Charged from GB instead of AUD and i got charged international fees on my credit card

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Charged from GB instead of AUD and i got charged international fees on my credit card

fgamedia
Music Fan

hi, i've been charged monthly from Spotify AU, but this month i was charged by Spotify GB instead, and i got charged additional international fees. Just checking if there was a reason why this happened? 

37 Replies

rebel_s
Visitor

This has started happening to me since last month (August 2020).

Mario
Moderator
Moderator

Hey there @rebel_s

 

Thank you for reaching out to us about this. 

 

As mentioned above it's your bank that's charging you the extra fee. 

 

We're working on fixing it so it doesn't happen in the future, but can't say right now when it will be implemented.

 

We hope this information was helpful.

 

We're always one reply away if you need us.

 

Cheers!

MarioModerator
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22g4d3u2zcrdc2c
Casual Listener
Mario tell your company to stop rerouting payments to different country to avoid paying Australian taxes. The bank charges international fees as you are committing Australian tax fraud. It would appear you start every Australian out as Australian billing and systematically change after certain time hoping they will not notice. I will be contacting the AUSTRALIAN TAX OFFICE ain’t the morning.

Xenia
Moderator
Moderator

Hey everyone,

 

We understand your frustration about the additional charges, however, we are an international company and payments can be processed outside of your country of residence.

 

This is why the payment method has to be authorized for foreign transactions, to make sure payments can be processed successfully. The process is automated and we have no manual control over it or over any taxes banks charge for foreign transactions. We can reassure you that we pay all applicable regional taxes and you can always check the VAT% on your receipts.

 

We can confirm that our payments team has looked into this and the extra charges are issued by the banks when paying through PayPal.

 

As mentioned before, we are working on a long term fix. For now, you could try a different payment method, if possible, and pay by credit card instead, which will be processed locally.

 

We hope you'll find this clarification useful and we’ll be here for you if there's anything else you'd like to ask.

XeniaModerator
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Trinamen
Regular

Hi again,

 

I just found out that banks, here in Portugal, are charging such an international transaction fee if transactions are made in a currency different from that of our country. This transaction fee is directly associated with the credit card used through Paypal.
In my case, as I live in a country within the European Union, the currency is the Euro. I recently made some purchases on Ebay, from a country outside the EU, and 3% commissions were charged on the value of the transaction, plus stamp duty.
So, the advice that the moderator gave, about paying the subscriptions directly to Spotify with the credit card, was well advised.
I realize that, after all, the fault may lie with PayPal, that they should make the transaction in my currency. Also, as said by the moderator, Spotify is trying to resolve the issue with Paypal.
From what I see, nowadays, financial institutions try to invent more and more commissions and fees, in order to obtain more and more profits.
Having said all that, and hoping that I am not being cheated again by banks or others, I come to say that my confidence in Spotify is restored.

 

Best regards,

apom888
Casual Listener
Nope, it’s Spotify choosing to not have local accounts in the country they service to avoid tax, it’s that simple. The banks and PayPal all charge international transaction fees across currencies.

Your faith in Spotify looking after no one but themselves in getting through tax loopholes is the only thing you should be assured with here

Trinamen
Regular

Hi, 

Maybe you're right and I'm wrong, but as suggested by Spotify, I risked and paid a subscription directly to Spotify with a credit card and no one charged any fee, neither the bank nor Spotify. 

If you think I'm wrong, you can be sure I'm not. 

Perhaps I did not explain myself well, but my previous post was to give the point that at least here in Portugal, the conditions of use of credit card, presuppose such a commission if the transaction is made outside the euro zone.

I left my opinion and what I learned about it. 

Read well what I wrote, direct credit card payment to Spotify, Neither Spotify nor the bank charge any fees, and that means the transaction was made in the euro and the euro zone. In addition to the use of the same card through PayPal, is having fees charged on other transactions, with China for example, something that did not happen before. Read the most recent contract for your card. I did that and I knew why.

That's why I'm saying PayPal, it must be to blame, at least in some transactions. 

I'll finish here one more time and I hope I've made myself understood. What happens in other countries, I can't say anything. What I'm telling you about what's happening in Portugal. 

Greetings to all

Trinamen
Regular

Hi, 

 

If it's true that it has to do with payments via PayPal, I hope that changing the means of payment really helps. (and helped indeed)

But one of the reasons for PayPal use is not having to disclose a credit card data everywhere. 

Subscriptions using PayPal to other streaming services do not have these fees to be charged by banks, yet, maybe because they are made in Euro.

However, recently, I made some transactions on Ebay, outside EU, using the credit card via PayPal, and I was equally charged with that fee.

Its better try to pay, for now, whitout using credit card via PayPal.

 

See my lastest post with more info.

22g4d3u2zcrdc2c
Casual Listener

It’s probably not a good idea to lie to “everyone”... You don’t pay all the applicable taxes you should in Australia, that I know for sure. The ATO will be happy to take your call, when you wish to stop defrauding the Australian tax payer. You pay your company tax in Ireland, (when you have an office in Sydney),as it’s the lowest percentage, when you should be paying in every single country you take money from. You are thieves, criminals!

spylp
Newbie

Hi, I have the same problem since Oct 2016. I've been complaining to Spotify almost every month. Also, I already explain to them the bank won't charge conversion fee with no reason. The bank charged me because Spotify put my account under GB instead of AU. One of Spotify customer service even requested me to scan my credit card bill which I already did. STILL no reply and so solution even until today. So disappointed. 

camanddee
Casual Listener

I got a reply and they said

"  Thanks for getting in touch with us regarding a foreign transaction.

We understand your concern about a transaction that has appeared on your bank card with the payment tag GB, not to worry we can clear this up for you.

We normally route AUD transactions via our domestic acquiring partner, in the US. When, in very rare instances, they are not available, the transaction is routed via the European acquiring partner to ensure it is processed immediately.

We apologies for any inconvenience caused.

If you have any other questions or concerns, please don't hesitate to get back to us."

All the best,

Alexandre

Spotify Customer Support

Its a joke as its not a rare occurrence its happening every month but that is their get out clause and they keep using it every time I get a response. I most prob wil cancel sub.

apom888
Casual Listener
Nonsense, this is happening every month. I won't be signing up again until
you can guarantee I won't be charged the fees

Dianna2
Newbie
Wow I was seriously considering signing up for Spotify but not now. Thanks I'll find another option.

apom888
Casual Listener

Yep, you have lost me too, will move to somewhere else as you make your lives more profitable by moving your accounts offshore i will do the same.

 

You are dancing around the law by moving you billing offshore, everyone now gets charged an international bank transaction.  Yep, its not you making money directly, but its costing everyone else more, 100% for your convenience.

 

Your attitude to your customers is disgraceful, so long!

fgamedia
Music Fan

anyways cya later spotify, going to apple music.. it's only $120 for a whole year so it's cheaper than spotify.. and they don't make silly excuses on why we're getting charged extra 50cents every month..

Jacob
Rock Star 17
Rock Star 17

@MaryS, could you do some more follow up with these users? Thanks!

JacobRock Star 17
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MaryS
Roadie

Hey everyone,

 

Thanks for your comments. Apologies about the delayed response.

 

We've just updated our terms and conditions. As explained in our blog post here, one of the changes to the terms is an update to the name and address of the Spotify company that provides your service (and which is the legal entity responsible for your data). In the past, this was often a local Spotify company; This company will now be Spotify AB everywhere but the US, in order to better reflect the reality of our business operations. Keep in mind, that as a practical matter, it’s still the same “Spotify” - we just have had multiple operating entities and we’re now streamlining our operations.

 

This change might have resulted in the extra fee you've noticed and reported. Many countries require such a fee for purchases made with overseas vendors. As mentioned previously, we don't charge the fees from our end, they are applied by your bank. As such, we are unable to remove this or make modifications from our side, so we’d recommend you contact your bank directly to have the charges reimbursed. 

 

Thanks,

iRemeber87
Casual Listener

Hi Mary, i'm not sure that response is acceptable. Spotify changed their billing from Australia to a centralised European base which is now charging Australian customers a foreign currency for their monthly subscription and banks accoprdingly then charge the foreign currency fee due to that. We signed up to an AUD monthly subscription fee not (in my case) a GB monthly subscription fee. When Spotify changed their T&C's they didn't not state that the fee structure (in this case change from AUD to GB) would be the result, in fact Spotify only highlight 3 key changes (see below what I received as notification). How were customer to know the fee would not be AUD and given the choice to accept such a fee change??

 

Updated Terms & Conditions

We’ve rolled out a few small changes to our terms and conditions today, and we know that can sometimes cause confusion (we know, because we’ve done it ourselves). So we want to be super clear about what is changing today (not that much) and what isn’t changing at all – starting with the terms of our privacy policy.

That’s right – the terms of our privacy policy are not changing. The only change in the privacy policy is that in countries outside the United States, we are consolidating all of our agreements under our parent company, Spotify AB, based in Sweden where Spotify was started. Our commitment to the privacy of our users is very important to us and we aren’t changing anything at all with regard to how we use the information you choose to share with us. For an overview of our privacy policy, look here.

Here is a snapshot of the key updates to the terms:

  • Third party subscriptions – Sometimes users purchase Spotify Premium from a third party service like a telephone company. We have updated the language in our terms to make it clear that users who purchase Spotify though third parties are also subject to the terms of those companies. For example, if you bought your Spotify subscription through Telia in Sweden, you are subject to Telia’s terms and conditions as well as Spotify’s.
  • Company that provides your service outside the US – At the end of the terms and conditions and privacy policy, the name and address of the Spotify company that provides your service (and which is the legal entity responsible for your data) is listed. In the past, this was often a local Spotify company; in Belgium, for example, it was Spotify Belgium. This company will now be Spotify AB everywhere but the US, in order to better reflect the reality of our business operations. Keep in mind, that as a practical matter, it’s still the same “Spotify” – we just have had multiple operating entities and we’re now bringing our operations under one organizational structure. (And if you were wondering, this is all about internal operational efficiencies and is not motivated by tax considerations; this will not have any impact on our obligation to pay taxes in local markets as required under local tax rules.)

These are the only significant changes we are making to our terms and conditions. We hope this makes it clear that our commitment to your privacy – and to how we keep your information secure – is absolutely unchanged. We’ll be rolling this out on a market by market basis. If you ever have any questions or concerns, then please let us know at privacy@spotify.com.

MaryS
Roadie

Hi @iRemeber87,

 

Your subscription is still paid in AUD, not in GB nor in a foreign currency. To improve efficiencies and security, we've recently changed the acquiring bank for your ongoing subscription to abroad, and that's why your bank adds the foreign transaction fee.

 

If you check your bank statement, Spotify charges 11.99 AUD only. The foreign transaction fee is listed separately as it's something related to your bank. As mentioned, many banks require such a charge for purchases made with overseas vendors.

 

As we don't receive this fee, so we're unable to refund this. 

iRemeber87
Casual Listener
Oh & my bank statement shows 11.99 AUD because my bank only shows AUD currency transactions, they convert it before putting it on my statement as my credit card is an Australian credit card
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