What Is An ISA Fee?

An ISA Fee is the International Service Assessment fee imposed by Visa for customers who use international credit cards. The 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.

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.

International Service Fee Online

The international service fee applies to online stores as well as in-person 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 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 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.

How To Lower ISA Fees

To lower your ISA fees, you should 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 fee and expanding worldwide.