Foreign Currency & International Fees for Credit Cards
Posted January 16th, 2009 and last modified June 17th, 2013
Think twice before using your credit card abroad. The foreign currency conversion fee and overseas transaction charge might shock you when you receive your monthly statement.
The most common question sent to us without a doubt is ‘Where can I find the international and foreign currency conversion fees for each provider ?’
Too many Australian’s come home from overseas to find their credit card statement bombarded with foreign fees, and thus it’s imperative to be educated on what you will be charged whilst travelling.
To answer our users questions, we have stockpiled all the main banks currency conversion and international fees in one place for your benefit.
While practically every financial provider charges foreign currency conversion and cash withdrawal, only several charge percentage fees for any transaction made overseas. It is important to do a credit card comparison to ensure you have the best deal for you. If you are a frequent traveller looking for a rewards credit card, you may want to apply for a credit card where you can earn frequent flyer points.
Zero Foreign Transaction Fee Credit Card
BankwZero Platinum Credit Card offers zero foreign transaction fees whether the transaction occurs in a foreign currency or Australian currency. Minimum credit limit of $6,000.
- $0 p.a. annual fee
- 17.99% p.a. on purchases
- 0% p.a. for 9 months on balance transfers
- Cash Advance Rate of 21.99% p.a.
- 55 days interest free
Read the Bankwest Zero Platinum MasterCard terms and conditions.
Comparison of No Foreign Currency Exchange Fee Credit Cards
Overseas Transaction Charges & Fees Comparison
| Credit Card |
Overseas Transaction Charges & Foreign Currency Conversion | Overseas Cash Advance Fee | |
|---|---|---|---|
|
2.95% (No Foreign Transaction Fees for Bankwest Platinum Cards, including the Bankwest Zero Platinum) | 2.00% / Min. Fee of $4.00 |  |
|
3.00% for Visa and MasterCard 2.00% for American Express |
$5
$2.00 for MAESTRO |
|
|
3.00% for MasterCard and Visa 2.00% for American Express 2.00% for transaction overseas in Australian dollars |
1.50% / Min. fee of $4.00 | |
 Compare NAB Credit Cards |
2.00% multi currency for Visa 2.50% multi currency for MasterCard 1.50% multi currency for American Express
|
1.50% / Min. fee of $4.00 | |
|
3.00% for Visa or MasterCard | 1.50% / Min. fee of $1.25 | |
|
3.40% 1.0% is paid to Visa; and 2.4% is paid to Citigroup |
1.50% | |
|
|
2.00% | 0.5% / Min. fee of $3.25 | |
|
3.00% – Low Rate Credit Card 0.00% – Platinum Low Rate Credit Card |
2.00% / Min. fee of $4.00 | |
|
1.50% AMEX Credit Cards 2.00% Visa & Mastercard |
2.00% | |
|
3.00% | 2.00% / Min. fee of $2.50 | |
|
|
3.00% |
3.00% / Min. fee of $1.95 plus international cash advance fees of $4.00 ATM / $5.00 over the counter |
|
|
|
3.40% | 2.00% / Min. Fee of $4.00 – maximum amount of $30.00 | |
|
3.00% | Cash advances currently not available on American Express credit cards | |
|
3.40% for MasterCard 3.30% for Visa |
$5 | |
|
2.00% | $4 | |
What is a Foreign Currency Conversion fee?
Since you own an Australian credit card, your balance and credit is automatically in Australian dollars. When you make a purchase overseas, say $50 US, it will not only convert to roughly $80 AU, but you will be charged a foreign currency conversion fee as well. For instance, that $80 AU purchase in America on a St.George Credit Card would impose a $2 AU fee (2.50% of 80 = $2).
Visa and MasterCard automatically charge a 1-2% fee on foreign currency exchange, so this minimum can at least be expected. Anything in excess is generally a small margin of profit for the bank.
What is an Overseas Transaction Charge?
Regardless of the currency, purchase, or cash advance, a couple of providers impose an overseas transaction charge, which takes a clean 1-3% figure off the total transaction amount. The owner of the ATM you use overseas may also charge you a fee, which will be disclosed at the time of your transaction.
Cross currency conversion fee:
This is the largest charge you’re going to incur when you use your card overseas. A cross currency conversion fee is a charge for converting Australian dollars into a foreign currency when you make a purchase – usually somewhere between 2 and 3% of the value of the transaction depending on your card provider. The only way to avoid this fee is to use a travel money card, which allows you to pre-load certain currencies (although some of these cards charge a ‘loading fee’ each time you deposit a currency onto the card) or to use a travel friendly credit card like the Bankwest Platinum Range of cards or the Aussie Platinum Low Rate Credit Card – these products do not charge a foreign currency conversion fee and are a great card to take overseas*.
ATM fees:
Even if you are using your own money when you withdraw cash from your credit card, there will still be a charge for using an ATM. International ATM fees and local ATM operator fees can cost up to $5 for each transaction and have the potential to blow the budget, but they can be avoided with a little planning. If you’re with a major Australian bank, there are a range of ‘global alliance partners’ that allow Australians to withdraw money from an international ATM without incurring a fee. Westpac, for instance, are partnered with Barclays Bank, which has a robust international ATM network. All you have to do is take some time to plan where you’re going to be and look out for your bank or lender’s global ATM partner.
What is a Cash Advance Fee? (International)
It’s general credit card knowledge that cash advances are expensive, even domestically. Once you begin using your credit card overseas, withdrawing cash will only escalate the fees. On top of the normal interest rate and lack of interest free days, you can be imposed a $1-$10 / 1%-4% fee (whichever is higher) everytime you carry out an overseas cash advance. You will also be charged the standard cash advance rate for your credit card (as well as the international cash advance fee).
Before you go overseas make sure you check what rate your credit card issuer will charge you for foreign transactions and currency conversion. Make sure you do a thorough comparison before you jet off to ensure you get the best bang for your buck.
American Express Fees
- “Foreign Currency Cash Conversion fee of 3%.”
- Cash advances are currently not available on AMEX credit cards
ANZ International Fees
- “A fee of 3.00% of the value of any foreign currency transaction
will be charged to all ANZ Visa and MasterCard Credit Card Accounts.” - 1.50% of the transaction value will be charged for American Express transactions
- Overseas cash advances incur a $5.00 transaction fee
Aussie International Fees
- “When you make a purchase or cash advance in a foreign currency you’ll be charged 3% of the value of any foreign currency transaction.”
- For cash advances, a $4 fee / or 2% of your total cash advance transaction (whichever is greater) will be charged, on top of any related foreign currency exchange fees.
Bankwest International Fees
- Foreign Currency Exchange Fees:
“Visa accounts ‘2.95% Payable for each transaction posted to the account in a foreign currency,calculated as a percentage of the foreign currency amount.
MasterCard accounts ‘2.95% Payable for each MasterCard transaction occurring outside Australia,whether in foreign currency or Australian dollars.” - For cash advances, the greater of 2% or $4.00 (maximum $50) applies, on top of any foreign currency fee involved.
Bendigo Bank International Fees
- Foreign Currency Exchange Fees:
2% Foreign Currency Conversion fee. - For cash advances, the greater of 0.5% or $4.00 applies, on top of any foreign currency fee involved.
Citibank International Fees
- Foreign Currency Exchange Fee:
MasterCard – 3.4% of transaction amount.
Visa – 3.3% of transaction amount. - International cash advances are subject to the foreign currency exchange fees, as well as $5 per transaction.
Commonwealth Bank International Fees
- Foreign Currency Exchange Fee:
MasterCard & Visa – 2.95% of transaction amount.
American Express – 1.95% of transaction amount. - Overseas cash advances incur a $4 or 1.50% fee (whichever is higher) on-top of the regular foreign currency exchange rate.
Bank of Queensland International Fees
- Foreign Currency Exchange Fee:
International Transaction Fee (also referred to as Foreign Currency Exchange Fee) – Visa and MasterCard
3% of transaction amount An International Transaction Fee of 3% on the Australian dollar conversion of any credit card transaction made in foreign currency, of which a 1% service and assessment fee is payable by us to Visa or MasterCard. This will be charged to your account when you transact via your credit card overseas. - International Cash Advance Fee – 2.00% of transaction amount outside of Australia. Minimum amount of $4.00 – maximum amount of $30.00
GE Money International Fees
- Foreign Currency Exchange Fee – 2.50% of the total currency amount converted.
- Cash advances: 3.00% / Min. fee of $1.95 plus international cash advance fees of $4.00 ATM / $5.00 over the counter
Members Equity International Fees
- International Transaction Fee – total 2.0%
1% of the amount of any foreign currency transaction converted into Australian dollars and payable at the time the currency conversion is made. This fee is payable to Members Equity Bank.
MasterCard Fees:0.2% of the amount of any foreign currency transaction converted into Australian dollars and payable at the time the currency conversion is made. This fee is payable to MasterCard International.
0.8% of the amount of any transaction where the merchant account is not held in Australia. This fee is payable to MasterCard International. - International Cash Advance: $4.00 per cash advance
NAB International Fees
NAB have a more complicated system of overseas charges which is subjective to the country of origin of the payment processing merchant.
Single Currency Transaction: “A transaction carried out in Australian dollars with an internationally-designated merchant.”
Multi Currency Transaction: “A transaction carried out in a currency other than Australian dollars with an internationally or Australian-designated merchant.”
- Visa – Single Currency: 2.30%
Visa – Multi Currency: 2.50%
- MasterCard – Single Currency: 2.00%
MasterCard – Multi Currency: 1.70%-2.50% (subjective to the payment processing).
- Overseas cash advances impose a 1.50% or $4 fee (whichever is higher), on-top of any related currency conversion fees.
HSBC International Fees
- Total charge of 3.50%
- Overseas Transaction Charge:
2.0% of the total value amount of each such transaction - Foreign Currency Conversion:
1.5% in Australian dollars charged for payments made in foreign currencies. - Overseas cash advances impose a 2% or $2.50 fee (whichever is higher) on-top of any related foreign fees.
St.George International Fees
- Foreign Currency Conversion:
2.5% to exchange Australian dollars between foreign currencies. - For overseas cash advances, a 1.50% fee (min charge of $1.25) is charged on-top of any related foreign fees.
- Note that BankSA is a subsidiary of St.George, and the same fees apply.
Suncorp International Fees
- Foreign Currency Conversion:
3.00% of the converted Australian Dollar transaction amount of any foreign currency transaction made or charged to your credit card - Overseas Cash Advance: 1.50% of the cash advance value
Westpac International Fees
- Foreign Currency Conversion:
3% for any purchases which require a currency conversion. - Overseas cash advances impose a 2% fee. The maximum you can be charged is $150.
Wizard
Wizard offer arguably the most popular international credit card in Australia – the Clear Advantage MasterCard which features no foreign transaction or withdrawal fees.
This information has come from each financial provider’s latest up-to-date PDS & Disclosure Statement. It is subject to change at any time.
The fees and charges listed on this page should only be used as a reference and guide for comparison, and are accurate as of June 19th, 2013 Before travelling internationally, we recommend you confirm fees with your bank prior to departure incase any terms have been altered.
Looking for a prepaid travel card?
The OzForex Prepaid Travel Card is a complete online solution to your travel money needs. Easy access to your money with up to 9 currencies on one card with the ability to load money and convert currencies 24/7 on the secure customer portal.
- Choose from US Dollar, Euro, Great British Pound, New Zealand Dollar, Hong Kong Dollar, Canadian Dollar, Singapore Dollar and Japanese Yen.
- Locked-in exchange rates for multiple currencies and low and transparent fees.
- CHIP and PIN security and is easily blocked if lost or stolen.
- Ability to load money and convert currencies 24/7 on the secure customer portal.
- Accepted electronically – at over 32 million locations worldwide, including 1.9 million ATMs across more than 60 countries.
- You can load money onto your OzForex Card using BPAY, on the internet or over the phone with your bank.
Calculate the current foreign exchange rates at XE.com
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28 Responses to Foreign Currency & International Fees for Credit Cards
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0% p.a. for 9 months on balance transfers & a low ongoing rate |
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I am looking to exchange my US dollars to AUD and was wondering where the best place/places were to get the best exchange rate with the lowest fees/charges?
Cheers.
Adam.
Hi Adam. Thanks for your question. If you’re a consumer, there are a number of places where you can get currency exchanged, and the rates you’re likely to get are all quite similar. Banks and foreign exchange offices will apply a margin to the interbank rate (the figure you hear quoted on the evening news), but the rate you get here is likely to be far better than rates offered by exchange offices at airports. You can check out Citibank’s exchange rates, and open a Citibank Plus Transaction Account. This provides fee free international transfers between American and Australian Citibank accounts. If you would like to discuss this further, please provide some more information about your situation and we can look into this in a little more depth. Jacob.
Thanks Jacob as you’re a legend!! I will look into opening a Citibank account and will send u the relevant details if I need any more assistance! rock n roll and have a great day!
okay so I will ask for your assistance (if that’s okay?). so here’s my situation – I am currently working o/seas and get paid (not a lot mind u) in us dollars. as I usually come bak home to aus every say 3-6 months I tend to hold onto this money and change it over to aus dollars wen I get here rather than putting it into a bank/account over there. so in saying that wat do u think my best option would be?? Citibank does sound like a good choice. I am currently a cba client so I don’t know if they would give me any special privileges?? cheers…
Hi Adam I wouldn’t hold your breath waiting for special privileges from your bank, but having said that it can’t hurt to ask – the worst they can do is say no. My thinking was that you would open a Citibank Account in the States and transfer the funds to your Australian Citibank Plus Transaction Account. How have you been changing the money previously? And how much has it been costing you?
Yeah I know what you mean in respect to not holding my breath. Currently I haven’t exchanged any money over as I have just been holding onto it as this is the first time I’ve been back home with any money to deposit. So not quite sure what they would have charged me. It seems like the best rates are around $1.05 AUD for $1 US dollar (without the fees/charges) which as u know can fluctuate pretty heavily. So is the Citibank option only really viable if I transfer the money from overseas or is it still a god option if I just deposit it every time I come home?
HI Adam. It’s only really going to be a good option if you’re depositing the money in the US in to a US Citibank Account and then transferring it back to your Australian Citibank Account and withdrawing it. If you’re looking to deposit US funds in to an Australian account back home, you will be subject to the normal fees and charges that come with foreign exchange.
Sweet! I will look into what the best option is and will take it from there? Thanks for all your help as its been really helpful and hope u enjoy the rest of the day!
Cheers.
Hey Adam. No problems buddy. Enjoy America and let us know if there’s anything else you need a hand with. Jacob.
I have an ANZ Visa credit card. Can you please tell me which foreign conversion rate will it be converted at, ANZ’s sell foreign exchange rate (where the difference is huge compared to the spot rate) or at the spot exchange rate which is more on par, if I tranfer money from a overseas ATM?
Thanks,
Carl
Hi Carl. Thanks for this one. The rate is taken from the inter-bank rate. The spot rate is the same I believe? – A consideration here – Visa and MasterCard (American companies) apply a margin to this rate. So I believe the currency is actually being converted to US dollars first, and then in to the currency of the transaction. So the exchange rate you hear quoted on the evening news is not the rate you get from the bank when you make a purchase in a foreign currency. Jacob.
If I buy something in Hong Kong for $1000HKD how many AUD will my 28 degrees mastercard be charged?
Hi Mark. Thanks for your question. This depends on what the exchange rate is at the day you make the purchase. Jacob.
hi, Im about to purchase my first credit card. Ive saved $20,000 which i will be spending in Europe over 4 months. I will be able to always pay the bil on time and will never gain interest bu ti ant to know what is the best card for foreign currency conversions? also which one has the best rewards and points systems?? and free travel insurance??? thank you
Hi Tara. All good questions.
So if you want to look at cards that are good to take overseas, you definitely want to consider either the Aussie Platinum Low Rate Credit Card, the Bankwest Platinum Range of Credit Cards or the 28 Degrees MasterCard. These cards have no foreign currency conversion fee . The Aussie Card and Bankwest Cards do offer complimentary international travel insurance, while the 28 Degrees MasterCard does not. The Bankwest Platinum Cards allow you to earn rewards, while the others don’t, and the 28 Degrees MasterCard offers no international ATM fee — the others do charge a fee. There’s a lot to consider, but the card that is right for you will depend on how you plan to use the card when you’re overseas. Hope this helps. Please let us know if you have any further questions, otherwise, Bon Voyage! Jacob.
Hi,
I am going travelling for 7 months – which is the best credit card for me to use to avoid high fees for South and Central America and I have an Australian bank account?
Thanks
Hi Samantha. Thanks for your question. You most definitely want to consider a travel friendly credit card, travel money card or travel friendly transaction account. The option that’s right for you will depend on how you plan to use your card. Thanks.
Is Travel Card a good idea.What are the fees for different currencies on the card or is it your own Bank only that charges any fees on this card and what are the fees.Thanks Sue PS going overseas soon.
Hi Sue. Travel cards are a popular choice for people going overseas as they come with a backup. And they’re not directly linked to your main savings / transaction account. Travel money cards do have fee – there’s a fee for loading money onto the card, but unlike credit cards and debit cards, there is no foreign currency conversion fee if you have the right currency loaded onto the card – say you want to spend in Europe, make sure you have Euros loaded onto the card and you won;t get charged a conversion fee. Other advantages of travel money cards include: Lock in an exchange rate. When you first load the card, it locks in the exchange rate for the money you load on to the card; Low cost upfront. The cheapest initial cost is $11; and increased Security: these cards generally don’t have your name printed on them so if they’re ever lost or stolen overseas there are reduced chances of identity theft/fraud.
Having said that, there are a number of other options. The Citibank Plus Transaction Account is also a popular option among travellers. The type of plastic you take overseas with you will depend on how you plan to spend while you’re overseas. If you plan to make lots of purchases, you will want a card that has no cross currency conversion fee: Bankwest Platinum Cards and Aussie offer products like this if you want a credit card.
I hope this has helped.
Jacob.
Tell me about different currencies on Travel Card and is this a good way to go for a nervous O/Seas person’s Trip?
Hi Sue. Good question. Different cards have different currencies. Can you please check our travel money comparison page. If you still have questions after reading this page, don’t hesitate to ask. Thanks.
ANZ:
3.00% for Visa and MasterCard
1.50% for American Express
Note that it is in fact 3.00% for American Express, but the bank explains that they charge 1.50% for American Express and then add an additional 1.50%
i would like to know if you make an overseas purchase and the AUD is $1.04 on the stock exchange for USD – do you get that same rate when you make a purchase on the credit card on that day – or do you get a lower rate (like you do when you convert currency at the bank)?
Hi Dee. The rate you see on the news is not the rate you get on your transaction. MasterCard, Visa, American Express and your lending institution all make a cut each time a foreign transaction is processed. It may not much, but world-wide it adds up.
To give you an idea: here’s ANZ exchange rates page, and Visa. Cheers.
And this is why travellers should use Global Travel Cards .. We are also so ‘default position’ trained by the banks to rely on our plastic, but you pay for that convenience and often more than once ! BUT, do your homework on the Travel Cards as well as many of them (especially the banks ones still have a number of ‘fine print’ conditions on them that cost you in the end ..) One of the best is the AMEX GTC, no expiry, no ongoing fees, travel assistance included. If you can’t get any good customer service at point of sale on these (although the Post Offices sell them, many of their staff are not appropriately trained ..)
… and NAB – I’ve just been charged an International Transaction fee of 2.3% (they term it a “Single Currency Transaction”) for making a donation to Parkinson’s Australia via their website. NAB’s response is that Parkinsons are an “internationally-designated merchant” although you have no idea of this at time of purchase!
Be wary of ANZ, they changed their system in late 2009. You can get charged international transaction fees for purchases that appear to be domestic. I’ve been stung a few times with unexpected international transaction fees when purchasing in AU$ with Australian based companies (like JetStar).