]

Bought some return flights ex PER on MK. Advertised in AUD, can't spot any small print saying they'll charge in any other currency, and transaction value on statement is identical to the displayed value, to the cent - however the bank have charged an excessive transaction fee. Anyone successfully argued a similar case?

Unfortunately it's part of the Australian bank rip offs. Irrespective if the site is in Australia and you pay in A$, if the company uses an offshore centre to bill your card then you will be hit with a 3+% DCC fee. It is possible to appeal to your Cc company.

I bought F tickets from EK from the Australian web site and paid in A$ and was hit. I had $900 refunded from westpac some years ago for this but it's not generally done by the banks.

There was a case done time ago that if you bought tickets to the Sydney aquarium, whose parent company is in the US, that you were charged a foreign transaction fee.

This now always applies to Visa and MasterCard from major Australian banks and some bank issued Amex. Amex directly issued cards do not attract the fee if you make the payment in Australia in A$ or purchase travel through their web site.

There are confusing statements from banks on bank issued Amex cards.

It's simply theft by the banks. ACCC and Reserve bank should act on the issue.

 

[burmans]

I think you may be confusing your regulators there!

 

[NM]

There are a lot of web sites (no9t just airlines/air fares) that use geo-tracking to identify your country and automatically revert to your local currency. These will have the exact same issue as the transaction may be in AUD but is still deemed a foreign transaction since the merchant processing the credit card payment is not based in Australia with a local merchant facility/relationship with Australian financial institutions.

When purchasing from such international web site, I always change the currency to the local currency of the merchant (most commonly USD) and use my 28 Degrees card to make the purchase. The exchange rate is always better and there is no additional fee for being a foreign transaction.

But as some people here have noted, its often not clear that the transaction will be transacted outside Australia when the currency offered is AUD. So very easy for people to be caught out by this charge.

 

[Cynicor]

Amex are clear if this, so are the banks with no fx few, obviously.
There are a few others who are ok too.
It's come up in a few threads but you'll need some good google-fu to find the lists.

 

[Cynicor]

Citibank charge now, was in a recent-ish T+C update.

 

[4lex]

Well I got the money back, but had to threaten to close the card. Which I will anyway. Thieves. While we're at it, I could use a zero annual fee keeper visa or mastercard which doesn't attract this kind of stupidity, any recommendations? Cheers

 

[TheRealTMA]

Well I got the money back, but had to threaten to close the card. Which I will anyway. Thieves. While we're at it, I could use a zero annual fee keeper visa or mastercard which doesn't attract this kind of stupidity, any recommendations? Cheers

28 degrees or city bank are popular. Or, get a 'proper' amex issued amex card, but they are expensive. So it depends on whether you value points or not.

 

[Strategic Aviation]

While we're at it, I could use a zero annual fee keeper visa or mastercard which doesn't attract this kind of stupidity, any recommendations?

Bankwest Zero Platinum Mastercard if you can qualify for it. 28 Degrees Mastercard is the alternative if you can't, but has some of its own stupidity including fee to BPay and apparent issues with their online payment portal.

Citibank Plus can be used in similar fashion but is a transaction account (with debit card), so money has to be in the account in order to use it. CP is best for ATM withdrawals overseas.

 

[4lex]

Cheers. Already holding an amex amex, signed up the BW product too.

 

[oz_mark]

Well I got the money back, but had to threaten to close the card. Which I will anyway. Thieves. While we're at it, I could use a zero annual fee keeper visa or mastercard which doesn't attract this kind of stupidity, any recommendations? Cheers

Visa and Mastercrad charge the banks about 1% for any cross border transaction. The banks (not all) pass that on, and add an extra bit themselves.

 

[kyanar]

Perhaps record which foreign airlines charge in AUD and use an Australian based processor in order to avoid the fees?

Air New Zealand processes out of "Auckland, Sydney" and therefore avoids the fee.
United Airlines processes as "United Continental" out of "Australia" and avoids the fee (and has remnants of CO!)

 

[Cynicor]

Much easier and smarter to just get an FX fee free card.
There're at least 3 on the market which I have-
28 degrees, Bankwest plat/world and coles MC.