Foreign Transaction Fees

May 21, 2020

Please see cross boarder fees as well. Sometimes this fee is called a foreign exchange fee. It once was called a currency conversion fee. Foreign transaction fees are charged by U.S. transaction processors such as Visa and MasterCard. The card issuing bank may choose to pass that fee along to consumers. Most do, and some tack on their own fees. In recent years, as travel credit cards have become more popular, more issuers have dropped foreign transaction fees, particularly from their travel cards. The easiest way to not have your customers charged a foreign transaction fee on their purchases if you are processing payments globally is to use an IP enabled currency converter on your website and send credit card payments in their local currency.