0% Foreign Fees Credit Cards

If you travel abroad, withdraw from an overseas ATM, or buy stuff online from foreign shores, you’ll pay an extra 2% to 4% to cover foreign currency conversion. It's a kick in the bank account, for sure.

Credit cards with 0% currency conversion fees waive the cost, which - cha ching! - saves you money every day. Like this:

As a one-off purchase, the smaller amounts might seem like a fair price to pay. But if you frequently shop online from overseas retailers (and let’s face it, that’s most products on Amazon and social media ads), those small amounts add up over a year. 

And that’s not including any ATM charges for withdrawing cash while you’re travelling the world.

How about some examples?

Let’s say Marvin heads over to the Maldives for a surfing holiday. He spends $3000 on his accommodation using a credit with a 3% currency conversion fee. Marvin forks out an extra $90 that he could have saved with a $0 foreign fee card.

What about Suri and her family? They head off to France and spend $10,000 on their trip. The currency conversion fee is 4%, which means they’ve paid $400 more than they needed to. That’s about 920 baguettes.

Your options for saving on overseas purchases

We’ve found the only way to avoid foreign transaction fees is to use:

• Cash in the local currency (but be aware of ATM withdrawal fees)
• A credit card that waives foreign fees
• A travel card that waives foreign fees

Using cash overseas. You’ll definitely save on fees by using cash, but remember you’ll pay foreign transaction fees when you withdraw it, and possibly a fee by the ATM operator as well. 

And of course, there are also the safety risks of carrying large amounts of cash while you travel. A bum bag can only protect you so much.

Using prepaid or money transfer cards. These can be a good option, but make sure you understand the fees, terms and conditions. Also remember you won’t get any card insurances, free travel insurances and other perks, or fraud protection.

Using a credit card. Some people worry about annual fees, but you can get credit cards with $0 foreign fees that have crazy-low or no annual fees. If you add up some of the other perks like travel insurance, lounge access and even rewards points, you might find it has far more value than its fees.

What’s the bad news? 

$0 foreign fee cards aren’t all sunshine and roses, so here’s a quick rundown of the pros and cons. Gotta be honest, there aren’t many cons. Most of these cards are geared towards travellers, so they’re nifty to have while you’re abroad.

Pros and cons of a $0 foreign fee credit card

Can you earn rewards on a 0% foreign fees credit card?

Sure, but it’s less common. Some cards will offer points on everyday purchases and some will give you cashback as a reward. Saving on fees also maximised the value of any rewards you earn.

Other perks you might like

If you’re planning to travel with a credit card, you could get some other handy perks on top of your transaction-fee savings:

Travel insurance: Travel insurance saves you time and money by covering you on your trips if you meet the criteria laid out in the insurance PDS. Always read the PDS to make sure you understand how to activate your cover, and what limits and exclusions apply.

Lounge access: A great extra for frequent flyers, complimentary access to airport lounges gives you someone far nicer to relax during stopovers. You'll often get free food and drinks, WiFi and showers.

Concierge service: A concierge is a personal assistant services that helps you arrange flights, hotels, bookings, reservations and even pet care.

 

Tips for saving on overseas fees

"We often forget that everything we buy online has a conversion fee attached if it’s an overseas seller. Those costs add up over time, which drains your account and dulls the value of your reward points. A $0 foreign fee card can be an inexpensive solution."

 

 

How much are foreign fees on credit cards?

This table will help you see how much you might pay using a credit card overseas. 

Foreign currency transaction fees are usually calculated as a percentage of what you’re buying. This table lists the current fees charged by major credit card providers for overseas transactions.

Credit Card International Fees by Brand

Brand	International Transaction Charge	Foreign ATM Withdrawal fee
American Express	3%	TBC
ANZ	3%	$4
Bank of Melbourne	3%	$2.50
Bank of Queensland	3.4%	$4
Bank SA	3%	$2.50
Bank Australia	2%	$3.50
Bankwest	2.95%	$4
Bendigo	2%	$15
Citi	3.3%	$5
Coles	3%	$4
CBA	3%	$4 or 1.75% (whichever is greater)
CUA	3.4%	$5
Diners Club	3%	-
Heritage	2.5%	$5
HSBC	3%	-
IMB	3.3%	$5
Jetstar	3%	-
Latitude Financial	3%	$4
Macquarie	3%	-
ME Bank	2.5%	-
NAB	3%	$4
St George	3%	$5
Suncorp	3.4%	$5
Virgin	3.3%	$5
Westpac	3%	$2.50 except Global Alliance ATMs
Woolworths	3%	$2.50