Credit cards with no overseas (or foreign) transaction fees can provide substantial savings for those who frequently transact in foreign currencies, such as when travelling overseas and interacting with the overseas versions of websites such as Amazon, eBay and Macy’s.
The typical overseas transaction fee for most credit cards in Australia is 2-4% of the converted amount, meaning that a US$100 transaction will convert to ~AU$158 plus add on an average ~AU$4.74 fee.
If you travelled overseas for three weeks a year and spent the equivalent of AU$120/day not using a card that waives overseas transaction fees, the charges would rack up to over $75, which is almost the annual fee of some cards that earn you a solid points rate.
However, while international transaction fee waivers are welcome, they need to be given in conjunction with a good foreign exchange rate on the credit card. We’ve also been asked about credit cards with no forex fees a number of times – here, here, here and here, just for a small handful – so below is a round-up of some of the cards on the Australian market that offer no overseas transaction fees.
Westpac Lite Credit Card
NAB Rewards Signature Card (Velocity)
Bankwest Qantas World Mastercard
Bankwest Qantas Platinum
Macquarie Black and Platinum cards
Macquarie bank has no overseas transaction fees on all their cards, including the rewards points-earning Macquarie Black and Platinum cards.
You can earn Macquarie Rewards points a rate of up to two points per dollar for the Black Card. Or, up to one point per dollar for the Platinum Card. However, Macquarie no longer offers credit cards with Qantas Points attached. You also can’t transfer Macquarie Rewards points into frequent flyer points.
CommBank Awards cards with no overseas transaction fees
The Commonwealth Bank has a couple of credit cards with no overseas transaction fees, which also earn points. The most rewarding is the Ultimate Awards card. It earns up to three Awards points per $1 spent overseas (up to $10,000 spent per month). That’s equivalent to 1.5 Velocity Points, 1.2 Flying Blue Miles or 1 KrisFlyer mile per $1 transacted overseas. If you opt-in for Qantas Points (an additional fee applies), earn up to 1.2 Qantas Points per $1 spent abroad.
CBA’s Smart Awards credit card also comes without international transaction fees. However, the earning rate overseas matches what’s possible in Australia. On general transactions, that’s 1.5 Awards points (equal to 0.75 Velocity Points) or 0.6 Qantas Points per $1 spent. This rate applies when spending up to $5,000 per monthly statement period.
On both of the CBA cards mentioned above, earning rates decrease on transactions beyond these thresholds. Other fees, including monthly fees, may apply. However, these fees can be waived by using the card regularly. The usual $19/month fee for the Smart Awards card is waived in each statement period where you spend at least $2,000. On the Ultimate Awards card, the $35 monthly fee is waived when spending at least $4,000 per statement period.
Non-points-earning cards with no overseas transaction fees
Latitude 28 Degrees Global Platinum Mastercard
The no-annual-fee Bankwest Zero Platinum Mastercard is another option. But note that the Classic version of this card does apply overseas transaction fees.
The Westpac Lite card has a $9 monthly fee.
The ING Orange One card will waive the overseas transaction fee if you deposit a specified amount in an ING account and use your card a certain number of times.
Read what other travellers say about the best cards to use overseas
Tip
When travelling overseas and a card terminal prompts you to select your currency, always pay in the local currency. That’s because the rates offered by the terminal include some padding – adding margin for the store owner. And, with many Australian credit cards, those ‘AUD’ transactions overseas would still be subject to international transaction fees.
Summing up
By adding a credit card with no overseas transaction fees to your wallet, you can minimise costs when travelling and spending in foreign currencies. Even if that means using another card (or cards) that prove more rewarding within Australia.
Also read: What is an ‘eligible purchase’ on a credit card?
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Another option is Wise app/debit card. Can get even if retired, not so with credit cards.
We are writing to let you know about upcoming changes to your Latitude 28° Global Platinum Mastercard credit card. Please note that from 17 September 2024, the following changes will take effect:
A card fee of $8 per month will be introduced. You will see this fee being charged on your first statement from 17 September 2024.
Interest rates on purchases – your rate will increase to 27.99% p.a.
Have been with you for m any years and will now go to an alternative product!
“We are increasing the International Transaction Fee for Retail Purchases and Cash Advance transactions to 3.00%. The International Transaction Fee Waiver is being removed on the Coles Rewards Mastercard and Coles Rewards Platinum Mastercard.”
Boo.
Credit card Forex fees are a total ripp off..the RBA/Royal Commission should have a good hard look at the way Australian banks rip consumers off on credit card forex
It’s worth making a few “equal” transactions (at the same time) to see what actually ends up on your statement
https://www.mastercard.us/en-us/consumers/get-support/convert-currency.html
I understand Amex uses Reuters.
Does anyone have any further information