Credit cards have specific features that make them an affordable payment option for overseas purchases, including:
In Australia, credit cards and debit cards also charge a foreign currency transaction fee of around 3%. This charge applies to transactions made overseas, as well as those you make online with international retailers.
There are a few cards that don’t charge a foreign transaction fee. These “no foreign transaction fee” cards are becoming more popular options for frequent travellers and online shoppers looking to cut down on card costs.
Case Study: Jonas’s foreign transaction savings
Jonas travels a lot for work and averages around $5000 per month in international transactions on his credit card.
Case Study: Juanita’s credit card travel insurance
Juanita is planning a holiday overseas for later in the year and decides to get a credit card to save money on travel insurance. She reads the terms and conditions of the card and finds that she needs to pay for the airfares using the card and then activate the insurance for it to cover her and her partner.