Charged a foreign transaction fee on ba.com purchase from US?
Jan 24, 2013, 1:43 pm
#1
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Charged a foreign transaction fee on ba.com purchase from US?
I don't ever recall being charged a foreign transaction fee in prior years when I would purchase flights from ba.com (the US site) when the fare was denominated in USD. I previously would have used a credit card from Chase, however when I just booked my most recent flight using a US Bank credit card, I was charged a 2% foreign transaction fee. Upon emailing the bank's customer service I received the following response:
Is this new that BA flights are processed that way? It had always seemed to me that they had a US based legal entity that actually processed the charges. Either that or Chase doesn't charge that foreign transaction fee (only the 3% one for true purchases abroad which US Bank also charges).
If your foreign transaction is processed by Visa® and is in or converted to U.S. Dollars prior to being processed by Visa, we will add a Foreign Transaction Fee of 2% times the U.S. Dollar amount.
While this charge was completed in U.S. Dollars, the charge was still completed overseas. It was for this reason that a foreign transaction fee was assessed.
While this charge was completed in U.S. Dollars, the charge was still completed overseas. It was for this reason that a foreign transaction fee was assessed.
Jan 24, 2013, 2:13 pm
#4
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You will find that the terms and conditions of your card agreement state that transactions completed with a foreign merchant carry a fee, even if in your own currency.
Jan 24, 2013, 2:18 pm
#5
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Yup it was JFK-LHR. I'm pretty positive that it's simply something US Bank charges because perhaps BA sets the fare in GBP but its converted by them to USD. Chase and many other banks do not charge to my understanding.
Jan 24, 2013, 2:29 pm
#6
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That's quite odd. BA does use a US-based processing company to process itineraries departing the US... or used to at least. (For non-US departing itineraries, they can process in USD, but they may use the foreign ticketing office)
Regardless, the practice of charging a fee for foreign originating USD transactions is quite annoying to say the least. Citi does this as well. For what it's worth, Amex charges an FX fee on various cards, but not on USD transactions in foreign countries (as verified by my use of my SPG Amex in Aruba recently).
In any case, I use the Chase card for all BA purchases. It has no fees, and I earned 2.5 points per dollar spent.
Regardless, the practice of charging a fee for foreign originating USD transactions is quite annoying to say the least. Citi does this as well. For what it's worth, Amex charges an FX fee on various cards, but not on USD transactions in foreign countries (as verified by my use of my SPG Amex in Aruba recently).
In any case, I use the Chase card for all BA purchases. It has no fees, and I earned 2.5 points per dollar spent.
Jan 24, 2013, 2:41 pm
#7
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Location: Argentina
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We not only get hit with a foreign transaction fee as BA charge in US$ here but we also get hit with the 15% Kirchner tax on all foreign transactions.
At least BA don't charge us a credit card fee.
At least BA don't charge us a credit card fee.
Jan 24, 2013, 3:55 pm
#8
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Jan 25, 2013, 3:03 am
#9
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I have booked a number of BA tickets in USD, SGD, EUR, CHF and GBP. Whenever I paid with a "local" card (from the perspective of the transaction) it was free of commission, whenever I paid on a "foreign" card the commission was applied.
It may be your card issuer is playing a bit of a strange game with you, in which case it would be good for BA to find out about this.
It may be your card issuer is playing a bit of a strange game with you, in which case it would be good for BA to find out about this.
Jan 25, 2013, 3:17 am
#10
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So, in this siituation, a USD credit card processed in UK in USD will still be charged the X% foreign transaction fee
It will be in the T&Cs of the card
I doubt BA would care at all about it.
Jan 25, 2013, 3:26 am
#11
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