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:
| Amount spent | Conversion fee 2% | Conversion fee 3% | Conversion fee 4% |
|---|---|---|---|
| $500 | $10 | $15 | $20 |
| $1,000 | $20 | $30 | $40 |
| $2,000 | $40 | $60 | $80 |
| $3,000 | $60 | $90 | $120 |
| $5,000 | $100 | $150 | $200 |
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.
A simple breakdown of currency conversion fees (purchases and ATM withdrawals)
When making a purchase
There are 2 different fees applied when you purchase from another country:
The card scheme fee: A small fee of around 0.5 - 1% of the purchase amount is baked into the currency exchange process (this is called the spread). You can’t avoid this fee.
The card’s own foreign transaction fee: The credit card itself may charge a fee of 2-4% of the purchase amount on top.
A credit card with no foreign transaction fee means the card’s fee is waived - but you’ll still pay the small and unavoidable exchange rate fee.
What about Dynamic Currency Conversion (DCC)?
DCC happens when a merchant or ATM offers to convert the transaction into AUD at the point of sale at an inflated rate with markups that can total 18% or more. If a seller offers DCC, say no.
When withdrawing from an ATM
Most banks add on a surcharge for withdrawing from an ATM. It’s likely to be either a percentage of the withdrawal amount or a flat fee per transaction.
For example:
- NAB charges a flat $5 ATM withdrawal fee
- Amex charges $2.50 or 2% of the withdrawal amount, whichever is greater
- Bendigo Bank charges a $5 fee plus the cash advance rate of $3 or 3%, whichever is greater
⚠️ ATM withdrawals from a credit card are often charged as a cash advance. That means you’ll pay the maximum interest on the withdrawal amount immediately. It’s typically best to avoid using a credit card to withdraw cash.
How much can you save with a $0 foreign fee card?
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.
What the exchange rate actually costs on a no-fee card
We pulled the Mastercard settlement rates for five popular travel currencies on 6 July 2026 and compared them to the mid-market rate (European Central Bank reference). No foreign transaction fee cards still apply a small scheme spread — here's exactly how much, by currency.
Source: Mastercard Currency Converter (settlement rates, 6 Jul 2026) and Open Exchange Rates (ECB reference mid-market). Visa rates were not accessible via API at time of writing; scheme spread is typically within 0.1–0.2% of Mastercard on the same day.
| Destination | Currency | Mid-market rate | Mastercard rate (6 Jul 2026) | Scheme spread | Extra cost on A$500 equivalent |
|---|---|---|---|---|---|
| Europe | EUR | 1 EUR = A$1.6489 | 1 EUR = A$1.6538 | +0.30% | ~A$1.47 |
| United Kingdom | GBP | 1 GBP = A$1.9247 | 1 GBP = A$1.9305 | +0.30% | ~A$1.50 |
| United States / online | USD | 1 USD = A$1.4417 | 1 USD = A$1.4478 | +0.43% | ~A$2.12 |
| Japan | JPY | ¥1 = A$0.00893 | ¥1 = A$0.00897 | +0.47% | ~A$2.35 |
| Thailand | THB | ฿1 = A$0.04347 | ฿1 = A$0.04375 | +0.65% | ~A$3.25 |
"The exchange rate you google is not the exchange rate you get from the big four banks. The difference is known as the 'mark-up', and it's often a big part of the price consumers pay when converting currency."
Rod Sims, Chair — Australian Competition and Consumer Commission (ACCC), October 2018. From the ACCC's formal inquiry into foreign currency conversion services.
What 496 reader questions reveal about overseas card use in Australia
Based on reader questions submitted to CCAU pages involving foreign fees, travel, and overseas spending, categorised by our editorial team.
The travel insurance blind spot: 16% of reader questions are about travel insurance — activation rules, age limits, and pre-existing conditions — yet most no-foreign-fee card comparisons bury or omit this entirely. Readers aren't just looking to save on fees; they want to know what happens if something goes wrong overseas.
Points while travelling — the underasked tradeoff: 15% of questions ask about earning rewards on overseas spend. Most no-foreign-fee cards are pitched purely on fee savings, but a card that waives fees and earns points represents real compounding value — and readers are already doing this maths before they ask.
Source: CCAU editorial analysis of 496 reader questions involving overseas card use, categorised by our editorial team. This breakdown is not available on other Australian comparison sites.
What 496 reader questions actually tell us
These aren't just counts. Each category cluster reveals a specific gap between what comparison sites explain and what readers actually need to know before they travel.
The biggest category (17% — eligibility) reflects one core misunderstanding
Almost every eligibility question we receive comes from a reader who has confused "no annual fee" with "no foreign fee." These are distinct features. The Bendigo Ready has both. The ING Orange One has a foreign fee waiver but no annual fee waiver on some variants. Readers are arriving at this page unsure whether their existing card already qualifies — which means comparison sites, including this one, have historically made the distinction too abstract.
Travel insurance questions (16%) cluster around exactly two misunderstandings
Of the 79 travel insurance questions we reviewed, the vast majority fall into one of two buckets: whether a points-funded flight activates the policy (answer: usually not), and whether there is an age cut-off (answer: typically 75 or 80, though some cards have removed limits). These aren't obscure edge cases — they're the two most common travel scenarios for Australian card holders, and they're almost never answered clearly on product pages or PDSs.
Points questions (15%) on a no-foreign-fee page reveal the real decision travellers face
Readers with rewards cards aren't choosing between no-foreign-fee cards and nothing — they're deciding whether to use their existing rewards card (with a 3% foreign fee) or get a dedicated travel card (no fee, but earns nothing). A $3,000 trip at 3% foreign fee costs $90 in charges but might earn 3,000–6,000 points worth roughly $20–40. For most cards, the fee wins: the math only reverses if the card earns premium rates on overseas spend, which only a few do (and the ones that do usually carry annual fees).
Chargeback and protection questions (10%) are underserved by every major comparison site
One in ten questions submitted to this page is about what happens when something goes wrong — a travel company collapses, a merchant doesn't deliver, a card is charged incorrectly overseas. These situational questions get little to no coverage on comparison sites, which focus on fee tables and reward rates. The answers (120-day chargeback window, credit-card-only protection, documentation requirements) are consistent and well-established — but buried in scheme rules that most travellers never read.
"Australia is the third most expensive G20 country for consumers and small businesses to send money from. If you send AU$1,000 overseas from Australia, on average you'll pay AU$9 more than if you sent an equivalent amount from the United Kingdom, and AU$23 more than if you sent it from the United States."
Rod Sims, Chair — Australian Competition and Consumer Commission (ACCC), October 2018. Based on World Bank Remittance Prices Worldwide data cited in the ACCC foreign exchange inquiry.
A real trip scenario: what readers actually spent (and asked us about)
In June 2026, Steve wrote in asking how to budget 10 days in Ireland (EUR) then 10 days in the UK (GBP) — specifically how to split spending between a Wise card and a credit card, and what amounts to carry. In January 2026, Annie asked for the best card and cash strategy for three weeks across Italy, Morocco, and Portugal. Both questions describe the same core trip structure: multi-country Europe, mix of accommodation, dining, transport, and cash needs. The breakdown below is built from their itineraries, with the fee comparison showing what a no-foreign-fee card saves:
| Expense | Typical spend (AUD) |
|---|---|
| Accommodation (budget–mid) | $1,800 |
| Flights (booked overseas) | $2,200 |
| Dining and activities | $900 |
| Transport (trains, taxis) | $400 |
| Shopping and incidentals | $700 |
| Total | $6,000 |
At a 3% foreign transaction fee — the most common rate among Australian banks — that's $180 in fees on a single trip. At 4%, you'd pay $240. With a no-foreign-fee card, the bank's markup drops to $0. You'll still pay the unavoidable card scheme spread (around 0.5%), so roughly $30 — but that applies regardless of which card you use.
The ATM factor. Three €200 cash withdrawals with a $5 flat ATM fee adds $15–$30 in withdrawal fees before interest is calculated. Some no-foreign-fee cards waive overseas ATM fees too — check before you go.
Net saving on a $6,000 trip: $150–$240, depending on your current card. Over two trips a year that's $300–$480 — enough to offset a modest annual fee.
How is the exchange rate calculated on credit cards?
Most credit cards will use the exchange rate of the card scheme, either Visa or Mastercard. Amex has its own exchange rate, which is typically close to the midmarket rate. This table gives you an idea of the different rates used by the card schemes:
| Card scheme | Exchange rate used |
|---|---|
| Visa | Visa uses its own daily exchange rate, which includes a hidden markup over the mid-market (interbank) rate. |
| Mastercard | Mastercard uses its own exchange rate. Non-USD currencies are typically converted to USD first, then to AUD (2-step conversion). |
| American Express | Amex applies its own exchange rate, based on wholesale rates but with a markup. Rate varies by currency and may change daily. |
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 if you withdraw while overseas, as well as a possible ATM fee by the operator.
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
Pros
- Save money on foreign currency conversion fees
- Make a plan to pay off your debt before the interest-free period ends
- A new card may have perks you can use to save money and pay off your debt faster
Cons
- There may still be other fees to be aware of
- You may need to pay an annual fee
- You may be charged interest if you don’t pay it off each month
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.
For example, the Latitude 28° Global Platinum Mastercard earns Latitude Reward Points that can be spent on groceries, dining, discounts, cinemas and unique experiences.
It’s also worth checking out rewards credit cards that may not waive the foreign fee. You might find it’s worth the extra cost on overseas transactions if you’re earning enough in points to save money on travel through discounts and freebies, especially if it’s a card that earns frequent flyer points.
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:
- Complimentary international travel insurance: Travel insurance saves you time and money by covering you on eligible trips, which is key if you’re a frequent overseas traveller (make sure to read the PDS). Bankwest Breeze Platinum Mastercard offers this feature as well as $0 foreign transaction fees.
- Lounge access: A great extra for frequent flyers, complimentary access to airport lounges gives you somewhere 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 service that helps you arrange flights, hotels, bookings, reservations, and even pet care.
Pauline's take: what most travellers get wrong about foreign fees
After 9 years writing about credit cards and answering thousands of reader questions on this page, a few patterns stand out — and they're worth saying plainly.
The fee you can't avoid is smaller than you think. Every card — even the ones advertising "0% foreign fees" — still pays a tiny spread to the card scheme (Visa, Mastercard, or Amex) baked into the exchange rate, around 0.5–1%. It's not itemised on your statement. What a no-foreign-fee card actually waives is the bank's own markup on top of that — typically 2–4%. That's the part you can avoid.
DCC is the trap nobody warns you about. When a merchant or ATM offers to charge you in Australian dollars instead of the local currency, the rate they use carries a markup of 3–8% over the Visa or Mastercard rate. Always pay in the local currency. At overseas ATMs, the screen will ask "Would you like to be charged in AUD?" — decline it every time.
The online shopping angle gets overlooked. Most people think of foreign fees as a travel problem, but if you regularly shop on US, UK or European sites, a no-foreign-fee card saves you money twelve months of the year, not just on holidays.
A no-annual-fee card and a no-foreign-fee card are not always the same thing. Some picks like the Bankwest Zero Platinum offer both. But a card with a $99 annual fee that waives foreign fees still comes out ahead for anyone spending $4,000+ overseas per year at a 3% rate.
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 | Intl Txn Fee | O/S ATM 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% | - |
| Westpac | 3% | $2.50 except Global Alliance ATMs |
Real questions from travellers who visited this page
These are actual questions submitted by readers. We use them to answer the scenarios most comparison sites don't address.
"I have held an ANZ Frequent Flyer Platinum credit card for years. We're travelling Melbourne to Singapore, Vietnam and Cambodia return. If I pay flights and Singapore hotels on this card in full, what complimentary travel insurance do I get for us both?"— Daryl, June 2026
How activation actually works: Most premium travel cards activate complimentary insurance when you pay a prepaid travel cost — flights or accommodation — on the card before you depart. The typical threshold is $500 or more charged to the card. On that basis, your flights and Singapore hotel qualify, and cover should extend to your travelling companion. Before you fly, confirm three things directly with ANZ: whether Cambodia is covered (some policies flag specific regions), whether there's an age cut-off that applies to either traveller, and the exact spend threshold. The insurance PDS — not the marketing page — is the definitive source, and it's worth reading rather than assuming.
"If I get a NAB Qantas Rewards Card and I pay for my flights with points and not dollars, will the travel insurance still be covered?"— Sharon, April 2026
Almost certainly not — and this catches a lot of experienced travellers out: Complimentary travel insurance is triggered by paying a prepaid travel cost on the card itself. If you redeem Qantas Points and pay $0 on the card for your flights, most policies won't activate because there's no eligible spend on the card. The workaround most points travellers use: pay at least one prepaid cost on the card — even just the taxes and carrier charges on a points booking (these are always cash-billed), or put your first hotel night on the card. The specific threshold for NAB Qantas cards is in their Product Disclosure Statement — worth reading before you book.
"I am a Citi Platinum card holder and unfortunately we made a payment to a travel company now in receivership. Do we have any protection via our credit card?"— Lou, May 2026
Yes — this is exactly what chargeback rights are for: When a merchant fails to deliver services you paid for on a credit card, you can lodge a dispute with your card issuer asking them to reverse the charge. This right comes from the Visa or Mastercard scheme rules — not the bank itself — and typically gives you 120 days from the original transaction date to raise the dispute. You'll need documentation showing what was paid for and that it wasn't delivered (booking confirmation plus the insolvency notice works). This protection only applies if you paid by credit card. Bank transfers, BPAY, and prepaid cards have no equivalent. Lodge as soon as possible — the clock is running from the original charge date, not the collapse date.
"For 10 days travel in Ireland (euro) then 10 days in UK (GBP), how do you suggest I load a Wise card and what approx amounts?"— Steve, June 2026
A no-foreign-fee card and Wise work better together than either does alone: For a 10-day trip to each country, a rough daily spend of €80–120 in Ireland and £70–100 in the UK covers food, local transport, and incidentals. Loading €1,000–€1,200 EUR and £700–£1,000 GBP onto Wise handles most of that. Use your no-foreign-fee credit card for hotel bookings, car hire, and any pre-booked activities — you get chargeback protection and potential travel insurance cover that Wise doesn't provide. Wise (or cash) is better for markets, smaller restaurants, and anywhere you'd rather not hand over a card. The combination means you're not dependent on either tool entirely, and you get the protection benefits of a credit card where it matters most.
Questions we get asked most about no-foreign-fee cards
Over 40 readers have submitted questions on this page. These are the ones that come up most — answered properly.
Does paying for flights with points cancel out my travel insurance?
This varies by card and it matters a lot. Most complimentary travel insurance policies require you to have paid a "prepaid travel cost" on the card — typically flights or accommodation — to activate cover. If you redeem Qantas or Velocity Points for your flights and pay nothing on the card, many policies won't activate. The workaround: pay at least one prepaid cost on the card, even if it's just the airport taxes on a points booking. Always check your card's PDS — the activation threshold varies.
Is there an age limit on credit card travel insurance?
Yes — most policies cap cover at age 75 or 80. Some premium cards have removed age limits entirely. We've written a dedicated guide on credit card travel insurance with no age limit if this affects you. Always confirm in the PDS, not just the marketing page.
What is DCC and how do I decline it?
Dynamic Currency Conversion (DCC) is when a merchant or ATM offers to process your transaction in AUD instead of the local currency. The rate they apply typically carries a 3–8% markup over the Visa or Mastercard rate. When asked "Pay in AUD or [local currency]?" — always choose the local currency. Declining at an ATM means rejecting any "guaranteed AUD rate" offer on screen. Once you accept DCC it generally can't be reversed.
Is a Wise card better than a no-foreign-fee credit card?
It depends on how you spend. Wise converts at the mid-market rate with a small fee (typically 0.4–1.7% depending on the currency). For large cash withdrawals, Wise often wins on cost. A no-foreign-fee credit card has advantages Wise doesn't: purchase protection, fraud liability cover, and complimentary travel insurance on eligible premium cards. Many frequent travellers use both — the credit card for hotels and large purchases (for insurance and chargeback rights), and Wise for local cash and everyday spending.
My travel company went bust — can I get my money back?
Potentially yes — this is called a chargeback. If a travel company collapses before delivering services you paid for on a credit card, you can lodge a dispute asking the card issuer to reverse the charge. Key conditions: the purchase must have been made on a credit card (not debit), you must lodge within 120 days of the original transaction, and you'll need documentation showing the service wasn't delivered. This is one scenario where a credit card offers meaningful protection a prepaid card or bank transfer doesn't.
Does the foreign fee apply to overseas online purchases too?
Yes. The foreign transaction fee applies any time your card processes a payment in a foreign currency — whether you're overseas or buying from an international retailer from home. If you regularly shop on US, UK or European sites, a no-foreign-fee card saves you money year-round.
Does card travel insurance cover pre-existing medical conditions?
Generally not automatically. Most policies exclude pre-existing conditions unless disclosed and approved (sometimes for an additional premium). The definition of "pre-existing" varies — some policies cover conditions stable and untreated for 12+ months, others exclude them entirely. If you have a pre-existing condition, read the PDS carefully before relying on the card's complimentary policy.
Sources and references
- Rod Sims, ACCC Chair — ACCC commences inquiry into foreign exchange, October 2018
- ACCC Foreign Currency Conversion Services Inquiry — Final Report, July 2019
- Mastercard Currency Converter — settlement rates for AUD/EUR, GBP, USD, JPY, THB, 6 July 2026
- Open Exchange Rates — ECB reference mid-market rates, 6 July 2026 (via open.er-api.com)
- Gerritsen, D.F., Lancee, B.S. & Rigtering, J.P.C. (2023). Dynamic Currency Conversion Payment Options Specifically Harm Less Financially Literate Customers. SAGE Journals.
- Journal of Banking & Finance, Vol. 150 (2023). Imposing Choice on the Uninformed: The Case of Dynamic Currency Conversion.
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