Debit Card Fees for Online International Transactions
 

Hi,

I was wondering if anyone could tell me if there is a fee for international purchases when using a debit card. I know about the rather standard 3% credit card fee, and was wondering if there is something similar for debit card transactions. Would it be just the 1% currency conversion, like at foreign atms?

I normally wouldn't worry about this, but I and my friends each have rather large accomodation bills to pay and are debating whether it'd be more economical to wire funds, or pay online via debit (or credit). Thanks

Only your bank can answer this (or your contract with your bank) - It's up to each bank to chose to apply fees or not.

That's right... you need the disclosure to know for sure. I have used a Compass Bank visa check-card:
- for ATM withdrawals, the Visa 1% is applied
- for purchases, the Visa 1% <i>plus</i> a bank fee of 1% is applied

I agree, ask your bank, there's no rule. However, my bank treats any purchase with a debit card the same as a purchase with their credit card -- and they do charge a 3 pct foreign conversion fee on those, but only 1 pct on ATM withdrawals. Your bank could be the same.

Whether it's online or not isn't the issue. If the charge is in a foreign currency from another country, they will charge the fee if they have one.

I read that new legislation allows credit card companies using Visa or Mastercard cards to, starting today, charge a fee of 3% for any transaction that involves foreign currency, puchasing goods in foreign countries, or using an ATM card, or for a money exchange. In addition there is a $5 minimum fee for each transaction. Finally, the exchange rate can be calculated on the day that the bill is processed, rather than the date of purchase.
American Express has said they are lowering the charge to 2%.

Does anyone have any knowledge of or experience with this?

Thanks.

I don't understand what that legislation is referring to. They already can and do charge that -- at least some banks do. I don't think there is any law that the exchange rate has to be the date of purchase, either -- because I have inquired of one of my cards what the rate was and he said it was the date it was processed, not purchased, and it could be several days later. And he told me that a couple years ago, on that particular card.

I thought Amex already charged 2 pct, also, but don't have one so am not up on that.

The legislation became effective in spring 2005 - the fees themselves are not new - they just now have to be displayed as separate line-items on your statement.