When you travel or shop online with an overseas business, many cards charge a foreign transaction fee of around 2–3% of the purchase amount. But credit cards with 0% foreign transaction fees waive this cost or give you a rebate, helping you save money on international transactions.
How much can I save with a 0% foreign transaction fee card?It depends on the amount you spend overseas and the fees you would pay if you used a different card. But as an example, if you spent $2,000 on a card with a 3% international transaction fee, it would cost you $60. If you had a card with a 0% foreign transaction fee you wouldn't pay anything, so you'd save the full $60.
And if you had a credit card with a higher fee of 3.4% for international transactions, you'd save even more ($68 in this example).
Keep in mind that the cost of foreign transaction fees may not be obvious straight away, as they are added as separate transactions on your credit card account.
The Australian Competition and Consumer Commission (ACCC) has also warned people that some major online brands will attract foreign transaction fees, even if the website ends in .com.au or the price is shown in Australian dollars.
If buying overseas items or travelling overseas, consider an international transaction fee-free credit or debit card. Make sure to compare fees and charges of different options.”
Some credit cards automatically waive foreign transaction fees when you make an international purchase.
Others offer a rebate on foreign transaction fees when you meet specific requirements, such as spending a set amount per month. If that's the case, you could still be charged a fee if you don't meet the requirements.
Credit card annual fees typically range from $29 to $400 or more for higher-end cards. You can weigh this cost against the value you'd get from 0% foreign transaction fees and any other perks to help choose a card.
If the 0% foreign fee savings aren't as much as you thought, you could be better off comparing $0 annual fee credit cards. You could also consider a card that offers both no foreign transaction fees and no annual fee, although there are only a few of these on the market.
Interest rates on these cards range from around 10% to 27% for purchases. If you pay off your credit card as you go – or pay the total by the due date on your statement – you'll typically get interest-free days on your purchases.
But if you end up carrying over a balance, a low rate credit card could be a more cost-effective option.
Some cards offer additional perks when you're travelling, which can include:
If there's another benefit you want, you could use Finder's table filters to narrow down your comparison of 0% foreign transaction fee cards. Just make sure you check what requirements you need to meet to use the perks.
Australian credit cards offer zero liability for fraudulent transactions and 24-hour emergency support services. Most also offer fraud-monitoring services.
Other security features can include virtual cards, transaction limits for overseas spending, temporary account blocks and extra online security through Visa Secure, Mastercard SecureCode or American Express SafeKey.
Overseas ATM fees typically cost around $5 or between 2-3% of the total transaction. And that's not including any charges added by the overseas ATM operator.
There are some credit cards that offer $0 international ATM withdrawals, but keep in mind that you'll still pay cash advance fees and any third-party charges.
When you use a credit card to withdraw cash, buy foreign currency or make any other cash advance transaction, you'll pay a fee worth around 2-4% of the transaction. You'll also be charged interest at the cash advance rate, which is higher than the purchase rate on most credit cards.
If you need to get cash when you're overseas, you can avoid these costs by using a debit card or prepaid travel card instead.
The range of credit cards that offer no foreign transaction fees means it's worth looking for other features that you want on your credit card. For example frequent flyer points, 0% interest rate offers, cashback bonuses or something else. The key is to find a card with features that add value when you're shopping in Australia and overseas.
When you're planning to use your card overseas spending, keep the following details in mind:
Graham heads Finder's insights team and specialises in a variety of financial topics, including credit cards, loans, insurance and investing. He regularly appears on TV including ABC News, Sunrise and Today, and edits Finder's Insights column.
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I am looking for a business credit card with 0% international transaction fees.
Hi Alex,
Thanks for getting in touch!
As of this writing, we don’t have a list of business credit cards with 0% foreign transaction fees. If you are still looking for business credit cards, you can use our comparison table to help you find the card that suits you. On the page you’ll also read information about:
When you are ready, press the ‘Go to site’ button to apply. As a friendly reminder, read the eligibility criteria, features, and details of the card, as well as the Product Disclosure Statement and Terms and Conditions before committing to the product.
Hope this helps!
Best,
Nikki
I withdrew money from an ATM in the Philippines and the machine said temporary closed, and no money came out. ii wrote the time down and the date. When I got back to Australia, 28 degrees said that I put my chip in and so the transaction was valid. I wrote back that no money came out of the machine, and all machines have cameras now, so they should be able to see I got no money. Can I take this to AFCA as I should not be to blame and it has to be on camera.
Hi Nicholas,
Thanks for getting in touch and sorry to hear about what happened. You can check and inquire with AFCA how to handle the situation but make sure you have all supporting documents to validate your claim. Hope this helps!
Best,
Nikki
(Apologies for lengthy message) I love to travel and I hate paying ANY fee’s overseas. About 10 years ago I was away for 4 months and with the total fee’s I paid along the way I could have stayed away much longer, so since then I’ve searched high and low for credit/debit cards to use.
I found 28 degrees first and that was fantastic until they changed the fee structure for having a positive amount on the card itself and using ATM’s, so I stopped using that one. Plus they introduced some fee’s for paying the card off if it went into debt.
The past few years I’ve used Citibank debit card and that has been fantastic. I’ve paid no fee’s at all and its very simple to get hold of with no extra banking requirements to keep it – like put X amount per month in the account. I use it overseas and that’s pretty much it. Plus if you do use it in Australia at some restaurants you get a free bottle of wine!!
Recently I changed banks and joined ING. I heard they had a similar card (Orange everyday Visa) and I managed to get hold of that as well. I’m not 100% sure if you have to deposit at least $1000 per month to get the benefit of no fee’s but as I’ve joined that bank that part is done anyway. Certainly worth a look but double check those rules.
I would strongly suggest having a look at both the cards above as they are excellent for travel and not paying fees. I wouldn’t travel without them!
Also, I tried an NAB travel card before and that was a total waste of time due to the poor conversion rates the banks charge, and checking other banks “Travel Cards” I found the same thing. They sound good but you are not getting the best rates on conversion and to add to a bad conversion in Thailand a few years ago I was slugged $8 a time at the ATM.
Hope that helps someone! Happy travels.
Hi Andy,
Thanks for reaching out for sharing your experience on credit cards. Feel free to get in touch with us again should you need any assistance.
Best,
Nikki
If 28 degrees card is in credit (nothing owing) and use it to withdraw cash at overseas ATM, then surely there will be no ‘cash advance fee’ or interest charged? Is that right? Thanks.
Hi Dave!
Thanks for your message.
You can withdraw or do a CASH ADVANCE from your 28 Degrees credit card at no cash advance interest rate charged. However, you will still be charged a cash advance fee and an ATM withdrawal fee (operator fee)
Hope this clarifies.
Regards,
Nikki
Perhaps Nikki misunderstood Dave’s excellent question. Or perhaps I have!!! If your 28 degrees card has a positive balance of say $3k and you withdraw 500€ then surely there’s no cash advanced fee nor interest charged???
Hi Traveller,
Thanks for getting in touch!
Sorry for the confusion. If you have a positive credit card balance and you intend to use your money put into it, there will be no cash advanced interest rate charged. However, there will still be a charge on cash advance fees and ATM withdrawal fee (ATM operator fee).
Hope this clarifies!
Regards,
Nikki
If I had say a Bankwest or 28 Deg card and wanted say to purchase, whist in Australia, a cruise costing several thousand $US dollars with an overseas company using that card would I be charged a conversion and/ or an overseas transaction fee?
Hi Brian,
Thank you for getting in touch with Finder.
For the Latitude 28 Degrees Platinum Mastercard, there’s 0% of transaction value under the foreign currency conversion fee.
If you have a Bankwest Zero Mastercard, then you will be charged 2.95% of transaction value as the foreign currency conversion fee. However if you have a Bankwest Zero Platinum Mastercard then NO foreign transaction fee.
As a friendly reminder, while we do not represent any company we feature on our pages, we can offer you general advice.
I suggest that you also verify this info with your bank/credit card issuer before you make your dollar transaction.
I hope this helps.
Have a great day!
Cheers,
Jeni