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Using Your Credit Card Overseas: Fees, Currency and Cover

By PointsExplainedLast reviewed

Check your card's international fee

Look at the Key Facts Sheet or terms. If you'll spend a lot overseas or online with overseas merchants, compare cards without the fee.

Check your travel insurance

If you're relying on card insurance, read the product disclosure statement: who is covered, which trips, and what you must pay for with the card.

Think twice before paying in Australian dollars

If a terminal offers to charge you in Australian dollars, remember the ACCC's warning that it may be the more expensive option.

Avoid cash advances where you can

Interest usually starts on the day of withdrawal, on top of fees.

Keep your bank's contact details handy

Report a lost or stolen card straight away to limit your losses.

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 If one has changed since we read it, the document is right and this guide is out of date.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. ACCC: Foreign currency and money exchange

    Cards cheaper than travel money cards for purchases, and cheaper still without international transaction fees; fees usually around 3%; some merchants offer to charge in AUD (dynamic currency conversion); paying in AUD may be more expensive because of the overseas bank's margin; issuer may still charge the fee; check whether online transactions are processed overseas; ask your bank to block international transactions.

    accc.gov.au · Accessed
  2. Moneysmart (ASIC) glossary: international transaction fee

    International transaction fee definition including Australian-based merchants processing overseas, cash advances and AUD transactions.

    moneysmart.gov.au · Accessed
  3. Velocity Frequent Flyer Membership Terms and Conditions (effective 17 August 2026)

    Points Booster transactions are processed overseas and your financial institution will generally charge a foreign exchange/overseas transaction fee.

    velocityfrequentflyer.com · Accessed
  4. Moneysmart (ASIC) glossary: cash advance

    Cash advance: transaction fee plus interest from the date withdrawn.

    moneysmart.gov.au · Accessed
  5. Moneysmart (ASIC): Travel insurance

    Credit card travel insurance: 'complimentary' but often included in fees or interest; must pay certain travel costs on the card; may only cover the cardholder; generally only covers the trip paid on the card; read the PDS; 'do not travel' advice usually voids cover.

    moneysmart.gov.au · Accessed
  6. Moneysmart (ASIC): Bank transaction problems

    More or less likely to get money back for unauthorised transactions; contact your bank quickly; get a reference number.

    moneysmart.gov.au · Accessed
  7. ASIC: ePayments Code

    ePayments Code sets rules for who pays for unauthorised transactions, for subscribers.

    asic.gov.au · Accessed
Questions

About this guide

Should I pay in Australian dollars or the local currency overseas?

The ACCC warns that paying in Australian dollars may be more expensive, because the overseas bank usually adds a margin to the exchange rate, and your card issuer may still charge an international transaction fee.

Why did I pay a foreign transaction fee on an online purchase?

The fee can apply to Australian-based merchants who process payments overseas, and to overseas merchants, even if the price is shown in Australian dollars.

Does my card's complimentary travel insurance cover my family?

Not necessarily. Moneysmart says card insurance may only cover the cardholder, not a spouse, children or additional cardholders. Check the product disclosure statement.
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