What is a foreign transaction fee?
A charge from your own bank, not the overseas merchant.
A foreign transaction fee is a percentage your own Australian bank adds when a transaction is processed overseas or in a foreign currency. The ACCC puts the usual charge at around 3% of the purchase price.
It is charged by your issuer, not by the overseas merchant, and it is separate from the exchange rate. It is also the easiest travel cost there is to remove entirely.
It goes by several names on a statement - international transaction fee, overseas transaction fee, currency conversion fee, foreign currency conversion charge - and they all describe the same thing.
How much do foreign transaction fees cost?
At around 3%, $6,000 of overseas card spending carries roughly $180 in foreign transaction fees. Nothing is provided in return for it. It is not a conversion cost - the conversion is done by Visa or Mastercard at their wholesale rate, and that happens whether your bank charges this fee or not.
Can you be charged one on a purchase in Australian dollars?
Yes, and this surprises people. The fee is triggered by where the transaction is processed, not by the currency on the screen. An overseas-registered website that bills you in Australian dollars can still attract it. So can a booking made from your sofa in Melbourne, if the merchant settles offshore.
This is also why paying in Australian dollars overseas is not the saving it appears to be. You can be charged the dynamic currency conversion markup and the foreign transaction fee on the same purchase. Why to always choose the local currency.
How to avoid foreign transaction fees
Open an account that does not charge one, and do it two to three weeks before you fly so the physical card arrives in time. A number of Australian accounts waive the fee outright - Wise, Revolut, Up, ubank, Macquarie Transaction and HSBC Global Everyday among them - and ING Orange Everyday rebates it if you meet monthly deposit and card-transaction conditions.
Check the conditions, not the marketing. Accounts that rebate the fee rather than waiving it only do so if you meet monthly requirements, and missing them in the month you travel means paying full freight. The list of accounts and their conditions both change - read the current product disclosure statement rather than any comparison page, this one included.
Why a fee-free card can still be expensive
A card with no foreign transaction fee can still cost you if its exchange rate is poor, because the rate and the fee are two separate things. The ACCC’s foreign currency conversion services inquiry found the big four banks were rarely the cheapest for the most commonly bought currencies, and its 2024 update found a consumer could save about $108 on an average $3,138 transfer by comparing suppliers rather than defaulting to their bank. Compare the total: the rate and the fee together.
Frequently asked questions
Is a foreign transaction fee the same as a currency conversion fee?
Usually the same thing under different names. Australian issuers variously call it an international transaction fee, an overseas transaction fee, a currency conversion fee or a foreign currency conversion charge. What matters is the number in the fee schedule, not the wording. It is separate from the exchange rate itself and separate from any dynamic currency conversion markup.
Do I pay a foreign transaction fee on a refund?
Often yes, and this is a common complaint. The fee charged on the original purchase is generally not returned, and the refund converts back at the rate on the day it is processed rather than the day you bought. On a large refund weeks later, the two rates can differ noticeably. It is another reason to use a card that does not charge the fee in the first place.
Can I be charged one on a booking I make from Australia?
Yes. The fee follows where the merchant processes the transaction, not where you are sitting or what currency you see. An overseas-registered airline, hotel or ticketing site can trigger it on a booking made at home in Australian dollars. The tell is usually a merchant location outside Australia on your statement.
Which Australian accounts have no foreign transaction fee?
Several waive it outright, including Wise, Revolut, Up, ubank, Macquarie Transaction and HSBC Global Everyday, while ING Orange Everyday rebates it if you meet monthly deposit and card-transaction conditions. Both the list and the conditions change, so check the current product disclosure statement before you rely on any of them.
More on travel money
Start from the top: travel money cards by destination, or read the overview in travel money for Australians.
Last reviewed 3 September 2026. Account fees and conditions change without notice, and the accounts that waive a fee today may not tomorrow. Confirm anything that matters against the product disclosure statement and the sources below.
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