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Email this12:54 pm
February 11, 2024
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I have a $US VISA credit card from TD Bank (US). I have been using this card for years to make $US purchases online and when I'm traveling in the US.
Recently I made a purchase from an online retailer that charges in $US.
When I got my statement I was charged a 3% Foreign Transaction Fee even though the statement shows there was no currency conversion involved.
The bank says the fee was charged because the transaction originated in the Netherlands and refused to reverse the charge.
I have been purchasing from this retailer for years using the same card and have never been charged the Foreign Transaction Fee before.
The retailer says there has been no change in the way they process payments.
Could this have something to do with US politics?
1:52 pm
April 27, 2017
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A “foreign transaction fee” doesn’t just mean a currency conversion. It also applies when the payment processor or merchant’s bank is outside the U.S.
I am guessing that if you read the small print, you will find that TD is right. They may have changed the processor - or simply started enforcing old policy.
2:11 pm
August 4, 2010
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This is a US-based USD card issued by their US arm, TD Bank, right? Not the USD card issued in Canada by TD Canada Trust? It looks like the former does have that 3% Foreign Transaction Fee - it looks like they charge that for "Foreign" (non-US) transactions. It has nothing to do with currency exchange, which didn't happen here.
I'm guessing this online retailer is based in the Netherlands, or at least in the EU? They likely have a third party handle their credit card transactions. Even if the retailer hasn't changed third parties, the third party may have switched from introducing the charges to the VISA network in the US, to doing it from the Netherlands, which would make purchases suddenly look "foreign", and it might not be obvious to the retailer when you talked to them. It might be just the normal course of business change, but an EU company could easily have decided to take a step back from US financial stuff by dealing with Visa over there instead of in the US.
If the retailer is based in the US, I suppose it is possible their payment processing has switched to something based in the Netherlands, but that would seem less likely. In any case, the charge seems quite likely to be legit, given the US-issued card agreement.
I've got the Canadian-issued TD USD card (although I barely use it), and I don't think it has a similar fee, which makes sense given it is mostly for non-domestic use in the first place.
When I was in the States last year, I used that card a bit, but also the prepaid Mastercard that is attached to my Wealthsimple Chequing account. That doesn't charge FX fees (just Mastercard's own posted day rate), and may be of interest to those that don't have a stash of US dollars and a USD card, or a no-FX proper credit card. I think EQ does something similar with their banking card.
2:26 pm
February 11, 2024
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I found this on facebook and I quote:
"TD Bank has decided (as of March 23rd) to charge a 3% Foreign Transaction fee on all charges in the USVI. if you are a customer, they notified you on page 4 in the fine print of your March 2025 statement.
apparently other banks are not doing the same as yet."
This card has lost its appeal for me and I'm going to cancel it and the checking account I have at TD Bank in the US.
2:49 pm
December 18, 2024
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Here is Home Trust Visa.
No foreign exchange fees
It’s one of the best international credit cards available because you pay NO exchange fees1 on foreign currency transactions — even when you shop online. Many other credit cards charge you a 3% fee when you buy something in a foreign currency.
No fee on any foreign currency and 1% cash back for Canada purchases.
This does me just fine.
But I do understand you may have a card with other benefits that you value.
Like everyone else. Closing all the small holes for more profit
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