An ISA fee, short for International Service Assessment, is a card scheme fee charged on cross-border card transactions: payments where the card was issued in a different country from the one where the merchant is located. It shows up on merchant statements, and in a different form on some cardholders’ bank statements too.
This guide explains what the ISA fee is, when it applies, who pays it, how it differs from related fees such as the International Acquirer Fee, how much it typically costs, and what you can do to keep cross-border fees under control.
Key takeaways
- The ISA fee is a Visa fee on transactions where the card issuer’s country is different from the merchant’s country. Mastercard charges a similar cross-border assessment.
- It applies to online and in-person payments, even when the payment is in the same currency, for example a US merchant charging a foreign card in USD.
- Merchants pay it through their processor, usually as a pass-through fee. Some cardholders also see an “international service assessment” or foreign transaction fee from their bank.
- The rate depends on the card scheme, the currency and the region, and the schemes change their fees from time to time. Ask your processor for its current pass-through fee schedule.
- You can’t avoid scheme fees altogether, but local acquiring, pricing strategy and transparent pricing can reduce what you pay overall.
What is an ISA fee?
The International Service Assessment (ISA) is a fee Visa charges on cross-border transactions, meaning transactions where the country of the card issuer is different from the country of the merchant. It is a scheme fee: Visa charges it to the acquirer, and the acquirer passes it on to the merchant, usually listed separately on the processing statement.
Card schemes charge cross-border fees because international transactions involve extra processing and, on average, more risk. Mastercard’s equivalent is usually called the cross-border assessment. Other schemes have their own international fees.
ISA is most often discussed in the context of merchants acquired in the United States, where it appears as a separate line on processing statements. In Europe, scheme fees for cross-border and inter-regional transactions exist too, but they may be named and grouped differently by your acquirer.
When is the ISA fee charged?
The ISA fee applies when the card was issued outside the merchant’s country. It doesn’t matter whether the payment is made online or in person.
- A US online shop selling to a customer in France who pays with a French card: ISA applies.
- The same shop charging the French card in US dollars: ISA still applies, because the issuer is foreign.
- A tourist from the UK paying with a UK card in a shop in the US: ISA applies.
Many fee schedules charge a higher rate when the transaction is also settled in a currency other than the merchant’s home currency. Selling in several currencies can therefore change which rate applies, not just whether the fee applies.
Who pays the ISA fee?
The merchant does. The card scheme charges the acquirer, and the acquirer or payment processor deducts the fee from your settlement or bills it on your statement. Depending on your pricing model, it may be listed separately as a pass-through fee or bundled into a higher overall rate.
Why cardholders see ISA fees
Card schemes also charge issuers on international transactions, and many banks pass this on to their customers as a foreign transaction fee. That is why some people see “ISA fee” or “international service assessment” on their bank or card statement, even when they paid in their own currency on a website that seemed local. It usually means the merchant, or its acquirer, is located in another country.
ISA fee vs International Acquirer Fee
Merchants sometimes see two separate international fees from Visa and assume one is a duplicate. They aren’t.
| International Service Assessment (ISA) | International Acquirer Fee (IAF) | |
|---|---|---|
| Charged by | Visa | Visa |
| When it applies | The card issuer’s country differs from the merchant’s country | A merchant acquired in the US accepts a card issued outside the US |
| Higher rate when | The transaction is settled in a non-local currency | The merchant is in certain high-risk categories |
| Who pays | The merchant, via the acquirer | The merchant, via the acquirer |
Both can apply to the same transaction, on top of interchange and other scheme fees.
How much is the ISA fee?
The rate depends on the card scheme, the region and the settlement currency, and schemes update their fees periodically. As an example, a published 2023 pass-through fee schedule for merchants acquired in the US lists:
| Fee | Rate in that schedule |
|---|---|
| Visa International Service Assessment, settled in USD | 1.00% |
| Visa International Service Assessment, not settled in USD | 1.40% |
| Visa International Acquirer Fee | 0.45%, or 0.90% for certain high-risk MCCs (5962, 5966, 5967) |
| Mastercard cross-border assessment, settled in USD | 0.60% |
| Mastercard cross-border assessment, not settled in USD | 1.00% |
Source: North Carolina Office of the State Controller, pass-through fee schedule. Treat these as an illustration of how the fees are structured, not as the rates you will pay. Your processor’s current schedule is what counts.
Note the higher International Acquirer Fee for MCC 5967, which covers much adult content and services. High-risk merchants often face extra scheme costs on international sales. Read more about what your merchant category code means for fees.
Pricing models and how ISA shows up
Interchange plus plus (IC++)
With IC++ pricing, you pay the actual interchange, the actual scheme fees (including ISA) and your processor’s margin, each listed separately. It is the most transparent model: you can see exactly which fees come from cross-border transactions.
Blended or flat-rate pricing
With blended pricing, you pay one rate per transaction, or a few rates, and the processor absorbs the underlying fees. ISA is still there, but it is built into your rate. Blended pricing is simpler to budget, but it is harder to see what international sales really cost you.
Tiered pricing
Some processors offer rates that fall as your volume grows, or group transactions into tiers by type. Ask how cross-border transactions are classified, because they often fall into the most expensive tier.
IC++ pricing changes per country and region, for example. If you have the chance, we also usually suggest to go for tiered pricing if you can. It’s usually a better option for most businesses because you always have a plan that you can follow to lower your fees over time.
Dennis E.R. Pedersen, CEO and Founder of FastoPayments
Other scheme fees high-risk merchants should know
ISA isn’t the only scheme cost that hits high-risk merchants harder. Merchants in high-risk categories may also have to be registered with the card schemes, for which registration fees apply.
One of the more important fees to consider as a high-risk merchant is the high-risk scheme fee, which is part of the Visa Integrity Risk Program (VIRP). This is similar to a registration fee, and you have to pay a yearly fee of $950, check for each card scheme.
Dennis E.R. Pedersen, CEO and Founder of FastoPayments
For an overview of all the fees on a processing statement, see our guide to credit card processing fees for merchants.
Can you avoid the ISA fee?
Not completely, if you want customers from other countries to pay by card. But you can reduce your overall cross-border costs:
- Process locally where you sell most. If a large share of your customers is in one region, an acquirer located in that region can turn cross-border transactions into domestic ones.
- Think about currency. Settling in your home currency, or in currencies your acquirer treats as local, can avoid the higher non-local currency rate. Weigh that against the conversion lift of showing local prices.
- Offer local payment methods. Methods such as iDEAL or Bancontact don’t carry card scheme fees. See our guide to local payment methods in Europe.
- Ask for transparent pricing. With IC++, you see the real scheme fees and only negotiate the processor’s margin.
- Review your statements. Check that pass-through fees match the published rates and aren’t marked up.
It’s impossible to avoid fees as a merchant, whether you’re high or low-risk, but it is important to know what fees are deductible in your business. Ensure you’re working with knowledgeable payment processing providers or tax consultants who can help you make sense of your overall fees to optimize your accounting.
Dennis E.R. Pedersen, CEO and Founder of FastoPayments
For more on selling internationally, read our guide to cross-border payments.
Frequently asked questions
What is an ISA fee?
An ISA (International Service Assessment) fee is a Visa fee on transactions where the card was issued in a different country from the merchant’s. The acquirer pays it to Visa and usually passes it on to the merchant.
What does ISA fee mean on my bank statement?
It usually means you paid a merchant, or a merchant’s payment processor, located outside your country, and your bank has passed on an international fee. This can happen even if you paid in your own currency.
Who pays the ISA fee, the merchant or the customer?
On the merchant side, the merchant pays the ISA fee through its processor. Separately, some banks charge their cardholders a foreign transaction fee on international purchases.
How much is the Visa ISA fee?
It depends on the region and the settlement currency, and Visa updates its fees from time to time. A 2023 US pass-through schedule lists 1.00% for transactions settled in US dollars and 1.40% for others. Ask your processor for its current rates.
What is the difference between the ISA fee and the IAF?
Both are Visa fees on international transactions. The ISA applies when the issuer and merchant are in different countries. The International Acquirer Fee applies to merchants acquired in the US accepting cards issued abroad, with a higher rate for some high-risk categories. Both can apply to the same transaction.
Can I avoid ISA fees?
Not entirely if you accept foreign cards. You can reduce cross-border costs by processing locally in your main markets, choosing settlement currencies carefully, offering local payment methods and using transparent IC++ pricing.
Does the ISA fee apply to online payments?
Yes. It applies to online and in-person card payments whenever the card was issued in a different country from the merchant’s.
Next step
If international sales are a big part of your business, the way your processing is set up affects what you pay. Fasto works with adult, subscription, nutraceutical, gaming, dating and hospitality merchants, and approval typically takes two to three weeks.
Get a free quote and tell us where your customers are.
