This article includes tips, suggestions, and general information. We recommend that you always do your own research and consider getting independent tax, financial, and legal advice before making any important decision.
Key takeaways:
In cross-border shopping, the price you see isn’t always the price you pay. Additional fees, like currency conversions and customs duties, can even double the final amount.
By shopping internationally, you can discover products not available at home and sometimes pay less than you would locally. Until you factor in currency conversion fees, customs duties, and international shipping charges. These extra costs can add 10-20% to your sticker price, which may leave you paying more than you planned at checkout.
This guide outlines the most common hidden fees you may encounter when buying from international stores, plus how to spot, calculate, and potentially avoid them. That way, you can make informed decisions about whether that overseas deal is actually worth it.
Table of contents
When you shop from overseas retailers (both in-person and online), the checkout price is only part of the total cost. You’ll also face currency exchange fees, foreign transaction fees, international shipping charges, customs duties, or even ATM withdrawal fees if you’re paying in cash while traveling.
Here’s a quick overview of the most common cross-border payment fees so you can decide whether those Black Friday international purchases were truly a good deal.
Category | Currency conversion fee | Foreign transaction fee | Customs duties and import taxes | International shipping & handling fees | ATM fees |
|---|---|---|---|---|---|
What it is | A fee for converting your money from one currency to another | A surcharge for payments processed through foreign banks or networks | Government taxes on goods entering a country | Charges for sending goods across borders | Charges applied when withdrawing cash from ATM machines abroad |
When it applies | During cross-border transactions | Online or in-person international purchases and ATM withdrawals | When an item ships from abroad and reaches customs | When ordering from an overseas retailer | When using a foreign ATM network |
Who charges it | Banks, card issuers, payment platforms, ATM networks | Banks and credit card issuers | Customs agencies or postal carriers | Merchants, couriers, logistics providers | Your bank and the ATM operator |
Typical range | 1%1-12%2 of the transaction | Typically between 1%-3%3 of the transaction | Varies by country, product, material, and value4 | Varies widely depending on distance and courier5 | Varies by conversion and foreign transaction charges + a fixed ATM operator fee (optional) |
Foreign currency conversion fees are charges applied when your payment provider or bank converts your money from one currency to another. These fees show up whether you're shopping online from a foreign merchant or making purchases while traveling abroad.
Every provider (bank, online platform, and payment processor) sets their own rate that’s above the mid-market rate.
Apart from the standard conversion charge, you might also encounter a dynamic currency conversion (DCC). This occurs when a foreign merchant or ATM offers to convert the currency for you at checkout. It’s typically more expensive than your bank’s rate and can go up to 12%.2
Example: If you make a purchase worth the equivalent of $1,000 and your provider adds a 1% currency conversion markup, you’ll pay about $10 in currency conversion fees. If you add the Dynamic Currency Conversion fee instead, and the rate is 10%, that same purchase now costs you an additional $100. |
Foreign transaction fees are charges your bank or card issuer adds when a foreign payment network processes a purchase. This includes shopping online from an international retailer, buying in person when traveling abroad, or even making an overseas ATM withdrawal. The typical range is 1%-3%.3
This applies even if you pay in your home currency, and these fees may also prevent you from earning rewards that normally apply to domestic spending.
Example: For example, a $200 purchase could cost an extra $2-$6 if your card charges a 1%-3% fee. |
Customs duties and import taxes are government-imposed charges on goods entering your country, and they can raise the final cost of an international purchase. These fees depend on the item’s value, category, and your local regulations, and postal carriers or couriers often collect them at delivery.
While payment apps like PayPal can’t control or waive customs costs, they do provide clear, itemized receipts and transaction details so you can easily track what you’ve paid and what additional charges to expect.
International shipping and handling fees cover the cost of moving your order across borders. This includes packaging, transport, customs processing, and carrier surcharges.
These fees vary based on the retailer, destination country, shipping speed, and courier service. Some sellers might also charge you separately for insurance or handling, so try to read their shipping policies before you hit "Buy".
You’ll pay ATM fees when withdrawing cash from a machine outside your bank's network, and when you're abroad, they add up quickly. You'll typically be charged an international withdrawal fee by your bank and a service fee by the local ATM provider.
And this is without considering the foreign currency conversion and transaction fees.
Now that you know how international payment charges can add up, here's how to identify them before checkout, factor them into your decision, and minimize what you actually pay.
Review the full cost before you pay, not just the item price. Reputable international retailers show the total cost in your currency. This includes shipping, taxes, and even cross-border fees. If a site hides those details or only shows the base price, that’s a red flag.
Your payment method determines how much protection you have. Credit cards, for example, offer strong chargeback rights (usually 60-120 days). Debit cards and wire transfers give you little to no recourse once the money leaves your account.
International money transfer apps like PayPal go even further with buyer purchase protection. You have up to 180 days6 to file a dispute if an item doesn’t arrive, arrives damaged, or isn’t as described. This is beyond what many merchants offer, especially when you’re buying from overseas sellers.
So, for higher-priced international buys, instant payment options that include dispute resolution can provide additional protection.
International returns can cost more than the item itself. Before buying, it’s wise to confirm whether returns are accepted, who pays for return shipping, and how long you have to send items back. While some retailers offer free returns, others charge a return fee.
A screenshot of the return policy can also be useful in case the retailer updates their terms after you place an order.
The sticker price is only the starting point. Add in shipping, duties, customs processing fees, currency conversion charges, and potential return costs to see the real total. This can be quite a bit higher than what you initially saw.
You can also use custom duty calculators for your country to estimate taxes and compare that final number to buying locally. If the difference is small, the international deal may not be worth the effort.
Here’s a quick checklist to run to help you determine whether the deal is actually worth it when shopping across borders:
Finally, confirm that the total cost, after all fees, aligns with what you’re comfortable paying.
Your payment method can make all the difference when you shop internationally, especially since it can involve hidden charges and the uncertainty of whether a seller is trustworthy.
In these situations, you need a payments platform that keeps your financial details private, shows you the full cost upfront, and gives you support if something goes wrong.
With PayPal, you get transparent currency conversions, secure checkout, and Buyer Protection on eligible purchases. Shop across borders with more confidence.
It's your do-it-all digital wallet. Load up on cash back offers before you shop. Track your packages. And manage it all on the go.