Saturday, October 15, 2011

Avoid Credit Card Currency Conversion Fee

Visa and MasterCard have a standard 1 percent charge on foreign purchases and the issuing bank adds another fee. ...The credit card issuer or bank often charges an additional fee, usually 2 percent, which adds up to a 3 percent total charge on foreign purchases.


Every time you use your card outside the U.S., American Express, MasterCard, Visa or whichever network is handling the transaction charges your bank a percentage of the transaction (usually 1 percent) to convert your dollars to dinars, euros, yen -- the local currency. The bank that issues the credit card also charges a fee (usually 2 percent) for the transaction.

 

While there would be a limited market of those ordering from a website outside their home country, create a dynamic website pricing application that changes to any currency.  Allow customer to choose their home currency as form of payment.
Uncertain how this would be handled, or even allowed, by merchant bank in order to get funds to the store.

No comments: