Understanding the impact of junk fees on Americans
Junk Fees
Americans are feeling the strain of junk fees in many areas of their lives. While the focus has been on travel, hospitality and events, this research found that Americans noted they are most impacted by a junk or hidden fee being included when using a credit card or in financial services.
As Americans become further educated on junk fees, they are changing how they budget, where they spend their money and what they purchase. Trust and consumer choice are shifting — especially in financial services.
In looking at international transactions, 81% of Americans agree that a hidden fee included in a currency exchange transfer (i.e. currency exchange markup) is a junk fee. This makes sense when you take into account that Americans lost $5.8 billion in hidden exchange rate markups during 2023.
To help Americans, we need to include financial transactions, including international payments / remittances, as part of junk fees initiatives by regulators and policymakers.
Junk fees impact all aspects of Americans’ everyday lives — including international payments.