Travel credit cards: how to avoid foreign transaction fees
A foreign transaction fee, which most banks call an international transaction fee, is a percentage your card issuer adds to purchases processed overseas or in a foreign currency, including some online purchases priced in Australian dollars. On the issuers' fee pages we checked on 2 October 2026 it was 3.5% on NAB's standard credit cards, 3% on Qantas Money's and 2% on the BankVic Qantas Visa, while some cards charge nothing. To avoid it, use a card whose issuer charges 0%, pay in the local currency, and don't use a credit card for cash.
This guide explains when the fee applies, which issuers said some of their cards charge 0% when we checked, why paying in Australian dollars overseas can cost more, how cash withdrawals are charged, and the alternatives, such as debit and travel money cards. We don't rank cards.
By Better Rate Mate Editorial Team ยท Last reviewed
How foreign transaction fees work
NAB describes its international transaction fee as a charge on any transaction, including purchases and cash withdrawals, processed outside Australia or in a foreign currency. You don't have to be overseas for it to apply: what counts is where the merchant, or the bank or business processing the payment, is located. Bankwest and Qantas Money define their fees the same way, and Qantas Money's fee schedule says transactions involving dynamic currency conversion attract its fee too.
Westpac explains that the fee is a percentage of the Australian dollar value of the foreign transaction. On a $2,000 overseas trip spend, a 3% fee adds $60 and a 3.5% fee adds $70, on top of the exchange rate. The table shows how much the fee varies between cards, using issuers' own pages.
| Card | International transaction fee | From the issuer's page |
|---|---|---|
| NAB credit cards, except the NAB Rewards Travel Card | 3.5% of the transaction amount | NAB |
| Qantas Money Titanium, Platinum and Everyday cards | 3% of the transaction amount | Qantas Money |
| BankVic Qantas Visa | 2% of the Australian dollar transaction amount | BankVic |
| NAB Rewards Travel Card | 0% on purchases processed overseas and overseas ATM withdrawals; cash advance and international ATM fees still apply | NAB |
| Bankwest Platinum and World Mastercards | 0%: Bankwest says no foreign transaction fees or overseas ATM fees apply for Platinum or World customers; other ATM operators may charge | Bankwest |
| ING Orange One Low Rate and Orange One Rewards Platinum | No ING international transaction fees when you shop overseas or online | ING |
Which credit cards don't charge foreign transaction fees?
When we checked the issuers' own pages on 2 October 2026, NAB said its Rewards Travel Card charges no international transaction fee, Bankwest said its Platinum and World Mastercards charge none (its fee table showed 0% on the Zero Platinum and Breeze Platinum Mastercards), and ING said its Orange One cards have no ING international transaction fees. Other cards may waive the fee too; the key facts sheet will say.
A card with no foreign transaction fee is only cheaper if the rest of it suits you. Check the annual fee against what you'd save: at 3%, you'd need to spend about $1,000 overseas or on overseas websites to save $30. If you might carry a balance, the purchase rate matters more than the fee. And treat complimentary travel insurance with care: Moneysmart notes card extras are usually not free, because their cost may be covered by higher interest or fees. Complimentary cover also comes with eligibility rules and exclusions, so compare it with a standalone travel insurance policy.
Paying in Australian dollars overseas (dynamic currency conversion)
A shop, restaurant or ATM overseas may offer to charge you in Australian dollars instead of the local currency. This is dynamic currency conversion, and it often costs more. CommBank says it often costs less to pay in the local currency: its international transaction fee is payable whichever currency you choose, and the merchant may add other charges or use a less favourable exchange rate if you choose Australian dollars. NAB says the same about its fee, and warns the merchant's exchange rate may differ from Visa's.
So when a merchant asks, choose the local currency.
Shopping online from home
You can pay the fee without leaving Australia. NAB gives the example of a '.com.au' website, priced in Australian dollars, whose payments are processed overseas: the international transaction fee still applies. Bankwest's and Qantas Money's definitions cover the same case. If a site's location isn't clear, NAB suggests checking with the merchant, or use a card that doesn't charge the fee for overseas sites.
Cash overseas costs more
Withdrawing cash on a credit card is a cash advance, wherever you are. Westpac notes a cash advance fee and a higher interest rate apply, with no interest-free period. Overseas, ATM fees can come on top: NAB, for example, charges $5 per overseas ATM withdrawal on its credit cards, and Bankwest notes overseas ATM operators may charge their own fee. A debit card avoids the cash advance fee and interest, though international transaction and ATM fees can still apply. See how credit card interest works for why cash advances are expensive.
Visa or Mastercard abroad?
The international transaction fee is set by your card issuer. On the fee pages we checked it ranged from 0% to 3.5%: Bankwest's Platinum Mastercards were at 0% and the BankVic Qantas Visa at 2%, for example. The network converts the amount at its exchange rate, and the issuer's fee is added to the Australian dollar amount. So compare the issuer's fee whichever network the card is on, and carry a second card in case the first is declined or lost.
Debit and travel money cards
Some debit cards waive the fee on purchases. NAB's page, for example, says its Platinum Visa Debit card charges no international transaction fee on purchases processed overseas, though it does on overseas cash withdrawals. If you use a prepaid travel money card, check its load, reload, ATM and currency conversion fees before you buy.
Before you go
CommBank's tips for using a credit card overseas are a good checklist:
- Tell your bank you're travelling. CommBank, for example, says it may place a temporary lock on your card if it detects suspicious overseas transactions and doesn't know you're away.
- Check your card won't expire while you're overseas, and that your bank has a phone number that reaches you there.
- Set up automatic repayments so you don't miss a due date.
- Have a backup way to pay. Smartraveller reminds travellers they're responsible for their own finances overseas, and that the government can't lend you money except in exceptional circumstances.
- If your card's complimentary travel insurance has to be activated before you go (CommBank's does), do it before you leave, and read the conditions. Our guide to credit card travel insurance explains the usual conditions.
- Hiring a car? Check the rental excess before you sign: see rental car excess insurance.
What to watch for
- Overseas websites priced in Australian dollars, which can still attract the fee.
- Being offered your home currency at a shop or ATM overseas: choose the local currency.
- Cash advances: a cash advance fee, ATM fees and interest from the day you withdraw.
- A no-fee card with a high annual fee or purchase rate that outweighs the saving.
- Complimentary travel insurance with conditions you have to meet.
Common questions
Which Australian credit card has no foreign transaction fee?
On 2 October 2026 the issuers' own pages said these charge no international transaction fee: NAB's Rewards Travel Card, Bankwest's Platinum and World Mastercards (including the Zero Platinum and Breeze Platinum), and ING's Orange One Low Rate and Orange One Rewards Platinum cards. Other cards may too, and terms change, so check the key facts sheet before you apply. We don't rank cards.
How do I avoid the 3% foreign transaction fee?
Use a card whose issuer charges 0% on international transactions, pay in the local currency when you're asked to choose, don't use a credit card for cash, and check where online shops process payments, because an overseas-processed purchase in Australian dollars can attract the fee.
Is it better to use Visa or Mastercard abroad?
The fee to compare is your card issuer's international transaction fee, which on the fee pages we checked ranged from 0% to 3.5%: 0% on Bankwest's Platinum Mastercards and 2% on the BankVic Qantas Visa, for example. Compare that whichever network the card is on, and carry a second card as a backup.
Do I pay foreign transaction fees on Australian websites?
You can. NAB, Bankwest and Qantas Money all say the fee applies when the merchant or the business processing the payment is overseas, even if the price is in Australian dollars. NAB's example is a .com.au website whose payments are processed overseas.
Should I pay in Australian dollars or local currency overseas?
Usually the local currency. CommBank says it often costs less, because its international transaction fee applies either way and the merchant may add charges or use a less favourable exchange rate if you choose Australian dollars.
Are travel credit cards worth it?
If you spend enough overseas or on overseas websites for the fee you avoid to outweigh any annual fee, and you'll pay the balance in full. At a 3% fee, every $1,000 of overseas spending costs $30, so a card's annual fee and rate decide whether it's worth it for you.
About the cards on this page
We name a card only where its issuer's own fee or product page said so on the date shown, and we don't rank or recommend cards. Fees, rates and benefits change: check the card's key facts sheet and Target Market Determination before you apply.
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