Paid in AUD for a product in Australia on a website - got charged fee !?!

[brett-au]

Hi

I'm just going through my NAB statement and I have a handful of fees that surprised me. I ordered some stuff online and paid in AUD, yet there is a fee.

"NAB INTNL TRAN FEE"

Is this right? I thought I would check here and get someone to quote some clause in the PDS at me rather than ring up and waste time waiting on hold.

Thanks

 

[chrisb]

Annoying but correct. It means the supplier is using an overseas merchant account even though they're using AUD.

I got charged one of those recently for a charge by Royal Caribbean.

 

[oz_mark]

"NAB INTNL TRAN FEE"

Is this right? I thought I would check here and get someone to quote some clause in the PDS at me rather than ring up and waste time waiting on hold.

It will be in the Fee Schedule rather than the PDS. Look for 'Single Currency Transaction' - A transaction made in Australian Dollars with an internationally designated merchant,

 

[here2go]

A lot of banks do that. 3% plus for a foreign merchant. Check terms and conditions as suggested.

 

[akeno]

I learnt the hard way myself

Page 22-23 of NAB Credit Card Terms & Conditions

ii) Single Currency Transactions
By your agreement with the merchant, purchases are converted to AUD by the merchant at the point of sale using exchange rates provided by
a third party. These transactions are subject to a NAB International Transaction Fee as specified
in your credit card details and charged to you in accordance with 7.1(d).

 

[Cynicor]

For reference, this fee is not charged by AMEX AU, 28 degrees or Citibank. Possibly on the EDR card but i haven't used it so I don't know.

 

[d00dz]

Charged on ANZ cards

 

[DeKa]

Charged on HSBC including Woolworths EDR MC

 

[Aussie_flyer]

another good one for the Bankwest Platinum mastercard

 

[knasty]

I've seen a number of 'local' websites which are actually just fronts for businesses which ship the product directly from Asia. You actually end up with the double whammy in any cases here - the merchant (or their payment system) has probably built in a margin when displaying the price in AUD (search for "Dynamic Currency Conversion" or DCC on a similar issue when using your cards overseas), then you get hit with a foreign payment fee from your provider (excl. Bankwest Platinum & 28 degrees). Definitely something to look out for with foreign retailers, and 99 times out of 100 you're better off paying in the merchant's local currency.

 

[dontwanttoregister]

I had a similar experience purchasing a Merlin Annual Pass from the Sydney Aquarium. I bought an Australian service, from an Australian website in AUD and was charged an overseas merchant fee. My argument with NAB was that there is no possible means for a consumer to know whether the merchant is based offshore. I find that abhorrent. I have no problem with paying the fee where it is transparent (ie an overseas website, etc). I followed this up with the merchant and they had no idea what I was talking about, ie "we charge in AUD, so you shouldn't have a problem, talk to your bank."

While not NABs fault as such, I was mightily peeved when I questioned this and rec'd a canned response followed by reference to small print on Sydney Aquarium's website terms and conditions. Missed the point entirely and makes a mockery of their promised service of honest banking!

 

[Aussie_flyer]

I had a similar experience purchasing a Merlin Annual Pass from the Sydney Aquarium. I bought an Australian service, from an Australian website in AUD and was charged an overseas merchant fee. My argument with NAB was that there is no possible means for a consumer to know whether the merchant is based offshore. I find that abhorrent. I have no problem with paying the fee where it is transparent (ie an overseas website, etc). I followed this up with the merchant and they had no idea what I was talking about, ie "we charge in AUD, so you shouldn't have a problem, talk to your bank."

While not NABs fault as such, I was mightily peeved when I questioned this and rec'd a canned response followed by reference to small print on Sydney Aquarium's website terms and conditions. Missed the point entirely and makes a mockery of their promised service of honest banking!

Well that is disgusting from the Sydney Aquarium! That is the last place you would be expecting to be hit with a foreign currency fee. I can understand for airlines and cruise companies that are based offshore but an aquarium in Sydney? amazing

 

[Mal]

Well that is disgusting from the Sydney Aquarium! That is the last place you would be expecting to be hit with a foreign currency fee. I can understand for airlines and cruise companies that are based offshore but an aquarium in Sydney? amazing

Merlin are uk based. So likely use their uk facilities. Agree its rediculous. And the consumers are usually unaware.

 

[ftm]

While not NABs fault as such, I was mightily peeved when I questioned this and rec'd a canned response followed by reference to small print on Sydney Aquarium's website terms and conditions. Missed the point entirely and makes a mockery of their promised service of honest banking!

I'd direct the disgust at the Sydney Aquarium. Makes little logical sense for a consumer to expect them to be using an offshore merchant facility.

 

[eastwest101]

See the Chaser boys new show "The Checkout" on ABC tv ivew (ep.3) for more stuff about Sydney Aquarium - look at their website for a laugh.

COMPLAINT LETTER : WATER PRICE @amp; THE AQUARIUM
Dave Oliver, 58, is unhappy about paying $3.80 for a bottle of water... AT THE AQUARIUM!

H2OMG
The Checkout starts its’ search for the most expensive bottle of water in Australia. Tell us yours: #mostexpensive; post on our Facebook wall; or email [email protected]


I would also like to know why Sydney Aquarium use an offshore merchant facility, maybe due to most of their customers being from overseas, or possibly tax reasons?

 

[Mal]

I would also like to know why Sydney Aquarium use an offshore merchant facility, maybe due to most of their customers being from overseas, or possibly tax reasons?

As I said earlier, the owner of the aquarium is a uk based company called Merlin (they also own London eye, Lyndon dungeons and a host of other tourism places mainly in the uk).

I suspect the web portal and booking engine/merchant facility is hosted in the uk (and uses the ability to charge visa or MasterCard in another currency) . Makes sense from an IT and simplicity perspective...

 

[moa999]

Another one for you.
Uber
Got charged the fee on my WOW Amex card.

Yes a US company, but an Australian sub, and Australian ABN, I got a cab in Australia, paid in Australian dollars using a mobile phone on an Australian network, albeit probably made in China.

 

[oz_mark]

Another one for you.
Uber
Got charged the fee on my WOW Amex card.

Yes a US company, but an Australian sub, and Australian ABN, I got a cab in Australia, paid in Australian dollars using a mobile phone on an Australian network, albeit probably made in China.

Uber are aware of this:

Hi Everybody!

Thanks for your interest and review of Uber.

1. Uber is a global company and we do process credit card transactions in one overseas location. We were quite surprised and disappointed to discover here that a very small number of Australian credit cards add a fee to Uber transactions, even though Uber bills our customers in domestic AUD.

 

[eastwest101]

Let the "buck passing" begin!

 

[ChrisFlyer]

Another one for you.
Uber
Got charged the fee on my WOW Amex card.

Yes a US company, but an Australian sub, and Australian ABN, I got a cab in Australia, paid in Australian dollars using a mobile phone on an Australian network, albeit probably made in China.

I used Uber on the weekend, and whilst the amount charged did appear to be from an overseas facility (it had an 800 number as the location description instead of a city or suburb in Australia), I can confirm that on the CBA Diamond card at least, no additional charges or fees were applied (and there was no Amex surcharge either)... something to keep in mind if you have both cards!