How foreign transaction fees work

A foreign transaction fee is a percentage your card issuer charges on top of the purchase itself, just for the transaction being in a foreign currency — or, on some cards, for being processed overseas at all. It's separate from whatever markup is built into the exchange rate.

What the fee actually is

When you pay with a card overseas, two different costs can apply. The first is the exchange rate markup — the gap between the reference rate and the rate your card actually uses. The second, and the one this guide covers, is the foreign transaction fee: a flat percentage of the converted amount, charged by your card issuer or network for processing an international transaction.

The two are easy to mix up because they show up in the same place — a slightly higher total on your statement than you expected — but they come from different parties and are calculated differently. You can have one without the other: a card with no foreign transaction fee can still carry a wide rate markup, and vice versa.

How much can the fee be?

There is no single Australian card fee. The ACCC says international transaction fees are usually around 3% for overseas purchases. As a product-specific example, NAB lists different fees by card and transaction type, including cards with no fee on some purchases and others with a 3.5% fee. Check your own card's current terms rather than assuming a typical percentage.

The fee is usually applied to the AUD-converted value of the purchase, after the exchange rate has already been applied — so a higher rate markup also means a slightly higher dollar amount the fee is calculated on.

When it applies

Depending on the card, a fee can be triggered by the currency or by where the merchant or processor is located. That means:

• Paying a merchant overseas in their local currency — the obvious case.
• Paying an overseas merchant who bills you in AUD — the fee may still apply, because the transaction is processed overseas. Check your card's terms, as this varies by issuer.
• Shopping online with an overseas retailer, even from home in Australia.
• Withdrawing cash from an overseas ATM — often with an additional fixed fee on top.

Where to find it in your card's terms

Look for your card's Product Disclosure Statement (PDS) or conditions of use document, usually available from your issuer's website or banking app. Search for "international transaction fee" or "foreign currency conversion fee" — the exact wording varies by bank. The PDS will state the percentage and confirm whether it applies to purchases, cash withdrawals, or both.

Reducing or avoiding it

A few practical options, roughly in order of effort:

• Use a fee-free travel card or debit account for the trip, keeping your everyday card for domestic spending.
• Check if you already have one — some everyday transaction accounts waive the fee as a standard feature, not just dedicated travel products.
• Compare debit and credit — the fee percentage can differ between a bank's own debit and credit products, even when the rate markup is similar.
• Load a multi-currency card before you travel if you want to lock in a rate ahead of time, rather than relying on the rate at the moment of purchase.

Sources and method

Reviewed 30 October 2026. Fee triggers and examples are based on the ACCC's consumer guidance and NAB's published fee explanation. Provider fees can change; your own card terms determine what you pay.