If you have ever bought an item online from a store based outside of Australia, then you might have had a shocker when you received your credit card bill. That’s because you saw an additional 2- 3% charge plus other “expenses” such as unfavourable conversion rates for your dollars.
There are some great bargains to be had on the internet, so fees or bad exchange rates shouldn’t stop you. Here are some ways to shop online and save on fees.
How to shop online with foreign merchants and pay no foreign transaction fees
There are a number of credit cards, debit cards and travel cards available which won't charge foreign transaction fees.
Credit cards
There are a number of credit cards that charge 0% foreign transaction fees when you spend in a foreign currency. Most credit cards charge 2% or 3% per foreign transaction, which could add up if you're travelling overseas or regularly shop online with international merchants.
These cards often come with other travel perks including complimentary travel insurance and purchase protection, rewards programs and airport lounge passes. Each card provider will have their own exchange rate or might use the exchange rates set by MasterCard or Visa, so check these out before applying for any one card.
Debit cards
Some Australian debit cards also waive foreign transaction fees. You can compare some of the current options in the table below. Some will require you to meet deposit and spend requirements to activate the foreign transaction fee rebate. You may be able to find cards that don't charge any account-keeping or international ATM withdrawal fees as well.
Travel cards
Travel cards are designed to be used when you're overseas but can also be used when you shop online. They usually offer around 10 supported foreign currencies, which you can transfer your Australian dollars to and then save on foreign transaction fees. Unlike your debit card, travel cards are prepaid and you can top up your balance. These cards sometimes charge loading fees or currency conversion fees when you spend in a currency that isn't supported or loaded on the card.
If you are looking to travel or interested in learning more, see our travel money guide here.
More guides on Finder
-
Should you get a credit card?
The key benefits and risks to consider before taking out a credit card.
-
Australian credit card statistics
Discover exactly how the average Australian uses their credit card.
-
How to pay rent with a credit card in Australia
A limited number of payment platforms give you a way to pay rent with a credit card, but are the costs worth it?
-
Credit Card Surcharges
Compare the surcharges that you can expect when you pay with a credit card and pick up tips to avoid these extra fees.
-
The best credit cards in Australia (seriously, we sorted through 250+)
While there isn't one best credit card, you can find a card that suits your needs by comparing the features, deals and offers that are trending here.
-
How multiple credit card applications can affect you
Learn why you shouldn't apply for multiple credit cards at once and pick up healthy financial habits to improve your credit score.
-
Easy credit cards to get approval for
When you apply for a credit card online, you could receive a response within 60 seconds. Find out how you to find a card that you're eligible for and increase your chances of approval.
-
Minimum income requirements for credit cards
Find out how much you need to earn each year to apply for a credit card and compare low income credit cards in this guide.
-
Credit card vs debit card
While a credit card is linked with a line of credit, a debit card is connected to your own money. Compare the differences between the card types in this guide.
-
No Foreign Transaction Fee Credit Cards
Find out how you can keep your overseas spending costs down by comparing credit cards with no foreign transaction fees and no currency conversion fees.
Ask a question