alt Hacker NewsHow does it work if I have a US credit card and use it abroad? Do I still get the kickback even though the merchant fee is capped?
This feels like a potential arbitrage opportunity... I live in Sweden, but if I can use a US credit card I can get high rewards?
Replies
In Denmark most retailers will pass on the surcharge they get from accepting a foreign (non-EU) card with higher fees.
You see at the bottom of restaurant menus a note stating this.
It also applies to Danish business credit cards, as those aren't covered by the consumer credit card fee limits.
Most credit cards charge fat fees for foreign transactions (3% is common) and make some extra money on the exchange rate as well.
At least in Finland merchant contracts often specify higher rates for non-EU cards.
A lot of places in the Netherlands (particularly the low margin ones like supermarkets) don't accept credit cards.
Yes, you have outsmarted the entire US credit card industry and all of their actuaries!
Issuing banks typically add an FX fee to the cardholder for cross border transactions. Not always, but many times they do.