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International Service Assessment (ISA) Fee

ISA fee means International Service Assessment fee, which is an additional amount added to your monthly statement for domestic transactions made with the international bank card. This fee is a very small part of the transactions, which is charged by the US for every transaction made with an offshore bank card.

International Service Assessment Fee

ISA fee is also charged on traveling outside the USA and purchasing something from international merchants. Again, it is a small percentage of your entire foreign transaction. You have to pay this fee when you are using these card brands abroad:


  • Mastercard

  • Visa

  • Discover

  • American Express

  • Bankcard USA

What is the ISA Fee?


An ISA fee is an international processing fee which is charged to merchants by VISA when a customer uses his debit or credit card provided by a bank outside the USA. Other brands like Mastercard, American Express, and Discover also charge similar international fees.


International service fees are extra on interchange rates, and interchange rates always charge between the range of 1–2%. Mastercard and other cardmember union banks set the rates, which are the same for everyone.


ISA fee isn’t based on country, transaction amount, or business rate, it is charged when an international transaction occurs.


An international transaction fee costs you between 2–3% plus your normal payment processing charge per transaction. Many processors show international fees separately; you have to estimate the amount of it.


How much do we have to pay?


The percentage to charge is different for every bank.


Visa


Visa charges two different fees on every international transaction.


1. ISA Fee (International Service Assessment) (0.80%-1.20%) -

An international service assessment fee is applied on a card that is used outside the US for transactions.


2. International Acquire Fee(0.45%) -

This fee is the same as the ISA fee as written above.


Difference B/w ISA and IAF:


Visa charges both- international service assessment and international acquire fee on foreign transactions.


These both fees are charged at the same time along with each other, whenever you see an ISA fee then there will also be an IFA fee next to it.


Mastercard


Mastercard also charges two fees per international transaction, including both debit and credit card provided outside the state as well.


1. International Cross Border Fee(0.40%) : This fee is the same as Visa ISA, only applies when a card is used outside the USA.


2. Acquirer Program Support Fee(0.55%) : This fee is stacked alongside the cross-border fee. They charged APSF when a customer using the Mastercard outside of the US for the settlement of dollars in US business.


For example, if a Chinese tourist uses his Chinese Mastercard in the US for making any transactions then he has to pay the acquirer program support fee.


  • American Express: American Express’s fees are more variable and complicated, but you have to pay at least a 0.40 % charge on every foreign transaction.

  • Cross-border fee(0.40%): This fee applies when a customer pays for a product and service in the US with a bank located outside the USA.

Conclusion


As you all know that the eCommerce transactions are increasing day by day, and the competition is also increasing. So, choose your credit card brand wisely, in which you have to pay less for processing fees and transactions.




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