Does Valley National Bank Charge an International Processing Fee for At-Home Purchases?

Valley National Bank is among the financial institutions that attach a foreign transaction fee to many of its credit cards when a transaction is processed through an overseas bank.

Where is Valley National Bank Located?

Headquartered in Wayne, N.J., Valley National Bank operates with branch locations in New Jersey, New York, Florida and Alabama. Valley National Bank is the principal subsidiary of Valley National Bancorp and boasts $37.5 billion in assets.

What Credit Cards Does Valley National Offer?

Valley National offers the following credit cards, according to the bank’s website, with assorted perks:

• The Visa Platinum Card does not offer any rewards, but does include a low introductory rate.
• The Cash Awards American Express Card offers a variety of cash back options.
• The Visa Real Rewards Card offers a point system that can equal cash back.
• The Premier Rewards American Express Card offers a point system that includes travel rewards such as reimbursement for TSA Precheck.
• The Visa College Real Rewards Card allows for points accumulation that can be used for up to five years.
• The Visa Secured Card is recommended for anyone who needs to start a credit history or needs to rebuild a credit reputation.

Does Valley National Bank Charge an International Transaction Fee?

All of the aforementioned credit cards with the exception of the Premier Rewards American Express Card include a 3% foreign purchase transaction fee or foreign ATM advance transaction fee in a foreign currency.

An international transaction fee is charged when a transaction’s processing occurs outside of the U.S.

WalletHub states that even if you purchase something from Amazon.com, you may incur a foreign transaction fee if the merchant is located in another country. Be aware that even if you book international travel through a local website, you might be charged foreign transaction fees if a foreign hotel, airline or tour company processes the transaction.

The foreign transaction fee does not go to the merchant, though, because it’s a fee added by the card’s issuer and the credit card network that issued the credit card. The credit card issuer is the bank, such as Valley National. The credit card network is usually Visa or MasterCard. American Express is able to act as both the credit card issuer and the credit card network.

According to ValuePenguin, the foreign transaction fee consists of a 1% fee currently charged by Visa or MasterCard plus whatever amount the credit card issuer decides to charge, which is usually an additional 2% or 3%.

If you like to use a credit card to rack up points, keep in mind that foreign transaction fees do not go towards reward points accumulation.

When traveling overseas, a merchant may offer to charge your credit card in U.S. dollars (USD) instead as opposed to using their local currency, a process called Dynamic Currency Conversion. ValuePenguin advises not to agree to a merchant’s offer to charge in USD because the merchant might choose an exchange rate that enhances their own profits. Plus, the use of local currency would be automatically converted by your credit card network, which is less apt to have an incentive to opt for a higher exchange rate.

Additionally don’t let a merchant lead you to believe you can escape being charged a foreign exchange fee if you let them process the transaction with the Dynamic Currency Conversion. ValuePenguin warns that as soon as your card issuer sees the transaction has been made through an overseas bank that the transaction will be marked as a foreign transaction and most likely will generate that foreign transaction fee.

Still, Americans who travel overseas need to be careful traveling with wads of cash. NerdWallet warns that pickpocketing is more prevalent in other countries than we see in the U.S.

And even if you use a foreign ATM for local currency, you’re apt to rack up foreign transaction fees or perhaps hidden fees there, too.

Can an International Transaction Fee Apply to an At-Home Purchase?

Yes, if you buy something online from a merchant who is based in a different country, your purchase could be subject to a foreign transaction fee.

You may be sitting in your kitchen on your laptop and decide to make an impulse buy. If the online merchant is located in China, the transaction will most likely be processed in a foreign bank, which means you might incur a foreign transaction fee. Depending upon the price of the item or number of items you purchase, the fees could add up surprisingly quickly.

Fighting Foreign Transaction Fees

While a fee for international transactions from Valley Bank or other credit card company might be expected while traveling, most consumers do not expect a foreign transaction fee for purchases they make from the comfort of their laptop. Experts say that there are a number of ways to fight these fees and keep more hard-earned cash.

According to Money Talks News, the first step is to contact Valley National or other credit card company about the fee as soon as possible – when the fee posts, if possible. Consumers who do this show the credit card company that they are on top of their account and will hold them accountable for unexpected items.

When making the call, Money Talks News recommends being insistent, yet polite. Customer service representatives are more likely to respond to a calm caller, even one that is stressed out by an unexpected fee.

In addition, the time of the call can make a difference according to Money Talks. Experts recommend making the call early in the day in the time zone of the customer service agent, if possible. Catching someone at the beginning of their workday makes it more likely they will take the time to help, rather than just ending the call as soon as possible.

Money Talks News also says that consumers who are not successful getting the fee reversed shouldn’t hesitate to try again and try asking for a supervisor. Again, use a calm and pleasant demeanor when calling, but be persistent, say experts.

Finally, if foreign transaction fees continue to be a problem, Money Talks experts recommend dumping the card and applying for a new credit card with better terms. Many do not assess foreign transactions fees, even when traveling internationally.

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.