Local Currency Taxes
Banks in some countries add taxes or surcharges on top of local currency payments. What they are, where they apply, and how to handle customer questions.
When customers pay in their local currency, their bank or card issuer may add country-specific taxes or surcharges on top of the amount Commet charges. These charges are collected by the customer's bank on behalf of local tax authorities — Commet does not apply them, does not receive them, and cannot refund them.
Why this happens
Commet acts as the Merchant of Record, so even when a customer pays in their own currency, the transaction may be processed as a cross-border purchase from a foreign merchant. Some countries require card issuers to collect taxes or tax perceptions on these transactions at the moment of payment.
The result: the total on the customer's bank statement can be higher than the price shown at checkout. The tax appears as a separate line item charged by the bank, not as part of the Commet charge.
Where it applies
| Country | What customers may see |
|---|---|
| Argentina | Tax perceptions on cross-border card payments, historically up to 30% (e.g. "impuesto PAÍS" and income tax perceptions), applied by the card issuer |
| Other countries | Cross-border transaction fees or local tax withholdings, depending on the customer's bank and local regulation |
Rates and rules change frequently and vary by bank, card type, and local regulation. The customer's bank determines the final amount.
These charges apply per transaction and are independent of the currency configured in your plan. Paying in local currency does not by itself exempt the customer from cross-border taxes.
What this means for your customers
- It is not a duplicate charge. The Commet charge and the bank's tax perception are separate line items on the statement.
- Commet invoices show only the price you configured. Bank-applied taxes never appear on the Commet invoice or receipt.
- Refunds don't include bank taxes. If you refund a payment, Commet returns the amount it charged. Tax perceptions are refunded (or credited) by the customer's bank or tax authority under local rules.
If a customer asks about an unexpected extra charge, direct them to their card issuer — the bank can confirm which tax was applied and how to claim it back where local rules allow it.
Related
- Regional Prices — Let customers pay in their own currency
- Merchant of Record — How Commet handles taxes and compliance on your behalf
- Supported Countries — Where Commet operates
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