When you travel or shop online with an overseas business, many cards charge a foreign transaction fee of around 2–3% of the purchase amount. But credit cards with 0% foreign transaction fees waive this cost or give you a rebate, helping you save money on international transactions.
Not after a credit card? You can also get a debit card with no foreign transaction fees.
To qualify for this category, credit cards must:
We analyse 250+ credit card products and assess six features, assigning them scores out of 10. Finder Score is weighted according to their importance within the product category.
The methodology is designed by our insights and editorial team. Commercial partnerships carry no weight, all products in the database are scored objectively.
The same card will receive a different score within each category, depending on the features being assessed (e.g.Travel Credit Cards, Balance Transfer),
Our intention is to enable informed financial decision-making without the need to analyse numerous individual data points. Please do consider your own financial circumstances when making a decision.
| Feature | Definition | Assessment | Weight |
|---|---|---|---|
| Foreign Exchange Fees | Fees charge on international transactions | Lower fees score higher | 50% |
| Travel Insurance | Complimentary travel insurance | Full score for complimentary insurances | 15% |
| Overseas ATM Fees | Fees charged by card provider to withdraw from international ATMs | Lower fees score higher | 10% |
| Purchase Rate | Interest rate on new purchases | Lower rates score higher | 10% |
| First-Year Fee | Annual fee charged in the first year of ownership | Lower fees score higher. $0 fee receives the maximum points. | 7.5% |
| Ongoing Annual Fee | Annual fee charged from the second year onwards | Lower fees score higher. $0 fee receives the maximum points. | 7.5% |
How much can I save with a 0% foreign transaction fee card?It depends how much you spend overseas and the fees you would pay if you used a different card. But as an example, if you spent $2,000 on a card with a 3% international transaction fee, it would cost you $60. If you had a card with a 0% foreign transaction fee you wouldn't pay anything, so you'd save the full $60.
And if you had a credit card with a higher fee of 3.4% on international transactions, you'd save even more ($68 in this example).
Keep in mind that the cost of foreign transaction fees may not be obvious straight away, as they are added as separate transactions on your credit card account.
The Australian Competition and Consumer Commission (ACCC) has also warned people that some major online brands will charge foreign transaction fees, even if the website ends in .com.au or the price is shown in Australian dollars.
The Bankwest Zero Platinum Mastercard was named the Best Travel Credit Card at the 2024 Finder Awards. Another consecutive win for the Bankwest Zero Platinum as it offers a combination of no foreign transaction fees, no annual fee and comprehensive overseas travel insurance. Its 14.99% interest rate on purchases scored well and helped establish it as a card that travellers can use save money on a range of costs.
Certain credit cards automatically waive foreign transaction fees when you make an international purchase.
Others offer a rebate on foreign transaction fees when you meet specific requirements, such as spending a set amount per month. If that's the case, you could still be charged a fee if you don't meet the requirements.
Annual fees typically range from $29 to $400 or more for higher-end cards. You can weigh this cost against the value you'd get from 0% foreign transaction fees and any other perks to help choose a card.
If the 0% foreign fee savings aren't as much as you thought, you could be better off comparing $0 annual fee credit cards. You could also consider a card that offers both no foreign transaction fees and no annual fee, although there are only a few of these on the market.
Interest rates on these cards range from around 10% to 27% for purchases. If you pay off your credit card as you go – or pay the total by the due date on your statement – you'll typically get interest-free days on your purchases.
But if you end up carrying over a balance, a low rate credit card could be a more cost-effective option.
Some cards offer additional perks when you're travelling, which can include:
If there's another benefit you want, you could use Finder's table filters to narrow down your comparison of 0% foreign transaction fee cards. Just make sure you check what requirements you need to meet to use the perks.
Australian credit cards offer zero liability for fraudulent transactions and 24-hour emergency support services. Most also offer fraud-monitoring services.
Other security features can include virtual cards, transaction limits for overseas spending, temporary account blocks and extra online security through Visa Secure, Mastercard SecureCode or American Express SafeKey.
Overseas ATM fees typically cost around $5 or between 2-3% of the total transaction. And that's not including any charges added by the overseas ATM operator.
There are credit cards that offer $0 international ATM withdrawals, but keep in mind that you'll still pay cash advance fees and any third-party charges.
When you use a credit card to withdraw cash, buy foreign currency or make any other cash advance transaction, you'll pay a fee worth around 2-4% of the transaction. You'll also be charged interest at the cash advance rate, which is higher than the purchase rate on most credit cards.
If you need to get cash when you're overseas, you can avoid these costs by using a debit card or prepaid travel card instead.
The range of credit cards that offer no foreign transaction fees means it's worth looking for other features that you want on your credit card. For example frequent flyer points, 0% interest rate offers, cashback bonuses or something else. The key is to find a card with features that add value when you're shopping in Australia and overseas.
When you're planning to use your card overseas spending, keep the following details in mind:
Graham heads Finder's insights team and specialises in a variety of financial topics, including credit cards, loans, insurance and investing. He regularly appears on TV including ABC News, Sunrise and Today, and edits Finder's Insights column.
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What is the most cost effective credit card when travelling overseas?
Hi R,
Thanks for your question.
There are different travel money cards in the market, each with it’s own strengths and weaknesses. These features are reviewed in the above linked page.
Much of the suitability of a particular product depends on where you’re going. Some cards are great to use in Europe, for instance; while others are suited towards Asian countries. Some cards are great for holidays visiting a number of countries; while others are only suited to a single destination journey. There are also other factors to consider, like whether you’re looking to earn rewards points on take advantage of the complimentary international travel insurance that is offered with some credit cards.
I hope this helps.
Cheers,
Jacob
What is a Foreign Currency Conversion fee?
Since you own an Australian credit card, your balance and credit is automatically in Australian dollars. When you make a purchase overseas, say $50 US, it will not only convert to roughly $80 AU. Hope not on that one!
Hi Bin.
Thanks for your question.
When the bank of lending institution processes a transaction in a currency other than Australia dollars, they will charge a fee for the currency exchange service. This is a currency conversion fee. It’s expressed as a percentage and charged on the total value of the transaction. This fee is listed in the table at the top of each of the credit card, debit, travel and store card review page.
I hope this helps.
I have moved to Australia and would like to move my credit card from a UK bank to an Australian one allowing me to pay month debits from my Australian bank account rather then using accounts in each country. Is it possible to transfer a balance from a UK to an Australian credit card on a interest free balance transfer credit card deal?
Hi Sean.
Thanks for your question.
Balance transfers will only be accepted from an Australian account.
Jacob.
Going to Hawaii next month and will spend about $10,000 AUD over there. Believe the Bankwest Platinum Credit Card has no foreign transaction fees. Can you tel me what currency exchange commission they charge. Is it cheaper to use this card than to buy AUD over here thanks. Phil.
Hi Phil. Thanks for your question. I can’t comment on the rate you’re likely to receive overseas; however, you can check Bankwest’s consumer foreign exchange rate by visiting their website. Payments involving MasterCard are converted to USD when a transaction between two different countries is processed. There may be a small margin applied to this transaction, you can find out by comparing rates found on exchange providers websites. I hope this helps. Jacob.
What is the difference between a single currency and a multi currency retailer. NAB charges different rates for these but they are unable to tell me how to determine the difference before I make an online purchase
Hi Gloria. Thanks for your question. The main difference between a single and multi-currency retailer is whether or not they accept Australian currency. A good example to use is duty free shops at the airport. They will ask you whether you would like to pay in AUD or the local currency. If you pay in AUD, then this is a single currency transaction. A multi-currency transaction is more expensive and is when you convert AUD on your card to the local currency to complete the transaction. The transaction is taking place overseas, so you’ll still get charged a fee by the lender, but the size of the charge will depend on whether the merchant will accept AUD as a form of payment (single currency transaction) or wether they require you to pay in the local currency (multiple currency transaction). I hope this helps. Jacob.