Complete Guide to ANZ Travel Insurance for New Zealand Residents
Traveling soon and plan to get insured? Check out our ANZ travel insurance review to find out more about price, coverage and eligibility for NZ residents.
Do you wonder whether your bank or financial provider is getting you the most out of your money when spending in foreign currencies or while abroad?
There are a lot of options nowadays when it comes to spending and withdrawing your money across the world. Let’s have a look at what Westpac NZ offers you when it comes to foreign transaction fees on your bank card.
💸 Hold 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
Having operated for over 150 years, Westpac has now grown to over 1.3 million clients in New Zealand.¹
It’s a bank that portrays itself as focused on sustainability and awareness, whilst also providing a modern customer experience.
In the current day, your money needs to be more international than ever. Westpac is one of the options Kiwis can turn to if they’re looking for a bank account that supports overseas transactions and foreign exchanges.
But what sort of things should you be on the lookout for before settling on the right card to use on your travels or for spending overseas?
Usually, when making an everyday transaction with your bank card in New Zealand (in NZD) your bank doesn’t charge you a fee.
When overseas though, there can be small costs added on to many transactions. This can include when you’re doing things like paying for a coffee with your card, getting out a tenner in the local currency at the ATM, or booking into some local places on credit.
Foreign card transaction fees are usually applied by payment providers or banks under two main circumstances.
A foreign currency service fee is either a predetermined sum or percentage of your transaction that is charged when you’re using your card for another currency.
Some providers say they don’t have these fees, but will give you their chosen exchange rate that means you’re paying more in total for another currency in the end. “No fees” doesn’t mean no cost, sometimes the fees are just hidden!
Yes you can. With Westpac, it’s possible to use your card abroad, but there may be fees depending on how you use it.
Additionally, ATMs that are part of the Global ATM Alliance network will allow you to use your Westpac card to make withdrawals for free.²
Westpac’s international options also let you use your chip and pin abroad.
Here below is a summary of the foreign transaction fees charged by Westpac NZ for using your regular bank card abroad or for transactions processed outside NZ.
Fee | Fee amount | Frequency |
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Foreign currency fee (personal credit or debit cards) | 1.95% of transaction amount | Per transaction |
Foreign currency fee (business credit cards) | 2.5% of transaction amount | Per transaction |
There are quite a few different ways fees can pop up there, and not all are exclusive of one another.
The foreign currency fee will affect you most often, taking effect every time you use your card for another currency. Some of the minimum fees may make these options too expensive for people looking to convert their money for trips abroad more often, but for those who plan ahead or only spend abroad rarely, these fees could be manageable.
But your main focus will be the foreign currency fee. The 1.95% foreign currency fee means that each time you take out some money at an ATM abroad or buy a ticket to a local landmark, there could be an additional 1.95% charged to the original cost.³
So if you take out £10 with your Westpac personal debit card and there’s a £2 fee at the ATM for any withdrawal, you’ll need to pay Westpac 1.95% of the £12 total. So an extra £0.23 will be charged to your account (taken in NZ$). This happens for each withdrawal or card payment.
As we mentioned before, your best bet for dodging expenses with a Westpac card is to find an ATM that’s part of the Global ATM Alliance network.
Which banks to look out for whilst abroad to find these ATMs can be found on Westpac’s website.
If none of these ATMs are available, you’ll need to pay NZ$3 to take money out with your Westpac debit card or $2 for your credit card.¹
Other options, such as Wise’s card, allows you to take out money around the world for free twice a month for withdrawals under NZ$350 (note that additional charges may occur from independent ATM networks).
It then costs $1.50 per transaction. Withdrawing over NZ$350 in a month incurs a fee of just 1.75% on top of that. Full card pricing fees can be seen here – Fees for the Wise card NZ.
💳 Meet the Wise debit card |
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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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This is the go-to choice for most people who want to use a Westpac card internationally without those pesky fees popping up.
You’ll be charged an interest rate of 12.90% p.a. on purchases if you don’t pay your balance off in full by the payment due date, but it’s the $0 fees on cash advances overseas at ATMs or bank branches that makes this card interesting.⁴
This card lets you “lock in” an exchange rate for up to 9 different currencies before you go travelling so that you can spend without worrying about fluctuations and conversion costs on your trip. It also has no fees for using an overseas ATM.
However, there is a fee of 2.95% of the initial transaction value when the currency conversion is initially locked in, as well as a 1.5% Debit Mastercard Load fee.⁵
What is the exchange rate used by Westpac for foreign transactions?
Westpac provides a foreign exchange converter that can be used to have an indicative rate idea. Let’s take a payment example to see how that works.
To convert 1000 NZD to USD, the rate indicated by the calculator
Westpac NZ | Wise⁷ | |
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Indicative rate NZD to USD | 0.6278 See rate here | 0.63935 See rate here |
What you get | You get 627.8 USD for your 1000 NZD | You get 639.35 USD for your 1000 NZD |
As seen on 9 December 2022.
While the Westpac indicative exchange rate is not too bad, it’s clear to see that with Wise’s mid-market rate, you get $11.55 more USD for your $1000 NZD. Exchange rates are a very important factor and can be a hidden fee sometimes.⁶
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 40+ currencies and spend it in 150+ countries. Whenever you exchange currencies it’s done using the mid-market rate with a 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 for local payments. If you don’t, it uses smart technology to auto-convert your money at the mid-market rate and charges you a 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.⁸
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:
*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.
Traveling soon and plan to get insured? Check out our ANZ travel insurance review to find out more about price, coverage and eligibility for NZ residents.
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