Whether you’re tapping your phone at a café, wiring funds overseas, or managing your small business accounts, transaction fees have a way of sneaking up on Australians. In 2025, shifting financial regulations, new payment technologies, and fierce competition among banks and fintechs are transforming the landscape. If you want to keep more of your money, understanding these changes is essential.
The New Rules: How 2025 Policy Updates Are Affecting Fees
In response to consumer advocacy and ongoing inquiries into banking competition, the Australian government and the Reserve Bank of Australia (RBA) have rolled out several key changes in 2025:
- Ban on Excessive Surcharging: The ACCC’s strengthened enforcement now prohibits merchants from charging more than the actual cost of processing electronic payments, including credit cards, BNPL services, and even some cryptocurrencies.
- Real-Time Payments Expansion: With the New Payments Platform (NPP) now the norm for instant bank transfers, most banks have removed or reduced fees for PayID and Osko payments. However, some still charge for business bulk transactions and international remittances.
- Transparency Requirements: As of February 2025, all banks and payment providers must display transaction fees upfront before customers complete a transaction—no more hidden costs lurking in the fine print.
These changes aim to level the playing field and give Australians more power to compare and choose the best payment options for their needs.
Fintech Disruption: New Players, New Fee Models
Australia’s fintech boom is shaking up traditional fee structures. Digital banks and payment apps are targeting the “fee fatigue” that many Aussies feel:
- Zero-Fee Accounts: Challenger banks like Up and Hay are offering transaction accounts with no monthly fees, free domestic transfers, and minimal overseas ATM charges.
- Micro-Fee Models: Some new platforms, like Wise and Revolut, offer ultra-low-cost international transfers by charging small, transparent percentages instead of flat fees, undercutting the big four banks.
- Subscription Banking: The rise of “all-inclusive” monthly subscriptions (e.g., $5–$10/month) covers unlimited transactions, removing per-transaction costs for heavy users.
Case in point: a small business importing goods from the US can now use a fintech platform to pay invoices for a fraction of the fee charged by a traditional bank—sometimes saving hundreds of dollars a year.
Where Aussies Still Get Stung: The Most Common (and Avoidable) Fees
Despite progress, some transaction fees are still easy to miss. Here are the biggest offenders in 2025:
- Foreign Transaction Fees: Most credit cards still charge 2–3% on overseas purchases or when shopping online from international retailers. Some premium cards waive these, but usually with a higher annual fee.
- ATM Withdrawal Fees: While many banks have joined fee-free ATM networks domestically, withdrawing cash overseas can still attract a $5–$7 fee, plus currency conversion costs.
- Buy Now, Pay Later (BNPL) Late Fees: BNPL providers often tout “no interest,” but late fees can accumulate quickly—up to $20 per missed payment with some providers.
- International Money Transfers: Sending money abroad through a major bank can cost $10–$30 per transfer, plus a margin on the exchange rate, unless you switch to a fintech alternative.
Smart Aussies are comparing providers, using fee-free cards when travelling, and leveraging the NPP for instant, low-cost payments wherever possible.
How to Slash Your Transaction Fees in 2025
With a bit of strategy, you can keep more of your hard-earned cash. Here are some tips for 2025:
- Use Digital Wallets: Apple Pay and Google Pay often bypass some card surcharges, and some banks offer cashback for digital wallet transactions.
- Compare Fee-Free Accounts: Check if your current bank has removed fees or if a switch to a digital challenger could save you money.
- Monitor International Spend: Look for cards with no foreign transaction fees if you shop or travel overseas.
- Keep an Eye on BNPL: Set reminders for repayments to avoid late fees, and check if the provider is passing on any surcharges at checkout.
- Read the Fine Print: With new transparency rules, you can easily spot and avoid hidden fees—if you pay attention before clicking ‘confirm’.
The Bottom Line: Knowledge Is Your Best Defence
Transaction fees aren’t going away, but the power is shifting back to consumers. With the right knowledge and a willingness to shop around, Australians in 2025 can avoid most unnecessary charges—and keep more in their pockets.
