Compare credit cards that don’t charge the typical 2-3% foreign transaction fee when shopping overseas or transacting with overseas online retailers.
The foreign transaction fee is a fee that some banks apply to each individual purchase made where the purchase is made overseas, i.e. outside Australia. The fee itself is typically worked out as a percentage of the purchase. It is usually around 2-3%.
It depends. If you are shopping from a UK online store while in Australia, then you will be charged a foreign transaction fee unless you are using a credit card with no foreign transaction fee. If you are on an overseas holiday and use a credit card that does have a foreign transaction fee, then you will be charged for any foreign transactions made while abroad. So, it really depends on the card you have.
It’s important to note that if you are purchasing something overseas or buying from an overseas ecommerce store, you may still be charged a foreign exchange fee.
No. These are two separate fees. Not all banks charge both.
Check what you would be charged for either because it is possible that a no foreign transaction fee card may still charge a foreign currency exchange fee.
Even if a no foreign transaction fee card did charge a foreign exchange fee, it would still be cheaper than a card that levied fees on both.
No, it generally doesn’t. Typically foreign transactions are charged a flat fee of 1-3% on the total purchase. The foreign exchange fee is typically in the range of 3%, although this varies from bank to bank.
Yes, unfortunately there are.
This works out to be extremely expensive and should be avoided unless absolutely necessary.
