Originally Posted by
tomjanowski
I think foreign transaction fee also makes sense. In case of fraud it could be much more difficult to recover money from abroad, also the potential recovery could be more expensive due to language barriers etc. Also, disputes could be more cumbersome, problems with jurisdiction, local regulations. Just this discussion above with customers contesting DCC payments and e.g. Chase Bank absorbing losses shows that foreign transactions are like a customer with lower credit score.
It doesn't cost anymore to recover fraud/chargebacks from abroad. The bank will issue a chargeback, the card network will notify the merchant's bank of the dispute and any response will go back through the card network (be translated) to the issuing bank.