Charged a Foreign Transaction Fee by Liberty Bank?

Liberty Bank may charge a 3% fee on foreign transactions, but consumers may be surprised to see these international transaction fees on online purchases.

Which Liberty Bank Charges Foreign Transaction Fees?

There may be many Liberty Banks around the country which charge foreign transaction fees. However, in this article, the subject is Liberty Bank in Connecticut.

Liberty Bank touts itself as “Connecticut’s oldest bank” which was established in 1825. Since then, the bank has reportedly amassed over $6 billion in assets and has 60 locations across the state. Liberty reportedly “maintains a longstanding commitment to superior personal service and unparalleled community involvement.”

Unfortunately, banks like Liberty may be misleadingly charging their members for foreign transaction fees on online transactions.

What Is A Foreign Transaction Fee?

Foreign transaction fees are charged by banks and credit unions whenever a consumer makes a purchase in foreign currency. These fees are different from currency conversion fees but may be charged based on where a transaction is processed.

Consumers may most frequently see these charges when they are traveling and making purchases in foreign currencies. However, consumers may be surprised to see these charges on their account after completing an online transaction. This could occur if the vendor is based outside of the U.S.

What Is Liberty Bank’s Foreign Transaction Fee?

According to Liberty Bank’s account agreement terms and conditions, their “cross border assessment fee” is charged at 3% of transaction’s total for. This fee is reportedly charged for “international transactions” using a MasterCard debit card or ATM card.

For example, if a Liberty Bank member in the U.S. completed a $100 transaction with a French vendor using their debit card, they would have to pay a $3 foreign transaction fee.

Credit cards from Liberty Bank have slightly different foreign transaction fees which depend on the type of transaction. For all Liberty Bank credit cards except the Premier Rewards AmEx, a foreign transaction fee is 2% if the transaction is made in U.S. dollars and 3% if made if foreign currency.

For example, if a foreign vendor rang up a purchase in U.S. dollars – which may be common closer to the borders between countries – a Liberty Bank credit card would incur a $2 fee for a $100 transaction. However, for a $100 foreign transaction processed in foreign currency, the same credit card would be charged a $3 fee.

Although these fees seem relatively low, they can quickly add up – especially on a vacation or international trip. For every $1000 spent abroad, a Liberty Bank customer may be charged $30 in fees.

How Can a Foreign Transaction Fee Apply to Online Shopping?

Consumers have reported that their banks charge foreign transaction fees on online orders if the vendor is not based in the United States. For example, ordering an item from an Australian store – even if the order was placed from a U.S. home – may garner a foreign transaction fee with some banks.

Some consumers argue that these fees are unfair and should not be charged if a transaction is made by a consumer in their home country. They argue that they were not expecting to be charged these fees based off of their banks’ fee disclosures or terms and conditions.

Individuals who are worried about being charged foreign transaction fees on online purchases may be able to avoid these fees.

For example, Wallet Hub notes that consumers will almost certainly incur an online foreign transaction fee when the prices are listed in non-U.S. currency. However, even if a product on a website is listed in U.S. dollars, consumers may still incur a fee based on the website’s location. Foreign travel booking is one place where these fees can commonly pop up.

Unfortunately, these fees may be hard to avoid. Even a purchase on a U.S. website like Amazon can result in a foreign transaction fee. If an Amazon vendor is based out of a foreign country, consumers may get hit with a foreign transaction fee even if Amazon processes the payment in the United States.

Some banks offer travel debit or credit cards which don’t charge foreign transaction fees, which could be an attractive option for someone struggling with consistent fees. Similarly, there are prepaid travel cards, but these may be accompanied by their own types of fees.

If you’re worried about foreign transaction fees on online purchases or believe that you were charged these fees in violation of the law, you may be eligible to speak to a qualified attorney. These legal professionals can help evaluate your case to see if you have a legal claim against your bank or credit union.

Join a Free Foreign Transaction Fees Class Action Lawsuit Investigation

If you were charged a foreign transaction fee on a debit card or credit card purchase made on a foreign website, you may qualify to join this foreign transaction fees class action lawsuit investigation.

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This article is not legal advice. It is presented
for informational purposes only.