Commonwealth bank credit card international transaction fee. The lowdown

Thinking of using your credit card overseas to make foreign currency transactions? You should probably get to know what to expect when it comes to the fees, especially international transaction fees. This article is a guide to your Commonwealth Bank credit card, including some extra tips to keep your money safe while travelling abroad.

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Table of contents

Using your CommBank credit card overseas What are international transaction fees How foreign currency transaction fees work with CommBank credit cards CommBank Visa credit card CommBank Mastercard credit card CommBank international or foreign transaction credit card fees Exchange rate CommBank uses for your overseas foreign currency payments Benefits of using your credit card for international transactions Cons of using your credit card for foreign transactions How do refunds or credits in a foreign currency work on CommBank credit cards? Keep in mind – Tips Dynamic Currency Conversions Avoid being scammed by a shady ATMs Multiple payment methods Inform your bank before you travel Contacting CommBank The Wise Account and Debit Card

Using your CommBank credit card overseas

You can take and use your Commbank credit card overseas.¹ This can be a good option if you are looking to stretch your travel budget a little bit further or as a backup payment method.

Before you take your credit card abroad, you should understand the fees, especially if you plan to use it often.

What are international transaction fees

International transaction fees are charged when you make a purchase or withdraw cash overseas. This could be applied by your bank or by the overseas merchant. These fees may cover the costs of converting currencies or processing payments through different global payment networks.

You can also be charged an international transaction fee if you shop online but your purchase is from an overseas merchant or in foreign currency.²

How foreign currency transaction fees work with CommBank credit cards

CommBank credit card international transaction fees vary by credit card. Some cards such as the Ultimate Awards or Commbank Neo credit card offer no foreign transaction fees. Where a fee is charged, the credit card scheme will determine how the foreign currency transaction fee is calculated. For CommBank credit cards, this could be either Visa or Mastercard.²

CommBank Visa credit card

If you opt for a CommBank credit card using the Visa scheme, a purchase made abroad that is denominated in USD, CAD, NZD, JPY, SGD, GBP and EUR are converted directly to AUD.

Purchases made in currencies outside of these will need to be converted USD first before then being converted into AUD.³

CommBank Mastercard credit card

For all CommBank credit cards using the Mastercard scheme, foreign purchases will always be converted to USD before then being converted to AUD.³

CommBank international or foreign transaction credit card fees

Foreign transaction fees are sometimes only one of a few other fees that come with using a credit card. Here are some other fees that you may need to factor in if you are running a tight budget when travelling.²

Card maintenance fees	Varies by credit card, but between $0 and $35 per month
International transaction fee	Varied by credit card issued 0% fee if you have a Ultimate Awards, Smart Awards or CommBank Neo credit card 3.50% for Mastercard or Visa foreign transactions
Foreign ATM fees	3% or $4 per cash advance – whichever is greater. Capped at $300 Note: Third party ATM providers may charge their own fees
Late repayments	$20
Overlimit fees	$10
Emergency or lost replacement card	$20 per card

As seen on 12 October 2024

Exchange rate CommBank uses for your overseas foreign currency payments

An additional fee can be found within a foreign conversion rate. This is known as a margin or mark-up rate. As mentioned above, you’ll either be using the Visa or Mastercard scheme depending on which credit card you choose.

We’ll do a comparison of the exchange rates used to see how these compare, and include a comparison with Wise, a provider that uses the mid-market rate for foreign conversions.

Visa Rate⁴	Mastercard Rate⁵	Wise mid-market rate⁶
If you spend 100 GBP, you’ll access an exchange rate of 1 GBP = 2.009 AUD. This includes the 3.50% foreign transaction fee charged by CommBank, plus a slight markup from Visa Your purchase will cost around $200.95 AUD	If you spend 100 GBP, you’ll access an exchange rate of 1 GBP = 2.010 AUD. This includes the 3.50% foreign transaction fee charged by CommBank Your purchase will cost around $201.01 AUD.	If you spend 100 GBP, you’ll access an exchange rate of 1 GBP = 1.9358 AUD. AUD Your purchase will cost around $192.9 AUD⁸ This includes a variable fee of $0.32

As seen on 13 October 2024

As you can see, there is a difference in the totals you’ll pay once the purchase price has been converted back to AUD. The biggest factor to consider is the additional percentage fee charged by the bank. This results in you getting less value from the money converted. Keep in mind that the rate you get will depend on the time the purchase is settled.

Benefits of using your credit card for international transactions

Credit cards have come a long way in terms of delivering a range of benefits which extend to their use overseas for international transactions. Here are some popular benefits¹:

• Automatic currency conversions
• Receiving added rewards or travel points on purchases
• Fraud and purchase protection
• Easy card and expense management online or in app
• Access to emergency assistance
• Complimentary travel insurances
• Limits holding excess cash

As mentioned, some cards may not charge an international transaction fee or may waive it with conditions. It’s important to read all the terms and conditions to find the best credit card for your overseas needs.

Cons of using your credit card for foreign transactions

Here are some cons you need to think about before taking your credit card abroad.¹

• Additional fees including foreign currency fees, card maintenance, cash advance and late payments fees.
• Chance a merchant may not accept your card or the bank blocks due to flagged transactions
• Exposure to scams and security risks on your card
• Withdrawing cash is not recommended due to cash advance rates and potential third party atm fees.
• Interest accumulation if balance is not paid off within specified terms

Most of these cons can be managed by planning and taking caution before you leave. However, credit card fees even when used domestically can accumulate very quickly if attention isn’t paid.

How do refunds or credits in a foreign currency work on CommBank credit cards?

If you need to dispute a transaction for any reason and request a refund, you can do this within your CommBank app. However, investigations and refunds can take anywhere between 10 to 45 business days to resolve.⁷

Keep in mind – Tips

Here are some extra tips to keep in mind when travelling with your credit card.

Dynamic Currency Conversions

Dynamic Currency Conversion is the option offered by some merchants to charge your card in your home currency instead of the local one. This often leads to unfavourable exchange rates which can result in higher costs. It is recommended to choose to be charged in the local currency instead if this option is available.³

Avoid being scammed by a shady ATMs

ATM scams abroad are one of the most common ways travellers get stung for their cash unexpectedly. Try and stick to the CommBank recognised or partner bank ATMs or be sure to check the features of every ATM you use for cameras, damage or lingering individuals.

Multiple payment methods

It is always recommended to take more than one type of payment method when travelling abroad. This could be in the form of a debit card, cash, and credit card. Where things do go sour and the unexpected happens, you’ll be pleased that you have a back-up to cover the rest of the trip with ease.

Inform your bank before you travel

Informing the bank before you travel abroad will help avoid potential card blocks once you start spending with your card overseas.

Contacting CommBank

If you need to contact CommBank for any reason, you can:

• Call 13 22 21 from within Australia
• Call +61 2 9999 3283 from overseas

If you are already a CommBank customer, you can also get support through the app.

The Wise Account and Debit Card

With a Wise Account you can hold money in 40+ currencies and spend it in 150+ countries. You can also order local account details in popular world currencies like AUD, NZD, USD, EUR, GBP to receive local and/or international payments like a local.

Whenever you exchange currencies it’s done using the mid-market rate with a transparent conversion fee shown upfront.

To make everyday spending easier you can order a Wise Debit card for your Wise Account and generate virtual cards as needed. If you have the local currency in your Wise Account the Wise card will use it. If you don’t have local currency converted, it uses smart technology to auto-convert your money at the mid-market rate, for a conversion fee.

The Wise card may suit you better if you’re to spend money that you’ve stored in different currencies within an existing Wise Account, and benefit from 2 or less free cash withdrawals under $350 AU, or foreign equivalent, per month (keep in mind that ATM providers may charge their own fees). You can see our full fee breakdown for ATM withdrawals here.

Join over 16 million customers currently using Wise. It’ll only take a few minutes to register and see what’s inside.

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Please see Terms of Use and product availability for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

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Sources:

1. CommBank Credit cards
2. CommBank credit card fees
3. CommBank FAQ FX fees
4. Visa exchange rate
5. Mastercard exchange rate
6. Wise exchange rate
7. CommBank dispute a transaction
8. Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

Sources checked on: 13 October 2024