Barbados: Foreign exchange fee on transactions made using credit/debit cards goes in effect Sept. 1

The Central Bank of Barbados is set to implement a 2 percent fee on foreign purchases and payments made using credit, debit and travel cards.
The new fee goes into effect on Friday, September 1.

According to the central bank, the Foreign Exchange Fee (FXF) is applicable to purchases made while overseas, as well as to items purchased from companies outside of Barbados.
But it noted that if the transactions are cancelled, the fee is refundable.

The fee will be calculated on the Barbados value of the transaction using the exchange rate on the date that the transaction was processed, not on the date that the bill is paid and will be applied even if customers choose to be billed in Barbados dollars.
“This is because whether the transaction charge is executed in Barbadian or foreign currency, it is ultimately settled using foreign currency,” the central bank said in a statement.

The FXF, which Minister of Finance and Economic Affairs, Christopher Sinckler, announced during the 2017 Financial Statement and Budgetary Proposals, has been in effect on cash, bank drafts and wire transfers since mid-July.
Sinckler had during his budget address urged Barbadians to make “major sacrifices” to rescue the ailing economy.

The FXF was originally due to have gone into effect from July 17, but, according to the central bank, a delay in implementation was put in place to allow the public to become familiar with the new fee.
The FXF does not affect a person’s annual foreign currency allowance. -(CMC)