Travel is full of wonderful surprises, but international transaction fees are not among them. When you purchase outside of Australia or in a foreign currency, expect a fee to follow. While a few dollars might not seem like a lot, they add up \u2014 especially if you travel a lot. These fees can, however, be avoided. <\/p>\n\n\n\n
An international transaction fee is a commonly encountered type of credit card fee<\/a> that you may be subject to if you use your credit card at a non-Australian retailer. Your credit card issuer<\/a> charges this fee and is typically a percentage \u2014 typically around 3% \u2014 of the purchase amount. <\/p>\n\n\n\n Although 3% may not appear to be significant, it can accumulate over time. For instance, if you spend $1,000 on a credit card that has a 3% foreign transaction fee during a month-long European vacation, you would have to pay an additional $30 on your bill.<\/p>\n\n\n\n Keep in mind that international transaction fees are not limited to purchases made overseas. They can also apply to transactions with a non-Australian retailer. So, if you buy something online from a company based in another country, you may see this fee on your credit card statement<\/a>.<\/p>\n\n\n\n The Australian Competition and Consumer Commission (ACCC) has warned people to look out for international fees when shopping online and travelling overseas.[1]<\/a><\/p>\n\n\n\n It’s important not to mistake a foreign transaction fee for a currency conversion fee. Although the two can be applied to overseas purchases, sometimes even on the same purchase, they are distinct from each other. Currency conversion fees are additional charges that are not clearly stated and are imposed when you request that your transactions be shown in US dollars.<\/p>\n\n\n\n This fee can also apply to foreign transactions made with a debit card<\/a>.<\/p>\n\n\n\n \ud83e\udd13 Nerdy Tip<\/strong><\/strong><\/p>\n\n\n\n Some travel rewards credit cards<\/a> may waive foreign currency conversion fees as a perk.<\/p>\n<\/div>\n\n\n\n Banks and credit unions typically charge either a flat fee \u2014 often up to $5 \u2014 or a percentage of the amount you withdraw when you use a debit card to withdraw cash from an international ATM. This fee may differ from your institution\u2019s domestic out-of-network ATM fee.<\/p>\n\n\n\n If you use a credit card to \u201cbuy\u201d cash<\/a> from a foreign ATM, you’re using a cash advance<\/a>. So, you should expect to pay added fees and interest.<\/p>\n\n\n\n The machine owner may also impose its own ATM fee. This will be in addition to what your bank charges, but generally a similar amount.<\/p>\n\n\n\n There are plenty of ways to avoid paying withdrawal and purchase fees while using a credit card on an overseas holiday<\/a>. It takes a little extra planning and preparation, but it\u2019s worth the effort. If you\u2019re going away for an extended time, this can save you hundreds \u2014 if not thousands \u2014 of dollars. <\/p>\n\n\n\n Stretch your trip budget<\/a> further by minimising or avoiding international fees, and gain confidence in communicating and negotiating with your bank. It\u2019s a financial skill that\u2019ll pay off. <\/p>\n\n\n\nOther fees to know when making international transactions<\/h2>\n\n\n\n
Foreign currency conversion fees<\/h3>\n\n\n\n
International and overseas ATM fees<\/h3>\n\n\n\n
How to avoid an international transaction fee<\/h2>\n\n\n\n
Pick the best tools for the job<\/h3>\n\n\n\n
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Learn the tricks of the trade<\/h3>\n\n\n\n
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