Debit cards with no foreign transaction fees
If you travel a lot, an Australian debit card with no foreign transaction fees will save you money on every purchase you make overseas.
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Key takeaways
- Foreign transaction fees are charged as a percentage of every overseas purchase, so avoiding them can save you hundreds on an average trip.
- Consider accounts like Macquarie Transaction for no international transaction and ATM fees.
- Beyond transaction fees, look for no monthly fees and note overseas ATM fees, often $5 or more per withdrawal.
What is a foreign transaction fee?
Your bank charges a foreign transaction fee whenever a currency conversion is required. If you buy something from a US website with your Australian debit card your bank needs to convert your Australian dollars into US dollars. And it charges you a fee.
The foreign transaction fee is a percentage of the transaction value, and it varies by bank (compare each card's fee in the table above). For example, if you made a $300 purchase from an American site, a 3% foreign transaction fee would cost you $9.
This fee gets expensive if you make regular international purchases.
What are the best debit cards with no foreign transaction fees?
Macquarie Transaction Account
The Macquarie Transaction Account and debit card has no account keeping fees, no international ATM fees and pays a refund on any local ATM fees charged. Plus, you can earn a high interest rate of 3% on balances up to $250,000 in your account without needing to meet any conditions. So you can earn interest while you travel!
Suncorp Everyday Options Account
This account has no monthly account keeping fees, no international transaction fees and no overseas ATM withdrawal fee by Suncorp (the ATM operator fees may still apply though). You can also link up to 9 sub accounts to your main account which could help you budget and manage your travel expenses.
Looking for a credit card instead? Check out these credit cards with no foreign transaction fees.
How do debit cards with no foreign transaction fees work?
You usually receive a debit card when you open an everyday bank account. The debit card allows you to access your own money to make everyday purchases in store or online, plus lets you withdraw your own money from an ATM. Some banks offer debit cards with low or even no foreign transaction fees. This means that you can still make purchases using your own money, but you won't be hit with the fee when you make overseas purchases.
How much can I save with a no foreign transaction fee debit card?
The amount you could save depends on how much you're planning to spend overseas. If you go overseas often, you could save hundreds of dollars (or more) per trip. Take a look at the fictional example below of a short overseas holiday.
For the fictional holiday above, you could save $238 when no foreign transaction fees are charged.
Benefits of using a debit card with no foreign transaction fees
- Save money on international purchases made online. You can avoid paying a percentage fee on every purchase when you shop online from overseas retailers.
- Save money when using your card overseas. You can use your card overseas just as you would at home and won't have to worry about transaction fees on every single purchase.
- Global and easy. You can use your Australian debit card all over the world, in store and online plus at international ATMs.
- No overspending and no interest accruing. Unlike a credit card, a debit card only allows you to access the cash in your transaction account so you can't rack up a big bill.
- Keeping it simple. You don’t have to load foreign currency on to your card, you don’t have to exchange cheques for cash, and you don’t have to apply for a credit card or separate travel card.
What fees are normally involved when using a debit card for international purchases?
- Foreign transaction fee. This is a percentage of the transaction value, charged when a currency conversion is required.
- Overseas ATM fees. This can be around $5 or more each withdrawal. Try to use your bank's international ATM partners and withdraw larger sums to reduce your ATM visits.
- Foreign exchange rate margin. Banks make money by adding a margin on top of the real exchange rate when transferring one currency into another. While this cost is not as transparent, if your bank is offering a poor exchange rate you could be losing money when using your debit card overseas.
- International money transfer fee. If you'd like to send money to someone overseas from your regular bank account in Australia, your bank will likely charge you a hefty fee, sometimes over $20. To avoid this, use a dedicated international money transfer service instead.
How do these debit cards compare to travel money cards or credit cards?
Credit cards
- Credit cards can give you access to extra funds outside of your available debit balance, which can come in handy during emergencies.
- There are credit cards available that don't charge foreign transaction fees.
- Overspending can become a problem and you could end up accruing high amounts of interest if you’re unable to pay your balance in full.
- Be aware that using your credit card to withdraw funds from an ATM, or to buy foreign currency or travellers cheques, is considered a cash advance transaction. These transactions attract an additional fee.
Travel money cards
- Load multiple currencies onto a single travel card to avoid currency conversion fees at the time of purchase.
- You can lock exchange rates in place before you travel.
- You may be charged a high fee when loading funds on the card or withdrawing money from ATMs.
- Exchange rates may be less competitive than what your bank offers.
Pros and cons of using a debit card with low foreign transaction fees
Pros
- Access your own money. Since you’re accessing money from your own bank account, you don’t have to worry about repayments, paying interest or overspending.
- Low or no foreign transaction fees. If you’re outside Australia for a considerable duration and end up using your debit card regularly, low or no foreign transaction fees can lead to noticeable savings.
- No transfers required. Since your debit card gives you direct access to money in your bank account, you don’t have to worry about transferring money from your account to another account or card.
- No conversion required. Using your debit card to pay in foreign currency is easy and does not require you to carry out complicated calculations. Your card provider does this for you using current exchange rates.
Cons
- No access to extra emergency funds. You can only access funds in your bank account, and no more, so in case of an emergency a credit card could work better.
- Limited choice of providers. While a number of Australian financial institutions provide debit cards, not many offer debit cards with no foreign transaction fees, so your choices remain limited.
- Conditions to meet. There may be account conditions you're required to meet in order to enjoy no foreign transaction fees.
Frequently asked questions
Karen Eley is the founder of Women Talking Finance, which provides money coaching and financial literacy and education services. An experienced and former financial adviser who has worked in financial services industry for 22 years, Karen is a Certified Money Coach (CMC), holds a Bachelor of Accounting and an Advanced Diploma in Financial Planning and CFP.
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How to use a debit card for online payments
Every wondered what the process was for your debit card when you made an electronic transaction?
I wanted to draw your attention to information on the Suncorp Everyday Options Savings Account visa debit card. I have had an account with Suncorp for many years, and do have a Suncorp visa debit card. I contacted Suncorp recently about my debit card since I’m travelling overseas later this year. Using this card incurs a fee of 3% on all foreign purchases and withdrawals. You also incur a $5 fee for cash withdrawals per $1000 or part thereof. So the information you have provided is incorrect.
Hi Vicki,
The 3% foreign currency conversion fee does not apply with the Suncorp Everyday Options Account or the Suncorp Everyday Essentials Account – both the products in this guide. However, this fee may be charged when using another Suncorp account.
This is stated on Suncorp’s website for these products, and also in Suncorp’s PDS available on its website. It’s page 25 in this document.
Hope this helps clear up any confusion!
Thanks for getting in touch,
Alison
Does the NAB Platinum visa debit card have any currency conversion fees when using foreign ATMs with this card? Their product disclosure states that no foreign fees apply to purchases but I’m not sure if this covers using an ATM overseas too?
Hi Luke,
Thank you for getting in touch with Finder.
The NAB Platinum Visa debit card has no currency conversion fee but has overseas ATM withdrawal fee of $5.
I hope this helps.
Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni
NAB now offer a debit card with no international conversion fees which also comes with travel insurance. I believe its called the NAB platinum visa debit or similar and it is $10 per month (you can get the $10 back by making purchases with paywave).
Hello Gavin,
Thank you for your comment.
If you are referring to the NAB Classic Banking with Platinum Visa Debit Card, yes, it doesn’t have a foreign currency fee on international purchases. However, this card has a $10 monthly account fee. This might be the one you’re referring to based on your comment above.
Regards,
Jhezelyn
I am going to italy and was wondering about charges on using a St.George debit card.
Hi Sharon,
Thank you for your comment.
Generally, you can use your St.George Visa Debit Card anywhere that Visa is accepted. There is no overseas ATM fee when you withdraw money from an ATM in the global alliance network. However, you may incur 3% international transaction fees and a $5 Overseas ATM withdrawal fee from a non-global partner ATM. Those are the fees that you’ll be charged most likely.
Still best to confirm with the bank the current fees and charges when using your card overseas. You may refer to other features of the St. George Complete Freedom. You can also see on the table the list of ATM Networks that allow you to make cash withdrawals from banks overseas without being charged an ATM fee.
I hope this helps.
Regards,
Jhezelyn
Are there any Citi Bank ATMs in Vancouver , Montreal and Toronto
Hi Susil,
Thank you for your inquiry.
I’m afraid that there may not be any Citibank ATM services available in Canada. You can use our Citibank ATM locator to check the available Citibank ATMs around the world.
Cheers,
May