Westpac credit card international transaction fee. The lowdown

Whether you’re a seasoned traveller or a first-time overseas adventurer, ensuring your funds can go as far as possible is always a win.

In this guide, we’ll take a closer look at the fees associated with using a Westpac-issued credit card abroad. Outlining what these fees are for, when they apply and more, we’ll cover the essentials so you can decide if this is the right travel money solution for your needs.

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Can you use your Westpac credit card overseas?

Yes, Westpac allows you to utilise certain credit card products overseas to make purchases and withdraw cash from ATMs as needed.¹

However, there are added fees and charges associated with using your credit card in this way. As these costs do not typically apply to your credit card use within Australia, it is wise to familiarise yourself with them before departing. We’ll cover what these fees are with Westpac further on.

What are international transaction fees?

An international transaction fee or foreign transaction fee is a charge added by a bank or credit card provider for payments made in a different currency or outside the card-issuing country.

While not all credit card providers charge a foreign transaction fee for international payments, where this does apply, it will increase the price of your purchase. These fees are usually outlined in detail in the terms and conditions, so be sure to read these in full before signing up for a new card or using it for overseas spending.

How foreign currency transaction fees work with Westpac credit cards

Westpac applies a foreign currency transaction fee as a percentage of the Australian Dollar amount on any foreign transaction.¹ Additional fees may also apply depending on how the card is being used such as an ATM fee, cash advance fees or similar.

This means that whenever you use your credit card overseas, whether at an EFTPOS terminal or to withdraw cash at an ATM, a fee will be added to your purchase/withdrawal. This fee may be split between the card network – such as Visa, Mastercard or American Express and the card issuer (usually your bank).

Westpac also notes that when spending online, you may not always know when a merchant is located overseas. As such, these fees can also apply to purchases made online from Australia that are processed by an overseas merchant.¹

Westpac international or foreign transaction credit card fees

Outlined below are the fees typically associated with using a Westpac credit card overseas. It should be noted that these fees can be cumulative, meaning you may pay more than one fee per transaction depending on how you are using the card.

As seen on 04 October 2024

Please note the fees listed are those outlined by Westpac for their credit card schemes generally. Always check the terms and conditions for your specific card product to ensure accuracy regarding fees and permitted use overseas.

Exchange rate Westpac uses for overseas foreign currency payments

Westpac will convert overseas currency payments using either the Visa or Mastercard exchange rate depending on your card scheme.⁴ While Westpac does not advertise whether a margin as an added fee is included in this, we can determine this as follows:

For example, using Mastercards exchange rate we can see that GBP£100 is equivalent to AUD$193.13 (GBP£1 = AUD$1.9313).⁵

If we compare this against today’s mid-market rate of GBP£1 = AUD$1.9175, we can see there is a difference of AUD$1.38 on the same GBP£100 spend.

While this may seem only a small sum, over multiple payments, your purchases and withdrawals may end up costing a bit more than expected.

Benefits of using your credit card for international transactions

Alongside convenience and security, there can be some other benefits to using your credit card for international transactions. These can vary based on your Westpac credit card product, but may include things such as⁶:

• Complimentary travel and purchase insurance
• Cashback offers
• Reward points for eligible spending that can be redeemed online or used to boost frequent flyer points balances
• Airport lounge access
• Easy tracking of spending and card management via the Westpac mobile app

Cons of using your credit card for foreign transactions

Of course, alongside the above listed benefits, some downsides also apply which should be considered carefully. These may include:

• Added and cumulative fees for overseas spending and withdrawals
• Potential for interest charges on spending and cash advances
• Easier to accrue debt when compared to spending from a cash account
• Receiving exchange rates with added margins
• May not always be accepted as a form of payment
• Additional surcharges may apply from the merchant
• Restrictive daily spending limits may apply
• Can be difficult to access funds if card is lost or stolen – receiving a new card can take time and be complex to arrange when on the move

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

Should any refunds or credits associated with a foreign currency transaction be applied to your credit card, it should be noted that⁴:

• The exchange rate used for the reversal, credit or refund may differ from that used for the original transaction
• Due to the differing exchange rates used, the refund amount may be less or more than the original transaction amount
• If interest was accrued on statement that includes the refunded purchase, the interest still applies

Westpac does not specify what happens regarding the initial transaction fees paid for a returned purchase. However, usually these are not refundable as they applied for facilitating the initial transaction. No additional fees should apply for transacting a refund.

We recommend speaking with Westpac directly for further clarification regarding this as needed.

Keep in mind – Tips

Before deciding if using your Westpac credit card is the right fit for your travel needs, we recommend considering the following:

• You should alert Westpac about your travel plans prior to departure to avoid potential account access suspension due to suspected fraud¹
• Be mindful of paying in AUD instead of the local currency if offered - this is called Dynamic Currency Conversion (DCC). By selecting to pay in the local currency instead, you will usually receive a better exchange rate set by the card network instead of a merchant-set fee that may include extra charges.
• Are the associated fees, including any annual fees, outweighed by the available perks or benefits linked to the card?
• Credit cards are not always accepted overseas. Westpac specifically advises that their credit cards cannot be used in certain sanctioned countries¹
• Further to the above, not all locations will have EFTPOS or ATM facilities, so it is wise to carry a mixture of cash and cards when travelling

Contacting Westpac

To speak with Westpac about using one of their credit card products overseas and how their fees may affect your spend, you can contact them at:

• 132 032 within Australia between 8 am to 8 pm AEST, Monday through Friday
• (+61 2) 9155 7700 from overseas

Alternatively, a 24/7 chat service, provided by a virtual assistant, is available through the Westpac mobile app or online banking platform.

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.

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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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