Credit Card Foreign Transaction Fees

By the Aussie Credit Guide editorial team · Reviewed 5 October 2026

A foreign transaction fee is a percentage added to purchases made in another currency or processed outside Australia. It is commonly around 3%, and it can appear on purchases you made from your couch.

When the fee applies

• Purchases made overseas in the local currency.
• Online purchases in a foreign currency.
• Online purchases in Australian dollars where the merchant, or its payment processor, is located overseas. This is the one people don’t expect.

The fee is charged by your card provider as a percentage of the Australian dollar amount. On a $1,000 purchase at 3%, that is $30. Some cards charge no foreign transaction fee, which is shown on the provider’s product page and key facts sheet.

The exchange rate is separate

The conversion from the foreign currency to Australian dollars is done by the card scheme, such as Visa or Mastercard, at its own daily rate. The foreign transaction fee is then added on top. Scheme rates are generally close to wholesale rates, so the fee is usually the larger cost.

Paying in Australian dollars overseas

Overseas terminals and websites often offer to charge your card in Australian dollars. This is called dynamic currency conversion. The merchant’s provider sets the exchange rate, which is often less favourable than the card scheme’s, and your card provider may still charge its foreign transaction fee because the transaction was processed overseas. Choosing the local currency usually costs less.

Cash overseas

Withdrawing cash from an overseas ATM with a credit card is a cash advance. The cash advance fee and rate apply, with interest from the day of the withdrawal, and the foreign transaction fee and any local ATM fee are added. See cash advances.

Refunds

If a foreign purchase is refunded, it is converted back at the rate on the day of the refund, which may differ from the original rate. The foreign transaction fee on the original purchase isn’t always refunded.

Before a trip

• Check your card’s foreign transaction fee on the provider’s website.
• Tell your provider you are travelling if it asks you to, so the card isn’t blocked.
• Carry a second payment method on a different card scheme.
• Note the provider’s overseas contact number in case the card is lost.

Related guides