Citi Credit Card and Foreign Transaction Fee

[AlexSt]

Hi!

CitiBank charges me a foreign transaction fee for my purchases.

First, they tell me that they charge me the fee because in the transaction description it is said "HKG". After I told them that transaction description starts with "PayPal", they assured me that they deliver my money to Hong Kong directly to the seller.

Actually, I can borrow money from my credit card to my account and then make a purchase using my account balance.

Please clarify how do you transfer money to a seller? Is it right that Citi Bank charges me a fee?

Thanks,

Alex

[AlexSt]

Great forom!!! Great support!!! A lot of help!!! Thank you!!!

If I violate something you may write what I did wrong

[PayPal_Frank · Accepted solution]

Hi AlexSt,

Welcome to the community!  This forum is designed for member to member help. Sorry the community didn't answer you right away. 😞   Learn more here: Why didn't an employee answer my post?

To answer your question, PayPal does have to report where PayPal payments are being sent to. This information is provided to the card processor.  Most card issuers only charge a foreign transaction fee when you are physically using your card in another country. In recent years some card issuers choose to apply this fee to internet based payments going to other countries as well.  I don't know if that is something your bank did correctly based on their policies. Perhaps another community member might know.

Your idea to add funds to your PayPal account will work. Assuming you have a US PayPal account, you can add funds from your bank account (3-5 business days) or add funds instantly using a Green Dot MoneyPak.

I hope this helps! 🙂

- Frank

[AlexSt]

Frank,

Thank you! Good explanation. I have no more questions.

Have a nice day!

R,

Alex