I was charged a foreign-transaction/forex fee — should it have been disclosed?
Last updated: 2026-07-12 · Educational content; not legal advice.
Short answer
Yes — a foreign-transaction or currency-conversion fee is legitimate only if it was disclosed to you in advance. RA 11765 requires financial providers to disclose the true cost of a product, including all fees, before you avail; BSP Circular No. 1160 makes fee transparency part of the standards of conduct; and for credit cards the Truth in Lending Act (RA 3765) requires written disclosure of finance charges. Card networks and issuers may legitimately charge an assessment plus a conversion/markup fee on foreign-currency and some peso transactions processed abroad — but the rate and the fee must be disclosed in your terms. If it was never disclosed, you can contest it and demand reversal.
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Frequently asked
Why was a peso online purchase hit with a forex fee?
Some merchants or their payment processors are located or settle abroad, so the card network treats it as a foreign transaction even if billed in pesos. That can be legitimate — but the possibility and the fee must be disclosed in your card terms, and you can ask the issuer to explain and justify the charge.
Can I dispute the conversion rate used?
The network's conversion rate is generally set by the scheme, but any additional issuer markup or foreign-transaction fee must be disclosed. If the disclosed rate or fee wasn't followed, or was never disclosed, raise a written dispute and ask for the computation.
What if the issuer never disclosed the fee at all?
An undisclosed fee is contestable under RA 11765 and RA 3765. Complain in writing, demand reversal, and if refused, escalate to the BSP through its Consumer Assistance Mechanism with your statement and the terms you were given.
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