Westpac Cards to charge fee on foreign transactions converted to AUD fr 20/3/2014

[AdMEL]

Just received my Westpac Altitude Black statement, which has a note at the end stating that effective 20/3/2014, a foreign transaction fee will apply to overseas purchase and cash advance/withdrawal transactions where the merchant or financial institution converts the transaction from a foreign currency to AUD at the time the transaction takes place. Mastercard = 3%; Amex = 3.5%.

 

[markis10]

Ouch, so if you miss that DCC opt out on the receipt you will get hit not only with the laughable exchange rate DCC offers but a fee on top, that could easily be 7-10% extra all up.

 

[Powerballsam]

I think you will find that you are only paying the foreign fees once. Basiclly Westpac wants to make sure that all there foreign transaction are charged whether in AUD or anything else.

 

[serfty]

I think you will find that you are only paying the foreign fees once. Basiclly Westpac wants to make sure that all there foreign transaction are charged whether in AUD or anything else.

Sadly this is incorrect.

I got stung on the weekend-only for a couple of $ so I can't be bothered chasing it up.

I had a choice between AUD and MYR - I chose MYR (marking the receipt slip) as the rate being offerred worked out to $43.50 whereas the cross rate at the time worked out to $39.90

Did not check the receipt and later found I was charged the AUD43.50. Online I now see I have been charged an additional $1.63 as a foreign transaction. - total cost $45.13 :evil:

If it had gone though as MYR the total cost would be in the order of $42.45.

I have paid 2 x conversion costs.

 

[markis10]

I think you will find that you are only paying the foreign fees once. Basiclly Westpac wants to make sure that all there foreign transaction are charged whether in AUD or anything else.

Your paying a Westpac fee once, but given DCC often includes a 4-7% margin in its conversion, the net result can still mean close to 10% lost in the transaction.

 

[AdMEL]

In fairness, many, if not most, other banks/card issuers already do this and have been for some time.

 

[AdMEL]

Sadly this is incorrect.

I got stung on the weekend-only for a couple of $ so I can't be bothered chasing it up.

I had a choice between AUD and MYR - I chose MYR (marking the receipt slip) as the rate being offerred worked out to $43.50 whereas the cross rate at the time worked out to $39.90

Did not check the receipt and later found I was charged the AUD43.50. Online I now see I have been charged an additional $1.63 as a foreign transaction. - total cost $45.13 :evil:

If it had gone though as MYR the total cost would be in the order of $42.45.

I have paid 2 x conversion costs.

There are situations where choosing the local currency can work against you. When I was in HKG last year, I booked a tour and chose HKD, but tour was cancelled. A couple of days later when cost was refunded to my card, currency had moved against me slightly, I was out of pocket a couple of AUD. Luckily I was refunded the conversion fee - I understand some cards do not do this (Amex?).

 

[Cynicor]

Westpac Cards to charge fee on foreign transactions converted to AUD fr 20/3/...

In fairness, many, if not most, other banks/card issuers already do this and have been for some time.

That's not completely true, and doesn't make it fair. None of my cards do it- Amex, HSBC, Citi, ANZ. And of course, GE.

 

[DeKa]

Re: Westpac Cards to charge fee on foreign transactions converted to AUD fr 20/3/...

Yes it sounds like they are changing to an "overseas transaction fee" rather than a "foreign currency conversion fee"
I was sure ANZ do this: Credit Card "overseas taxation fee" - Cards - Finance
I know HSBC charge an overseas transaction fee too - I've been hit with it with Australian-based merchants who bank overseas when using my WW EDR Mastercard.

 

[Cynicor]

As far as I can recall, I haven't seen it on my EDR card. It's rare that I use it oseas, so I could be mistaken.

 

[DeKa]

As far as I can recall, I haven't seen it on my EDR card. It's rare that I use it oseas, so I could be mistaken.

I have. There's a thread on the topic here: http://www.australianfrequentflyer....ard/ba-overseas-transaction-charge-32927.html
My example with WW EDR MC was paying Holiday Autos in North Sydney in AUD. Their bank is/was in the UK, so I got hit for a 3% "overseas transaction charge".

 

[N860CR]

The EDR card definitely has it. I've been hit a few times by merchants who use overseas processing but don't disclose it.

 

[Mr_Orange]

Re: Westpac Cards to charge fee on foreign transactions converted to AUD fr 20/3/...

Yes it sounds like they are changing to an "overseas transaction fee" rather than a "foreign currency conversion fee"
I was sure ANZ do this: Credit Card "overseas taxation fee" - Cards - Finance
I know HSBC charge an overseas transaction fee too - I've been hit with it with Australian-based merchants who bank overseas when using my WW EDR Mastercard.

I got hit with this even though I used a .com.au web site and was billed in AUD. EDR's line was that the merchant banks in the UK so tough luck. That was one of the contributing factors to me binning the EDR card.

 

[prozac]

Re: Westpac Cards to charge fee on foreign transactions converted to AUD fr 20/3/...

On a MH award ticket (admittedly last September) I paid the fuel and taxes in an over the phone transaction. MH offered payment in AUD or MRY. As paying in AUD was better than a published MRY:AUD forex for the day I opted for that. Westpac did not impose a foreign charge but they did not credit the 3 points for a foreign merchant transaction. Kuala Lumpur was not overseas enough for them until I called and explained.

 

[waynemerry]

The EDR card definitely has it. I've been hit a few times by merchants who use overseas processing but don't disclose it.

And that is when it will hit the preverbial, if people start get being charged overseas fees for using their card in Australia.

 

[N860CR]

I ended up canceling the card... Good rewards, but too many little issues (definitely not a Platinum card!)

 

[Mr_Orange]

Re: Westpac Cards to charge fee on foreign transactions converted to AUD fr 20/3/...

Yes it sounds like they are changing to an "overseas transaction fee" rather than a "foreign currency conversion fee"
I was sure ANZ do this: Credit Card "overseas taxation fee" - Cards - Finance
I know HSBC charge an overseas transaction fee too - I've been hit with it with Australian-based merchants who bank overseas when using my WW EDR Mastercard.

I have. There's a thread on the topic here: http://www.australianfrequentflyer....ard/ba-overseas-transaction-charge-32927.html
My example with WW EDR MC was paying Holiday Autos in North Sydney in AUD. Their bank is/was in the UK, so I got hit for a 3% "overseas transaction charge".

The EDR card definitely has it. I've been hit a few times by merchants who use overseas processing but don't disclose it.

I got hit with this even though I used a .com.au web site and was billed in AUD. EDR's line was that the merchant banks in the UK so tough luck. That was one of the contributing factors to me binning the EDR card.

It's not all cards though. Amex didn't do it and nor has Westpac Amex Black for the same merchant that I got hit up by EDR (HSBC).

 

[ChrisFlyer]

Re: Westpac Cards to charge fee on foreign transactions converted to AUD fr 20/3/...

Got stung by an FX fee when using Uber the other day in Melbourne... billed as "Uber Australia Pty Ltd London US"... won't use WBC for Uber spend again!

 

[Ghostdunks]

Re: Westpac Cards to charge fee on foreign transactions converted to AUD fr 20/3/...

Sorry to necro this, but I just noticed something on my Westpac Altitude Black statement from a few months back(as part of an audit to reconcile everything):

"Effective 27th February 2015, transactions made using Westpac American Express companion card that are in Australian dollars and the merchant or financial institution is located overseas will not incur a foreign transaction fee."

Not sure why they just removed the "foreign transaction fee"(as opposed to "foreign currency fee") for only the Amex card, and not the Mastercard card as well.

EDIT: Just found the relevant page on the westpac website as well: http://www.westpac.com.au/travel-centre/access-money-overseas/credit-cards/ , and definitely seems that the "foreign transaction fee" doesn't apply only for the Amex cards when the transaction is already in AUD and payment processor is located overseas.

 

[prozac]

Re: Westpac Cards to charge fee on foreign transactions converted to AUD fr 20/3/...

Sorry to necro this, but I just noticed something on my Westpac Altitude Black statement from a few months back(as part of an audit to reconcile everything):

"Effective 27th February 2015, transactions made using Westpac American Express companion card that are in Australian dollars and the merchant or financial institution is located overseas will not incur a foreign transaction fee."

Not sure why they just removed the "foreign transaction fee"(as opposed to "foreign currency fee") for only the Amex card, and not the Mastercard card as well.
...

This comes after complaints from customers (me for one) when WBC tried to impose the foreign transaction fee on say a payment to Malaysian Airlines for taxes and fuel surcharge on a redemption fare when we opted to pay MH in AUD as their forex was better than WBC. After complaint I had my fee refunded but they probably got sick of all the angry phone calls.