Does Grab charge foreign transaction fees?

Grab Introduces Foreign Transaction Fee for Non-Vietnamese Card Payments

Effective March 18th, 2024, Grab users in Vietnam will be subject to a new 4% foreign transaction fee (VAT inclusive) on payments made through Moca. This fee applies to transactions using non-Vietnamese issued cards, excluding tips.

What is a Foreign Transaction Fee?

A foreign transaction fee is a charge levied by a financial institution when a payment is processed using a non-domestic card. This fee typically ranges from 1% to 3% of the transaction amount.

Why is Grab Introducing This Fee?

Grab has not provided an official explanation for the introduction of the foreign transaction fee. However, such fees are commonly charged by financial institutions to cover the costs associated with processing international transactions.

Impact on Grab Users

Grab users in Vietnam who make payments using non-Vietnamese issued cards will be charged an additional 4% on their transaction amount. This fee will be applied at the point of purchase.

Updated Moca Terms Reflect Change

The updated Moca terms and conditions now reflect the new foreign transaction fee. Users are advised to review the updated terms before making any payments.

Exclusions

The foreign transaction fee does not apply to tips made through Moca.

Conclusion

The introduction of a foreign transaction fee by Grab is an important change for users in Vietnam. It is essential for users to be aware of this fee and to factor it into their budget when making payments using non-Vietnamese issued cards.