BA "overseas transaction charge" ?

[adrian]

I recently purchased a ticket on ba.com in AUD for SYD-SIN-SYD, using my Woolworths Qantas MC

Just looked at my credit card statement online, and there is an entry 2 days later listed "overseas transaction charge British Airways", equivalent to 3% of the ticket price.

I have purchased tickets on ba.com before and paid by credit card, and never had this charge before.

I thought it was a charge by the credit card company (WOW), but I called them, and they said it was a charge made by BA. Is too late in the day to call BA now, so will call tomorrow - but I have a feeling that they are going to tell me that it is a charge made by the credit card company.

Has any seen this before? Any experiences?

 

[serfty]

...
Just looked at my credit card statement online, and there is an entry 2 days later listed "overseas transaction charge British Airways", equivalent to 3% of the ticket price.

I have purchased tickets on ba.com before and paid by credit card, and never had this charge before.

I thought it was a charge by the credit card company (WOW), but I called them, and they said it was a charge made by BA. Is too late in the day to call BA now, so will call tomorrow - but I have a feeling that they are going to tell me that it is a charge made by the credit card company. ...

I have with the former, if WOW decide to charge the "Overseas" transaction fee it shows up as a separate transaction:

05/09/2011	OVERSEAS TRANSACTION CHARGE VODAFONE CC PROCESSING	$0.48
03/09/2011	VODAFONE CC PROCESSING AUCKLAND NZL	$16.07

I can't believe the WOW agent fed you that line about BA charging it.

However, it could relate to the source of the charge, if WOW are detecting AUD charges from an overseas they would charge the 3%.

https://creditcard.everydayrewards.com.au/pdf/FeesAndCharges.pdf

Overseas transaction charge

– payable when you make a transaction on your account in a currency other than Australian dollars, or you make a transaction on your account in any currency (including AUD) that is processed by the card scheme or billed by the merchant outside of Australia.

 

[adrian]

I have with the former, if WOW decide to charge the "Overseas" transaction fee it shows up as a separate transaction:

05/09/2011	OVERSEAS TRANSACTION CHARGE VODAFONE CC PROCESSING	$0.48
03/09/2011	VODAFONE CC PROCESSING AUCKLAND NZL	$16.07

I can't believe the WOW agent fed you that line about BA charging it.

However, it could relate to the source of the charge, if WOW are detecting AUD charges from an overseas they would charge the 3%.

https://creditcard.everydayrewards.com.au/pdf/FeesAndCharges.pdf

Thank you Serfty, you just saved me endless time on the phone to BA asking then a question that they can't answer.

It seems to be as I suspected... a charge by WOW. The WOW agent did definitely say however that it was a charge from BA, and not from WOW.

I have purchased a BA ticket in the same way a few months back, on my old Citibank MC, and they didn't have this charge.

Quite a steep charge, especially when it is not always possible to know that the merchant will be charging you from outside of Australia. Will chalk it up to experience (was only a cheap $900 ticket, luckily), but will definitely be using my 28 degree MC in future if I think the merchant may be outside Australia.

I really don't know how you are meant to know.... I recently purchased a ticket on expedia.com.au for $7000 (I accidentally used my 28 Degree MC, but that may have been a good thing in hindsight) , but the credit card statement shows that the merchant was "FINNAIR SYD AUS". The merchant could quite easily have been Finnair in Finland, or even Expedia USA.

Liking the WOW card a little bit less as of today....

 

[Grooba]

Will chalk it up to experience (was only a cheap $900 ticket, luckily), but will definitely be using my 28 degree MC in future if I think the merchant may be outside Australia.

28 degrees MC = OS FTW. Don't even think of using anything else.

 

[TonyHancock]

I just double checked my Amex statement from last month and my MEL-LHR return was charged from BA AUS without any additional charge. My assumption, rightly or wrongly, that Amex is charging this as an Australian transaction.

Is it worth pursuing this with Woolworths a bit further?

 

[oz_mark]

I just double checked my Amex statement from last month and my MEL-LHR return was charged from BA AUS without any additional charge. My assumption, rightly or wrongly, that Amex is charging this as an Australian transaction.

Is it worth pursuing this with Woolworths a bit further?

I am not sure Amex charge for AUD transaction made outside of Australia, whereas Visa and Mastercard accounts, and attached Amex if relevant, tend to.

Amex don't really allow DCC, although there is some ability for some merchants to bill in multiple currencies.

From the WOW perspective, some of the charge comes from the credit card company, they add a bit and pass it on.

 

[AdMEL]

I am not sure Amex charge for AUD transaction made outside of Australia, whereas Visa and Mastercard accounts, and attached Amex if relevant, tend to.

Amex don't really allow DCC, although there is some ability for some merchants to bill in multiple currencies.

From the WOW perspective, some of the charge comes from the credit card company, they add a bit and pass it on.

Not all Banks charge for AUD transactions through overseas merchants. For example, Westpac currently do not.

What do you mean Amex don't really allow DCC? How is that different to charging in multiple currencies?

Some banks charge merchants a higher % fee for foreign cards (again, not all - Westpac currently charge a blended rate), however for those that do, very little (usually less than 0.5%, often much less) of the 3% commonly charged is additional to the normal rate. It's just a money making venture by whoever is charging it.

 

[adrian]

28 degrees MC = OS FTW. Don't even think of using anything else.

My rule of thumb for the last few years, has been to use 28 degrees / Wizard MC for any foreign currency transactions, and my old Citibank Platinum MC / now WOW MC for any AUD transactions. And certainly this has saved me many thousands of $ in forex transactions charges.

But I guess my "new" rule of thumb, will be to use 28 degrees for any foreign currency transactions OR any transactions where there is a chance that the merchant may be located outside of Australia, and WOW for the rest. Not quite as convenient as the old rule though....:-|

 

[eastwest101]

To the OP: Don't like the fact that your credit card provider wouldn't/couldn't give you a straight story.

Would be interested to know if you have the BA invoice or ticket - is there an Australian GST charge on that?

 

[adrian]

To the OP: Don't like the fact that your credit card provider wouldn't/couldn't give you a straight story.

Would be interested to know if you have the BA invoice or ticket - is there an Australian GST charge on that?

I don' think they charge GST on international tickets. But Australian charges seem high....

BA fuel surcharges have gotten out of hand - around 60% of the pre-tax price

 

[eastwest101]

*pacepalm* Of course there's no GST on international flights - I should have known that - but I take your point on all the other surcharges and fees, the BA Fuel Levy is particularly excessive, but they are all annoying in their own right.

Eventually the industry is going to have to do something about all of these.

I'm surprised that there hasn't been a competition on here to find out who can book an itinerary with the most fees, surcharges and levies.

 

[elbarto]

*pacepalm* Of course there's no GST on international flights - I should have known that - but I take your point on all the other surcharges and fees, the BA Fuel Levy is particularly excessive, but they are all annoying in their own right.

Eventually the industry is going to have to do something about all of these.

I'm surprised that there hasn't been a competition on here to find out who can book an itinerary with the most fees, surcharges and levies.

Fuel surcharges are the biggest scam going in aviation. I've begun to wonder what my ticket actually consists of since there seems to be a surcharge for just about everything added on.


Sent from my iPad using Aust Freq Fly app

 

[adrian]

Just an update to my original post.....

Received my monthly stmt in the mail.... and the "overseas transaction charge British A $26.94" has disappeared.

I have a print out of the online transactions from 2 weeks ago, so it was definitely there.

Not sure why - I never called them back after the original WOW operator told me that it was definitely a BA issue, so I never actually asked them to remove. Nice that it is gone, although now I have to redo my expense report :shock:

 

[manlai]

I purchased my yearly subscription to the Financial Times Asia yesterday and say the same thing. Pity they don't accept AMEX. 3% is a bit rich...

 

[DeKa]

I booked a rental car with Holiday Autos recently and paid on my WW EDR card. It was slugged with the overseas transaction charge too, even though the company is clearly based in North Sydney. I have booked with Holiday Autos before using my WW EDR card and not paid the fee.

I questioned WW/HSBC who told me they used their British merchant account, but charged me in AUD so it was levied the fee.

I questioned Holiday Autos who said there was nothing they could do about it. I cancelled the rental (which also refunds the transaction fee) and went elsewhere.

 

[adrian]

I really like this card, but a getting tired of the "overseas transaction charge". The latest is from vistaprint.com.au

Seriously, how are you meant to know it is going to be charged offshore???

 

[DeKa]

I really like this card, but a getting tired of the "overseas transaction charge". The latest is from vistaprint.com.au

Seriously, how are you meant to know it is going to be charged offshore???

This isn't an issue specific to this card. It's an issue for all cards other than 28 Degrees. It is a challenge, but I now ask the merchant when ordering online where their merchant account is based. If the company is a multinational (and both and Holiday Autos are) it tends to be an off shore merchant account. Surprisingly, Apple seems to be one of the few multinationals which has a merchant account in Australia for online purchases.

 

[AdMEL]

This isn't an issue specific to this card. It's an issue for all cards other than 28 Degrees. It is a challenge, but I now ask the merchant when ordering online where their merchant account is based. If the company is a multinational (and both and Holiday Autos are) it tends to be an off shore merchant account. Surprisingly, Apple seems to be one of the few multinationals which has a merchant account in Australia for online purchases.

That's not quite correct at this point in time. It's not an issue for all cards other than 28 degrees - there are many cards that currently do not charge an overseas transaction fee where the merchant is outside Australia, but the purchase is in AUD. These include all cards issued by Westpac, CBA and ANZ. NAB cards charge the fee.

 

[esquire]

That's not quite correct at this point in time. It's not an issue for all cards other than 28 degrees - there are many cards that currently do not charge an overseas transaction fee where the merchant is outside Australia, but the purchase is in AUD. These include all cards issued by Westpac, CBA and ANZ. NAB cards charge the fee.

I have had a number of overseas transaction charges with the EDW Card - including an Australian book publishing house (UK) and Groupon (Germany)! Both merchants have been very clear the transaction was done here in Australia....

Am sick of WW blaming the merchant and vice versa. Asked why other banks don't charge the fee the response has been - Well we do!

Don't use the card for internet transactions anymore ....

 

[yo yo ma]

I thought it was a charge by the credit card company (WOW), but I called them...

Just to clarify, the credit card company is HSBC, not Woolworths