Paypal Hidden Foreign Transaction Fee

I’ve used paypal for many years now, but this is the first time I noticed that a “FOREIGN TRANSACTION FEE” was assessed by my credit card company because of a paypal purchase.

This is a shock to me because I thought paypal would take care of all the transaction nuisances. Here is why I am worried:

1) Since paypal is charging my credit card, on my behalf, what other “fees” can be invoked on my credit card by a paypal transaction?
2) How can I trust that the fee paypal invoke will not be something astronomical. For example, what if I paid $10 for something online, but using Paypal invokes a $100 dollar fee on my credit card company?
3) Are fees triggered by paypal reversible? Can I dispute them with my credit card company? Or will they be considered untouchable since I did not directly authorize the charge through my credit card?

So beware. Paypal is not a reliable transaction handler. You are still liable for fees associated with transactions paypal invoked on your behalf.

  • Ray

    I just got hit with the same foreign transaction fee after buying something and paying for it using Paypal.  I didnt even know the item I purchased was from outside the U.S. as it was shipped from the U.S.  WTF..!