Dumping the hated foreign exchange fee loved by no one but banks

FOREIGN exchange fee that’s flummoxed thousands of Australians, because it is levied on local products bought with Aussie dollars, is facing the axe.

Groupon

A FOREIGN exchange fee that’s flummoxed hundreds of thousands of Australians, because it is levied on local products bought with Aussie dollars, is facing the axe.

The Australian arm of the world’s largest discount voucher website, Groupon, is preparing to ditch its Switzerland-based payments system, which can lead to currency conversion charges of up to 3 per cent of the value of the transaction.

If the fee hits just one in five Groupon Australia customers then it could be costing purchasers a combined $1 million annually.

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Groupon Australia could not say what proportion of customers are stung. It does not receive the fee. The money goes to the card issuer, usually a bank.

Groupon Australia’s intention to get rid of the charge only came to light after The Daily Telegraph raised reader complaints.

It said the fee was refunded on request, as set out in its terms and conditions.

Groupon’s terms and conditions contain 6500 words. Only 1 per cent of all customers actually get a refund.

Tom Godfrey of consumer group Choice said: “Australian customers shouldn’t have to pay an extra 3 per cent to have transactions processed.”

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Groupon Australia spokeswoman Amy Glancey said: “In the instance a customer incurs an international transaction fee as a result of purchasing something on Groupon, we ask them to contact us so we can reimburse the fee.

“Groupon Australia is in conversation with a local payment gateway provider to ­explore options that eliminate international transaction fees being charged.’’

Groupon customer Belinda Massey estimated the Forex fee had cost her $20 over several purchases: “I ­really think Groupon needs to get its act together.’’

Mrs Massey, an accountant from Mt Waverley in Melbourne, said she had complained to the company and consumer affairs authorities without any joy before asking The Daily Telegraph to look into the fee.

Belinda Massey has had enough of being ripped off by Groupon / Picture: Jason Sammon

Groupon Australia is the No. 1 player in the $500 million-a-year local industry, with a 34 per cent share of the market, according to research firm Telsyte. Its parent company is listed on the Nasdaq stock exchange, where it is valued at $4.3 billion.

Local users of Living-­Social, another major group-buying site with an Australian subsidiary, have also complained of paying international transaction fees. But LivingSocial said this was incorrect.

GYM COMPLAINTS RAISE BLOOD PRESSURE

GYM complaints are at a three-year high, prompting a warning from Fair Trading Minister Matthew Mason-Cox — read contracts closely.

NSW Fair Trading received more than 450 complaints about health clubs and gyms in the year to the end of June, up 8 per cent on 2012-13.

“We urge consumers to shop around and check the fine print,” Mr Mason-Cox said.

Of the 456 complaints registered in the 2013-14 financial year, 189 related to cancellations and cooling-off periods and 88 involved refunds.

“Joining a gym can be costly, so don’t be pressured into signing up on the spot,’’ Mr Mason-Cox said.

Coffs Harbour reader Kathleen Buckman recently turned to Public Defender for help to cancel her gym membership and put an end to debt collection action.

I contacted her gym and a process is now in place that will hopefully deliver those outcomes.