Credit Card Charges
Statement made by Clayton Wakefield, Group General Manager Technology, Operations and Cards
ASB Bank has been discussing the credit card conversion margins, incurred when a customer uses a credit card overseas and the amount is converted to New Zealand currency, with the Commerce Commission for more than 12 months, and has been fully co-operating with the Commission and supplying it with relevant information.
From 2002, and prior to the Commission’s involvement, ASB Bank has been disclosing to its customers the margin it earns at the time of the currency conversion.
As we have been formally advised by the Commerce Commission that this issue is to be brought before the Courts, it would be inappropriate to comment further.
Footnote for Editors:
On an International Visa Card transaction Visa charges a 1% margin and ASB Bank charges a 1.25% margin.
On an International MasterCard transaction MasterCard charges a 1.1% margin and ASB Bank charges a 1.25% margin.