Foreign Transaction fees

[cort-us]

Noticed that Bank of America charged me a Foreign transaction fee for an item advertised in US dollars that I purchased and paid for using Paypal and my BoA credit card.

The argument from BoA was that the seller put this in as a foreign transaction (it was a Chinese company)  and consequently they added the Foreign transaction fee to it. (it was an inexpensive item so the amount is not the main issue). 

However I wonder why this does happen.

If I had transferred money into my PayPal card or used my PayPal credit card and paid from my balance, this would not have been charged while the transaction as such (I buy an article advertised in US$ from a company that I did not even know it was located in China and pay for this in US$ through my PayPal account) is identical. 

Is BoA transfering the money to Paypal or directly to the vendor in China (or any other location the buyer happens to be?

If the latter is the case, why is this not clearly identified in the terms and conditions?  

[Wtcelesta]

Me too. I bought merchandise in a store online. The prices were in US dollars, and I paid with PayPal backed by Bank of America. BoA then added a 3% foreign transaction fee. It does not make any sense to me because they don't do it for Aliexpress, for example. I'd like to find out how to reverse the fees.

[7_4WarFuror]

They just slapped me with 3% "foreign transaction fees" for USD-denominated PayPal purchases that just happen to be from foreign companies. Called them.  The rep kept parroting the same response- it's a foreign company.  He could not respond to any of my points, he just kept saying the same thing over and over.   They reached out for follow-up to my phone call and  I have asked them to explain how their handling of a PayPal transaction with an overseas company is any different that a PayPal transaction with a domestic company.  I won't hold my breath for a response.  But I'm sure bank-hating Elizabeth Warren would be very interested in this 🙂

[blopa]

I'm having the same problem. This is so weird. Would we get the same fee if we purchase in another currency and then make PayPal do the conversion for us?