Updated June 2024

If you accept credit card payments, you're familiar with all kinds of credit card processing fees. The international service assessment fee is no exception. But what is the ISA fee? An ISA Fee is the International Service Assessment fee imposed by Visa and other credit cards for customers who use an international credit or debit card when making a transaction in the U.S. The International Service Assessment (ISA) fee is charged to the merchant who receives the payment form the international card transaction.

As a merchant, you have the ability to accept credit cards from other countries, but because there are so many other countries with different standards for credit cards, there is an added level of scrutiny by card brands, resulting in the extra ISA fee.

How Much Is An ISA Fee?

Currently, ISA fees range from around 1.7% – 2.6% depending on the foreign currency that is being converted. However, this doesn't include the conversion of the actual monetary unit, for example, if someone is paying with Canadian Dollars, they may have to pay more because the USD is valued more highly. These assessment fees vary by payment processor, although the base ISA fee is always the same. For example, the Visa ISA fee will end up being higher than the Discover international service assessment fee if a customer settles in a foreign currency instead of U.S. dollars. It's also important to note that many providers charge other foreign transaction fees on top of their ISA fees.

American Express International Fees

American Express international fees are 2.7% for small businesses and 2.5% for corporate credit cards. These occur when an item is purchased with foreign currency and has to be converted to USD. This fee is mainly for individuals who travel abroad and want to purchase items using their existing credit cards.

American Express is recognized around the world, and offers benefits for using their card when you travel. Your transactions are insured just in case products aren't what you thought, or if you fall victim of fraud, they make sure your credit card is halted so scammers can't take advantage of your situation.

Visa International Fees

Visa International Service Assessment Fee (ISA Fee)

Visa charges two fees on every foreign transaction. The first is the Visa ISA fee. The Visa international service assessment fee can be anywhere between .80% and 1.20%. With Visa transactions, ISA fees are calculated based on the currency the transaction is settled in. For international transactions that are settled in U.S. dollars, Visa's international service assessment fee is .80%. If it's settled in foreign currency, it will be assessed at a higher rate.

Visa International Acquirer fee (IAF fee)

Visa is unique in that it also charges an International Acquirer fee. You'll see both the ISA and IAF fee next to each other on the credit card processing statement. The international acquirer fee is .45%, and stacks on top of the ISA fee when a customer pays with a foreign Visa credit card.

Mastercard International Fees

Mastercard charges two international service transaction fees as well, which also stack for purchases made with a foreign card. However, their international transaction fees are cheaper than Visa's.

International Cross-Border Fee

This is Mastercard's version of the Visa ISA fee. It is applied anytime an international bank uses a Mastercard. It is a flat rate fee of .40%

Acquirer Program Support Fee

This is a flat rate fee of .55% and is stacked with the cross-border fee on international payments.

Discover International Fees

Like Visa and Mastercard, Discover also charges two foreign transaction fees that stack on every international transaction.

International Processing Fee

This fee is a flat rate that applies to all U.S. transactions that take place with a foreign-issued card. Currently, Discover's International Processing Fee percentage is .55%.

International Service Fee

The Discover ISA fee applies to the same conditions as the IPF. Like other payment processors that charge this fee on foreign card transactions, it is a flat rate of .80%. This means that on every foreign credit or debit card transaction made with a Discover card, you'll owe 1.35%.

International Service Fee For Online Transactions

The international service assessment (ISA) fee applies to online stores as well as in-person foreign transactions. As mentioned, it is charged to the merchant through your payment processing company. All of the terms for charges like this are outlined in your merchant agreement that is setup when you first open your account.

To avoid online ISA processing fees, you can restrict the purchase of your products to US credit cards only. This can be a simple form-fill barrier that asks a buyer where they are from, or collects their IP address to verify the location they are shopping from online. Nonetheless, if you're not shipping overseas then it may be better to accept the fee and allow them to make the purchase.

How To Lower ISA Fees

International service assessment fees are frustrating and take a bite out of your bottom line. However, it is difficult to lower them without decreasing the number of foreign customers who purchase your products. One way you can try to lower your ISA fees is to monitor transactions individually, and the best way to do this is by using an interchange-plus pricing model. Alternatively, if these fees are adding up, then you may want to consider marketing to an audience that is based in the US. Nonetheless, international business can be very valuable especially if you offer products or services that aren't available abroad. If you have high profit margins, it may be worth paying the assessment fees and expanding worldwide.

Final Words about ISA Fees

ISA and other international processing fees aren't going anywhere any time soon. You can't avoid them by switching to another payment processor or merchant services provider. If you intend to continue to accept international credit and debit cards, you'll pay Discover, Mastercard, American Express, and Visa charges for every foreign transaction.

However, you're not stuck as a business owner. There are ways to save money and payment processing and still accept international transactions. At Zen Payments, we specialize in custom payment processing solutions and offer some of the lowest rates in the industry. If you're looking to save money and still work with a merchant account company you can trust, Zen Payments is the perfect partner!