International Transaction Fees

JAW1

Hi,

 

my question was asked several years ago but did not receive any answers so I will repost the original question

When paying for an item  by credit card from an overseas supplier, the purchase along with a separate small charge labelled "international transaction fee"  appears on the credit card statement.

Should the intnl fee be added to the purchase price or should  the intnl fee be expensed immediately as a bank charge? Or is either approach acceptable?

 

Thanks for any help

 

Komal_S

Hi @JAW1 

 

Generally, you can record a fee or additional amount to purchase by adding an extra line to the transaction for the required amount. For example:




This will increase the amount that you do need to pay for that transaction.  This approach will work if there is only one amount in your credit card statement ( initial charge + international transaction fees). If your credit card statement has these two charges as separate lines, it will be best to create a spend money transaction separately for the international fees. This will make the process of reconciliation easy.

 

That said, both these methods should work fine and you can choose either.  Let us know if you have additional questions on this.