From August 6, 2018 we are adjusting the variable fee to 2.9% where an international card is used to process a domestic currency (AUD) transaction.
When we launched in 2013 we made a decision to apply the same variable fee for transactions irrespective of whether your customer was using a card issued by an Australian bank, or an overseas bank. We felt this provided simplicity, which is something we strive for at Pin Payments.
Why we’re making this change
When an international card is used to process an AUD currency transaction, it attracts a much higher processing cost due to the international interchange fees charged by the customer's card issuing bank.
Other payment providers already apply a specific fee like this for international cards, so we're updating our pricing to what's considered standard in the industry.
Will this affect your processing costs?
If your customers are using cards issued from overseas banks, and you’re billing in AUD, then this new rate will apply to those transactions. There are no changes to fees for processing AUD transactions using Australian issued cards.
To minimise the number of different rates used, we have also adjusted the fee for Foreign Currency transactions, when settling in AUD. We’ve increased this transaction fee from 2.6% to 2.9%, but at the same time decreased the FX fee from 2.0% to 1.7%.
See the chart below for what our updated pricing will look like when this comes into effect on August 6.
Domestic currency transactions
|Domestic issued card||1.75% + 30c|
|International issued card new||2.9% + 30c|
Foreign currency transactions
2.9% + 30c
1.7% conversion fee
|Foreign settlement||3.6% + 30c|
We’d be happy to hear from you if you have any questions about these changes.