Foreign Currency Transactions Using Debit Cards

These cards could offer you flexibility and savings by letting you use your own money overseas with limited fees.

Debit cards are becoming an increasingly competitive option for Australians making foreign transactions. Some debit card providers are matching offers of credit cards and travel money cards by offering low transactions fees, low interest rates and international money transfer options. Take a look at the finder.com.au guide to debit cards for foreign transactions to see if they might be an option for.

St.George Complete Freedom Account

$0 international ATM withdrawal fee offer

Enjoy low monthly account-keeping fees with St.George Complete Freedom Account and $0 ATM fees.

  • $0 monthly fee when at least $2,000 is deposited per month or open a Complete Freedom Student account, otherwise a fee of $5 applies per month
  • $0 ATM withdrawal fee at 50,000+ ATMs globally
  • Visa Debit with payWave

    Rates last updated August 22nd, 2017
    $
    Monthly Account Fee Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Details
    Macquarie Transaction Account
    $0 International transaction fees. Overseas ATM fee still applies.
    Mastercard $0 $0 Free access to all domestic ATMs in Australia including the rediATM network. More
    Citibank Plus Everyday Account
    $0 International transaction fees and $0 overseas ATM withdrawals fees if you use a Citibank ATM overseas.
    Mastercard $0 $0 No ATM fees using Citibank, Westpac, BankSA and St.George branded ATMs in Australia. Use overseas Citibank ATMs for free. More
    Macquarie Platinum Transaction Account
    $0 International transaction fees. Overseas ATM fee still applies.
    Mastercard $0 Free access to the rediATM network More
    Rates last updated August 22nd, 2017
    $
    Monthly Account Fee Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Details
    St.George Complete Freedom Account
    $0 Overseas ATM fee when you withdraw from the Global ATM alliance network. International transaction fee still applies.
    Visa $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $5 fee applies. Unlimited free withdrawals at St.George, Westpac and BankSA ATMs. Go to site More
    Westpac Choice
    $0 Overseas ATM fee when you withdraw from the Global ATM alliance network. International transaction fee still applies.
    Mastercard $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $5 monthly fee applies. Unlimited free withdrawals at St.George, Westpac, Bank of Melbourne and BankSA ATMs. Go to site More
    Bankwest Qantas Transaction Account
    $0 Overseas ATM withdrawal fees charged by Bankwest. Third party ATM fees and international transaction fees may still apply.
    Mastercard $0 $2,000 $0 account keeping fees when you deposit at least $2,000 into your account each month. Otherwise, a $6 monthly fee applies. Unlimited Free withdrawals at Bankwest and CommBank ATMs in Australia. Go to site More
    Macquarie Transaction Account
    $0 International transaction fees. Overseas ATM fee still applies.
    Mastercard $0 $0 Free access to all domestic ATMs in Australia including the rediATM network. More
    Macquarie Platinum Transaction Account
    $0 International transaction fees. Overseas ATM fee still applies.
    Mastercard $0 Free access to the rediATM network More
    Citibank Plus Everyday Account
    $0 International transaction fees and $0 overseas ATM withdrawals fees if you use a Citibank ATM overseas.
    Mastercard $0 $0 No ATM fees using Citibank, Westpac, BankSA and St.George branded ATMs in Australia. Use overseas Citibank ATMs for free. More

    What are the features of debit cards for foreign transactions?

    Now you can use your own money and also take advantage of the following features:

    • Low foreign transaction fees. When you make a foreign transaction with any debit card you will be charged certain fees, but some debit cards have low fees or waive these fees altogether.
    • Prepaid options. Card providers have come out with various prepaid debit card options for travellers that allow you to load your card with the money you want to spend. These cards let you save on currency conversions and also some foreign transaction fees.
    • Low ATM fees. Some cards do not charge you to use foreign ATMs, which can save you a considerable amount of money when travelling.
    • Low interest rates. Debit cards generally charge very low interest rates or no interest rates at all, which make them a competitive option when compared to what you could be charged for using some credit cards.

    Other benefits

    • Global money transfers. If you regularly make foreign purchases or payments then you can take advantage of free transfers to global banking locations, a service offered by some debit cards.
    • Rewards programs. Some debit cards let you earn rewards points for eligible purchases which you can use to claim travel benefits. Take a look at whether your card is linked to a frequent flyer program or a dedicated provider rewards program.
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    A guide to foreign transaction fees

    Foreign transactions come with additional fees and charges that are not applicable for ordinary transactions. It's important to understand all fees involved with these transactions so you can compare your debit card options and find one that will cost you the least money. Think about what kind of foreign transactions you will be making and then pick a card that suits how you'll be using it. Here are some fees to look out for:

    • ATM fees

    When you are using a credit card or debit card overseas you can expect to be charged for using an ATM. Some providers will charge you a fee as high as $5 for using a foreign ATM, and you have to pay that on top of the fee you are charged from the ATM provider. Make sure you check the fees charged for using your card and then work out how much you will have to pay for each ATM transaction, which includes checking your balance, transferring and withdrawing money. To save on these fees try and withdraw a large amount of money when you visit a foreign ATM to limit the amount of times you will be charged.

    • International money transfers

    International money transfers are where you send money overseas through an international transfer system using different currencies. Some debit cards allow you to transfer money to partner banks in various countries and charge you no fees. Using other methods, such as online money transfers, you may be charged fees as high as $30. If you often need to make foreign money transfers then a debit card that offers this for free may be worth considering.

    • Currency conversion fees

    Currency conversion fees are charged each time you make a transaction and the bank needs to convert your money into a different currency. Depending on how you go about converting your money you could be charged fees as high as 3.4% of your transaction amount. If you make this transaction at an ATM or at an airport then you can be charged extra fees on top of the interest you are charged, and you can also lose money through unfavourable foreign transaction rates.

    Other considerations

    When you are comparing your travel money options, there are a few things to consider before you make your decision. If you are thinking about using a debit card on your trip then you should check the areas you will be travelling in and think about what access you will have to your money, and also what you will be charged for this access. Check to see if your bank has any partner ATMs that will not charge you fees to help you save money.

    You should also consider what you will be using your card for. If you are travelling around and will be using multiple currencies and want to use a debit card, you can limit your transaction fees by only withdrawing money once or twice for each place you visit so you do not have to pay multiple currency conversions. Although if this is the case, you may benefit from a travel money card that allows multiple currencies to be uploaded to the card.

    To make sure you get the best travel money option for you, you should compare cards online and pick the one that best suits your travel needs.

    What are the pros and cons to using a low currency conversion fee debit card?

    Pros

    • Use your own money. Debit cards allow you to use only your own money when travelling so you can limit your chance of overspending.
    • Accessibility. Most debit cards are linked to providers such as Visa and Mastercard so you can enjoy the same access to your money as you have with a credit card.
    • Savings. Debit cards can offer low foreign transaction fees, no ATM fees, low interest rates and prepaid options which all give you opportunities to save money.
    • Linked to your bank account. Using a card that is directly linked to your transaction account makes it quick and easy to transfer money onto your card without being charged reload fees.

    Cons

    • No extra funds. You have no access to emergency funds like you do with credit cards, which may be limiting while you are overseas.
    • Limited special benefits. Debit cards do not offer the same travel benefits that come with some credit cards, for example some do not offer complimentary travel insurance.
    • Cannot lock in exchange rates. Other travel money options allow you to lock in exchange rates, but this is not an option for debit cards and as such you may lose out on money.

    How do I apply?

    To apply for a debit card for foreign transactions simply follow the secure link on this page which will take you through to the card provider's online application form. The application process differs between providers, but generally you will need to provide the following:

    • Personal details such as your name and address
    • Forms of identification ie. driver's license, medicare, passport, birth certificate etc.
    • In some cases you may need to provide financial details

    Eligibility criteria

    The eligibility criteria for debit cards is generally not as strict as it is with credit cards. Card providers do not usually require a good credit rating because these cards only allow you to use your own money, not theirs. Debit cards also offer options for people who are looking for joint applications, which is great for you if you are travelling with a partner or a card option if you have children under 18.

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