If you enjoy online shopping or if you’re going overseas, compare and save with cards which have no foreign transaction fees and no annual fees.
Credit cards typically charge 2-3% for overseas transactions. No foreign transaction fee credit cards waive this charge and let you make purchases without the extra fees. This type of credit card is ideal for shopping online and making purchases whilst overseas. Compare this type of credit card with $0 annual fee to save even more.
Comparison of no annual fee credit cards with no foreign transaction fees
Card issuers with no foreign transaction fees in Australia
|Card Issuer||Standard Foreign Transaction Fee||Credit Card|
|28 Degrees||0%||28 Degrees Platinum MasterCard|
|ANZ||0%||Rewards Travel Adventures card|
|Bankwest||0%||Platinum credit cards only|
|Coles||0%||Rewards credit card only|
What fees can you be charged when making transactions overseas?
- Currency conversion fees. Charged for converting the foreign currency back to AUD.
- Foreign transaction fees. Charged for making the overseas transaction.
- Overseas ATM withdrawal fee. Charged on top of the cash advance fee for withdrawing money whilst overseas.
Benefits of no annual fee credit cards with no foreign transaction fees
- No annual fee. This type of credit card doesn’t charge the yearly service fee as well as the fee for making international purchases.
- Currency conversion fee. Cover the cost of your bank converting money into a foreign currency and are usually around 2% – 3% of the transaction amount. This fee is waived when using this type of credit card.
- Foreign transaction fees. This fee is charged for making purchases overseas and is less common amongst Australian credit cards.
From the example below it is clear that travel credit cards can save you a considerable amount since you don’t have to pay any currency conversion or foreign transaction fees or overseas ATM withdrawal fees.
How much you can save on purchases with a travel credit card?
|28 Degrees MasterCard||Other Credit Card|
|Foreign Transaction Fee||0%||3%|
|Currency Conversion Fee||0%||3% of transaction value|
|Overseas ATM Withdrawal Fee||$0||$3 per withdrawal|
|Amount of Purchases made||$3,000||$3,000|
|Amount of withdrawals made||5||5|
|Total cost of using credit card overseas over 12 months||$0||$195|
Rates and fees only used for example purposes only.
How to compare no annual fee credit cards with no foreign transaction fee
- Currency conversion fee. Outstanding offers in this category will charge 0% for converting foreign currency back to AUD. This will allow you to make overseas purchases without extra charges.
- No annual fee. Competitive offers will provide $0 annual fee so you can save by paying less fees and spend on the things that you want.
- Complimentary insurances. If you’re a regular traveller, then you may want to consider a credit card that has complimentary travel insurance. This includes medical and hospital cover, loss/damage/theft, delayed baggage, as well as car hire insurance excess. Otherwise, there are other insurance covers like purchase security cover, purchase extended warranty, purchase price guarantee as well as complimentary concierge.
- Interest-free days on purchases. Most credit cards offer interest-free days on purchases, which allow you to enjoy purchases without paying interest for longer than 30 days.
- Complimentary travel insurance. If you’re looking to make purchases overseas and during your travels then complimentary travel insurance may be of great benefit. These insurance policies are included with the credit card and provide cover for overseas emergency medical assistance, cancellation and rearrangement expenses, trip disruption and loss of luggage and personal items.
Things to consider when choosing this type of card
- No fees. These cards don’t charge an annual fee or foreign transaction fees, which means that you could potentially save up to hundred of dollars per trip.
- Internationally friendly. Most of these credit cards are designed for online shoppers and those who travel frequently, so if you fit into that category these credit cards may be able to save you a lot of money.
- No rewards program. To make up for the annual fee, these credit cards are not linked to a reward program. So while you make big purchases or fly on airlines, you can’t offset part of the cost with the rewards or miles.
Frequently asked questions about no annual fee credit cards with no foreign transaction fees
What is the *best credit card for travel?
Outstanding travel credit cards typically possess the following benefits: no foreign currency conversion fees and transaction fees, $0 overseas ATM withdrawal fees and interest-free days on purchases. To make a full comparison please see our travel money page.
Where can I find out more about exchange rates?
To find out more about exchange rates and bank fees, please see this page about the basics of foreign exchange rates and foreign currency.