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fees

Credit Card Fees in Australia and How to Avoid Them

By PointsExplainedLast reviewed

Pay on or before the due date

Moneysmart suggests a direct debit or automatic transfer set for the day after your pay goes in, plus a calendar reminder.

Avoid cash advances

A fee is usually charged and interest runs from the day you withdraw the cash.

Use the right card overseas and online

If you often buy from overseas merchants, the ACCC suggests considering a credit or debit card that doesn't charge international transaction fees.

Review what your annual fee buys

Once a year, compare the fee with the value you actually got from rewards and extras.

Cancel cards you don't need

Pay the balance to $0, redirect direct debits and redeem any points first.

Where this comes from

Sources

The documents this guide relies on. If one has changed since we read it, the document is right and this guide is out of date.

  1. Moneysmart (ASIC): Choosing a credit card

    List of costs to compare; a fee can be worth it if you pay in full; rewards cards cost more if you carry a balance; complimentary extras usually not free.

    moneysmart.gov.au · Accessed
  2. Moneysmart (ASIC): Glossary (entry 'default fee')

    Default fee definition.

    moneysmart.gov.au · Accessed
  3. OAIC: Repayment history and defaults

    Payment more than 14 days late counts as missed; repayment history kept 2 years.

    oaic.gov.au · Accessed
  4. Moneysmart (ASIC) glossary: cash advance

    Cash advance definition: transaction fee usually charged, interest from the date withdrawn.

    moneysmart.gov.au · Accessed
  5. ASIC Report 580: Credit card lending in Australia (July 2018)

    2011 Home Loans and Credit Cards Act requirements, including prohibition of fees for use above the credit limit without consent.

    download.asic.gov.au · Accessed
  6. ASIC Report 788: Credit card lending in Australia: Staying in control (July 2024)

    All lenders capped over-limit thresholds at a maximum of 10% as ASIC recommended; online cancellation and limit reduction for contracts after 1 January 2019.

    download.asic.gov.au · Accessed
  7. Moneysmart (ASIC) glossary: international transaction fee

    International transaction fee definition, including Australian merchants processing overseas and AUD transactions.

    moneysmart.gov.au · Accessed
  8. ACCC: Foreign currency and money exchange

    International transaction fees usually around 3% of the sale price; consider a fee-free card.

    accc.gov.au · Accessed
  9. Moneysmart (ASIC): Credit card balance transfers

    One-off balance transfer fee calculated as a percentage of the transferred amount.

    moneysmart.gov.au · Accessed
  10. ACCC: Card surcharges

    No-surcharge rules from 1 October 2026.

    accc.gov.au · Accessed
  11. Moneysmart (ASIC): Pay off your credit card

    Pay on time to avoid late fees and interest; direct debit timing tip; consider cancelling each card as you pay it off.

    moneysmart.gov.au · Accessed
  12. Moneysmart (ASIC): Cancel a credit card

    Steps to cancel: pay to $0, redirect direct debits, redeem points first.

    moneysmart.gov.au · Accessed
Questions

About this guide

Can my bank charge me an over-limit fee?

Only if you have consented. ASIC says credit card rules introduced in 2011 prohibit additional fees for using a card above its limit unless the consumer has given consent.

Why was I charged an international transaction fee on a purchase in Australian dollars?

The fee can apply to transactions with overseas-based merchants, or Australian-based merchants who process payments overseas, even when the price is in Australian dollars.

Do cash advances get interest-free days?

Moneysmart says interest is usually charged from the date the cash is withdrawn until it is repaid in full, on top of a transaction fee.
Keep reading

Balance Transfers, Interest-Free Deals and Buy Now Pay Later in Australia

Card Surcharges in Australia: The 1 October 2026 Changes

Choosing Your First Credit Card in Australia