If you use your credit card to buy an item on what you thought is a Singapore-based retailer's website for $19.90, you would expect the credit card bill to show $19.90, right?

Unfortunately for a growing number of online shoppers in Singapore, they are starting to realise that this is not the case.

Currency conversion fee

A currency conversion fee of 0.8 to 1 per cent is usually charged by credit card companies when such payments to retailer websites are processed overseas.

Currency conversion fees on websites appearing to be from Singapore?

Confusion sets in when Singaporeans get charged this fee after purchasing items from website which appear to look Singapore-based - especially ones with a ".com.sg" suffix -with items listed in Singapore dollars.

Recently, a letter to The Straits Times forum by Victor Wee reiterated this problem. Wee made an online purchase with Groupon Singapore and claimed that Citibank charged an 8 per cent currency conversion fee.

Wee noted that Groupon Singapore's website listed everything in Singapore dollars. He shared that after contacting Citibank about the charges, the bank said that Groupon Singapore had processed his payment overseas, which explains the conversion fee.

It is all in the fine print

Popular e-commerce websites like Expedia, Agoda, and Zuji (all with .com.sg suffixes in their web addresses) allow for prices to be displayed in Singapore dollars.

Some consumers may think that payment would naturally be straightforward - you pay whatever price is listed. However, fine print stating the possibility of having to pay a currency conversion fee exists in the terms and conditions page of all three websites:

Expedia:

Agoda:

Zuji:

Interestingly though, such a clause about additional credit card charges is not in Groupon's terms and conditions:

It does however state that payments are handled by Europe-based Groupon International GmbH:

What can be done?

The point some consumers are making is that websites which appear to be Singapore-based with Singapore prices are charging currency conversion fees. They cannot help but feel a little "duped."

Is this the case of buyer's beware or one where authorities should step in to regulate or recommend best practices?

Right now, consumers either have to pore through lines and lines of terms and conditions or risk a minor shock when they receive their credit card bill.

Some netizens have reported that they have requested the waiver of such fees from either the bank or online retailer. The results have been mixed.

Top image from Intel Free Press

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