Wednesday, July 16, 2008

What is the cross border fee?

Usually a percentage out of a transaction ranging from 1 to 3. Say for example you have a purchase of $50 and an additional $0.5 next to it showing related to that purchase then that $0.5 is the cross border fee.

It is something supposed to keep processing costs low but in fact it`s a fee that goes straight into the banks pockets.

Stoping this fee seems to be a major hassle since both Merchants and Customers don`t appreciate it yet banks often don`t admit to being the ones that actually charge it.

It`s incorrect to believe that it is a fee charged by the Merchant e.g. Flight Tickets Company but it also is incorect to be billed on against your Account.

A good idea is to ask your issuing bank to stop it or use a bank that doesn`t charge this fee. After all, during a 1 yeatr period you might end up paying a lot more than you should.

If you are a Merchant the same applies, business might be negatively impacted and need to take it with the banks as Customers don`t have anything to do with it.

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