![]() ![]() While these fees are sometimes referred to as “international service assessments” they will typically be listed on your statements as either a “cross-border fee” or as a “foreign transaction fee.” Put more simply, it’s a fee instituted when a merchant in one country (e.g., the United States) accepts payment from a customer whose card originates from another country (e.g., China). The merchant can access international payments and opportunities in exchange for this fee.Īnd what exactly is a cross-border fee? In short, it’s an assessment charged to a merchant when a customer pays with a credit card issued by an international bank. As assessment fees increased, so did the annoyance of MasterCard and Visa.īefore long, the card networks shifted the burden of international fees to the issuing bank or processor, which ultimately fell to the merchant. ![]() That all changed in 2005 when cardmember associations like MasterCard and Visa realized that e-commerce was here to stay. In this blog post, we’ll explain cross-border fees, discuss why they’re being charged to you, and reveal how you might be able to avoid them (or at least reduce their financial sting). Perhaps there’s one charge in particular that grabbed your attention - “ cross-border fee. That’s especially true in our global economy.ĭespite the convenience of e-commerce, countless costs creep into every sale.Īs a merchant, you’ve probably been both frustrated and shocked by the range of fees that accompany international payment transactions. Fashionistas in Canada can buy world-renowned leather products direct from Italy.Īnd yet, in the business world, increased accessibility often leads to increased fees. ![]() Gourmands in Russia can buy the highest-quality chocolate straight from Switzerland. With the click of a button, consumers in Asia can buy goods from merchants in America. ![]()
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