Get exclusive travel offers and guides
Straight to your inbox
By signing up, you agree to the Finder
Privacy & Cookies Policy
and
Terms of Use, Disclaimer & Privacy Policy.
Types
How to avoid foreign transaction fees
Foreign transaction fees can be 3% of the transaction value, or even higher. Here's how to avoid these fees and save money when travelling.
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
It may take some time and patience to research and find a credit card that doesn't charge foreign transaction fees. Consumers can carry cash but need to be mindful of who is around and to not show their cash. The safest and ideal option is to use traveller's cheques. Traveller's cheques can be spent just like cash, with the protection from loss and theft.
Foreign transaction fees are charged when a currency conversion happens. For example, when using your Australian debit card overseas or when shopping online from overseas stores. These fees can quickly add up, but there are a few ways you can avoid them which we'll outline in this guide.
Four easy ways to avoid foreign transaction fees
- Use a debit card with no foreign transaction fees
- Use a prepaid travel card loaded with the currency you need.
- Switch to a credit card with no foreign transaction fees
- Exchange your money for foreign cash before you go overseas.
Let's take a look at these four options in a bit more detail.
1. Use a debit card with no foreign transaction fees.
Several Australian debit cards don't charge any foreign transaction fees. This is a great option for Australians who travel often and want to use their Australian debit card overseas, instead of having to organise foreign cash or a special travel card. These accounts are free to open. You can compare a range of Australian debit cards that don't charge foreign transaction fees in the table below.
2. Use a prepaid travel card.
A prepaid travel card allows you to load up some foreign currency onto the card before you leave Australia. This means that when you're overseas, you can use the card to pay like a local. As you've already got the local currency on the card, no currency conversion occurs and no foreign transaction fees apply. Another benefit of using a travel money card is you can load up on the currency you need well before your trip when exchange rates are good.
3. Use a credit card with no foreign transaction fees.
Like debit cards, there are also a number of Australian credit cards available that don't charge any foreign transaction fees. Plus, using a credit card might help you earn reward points and some even offer additional travel perks like discounted insurance and airport lounge access. You might also find a credit card will come in handy at a lot of international hotels that require a credit card on arrival as a deposit.
4. Pay in cash.
If you don't like the idea of opening a new debit card, prepaid travel card or credit card you could opt to get some foreign cash. You can buy some foreign cash in the currency you need before you leave Australia, then simply use cash to make purchases while you're overseas. Using cash to pay is an easy way to make sure you're not paying any foreign transaction fees. But keep in mind, there are safety implications of carrying a large amount of cash with you, so this option might be better suited to short trips only.
Compare debit cards, credit cards and travel cards with no foreign transaction fees
More guides on Finder
-
PayActiv Earned Wage Access
Learn more about how PayActiv's Earned Wage Access service can help you access up to $500 of your paycheque for a $5 fee charged fortnightly (only if you access your wage before payday).
-
MoneyMe Freestyle Virtual Mastercard
Get $250 credit back when you meet the eligibility requirements and 55 days interest-free on purchases.
-
ANZ Rewards Platinum Credit Card – Exclusive Offer
The ANZ Rewards Platinum Credit Card offers a competitive rewards program, $0 annual fee for the first year, a $500 gift card, a balance transfer offer and a range of complimentary insurance covers.
-
Where to order Crust delivery online in Australia
Which company can you rely upon to deliver your Crust takeaway? Click to find out.
-
Woolworths Team Bank Visa Credit Card
Available to Woolworths Group employees and family, this low-cost card comes with simple features and mobile payment options.
-
Firefighters Mutual Bank Credit Card
This low rate credit card has a $0 annual fee and is available to firefighters and other service workers or volunteers.
-
Bank of Melbourne Vertigo Platinum – Cashback Offer
A low rate platinum credit card that includes a cashback offer and perks such as complimentary travel insurance and purchase insurance.
-
St.George Vertigo Platinum – Cashback Offer
The St.George Vertigo Platinum card offers a $300 cashback offer, up to 55 days interest-free period and a 12.99% p.a. interest rate on purchases.
-
Citi Rewards Card
Take advantage of a 0% balance transfer offer for 30 months and a discounted annual fee for the first year with this Citi Rewards credit card offer.
-
Health Professionals Bank Credit Card
Get an introductory rate of 7.9% p.a. on purchases and balance transfers for 6 months and save with an ongoing $0 annual fee with the Health Professionals Bank Credit Card.
Ask an Expert
