Using your Bankwest debit card abroad. The lowdown
When it comes to travelling abroad, there's nothing worse than an unexpected surprise, especially when it's extra fees, lost cards or blocked transactions....
When reading through their terms and conditions you’ll find that many banks and payment providers charge fees for what they consider to be an international or foreign transaction.
In this article we’ll take a look at what these fees are, when they’re usually applied in Australia, how currency exchange factors in and some of the fees charged by Australia’s Big Four banks. We’ll also introduce you to the Wise Account and let you know how it can help you save money on international transactions.
💸 Hold over 40 currencies in your account and spend at the mid-market rate with the Wise card while abroad. |
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Learn more about the
Wise Multi-currency account
In Australia international or foreign card transaction fees are usually applied by payment providers or banks under two main circumstances.
While it might sound simple it isn’t always easy to know when you’ll be charged an foreign transaction fee. To give you an idea, here’s some practical examples.
Something to keep in mind, especially when online shopping, is that it isn’t always clear if a payment is being processed overseas or within Australia.. It’s possible that you could shop on a ‘.com.au’ website, pay in Australian dollars, and still be charged a foreign transaction fee because the transaction was processed overseas.
Generally your bank will list the fee in your bank statement as well as in the transaction list in your online banking. If you’re not sure how your bank lists foreign transaction fees you can always reach out and check with them.
When you withdraw cash from an overseas ATM you need to be aware that you might be charged twice, once by your bank for the foreign transaction and again by the ATM provider. You can check your fee schedule to find out what your bank charges for a foreign ATM withdrawals. Finding out what the ATM provider charges can be a little trickier so one piece of advice is to search online for an ATM fee free provider in the country you’re in.
💳 Meet the Wise debit card |
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If your transaction involves a currency exchange it’s a good idea to find out how your bank's foreign exchange rate is determined and if there’s any profit margin.
Here’s a look where the foreign exchange rates used by Australia's Big Four banks and Wise for debit card transactions come from.
Card Provider | Exchange Rate Origin |
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Commonwealth Bank¹ (Commbank) | Mastercard or Visa based on which is relevant |
Westpac Bank² | Mastercard |
National Australia Bank³ (NAB) | Visa |
Australia New Zealand Bank (ANZ)⁴ | Visa |
Wise | Wise uses the mid-market rate |
If you’re shopping online or withdrawing money overseas you may get given a choice between paying in AUD or the local currency. Usually if you opt to pay in AUD your bank's exchange rate applies and if you choose the local currency, the payment gateway or ATM provider’s rates apply.
It might take time to compare the two but ideally you want to choose the option that’s the best value for money.
Generally when doing an international or foreign transaction you’d use a debit or credit card attached to your personal everyday transaction account. The fees for this vary between different providers but as an example here’s what the Big Four banks charge for certain debit cards they have on offer.
With most Commonwealth Bank everyday accounts, including the Smart Access account, you gain access to a Debit Mastercard.
Westpac’s main everyday account is the Westpac Choice account which comes with a Westpac Mastercard debit card.
NAB offers the NAB Visa debit card with their NAB Classic Banking transaction account.
Certain ANZ Everyday Accounts including the ANZ Access Advantage account come with a Visa debit card.
No one likes paying fees so here’s a couple of ideas for how you could avoid or minimise foreign transaction fees.
If you’re looking for a low fee way to complete foreign transactions then it’s worth taking a look at the Wise Account.
With a Wise Account you can hold money in over 40 currencies and spend it in 150+ countries. Whenever you exchange currencies it’s done using the mid-market rate with a low 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 and charge no fees. If you don’t, it uses smart technology to auto-convert your money at the mid-market rate, for a low conversion fee.
To see how a Wise Account could benefit you, why not take a look for yourself? There are no monthly account fees to worry about and registration can be done in minutes.
Register your Wise account in minutes 🚀
Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information. |
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Sources:
Sources checked on: 29 November 2022
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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