How to Avoid International Transaction Fees
Arguably, the two most irritating aspects of paying by card while travelling overseas are ATM fees (seriously, I only need €20 and you want to charge me €3 to access it?!) and checking your card statement to find a series of international transaction fees underlining every purchase. I end up looking about as cheerful as the poor woman above.
Heed my warning, globetrotters: put in the effort before you travel and make sure you’ve got a card that won’t charge you extra for using it overseas.
There can be quite a few hidden fees lurking in the fine print of your debit or credit card terms and conditions, from withdrawal fees to currency conversion fees to transaction fees. If you plan to stick with your everyday banking institution, it’s a good idea to contact a representative and ask about the best option for international travel. Imagine arriving at your destination only to find that your card doesn’t work in the local currency – what a nightmare! Easily avoided with a little prior planning, though. If you’re lucky, the card you already have will be the most suitable, but there may also be a travel-specific card available that will save you money and stress in the long run.
I always recommend bringing two cards from different banking institutions just in case one stops working or is lost. A travel money card is another great option, as it’s not linked to your bank account. And even if you don’t plan on using your everyday card, it’s good practice to call your bank and let them know that you will be travelling overseas.
Oh – and one more tip: EFTPOS machines will often detect your foreign card and ask whether you would like to pay in the local currency or your home currency. Never convert to your home currency! The exchange rate is always inflated by the EFTPOS terminal, so you’ll end up paying more.
Anyway – down to the nitty gritty. Here are some recommendations for cards that won’t charge you extra, regardless of where you are in the world.
BEST GLOBALLY AVAILABLE OPTIONS
- Can be purchased worldwide (Australia, New Zealand, USA, Canada, UK, Europe, UAE, Japan, China, South America, to name but a few)
- Can be used everywhere MasterCard is accepted
- 10 currencies available – load as many as you like
- No overseas ATM or EFTPOS fees
- The Travelex money app lets you manage your card any time, anywhere
- Can be purchased in many countries, including Australia, New Zealand, Canada and the UK
- Can be used everywhere MasterCard is accepted
- 10 currencies available – load as many as you like
- No EFTPOS or top-up fees
- Reload 5 ways: online, mobile app, bank transfer, over the phone and in participating branches
- Can be purchased in many countries, including Australia, New Zealand, USA, Canada, UK, Europe, Singapore, Malaysia, Japan and Brazil
- No EFTPOS fees, and very low ATM fees
- 50+ currencies available – load as many as you like
- Best available exchange rates in all currencies, and very low currency conversion fees
- Can be used everywhere debit cards are accepted (except certain blocked countries)
- Linked to your PayPal account, not your bank account
- Gives you faster access to your funds than traditional banks (up to 2 days faster!)
- No transaction or purchase fees (but there is a $1.95 ATM withdrawal fee and a 2.5% foreign transaction fee)
- Simple account management via the PayPal Prepaid mobile app or website
FOR AUSTRALIAN GLOBETROTTERS
- No purchase, transaction or ATM fees
- Can be used everywhere Mastercard is accepted
- Earn 1.5 Qantas points for every AU$1 spent in foreign currency, and 1 point for every AU$4 spent in Australian dollars
- Available currencies: AUD, USD, GBP, EUR, HKD, CAD, JPY, NZD, SGD, THB, AED
HSBC Everyday Global Travel Card
- No purchase, transaction or ATM fees
- Can be used everywhere Visa is accepted
- Manage your account and switch currencies instantly with the HSBC Australia Mobile Banking app
- Available currencies: AUD, USD, GBP, EUR, HKD, CAD, JPY, NZD, SGD, CNY
FOR AMERICAN GLOBETROTTERS
Charles Schwab Bank – High Yield Investor Checking Account
- No purchase, transaction or ATM fees
- No minimum balance required, and it also earns interest
- Covers 100% of any losses in your Schwab account/s due to unauthorised activity
- Manage your account online or via the Schwab Mobile app
Chase – Sapphire Checking Account
- No conversion, transaction or ATM fees
- 24/7 banking service phone support
- No minimum balance required
- Manage your account online or via the Chase Mobile app
FOR BRITISH GLOBETROTTERS
- Can be used in over 150 currencies, and stores money in 18 currencies
- Peer-to-peer secure currency swapping system provides extremely good exchange rates
- No transaction fees or ATM fees (up to £200 withdrawal per month)
- Manage your account, monitor exchange rates and send money to other users from the app
- No overseas payment, transaction or ATM fees
- Load up to 15 currencies, and use anywhere MasterCard is accepted
- Get up to six additional cards for your account to share funds with your companions
- Check your balance and history, and top up your card via the mobile app
- No payment, transaction or ATM fees
- Uses the real exchange rate – no markup
- Do everything via the mobile app and access 24 hour [real person] support
- Card arrives quickly, and you can start spending from your digital wallet immediately
Mastercard also has a list of every Mastercard prepaid card issuer/programme available in the UK, which is a good starting point if you know you’d prefer to use Mastercard rather than Visa.
Do you have a go-to card with no sneaky international fees that’s not listed here? We’d love to hear about it in the comments!
Oh and don’t forget to read our article about the best travel money cards!
Image credits: Kaspars Grinvalds/Shutterstock.com