We have recently reported on a number of questionable practices in which credit card companies are engaging to maintain their profits in the wake of the Credit Card Accountability Responsibility and Disclosure Act of 2009. Among these practices is the foreign transaction fee, which credit cards may assess on almost any purchase relating to a foreign entity.
While foreign transaction fees were historically charged on purchases made in foreign currencies, and thus consumers may be cognizant of the potential for such a charge, for example, when using a credit card in a foreign country while traveling, consumers are rarely advised that such a charge may result from a purchase made from the comfort of their own homes.
In fact, Internet purchases frequently result in such charges, even for purchases made in U.S. dollars. Consumers may be especially at risk for such charges through on-line purchases because the location of the selling company is often undisclosed. Moreover, credit card companies regularly fail to adequately disclose the nature and scope of the potential fees, which may be as high as 3% of the total transaction price.
Consumers may protect themselves from such fees by:
- Ensuring that all Internet purchases are made through companies located in the United States or offering a U.S.-based version of their websites;
- Carefully monitoring their monthly credit card statements; and
- If foreign transaction fees are assessed, contacting their credit card companies to challenge the fees.
If you are a credit card consumer who has incurred charges as a result of these or other improper practices, please contact us to discuss your legal options.