Understanding your Foreign Transaction Fee
Recently we contacted some of our BankSA branded Consumer, Business & Corporate cards customers about changes to their Foreign Transaction Fee and applicable refunds.
To assist you with any further questions you may have, please read through the following Frequently Asked Questions.
Why am I being contacted about changes to my Credit Card fees and charges?
From 20 May 2016, the Foreign Transaction Fee was broadened to cover credit card transactions made in Australian dollars (AUD) with merchants or financial institutions located overseas.
We notified customers of this change via a notification flyer between 11 March 2016 and 10 April 2016.
However, following a review of how we notify customers of changes in fees and charges, we have identified that some customers were not appropriately informed.
Which customers are being contacted?
BankSA customers who meet the following criteria:
- received a Consumer, Business or Corporate credit card e-statement between 10 March 2016 and 11 April 2016
- signed up for a new Consumer, Business or Corporate credit card between 11 March 2016 to the 19 May 2016
Why did I receive more than one letter?
If you hold more than one credit card, you will receive more than one letter and notification flyer.
Why was I not previously notified?
Most Consumer, Business or Corporate credit card customers should have received a notification flyer with their credit card statements; however this did not happen if you received an estatement between 10 March 2016 and 19 May 2016.
If you opened a new Consumer, Business or Corporate credit card between 11 March 2016 and 19 May 2016, you should have received a notification flyer however it was not included with the Welcome Letter.
What is the Foreign Transaction Fee, as defined in the Conditions of Use and Credit Guide?
The "Foreign Transaction Fee" is a fee charged to you by BankSA being a percentage of the Australian dollar value of a foreign transaction. The percentage varies depending on the applicable credit card scheme.
A "Foreign Transaction" is any Purchase or Cash Advance made using the Card:
- in a currency other than Australian dollars; or
- in Australian dollars or any other currency with a Merchant located outside Australia; or
- in Australian dollars or any other currency that is processed by an entity located outside Australia.
Note: It may not always be clear to you that the Merchant or entity processing the transaction is located outside Australia.
When did the changes to the Credit Card Conditions of Use become effective?
These changes to the Credit Card Conditions of Use became effective for most customers from 20 May 2016 however, because we have not informed you of these change until 24 August 2016, these changes will only apply to you from 14 September 2016.
How do I know whether a Foreign Transaction Fee will be charged before I make a credit card transaction in Australian dollars?
It may not always be clear that the Merchant or entity processing the transaction is located outside Australia. If you’re unsure it is best to contact the Merchant to enquire before making a purchase.
When will my refund occur?
Your refund will be processed after 14 September 2016 once we have calculated the interest due.
What do I need to do to get my refund?
You do not need to do anything. The refund will be processed into your relevant account.
What will the refund contain?
We’ll refund all the relevant foreign transaction fees and associated interest charged between 20 May 2016 and 13 September 2016.
We’ll also compensate you for any loss of interest by adjusting the refund amount using our Incentive Saver interest rate applicable at the time.
What if I have already received a refund for this Foreign Transaction Fee?
If you have already received a refund for the impacted transactions, you may only receive an adjustment for interest.
What is an example of a specific AUD transaction where the Foreign Transaction Fee refund might have applied?
An example scenario where the foreign transaction fee refund might have applied is if you used a consumer credit card to purchase a book online on 25 May 2016 in Australian dollars and the merchant was located outside Australia.
I claim foreign transaction fees as a tax deduction. What should I do?
Once you receive your refund, you may like to consult your tax adviser to discuss whether this refund has any tax implications for you.
How will I know if I will be receiving a refund on my BankSA Credit Card?
Impacted customers receiving a refund will be notified shortly after 14 September 2016, once we have calculated the interest due.