Tourist fee trap: the charge that sees Aussies abroad slugged $138M a year

Treating yourself is all part of the fun of being on holiday, whether that looks like breakfast at a quaint cafe by the beach, a night out on the town, or an all-in shopping trip to one of the world’s fashion capitals. Aussies certainly love a holiday splurge; per recent figures from ING, the average Australian spends $7,310 on a two-week trip.

While a getaway should be about spoiling yourself, having your budget eaten away by hidden card fees really crushes that holiday feeling. In fact, ING’s research revealed Aussies abroad paid approximately $138 million in totally avoidable foreign-transaction fees in the past 12 months. Turns out, a cheeky little tap of your card can end up costing you more than you think!

Here’s how, with a little forward planning, you can avoid the foreign transaction fee trap, so you have more of your money to spend on you.

How can you avoid international transaction fees?

Savvy travellers can avoid getting slugged for fees by comparing card options ahead of time. Don’t just take your normal credit card overseas, do some research before your big trip to find ways you could save. Here are some tips to get you started:

Seek out a no fee credit or debit card

There are various options for travel credit and debit cards on the market, and some of these come with no foreign transaction fees. If you’re looking for a place to start, you can check out Canstar’s Travel Credit Card and Travel Accounts Awards, which recognise outstanding value for both regular and occasional overseas travellers.

Consider a travel money card

A travel money card is a specific type of card you can load foreign currencies onto then tap and swipe like a regular debit card while overseas. These have some advantages, like the ability to lock in exchange rates, avoid currency conversion fees, load multiple currencies and often avoid transaction fees.

Watch out for other fees

Even if a card has no foreign transaction fees, you can still get stung in other ways. When comparing travel credit and debit cards or travel money cards, be sure to look for annual and various account keeping fees, as well as reloading fees in the case of travel money cards. Before signing up for any card, it’s important to carefully understand the fees involved, to make sure any potential sayings won’t get eaten up by these.

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