
Australians love an overseas holiday, but some may not realise they are losing money to hefty international transaction fees until too late.
ING research found Australians that travelled overseas in the past 12 months lost out on about $600 million in international transaction fees – or $92.62 per person.
For those travelling abroad for a European summer, this could equate to 15 Aperol Spritzes, three steak frites or paella, or 23 scoops of gelato, ING said.
Some faced even higher costs; 31 per cent of Australians reported having lost out on $100 or more to international transaction fees.
The high cost has yet to encourage holidaymakers to put away their cards.
ING found more than 80 per cent of Aussie travellers had used their card (physical or on mobile) to make transactions while holidaying overseas over the past 12 months.
But every cent is precious.
Australians reported that it takes an average of almost two years to save for a two-week Europe trip, with some funding their travel dreams by taking extra jobs or turning off heating to save on bills.
ING Australia head of consumer and market insights Matt Bowen spruiked the international transaction fee rebates offered on the bank’s Orange Everyday debit card as an option to alleviate some of the financial pressure when travelling.
“On average, eligible ING customers have saved an average of $87 per year on international transaction fees, which is almost nine Aperol Spritzes in Italy,” he said.
“While the costs of a European summer may feel daunting for many, Aussies can make it a reality down the line with the right mix of smart budgeting and a conversation with their bank.”
Everyday bank cards may come with some travel-friendly incentives, but they are far from the only option to spend your money overseas.
Debit and credit cards
Experts previously told The New Daily debit and credit cards are an easy option to pay your way overseas, as long they’re accepted in the destination country.
But they also advised looking for cards that do not charge foreign exchange fees.
Banks such as Bendigo Bank, Bankwest and NAB offer travel credit cards with no foreign exchange fees, although some may not come with travel insurance coverage.
Travel money cards
Travel money cards can lock in a favourable exchange rate for the pre-determined amount of your selected currencies before travelling, but any additional money put on the card while overseas may come with larger foreign exchange fees.
These cards can also come with additional costs, such as fees for ATM withdrawal and account closures; Choice advises travel money cards may not be worth it if you spend less than about $3000 during your overseas trip.
Cash
Cash is one of the easiest methods to pay your way overseas, and many countries still prefer cash transactions to card.
If you convert currencies before setting off, you could lessen the risk of being hit by surprisingly high exchange rates, especially if you shop around and compare offers.
But carrying large amounts of cash is a security risk, and if you need to top up while overseas, you could face high exchange rates anyway.
The perfect combination
Canstar financial expert Steve Mickenbecker previously told The New Daily the way to use money overseas was a combination of cash and card.
“Travel with cash in the local currency, and travel with your card; kind of a hybrid model that gives you a fair bit of flexibility,” he said.