If you’ve ever traveled overseas and used a credit card for purchases, you’ve likely seen an additional charge on your statement. This charge is typically a mystery for cardholders, but we can explain it! Here, you’ll find everything you need to know about ISA fees.
What is an ISA Fee?
ISA Fee Table of Contents
ISA fees may vary depending on a few factors. Those factors may include, but are not limited to:- The country in which the transaction was made
- The amount of the transaction
- The merchant with whom the transaction was made and if they passed along any merchant fees
When is the Visa ISA Fee Charged?
The Visa International Service Fee is charged at the time of the transaction for which it is being assessed. Each qualifying transaction will incur the .08% fee on the amount of that purchase. Payment of the ISA fee follows the billing cycle of the card on which it is charged.
ISA fees are charged for all qualifying transactions made in person and online. If a cardholder makes an online purchase with a card from an overseas bank, it is likely that the International Service Fee will be applied. It will also be charged if a cardholder purchases goods from a merchant with an international account. There are some instances in which the ISA fee won’t apply, but they are few and far between.
Who Pays the ISA Fee?
The cardholder pays all International Assessment Fees charged to their card for international transactions. Reasons for which you may be charged these fees include:
- Using your card in another country
- Using a credit card from a foreign bank
- You have a merchant account that accepts payments from foreign countries
- You have a business based in a foreign country
Regardless of the reason for which the fees are charged, they will be added to your statement and payment will be required based on your card issuer’s policies. You may also be responsible for other fees incurred from the specific merchant you are purchasing from. Merchants are often charged for international purchases, and they pass those along to their customers.
How to Keep International Assessment Fees Low
If you’re planning to travel abroad or make purchases as described above, consider doing some research to find out how to lower your card fees. There are a variety of ways in which you can accomplish this. Here are a few of them:
Choose the Right Card
If you have multiple cards in your wallet, call each of the card issuers or check out their website. Determine which ones have the lowest ISA fees and plan to use those for your purchases. Visa cards tend to have lower fees than other cards but double-check your specific cards prior to making the purchases.
In addition to the ISA percentage, each card may have other fees associated with international purchases. Check with your credit card company on this, as well. The card with the lowest ISA may not be the best option if their other international fees are extremely high. Knowing and understanding the entire fee structure of each card is a great place to start.
Consider Alternate Payment Options
While small purchases don’t usually incur major fees, large purchases can be a concern. If you’re planning to make large qualifying purchases that will incur hefty fees, consider finding other ways to pay. For example, can the purchase be made with an ACH or Wire payment? Is the wire fee lower than the ISA fee will be? If so, consider paying this way instead of using your card.
- If you choose to use cash to make the purchase, there are some other things to consider.
- If you’re overseas and need to convert American cash to the local currency, there may be fees associated with this
- Carrying large amounts of cash through a foreign country could be a risk to your safety
- When it comes to avoiding fees, cash is typically one of the best options available. Checking on conversion fees is a smart way to ensure that your fees for purchases will in fact be lower.
Consider Flat Fee Credit Cards
If you travel overseas frequently, you might consider researching flat-fee cards over traditional ones. They could be a good fit, but you’ll need to learn the details about those cards. For example, the card may have a lower ISA fee but could lack the benefits that you’re accustomed to from your other cards. Additionally, flat-fee cards could have higher interest rates than traditional cards. If you don’t plan on paying off the purchase right away, you could cost yourself more money in interest than you would have on other cards.
Review Your Suppliers
If you don’t travel abroad on a regular basis but still incur fees, it’s time to evaluate your suppliers. Purchasing supplies online could result in ISA fees on your card if the merchant you’re purchasing from has an overseas bank or merchant account. Reevaluate where you are purchasing goods and supplies and try to find vendors who have a US bank account, even if their physical business is overseas. This can
be difficult to untangle, and may take some time to figure out, but it could save you a ton of money in ISA fees.
Can the International Assessment Fee be Negotiated?
The ISA fee cannot be negotiated. It is a standard fee that is charged on all cards by all issuers. Some card issuers change the fees based on the size of the business or the transaction volume, but this is not something that individuals can negotiate.
What Other Fees Are Charged for Overseas Purchases?
The International Assessment Fee is not the only fee that card issuers charge on international transactions. Processing card payments is a complex business, and their fee structure tends to follow suit. Each card is different, but here is a summary of some different fees that may be charged:
Interchange Fee
This fee is charged by banks to the merchant who processes a card payment. It is designed to cover the bank’s costs of processing the payments. It is charged on all purchases – not just international ones. Some merchants pass this on to their customers while others do not.
Cross-Border Fee
This fee is charged when a merchant with an account in one country accepts payment from a customer whose account is in another country. It is used to cover the costs of processing the payment, just like the interchange fee. The cross-border fee is charged in addition to the interchange fee and the ISA fee.
International Processing Fee
This fee is specific to Discover cards. If you’re using a Discover card to make qualifying purchases, this fee will be assessed on those purchases in addition to the other fees listed above. Their fee structure is much easier to understand, though. Check out your Discover billing statement or online account to review the fee structure and how it works.
Where Are International Service Fees Listed?
Most credit card companies make these fees easy to find on the card statement. Review your statement in detail to see if you can identify the fees. If you review your statement online, you may be able to sort the transactions by type, in which case all these fees would be grouped together. When all else fails, call your credit card company and ask them to walk you through your statement to learn more about the ISA fees.
