How to Avoid the 3% Foreign Transaction Fee on Your Next Holiday

A trip to a foreign country is an exciting idea, allowing you to explore new cultures and food. However, one thing that may drain your budget is the 3% foreign transaction charge. Most banks in Australia charge it when you swipe your credit or debit card abroad.

3% appears to be a small percentage; however, after a few restaurant bills or hotel bookings, that will add up to a large amount. But, with a slight preparation, you may avoid the fee during your international trip.

Tips for Avoiding the International Transaction Fee

You need a strategic plan to avoid paying extra for your international transactions. So, check for a few tips and save money on the transaction charge.

Use a Card Charging No Fee for Foreign Transactions

The best option is to apply for a debit or credit card that lets you use it internationally. Most banks in Australia offer cards without foreign transaction charges. You can to apply for these special cards. International shoppers and frequent travellers should use these cards.

Create an Account That Imposes No Foreign Transaction Fee

It is another option for saving money on international transactions. Some bank accounts charge no fee when you buy something overseas. Fee-free banking option is also available.

Apply for a Forex Card

A Forex card is designed particularly for travellers who make trips abroad. You have to load multiple foreign currencies before starting a trip. It lets you eliminate conversion fees and leverage benefits from competitive exchange rates. Benefits of using a forex card: 

• No currency conversion charge
• Acceptable to POS terminals and ATMs
• Fixed exchange rates when loading

Pay Only in Local Currency

Some international travellers exchange currency in their home country before the trip. You will receive the foreign cash and avoid the transaction charge.

Thus, do not pay in home currency when you buy products or services overseas.

More Ways to Lower the Foreign Transaction Charge

You can reduce the global transaction fee in a few other ways.

Compare different exchange rates – Real-time monitoring of the exchange rate will help you find the most favourable one. Many websites and apps offer tools to check live currency exchange rates.

Buy more at a time – Multiple small deals will put strain on your budget. When the rates are comparatively low, make a large transaction. It will reduce the overall impact on the transaction charge.

Inform the financial institution before travelling – Notify the card provider or the bank about your international travel plan. Your card will not be flagged for suspicious activities.

Track fees – Review bank statements regularly to check fees charged. In case you have found unexpected charges, contact the bank without delay.

Make Smarter Decisions Abroad

Foreign transaction charges should not affect your fun on holidays. The fee might be small on your individual deals, but it will add up quickly. Thus, plan ahead and choose the right cards for your trip. It will help you avoid extra costs while making international payments. Contact a reliable bank to know about its foreign transaction rate.