[KnowItAll]

Here's what I got back from Mastercard, following an alert posted here

Accordingly, we do not issue cards, extend credit to cardholders, determine the interest rates (if applicable) or other fees charged to cardholders by issuers, or establish the merchant discount charged by acquirers in connection with the acceptance of cards that carry our brands.

It is important to note that any charges made to a cardholder are ultimately determined by the issuing bank. Issuing banks differ in their pricing structures charged to cardholders and MasterCard does not take part or have any influence in the final decision on total charges levied onto cardholders. Therefore in this case, the percent service charge to cardholders has been determined by Dah Sing Bank.

On our part, MasterCard charges an Issuer Cross-Border Assessment on issuers for all cross-border transactions. This means that the charge applies whenever the merchant (or merchant acquiring bank) is located in a cross border location from the cardholder's issuing institution and regardless of whether the transaction currency is different from the cardholder’s billing currency or not.

MasterCard mandates that issuing institutions provide disclosure to cardholders on any amounts in respect of the MasterCard Issuer Cross-border Assessment that the issuer charges, or will charge, to the cardholder. In May 2005, MasterCard advised member financial institutions of a restructuring of existing cross-border fees. We understand that Dah Sing Bank has provided the necessary disclosure. The revised fee was only implemented in April 2006.

[KnowItAll]

More information, now that I know what the charge is called.

http://www.complianceheadquarters.co...asterCard.html

Instead of the 1% currency conversion fee currently used, MasterCard will charge issuers a Currency Conversion Assessment of 20 basis points for performing the currency conversion. In addition, MasterCard will charge issuers an Issuer Cross-Border Assessment of 80 basis points on all cross-border transactions. The Cross-Border Assessment will be charged regardless of whether there is a currency conversion. In addition, MasterCard has stated that if an issuer passes on either fee to the cardholder, that the issuer will then need to disclose to the cardholder the fee that the issuer pays MasterCard.

http://au.virginmoney.com/using_card_overseas.cfm

[PDLM]

Ah - thanks for that. I guess it's this sort of thing that is resulting in the EU hauling them over the coals...

[KnowItAll]

Still, I don't see how it translates to a 1.75% surcharge at Dah Sing.

I'm going to chase down the PR team at Cathay and SQ and see what they have to say about this....would be nice to get some info on how a CX ticket bought in Singapore might be dealt with as opposed to a SQ ticket bought in Hong Kong.

Also, dropping notes to Citi, HSBC and a couple of other popular card issuers to see how they're dealing with this charge.

[freeier]

only mastercard ?

[KnowItAll]

Here's what we got from Amex.

According to American Express Card Conditions, if Cardmember makes a charge in a currency other than Hong Kong dollars, that charge will be converted into HK dollars. During the conversion, a single conversion commission of 2% will be involved. American Express doesn't impose other surcharges other than the conversion commission.

[KnowItAll]

Here's what I got back from Visa.

Visa has business relationships with financial institutions but not with cardholders and merchants. We therefore do not levy any charges on cardholders and merchants.
We contacted Dah Sing Bank and enquired about the specific situation you referred to. We subsequently received their confirmation that, in the case you described, they do not charge a fee on Visa transactions. You may contact Ms Sarah Chui of Dah Sing Bank for clarification. Ms. Sarah is copied on this email.

[PDLM]

So if I understand this correctly Mastercard is definitely not what you want to be using for any transactions where there is a risk that it may be considered cross-border...

[freeier]

unless there is a clear cut forex deal then there would be no difference ? right ?

[KnowItAll]

Freeier, not from the above note. If you use MC here in HK with say SQ, it is a cross border transaction and you may or may not get charged, depending on your credit card company.