How Australians Can Avoid International Transaction Fees in 2025

There’s nothing like the thrill of booking flights to Bali or scoring a deal from a US online retailer—until your bank statement arrives. International transaction fees, often hidden in the fine print, can quietly sap your savings and inflate the cost of purchases made in foreign currency. With Australians spending more overseas and online than ever, understanding these fees has never been more important.

What Are International Transaction Fees?

International transaction fees—sometimes called foreign transaction or currency conversion fees—are extra charges levied by banks and credit card providers whenever you make a purchase in a currency other than Australian dollars (AUD), or when your money passes through an overseas bank. For most Aussies, these fees pop up when:

• Shopping online with international retailers (think Amazon US or ASOS UK)
• Travelling overseas and using your Australian debit or credit card
• Booking hotels, flights, or services on international websites

In 2025, typical international transaction fees from major Australian banks remain between 2% and 3.5% of the transaction amount, although some premium cards offer reduced or waived fees. It’s worth noting that these fees can be stacked—sometimes a currency conversion fee is charged on top of an international transaction fee, particularly if your payment is routed through a third-party payment processor.

2025 Update: How Banks Are Changing the Game

This year has seen a flurry of activity among banks and fintechs responding to growing consumer frustration with hidden overseas fees. Notable 2025 developments include:

• Fee-free travel cards: Several digital banks, like Up and Wise, have extended their no-international-fee cards, allowing Aussies to spend globally without extra charges. ING and Macquarie continue to lead with zero overseas fees on certain accounts, provided monthly deposit conditions are met.
• Transparent exchange rates: Challenger brands now offer real-time currency conversion at interbank rates with no markup, eliminating the double sting of poor exchange rates and added fees. Wise, Revolut, and Citi continue to disrupt this space.
• Mandatory disclosure: As of January 2025, the Australian Government requires banks to display potential international fees and exchange rate markups at the point of transaction, both online and in-app, making it easier to spot and avoid them.

Despite these positive changes, many traditional banks still charge standard international transaction fees on most cards, so it pays to double-check your account’s product disclosure statement (PDS) before travelling or shopping online.

Smart Strategies to Sidestep International Transaction Fees

Australians have more options than ever to keep their hard-earned dollars where they belong. Here are proven strategies for avoiding—or at least minimising—international transaction fees in 2025:

• Use fee-free cards: Opt for cards from providers like Up, Wise, Revolut, ING, or Macquarie, which explicitly waive international transaction fees for spending and ATM withdrawals.
• Pay in local currency: Always select the local currency (not AUD) when paying overseas or online. Dynamic currency conversion often results in higher charges and poor exchange rates.
• Consider prepaid travel cards: Load AUD and convert to foreign currency at a locked-in rate before you travel. Prepaid cards from Qantas Money, Travelex, and Australia Post have improved fee transparency in 2025, but always check for reload and inactivity fees.
• Monitor exchange rates: Use apps like XE or Wise to track rates and time your currency conversions for maximum value.
• Shop with local retailers: Where possible, buy from Australian-based stores that import international goods—this can avoid fees altogether and simplify returns.

Real-World Example: Ella’s European Adventure

Ella, a Sydneysider, spent a month backpacking through Europe in 2025. By using a Wise debit card for daily purchases and ATM withdrawals, she avoided the 3% foreign transaction fee her old big four bank card would have charged. Over a $5,000 travel budget, that meant saving $150—enough for a few extra museum visits or a fancy Parisian dinner. Ella also monitored the EUR/AUD exchange rate and converted funds in-app when rates peaked, stretching her travel dollars even further.

What to Watch for in 2025 and Beyond

With global travel rebounding and e-commerce continuing to surge, expect more competition among banks and fintechs to win over savvy Australians seeking fee-free international spending. The government’s focus on transparent fee disclosure is a step in the right direction, but it’s up to consumers to stay vigilant and make the most of the options available.