Understanding international transaction fees
Heading overseas can deliver plenty of welcome surprises, like finding an amazing restaurant without a queue, but can also bring pesky bill shocks, like international transaction fees.
After all, wouldn’t you rather that money go towards an extra-fancy dinner at that food hideaway instead while you’re abroad?
Let’s look at what international transaction fees are and ways you can avoid them while making memories around the world.
What’s an international transaction fee?
An international transaction fee (also known as a foreign transaction fee) is a credit and debit card charge that applies to any transaction processed outside of Australia or in a foreign currency.
International transaction fees may also be charged if you make a purchase online in a different currency, or if you obtain a cash advance overseas (whether in Australian dollars or a foreign currency).
Keep an eye out when shopping online, because even if your purchase is made on a ‘.com.au’ website and in Australian Dollars, if the transaction is processed by the merchant outside of Australia, an international transaction fee will apply.
An international transaction fee typically is a percentage of the transaction amount and can quickly add up to put a dent into your budget.
For example, if the international transaction fee is 3% and you spend $3,000 on your credit card living it up on your overseas getaway, that means you could also be looking at $90 in international transaction fees.
Pizza and drinks by the pool or fireplace instead, anyone?
How to avoid international transaction fees
Now you’ve gotten the gist of what international transaction fees are, you might be adding ‘how to avoid transaction fee charges abroad’ to your holiday research to-do list.
Don’t sweat it. You may tick that one off your list by using a card with no international transaction fees (more on that below).
Products with no international fees
At ING, we’re here to help you say ‘adios’, ‘sayonara’ or simply ‘hooroo’ to international transaction fees.
Whether you use an Orange One Rewards Platinum or Orange One Low Rate credit card, simply deposit $1,000+ each month from an external source to any of your ING account (excl Living Super and Orange One) and make 5+ card purchases that are settled (not pending) and we’ll rebate the international transaction fee after it’s charged.
Customers who are approved for an Orange One Rewards Platinum card also receive complimentary travel international insurance, as do customers who are approved for an Orange One Low Rate credit card with a credit limit of $6,000 or more. Eligibility and conditions apply to cover. Refer to Complimentary travel insurance terms & conditions.
You can learn more about our credit card fees here.
If you’re looking for a bank account with no international transaction fees, check out Orange Everyday. Meet the below monthly eligibility criteria and gain access to unlimited rebates on ING International Transaction Fees for eligible online and overseas purchases:
- Deposit at least $1,000 from an external source to any personal ING account in your name (excluding Living Super and Orange One),
- Make 5 or more settled (not pending) eligible ING card purchases.
When the criteria is met in a calendar month, the benefits will apply in the next calendar month.
International travel fees FAQs
Why am I being charged an international transaction fee?
There are costs involved when using a debit or credit card for an international transaction. An international transaction fee combines all costs into a percentage amount charged when the card is used for the overseas purchase or purchase in a foreign currency.
What other overseas fees should I be aware of?
If you use a debit or credit card to withdraw cash from an international ATM, you may be charged ATM withdrawal fees, both from the issuer of your card and also from the operator of the ATM. Eligible ING customers are able to get some of these fees rebated.
A cash advance, which is when you use your credit card to access money rather than paying for goods and services, will also incur fees and interest.
Ready to save on international transaction fees and more?
Head over here to get your money working for you while you explore the world.