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How to guide: Shopping overseas online without paying foreign currency transaction fees

Information verified correct on December 7th, 2016

Enjoy the benefits of shopping online without paying transaction fees. Read on to learn how.

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.

Knowing your options:

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 range of credit cards which waive foreign transaction fees when buying items and services from overseas merchants. These are offered by card providers including, Bankwest and GE Money. These credit cards come with a range of other features including complimentary insurance policies which may cover the item you buy from damage, theft or loss in the immediate months after purchasing it. 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.

Credit Cards with No Foreign Currency Exchange Fee

Rates last updated December 7th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Bankwest Zero Platinum MasterCard
Complimentary travel insurance & 24/7 concierge service and $0 foreign transaction fees.
17.99% p.a. 2.99% p.a. for 9 months $0 p.a. Go to site More info
28 Degrees Platinum MasterCard
No foreign transaction fees on international purchases including international purchases online, together with a no annual fee.
21.99% p.a. 4.99% p.a. for 6 months $0 p.a. Go to site More info
ANZ Rewards Travel Adventures card
Pay no overseas transaction fee on purchases and receive complimentary domestic return flight and lounge passes each year you hold the card when you spend $500 on eligible purchases within the first three months.
20.24% p.a. $225 p.a. Go to site More info
Coles Rewards Mastercard
Earn 2 flybuys point for every $1 spent and no foreign transaction fees for online purchases and overseas trips.
19.99% p.a. 0% p.a. for 6 months $89 p.a. Go to site More info

Debit cards

There's currently two debit cards on the market which waive foreign transaction fees. The Citibank Plus Transaction account and the NAB Gold Visa Debit card. The latter is only available to those with a NAB Private Tailored Package, whereas the Citibank Plus Transaction Account is available to most Australians. There's no minimum deposit required, account-keeping fees or fees for international ATM withdrawals or global funds transfers.

No foreign transaction fees or international ATM fees

Rates last updated December 7th, 2016
$
$
months
Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned
Citibank Plus Everyday Account
Free international money transfers and free overseas Citibank ATM withdrawals.
0.00% 0.00% 0.00% $0 $0 / $0 More

information on comparing debit cards

Travel cards

Travel cards are usually used when physically overseas, but if you still have a card lying around from a previous trip they can be used to avoid foreign transaction fees. Some cards require you to only spend on the supported currencies on the card, whereas others like the CBA Travel Card will waive foreign transaction fees on all foreign purchases regardless of the currency. These cards can have reload fees and other charges which might not make them a great tool to use in the long term. If you are looking to travel or interested in learning more, see our travel money guide here.

Comparing Travel Money cards

Rates last updated December 7th, 2016
Available Currencies ATM Withdrawal Fee Reload Fee Initial Load Fee
ANZ Travel Card
ANZ Travel Card
AUD, CAD, EUR, GBP, HKD, JPY, NZD, SGD, THB, USD, AUD 3.50, CAD 3.00, EUR 2.20, GBP 2.00, HKD 20.00, JPY 260, NZD 4.50, SGD 4.00, THB 95, USD 2.50 1.1% of the value purchased $0 Go to site More
NAB Traveller Card
NAB Traveller Card
AUD, CAD, EUR, GBP, HKD, JPY, NZD, SGD, THB, USD $0 per withdrawal on international ATMs and $3.75 per withdrawal at any Australian ATMs $0 $0 Go to site More
Cash Passport MasterCard
Cash Passport MasterCard
AUD, CAD, EUR, GBP, HKD, JPY, NZD, SGD, THB, USD $2.50 for withdrawals made overseas 2.95% of the amount withdrawn for domestic withdrawals $0 $0 Go to site More
Qantas Card with Qantas Cash
Qantas Card with Qantas Cash
AUD, AED, CAD, EUR, GBP, HKD, JPY, NZD, SGD, THB, USD AUD 1.95, CAD 2.00, EUR 1.50, GBP 1.25, HKD 15.00, JPY 160, NZD 2.50, SGD 2.50, USD 1.95, THB 70.00, AED 6.50 $0 $0 Go to site More
Travelex Travel Card
Travelex Travel Card
AUD, CAD, EUR, GBP, HKD, JPY, NZD, SGD, THB, USD Travelex does not charge an ATM withdrawal fee when you use your Travelex Multi-currency Cash Passport to withdraw currencies that are loaded on the card at overseas ATMs where MasterCard is accepted. The greater of 1.1% of the initial load / reload amount or AU$15.00 $0 Go to site More
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How to compare online payment options

  • Currency conversion rate – if you are paying in a foreign currency, it’s inevitable that banks will give you less than the official currency conversion rate. Your choice should depend on just how much of a cut they will get from you in relation to what foreign transaction fees. Some cards will waive the foreign transaction fee but offer an inferior exchange rate, so be sure to investigate.
  • Funds transfers - some cards, such as the Citibank Plus, offer free global funds transfers, which may suit shoppers who pay through funds transfers, for example on classifieds websites.
  • Purchase protection insurance – as mentioned, there are some credit cards that offer this feature. It’s very useful for online purchases because it generally covers damages and theft.
  • Global acceptance – how widely accepted is the payment method? Visa and MasterCard credit cards are accepted by almost all online stores. PayPal is also becoming a popular method to pay for goods and services online.
  • Refunds – refunds are difficult to implement in practice. Although some credit cards do offer this feature, it is a long and stressful process. On the other hand, PayPal offers hassle-free refunds if you can prove that the seller did not abide by the agreement.
  • High rewards points – if you have to use a credit card to make online purchases, it may be important to choose one that offers rewards. There are cards in the market that can award three points for every dollar you spend. So browse around and determine which one offers you the best deal.

Shopping online and finding yourself better deals and offers

Online shopping gives Australians access to attractive deals from international merchants. Whether you are looking for designer clothes, gadgets, or novelty items, you are sure to find them on countless websites that aim to serve you. You can now take advantage of these deals without worries once you know the facts about foreign transaction fees and how to avoid them. Once you have made your credit card or debit card choice, you may also want to find out if the merchant has promotional codes or sales on offer. We've grouped together some of the shopping offers from leading retailers here.

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Jeremy Cabral

Jeremy is a publisher for finder.com.au, he is also a personal finance all-rounder specialising in: Credit Cards, Savings Accounts, Personal Loans, Home Loans & Online Shopping.

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