Are you also planning a trip overseas? You’ve likely saved for flights, hotels, and tours, but international transaction fees are the hidden cost most travellers miss.
Many Australians see 1–3% vanish on every card swipe or ATM withdrawal abroad. The simplest way to avoid international transaction fees is to plan ahead: choose fee-free cards, order foreign currency early, and skip overpriced airport kiosks.
With nearly 10 years helping Australian holidaymakers cut these charges, we know the frustration of losing hard-earned cash to banks instead of spending it on real experiences. Here’s how to keep more of your money where it belongs – on your trip – and not in fees.
What Are International Transaction Fees and Why Do They Matter?
Banks and card providers charge different fees when you spend abroad. Most Australians see three main types:
- Foreign transaction fees: Usually 1–3% per purchase when paying in another currency.
- Currency conversion fees: Added when your bank converts local currency back to AUD.
- ATM withdrawal fees: Both your bank and the local ATM operator may charge per transaction.
To put it in perspective:
If you spend $5,000 overseas and your bank charges 3%, that’s an extra $150 in fees gone instantly. That’s a hotel upgrade or a fancy dinner you’ll never get to enjoy.
Understanding these costs is the first step to avoiding them.
Practical Tips on How to Avoid International Transaction Fees
Here’s where smart planning comes in. These steps have helped countless travellers spend smarter abroad.
Use Travel-Friendly Cards
Some debit and credit cards charge no foreign transaction fees at all. Cards like these also offer competitive exchange rates. Always check with your bank before travelling, as features vary between card providers in Australia.
Buy Foreign Currency in Advance
Ordering foreign currency online often beats airport kiosks and ATMs. This is because online platforms typically offer rates 3–5% better than banks, as they reduce overhead costs. Ordering early also gives you time to watch the rates and lock them in when the Aussie dollar is strong.
Consider Multi-Currency Travel Cards
Prepaid travel cards allow you to load money in multiple currencies before departure. You can lock in exchange rates at today’s price, so you won’t lose if the AUD drops mid-trip. They also reduce conversion fees because you’re paying directly in the local currency.
Skip Airport Currency Kiosks
Airport money changers are convenient, but they can be costly. Rates are often 5–10% higher than those of online services. Fees sneak in through weak exchange rates, so the money you lose isn’t always obvious.
Best Time to Buy Foreign Currency for Your Trip
Buying foreign currency one to three weeks before departure day gives you time to benefit from better rates.
Exchange rates move daily.
Even small fluctuations can impact your travel budget. A 2% drop in the AUD against the USD on a $3,000 trip costs you $60 more instantly.
Here’s what helps:
- Check live rates daily: Platforms like Foreign Xchange update rates every few minutes.
- Use rate alerts: Get notified with our rate tracker when your desired currency hits a target rate.
- Lock in rates early: If the Australian dollar is strong, buy your currency in advance to protect yourself against future drops.
Travellers who plan ahead usually save hundreds compared to those buying currency last-minute at airports or overseas ATMs.
Frequently Asked Questions
What’s the easiest way to avoid international transaction fees?
Ordering currency online before you travel helps. Services such as Foreign Xchange often offer 3–5% better rates than banks or airport kiosks, meaning you save $30–$50 for every $1,000 exchanged. Cards like the ING Orange Everyday and HSBC Everyday Global debit cards also don’t charge foreign transaction fees on purchases and overseas ATM withdrawals.
Is it cheaper to use cash or cards overseas?
For smaller to medium-sized expenses, such as street food or taxis, having some cash makes sense. For significant expenses, such as hotels or tours, fee-free cards are usually helpful. Both options help you skip the usual 1–3% bank fees. Buying AUD 1,500 in currency online before departure at a favourable rate can save up to $75 compared to using overseas ATMs, which charge withdrawal fees averaging $5–$10 per transaction plus conversion charges.
Can I lock in exchange rates before I travel?
Yes. Online currency platforms allow you to lock in today’s rate for 24–48 hours or even longer. For example, locking in when the AUD/USD rate is 0.70 means that $1,000 AUD equals $700 USD, regardless of whether the dollar drops to 0.68 the next day, saving you $20 per $1,000 immediately.
Save More and Spend Smarter Overseas
Avoiding international transaction fees is about planning. Buy foreign currency early, pick the right card, and skip costly airport kiosks. The money you save goes towards experiences, not bank charges.
Check today’s live rates, get notified when AUD is strong and buy currency online at Foreign Xchange. For help or questions, call 1300 117 775 or email info@foreignxchange.com.au.