NAB credit card international transaction fee. The lowdown

If you regularly use your credit card for your everyday spend in Australia, it can be tempting to think this is the easiest solution while travelling too.

In this guide, we’ll take a closer look at the fees associated with using a National Australia Bank (NAB) credit card abroad. Covering what these fees are for, when they apply and more, we delve into the details so you can decide whether this suits your travel money needs.

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Can you use your NAB credit card overseas?

Currently all of NAB’s credit card products can be used overseas.¹ However, there are added fees and charges associated with using your credit card when abroad. This can apply for both EFTPOS and ATM transactions.

As these costs are not usually associated with using your credit card within Australia, it is recommended to familiarise yourself with these in advance of travel. We’ll cover what these fees are with NAB further on.

What are international transaction fees?

An international transaction fee is a charge that is applied by a bank or card provider to any transaction processed outside the card-issuing territory or in a foreign currency. This can include both purchases and cash withdrawals.

While not all credit card providers levy a foreign transaction fee for international payments, for those that do, this will mean an increase in the price of your purchase. Typically outlined in detail in the terms and conditions, it is wise to be aware of these fees before signing up for a new card or using it overseas to avoid any surprise charges.

How foreign currency transaction fees work with NAB credit cards

NAB charges a foreign currency transaction fee on any transaction that is processed overseas.¹ This means that a fee will be added to any purchases or withdrawals you make using your credit card while abroad.

NAB also points out that online purchases made while in Australia may also attract these fees – even where the website appears to be Australian or you are charged in AUD.² This is because some merchants may still process the payment offshore.

Paid to facilitate the transaction, this fee is often shared between the card issuer, (typically your bank) and the card network – such as Visa, Mastercard or American Express.

NAB international or foreign transaction credit card fees

Outlined below are the fees typically associated with using a NAB credit card while overseas. It is worth noting that depending on how you are using the card, more than one fee may apply to your transaction.

As seen on 04 October 2024

Please bear in mind that the fees listed are those outlined by NAB for their credit card schemes generally. As different card products can have different fees, you should always check the card specific terms and conditions for details regarding these.

Exchange rate NAB uses for overseas foreign currency payments

Any foreign currency transactions made using your NAB credit card will be converted to AUD using the Visa exchange rate.¹ NAB does not specify whether an added fee in the form of a margin is included in this, however, we can determine this as follows:

For instance, Visa’s exchange rate has GBP £100 equivalent to AUD $193.08 (GBP £1 = AUD $1.908).³

Comparing this against today’s mid-market rate of GBP £1 = AUD $1.9175, there is a difference of AUD $1.33 on the same amount of GBP £100.

While only a small difference, this is a fee that is also charged alongside any foreign transaction, ATM or cash advance fees. As such, it pays to be mindful that the actual cost of your purchase or withdrawal using your credit card can be more than expected at first glance.

Benefits of using your credit card for international transactions

Alongside the security and ease of convenience that comes with using your credit card for international transactions, some other benefits can also apply. These can differ depending on which NAB credit card you hold, but may include things such as⁴:

• Complimentary travel insurance
• Delayed flight lounge passes
• Visa entertainment offers
• Cashback rewards
• Reward points for eligible spending that can be redeemed online or converted to frequent flyer points
• Access to a 24/7 travel and lifestyle concierge service
• Easy spend tracking and card management via the NAB mobile app

Cons of using your credit card for foreign transactions

Of course, alongside the above listed benefits, there are some potential downsides to consider when using your credit card overseas such as:

• Added and cumulative fees on overseas purchases and withdrawals
• Potential accrual of interest charges on both spending and any cash advances
• Potential margins within the applied exchange rates
• Not always being accepted as a form of payment
• Merchant applied surcharges on transactions
• Difficulty in replacing a lost or stolen card while abroad, making it challenging to access funds

How do refunds or credits in a foreign currency work with NAB credit cards?

Should a foreign currency transaction be refunded or a credit applied to your card by a foreign merchant, the following will apply⁵:

• The refund amount will be calculated by Visa or the merchant using the exchange rate on the date the refund is processed, not the rate that applied at the time of purchase
• As a different exchange rate may apply, the refunded amount may be less or more than the original purchase amount

NAB does not outline whether the initial fees associated with the purchase will also be refunded. However, in most instances these remain non-refundable as they applied for facilitating the original transaction. No additional fees should apply for processing the refund.

For clarification regarding refunds and how fees apply in these scenarios, we recommend speaking with NAB directly.

Keep in mind - Tips

Before deciding if your NAB credit card is suited to your travel needs, we recommend considering the following:

• NAB require you to advise them about your travel plans prior to departure to avoid potential account access suspension due to suspected fraud⁶
• Be mindful of paying in AUD instead of the local currency if offered – this is called Dynamic Currency Conversion (DCC). By choosing to pay in the local currency, you may avoid a merchant-set fee that may also include extra charges. Instead you will potentially receive a better exchange rate set by the card network, in this case, Visa.
• Do the provided rewards or perks, if any, outweigh the cost of the associated fees for using the card overseas or any annual fees
• Due to international sanctions, NAB credit cards and online banking services may not be available to use in all countries⁶
• Further to the above, not all destinations will have easy access to EFTPOS or ATM facilities, so it is advisable to carry a mixture of cash and cards

Contacting NAB

To speak with NAB regarding any of their credit card products, how these can be used overseas and what fees apply, you can contact them at:

• 13 22 65 within Australia
• +61 3 8641 9083 from overseas

These numbers are serviced, Monday to Friday, 8 am to 7 pm (AEST/AEDT) and
Saturday to Sunday, 9 am to 6 pm (AEST/AEDT)

For emergency assistance overseas, 24/7 call:

• +61 3 8641 9121

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.

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