Best Australia Credit Cards for FX (Travel + Business FX)

You may be enjoying your stay or vacation in Australia so much that you whip out your credit card without a thought and swipe as if you are home. This is a common mistake many people commit, thinking that using their credit card overseas is the same as if they were at home.

Yes, your credit card will work the same way as intended, but you are missing the notorious additional fees for foreign purchases. These extra charges can be an unwelcome and frustrating surprise, mainly if they accumulate.

That’s why it pays to find and apply for a credit card with zero or no-fee foreign transaction fees. The good news is you have several options for these cards in Australia.

In this article, we’ll explain what these fees are and introduce you to the top credit cards in Australia that don’t charge them.

Understanding Foreign Transaction Fees: What Are They and How Do They Affect You?

By definition, a foreign transaction fee, or FX fee, appears as a surcharge or extra charge when you look through your credit card billing statement. This occurs when you use your credit card to make a purchase in another currency other than the US dollar (USD) or if the charge goes through a foreign bank or financial institution.

Depending on the financial institution that issued your credit card, the usual FX fee can be anywhere from 1% to 3% of your purchase or transaction. In Australia, the overseas transaction fee on most of the country’s credit cards is 2% to 4% of the converted transaction purchase. So, for example, if you had a $100 purchase, it would be converted to approximately AUD 135 plus the average FX fee of ~ AUD 4.

Imagine swiping here and there and incurring those foreign transaction fees! Do the math, and you definitely won’t be happy with everything you spent.

The Top 3 Credit Cards For FX

The goal is to apply for and own a credit card that doesn’t have foreign transaction fees. You may think that a cost of around 3% is not a big deal, but you’ll soon know its impact financially when it is time to settle your dues.

With this in mind, here are the top three credit cards known best for their 0% foreign transaction fees. You’d want to own these cards so you can shop, swipe, travel, and swipe without that nagging feeling that you are accumulating tens and hundreds of FX fees every time you use your credit card.

1. Cape Card

Unlike the other two credit cards discussed, which are from Australian banks or financial institutions, this credit card is a product and service of the Australian fintech company, Cape. It is intended for business or corporate cards, and it comes with some integrated features designed to help with your organization’s expense management process, like the software SAP Concur and Webexpenses.

The Cape Card is still in its beta phase but has strong backing from investors like Atlassian, LegalVision, Scalare Partners, and Stripe and is rated the best business card in Australia by SmallBusinessLoansAustralia.

Given that the card is still in its beta stage, there are no established annual or monthly fees when it comes to pricing and fees. Since Cape’s full features and coverage are still being deliberated, definite pricing and details on the fees will be expected to be released once all components are fully agreed on.

The goal is for Cape Card to be an all-in-one expenditure and finance solution for businesses thanks to the integration of the following features:

Customizable card spending control and management
Expense tracking and management
Receipt capture and instant upload
Budgeting tools and tips
Real-time monitoring of combined expenses
NetSuite to be integrated
Special offers, rewards, and promotions

So far, the critical feature that makes Cape one of the best credit cards for FX is that it doesn’t charge you any international transaction fees. And since it is meant to function as corporate cards, you and your organization are eligible to have unlimited Mastercard cards to provide to the members of your business.

Additionally, Cape understands that business spending is higher than personal spending, so the credit limits are higher where approved companies can get up to the $100,000 minimum limit.

Application for the Cape Card starts with registering on Cape’s website and completing a form. After this, expect Cape to get back to you with the next steps of the process.

While waiting, it’s best to check and confirm that you are eligible and qualified to get the Cape cards.

You should have your 11-digit Australian Business Number or ABN.
Be actively trading for a minimum of one year.
Your business’s financial statements and transactions indicate revenue that should have been $75,000 or more in the last year.
Proof of identification that can verify your identity in the form of your passport, driver’s license, or Medicare card.
Your contact details, like email address and active contact number.

2. Bankwest Breeze Platinum

This Platinum Mastercard is an excellent low-rate credit card with reasonable fees and interest. What’s best is that it has zero foreign transaction fees, although it does have a 2% balance transfer fee.

Here are the product details for this credit card:

Balance transfer rate per annum: 0% for 15 months with a 2% balance transfer fee, then 12.99%
Balance transfer limit: 95% of your available limit
Purchase rate per annum: 0% for 15 months, then 12.99%
Annual fee: $0 first year ($69 after)
Interest-free period: Up to 55-days on purchase transactions
Cash advance rate per annum: 21.99%
Minimum credit limit: $6,000
Credit Card Type: Mastercard
Foreign currency conversion fee: 0%

The fees involved in availing of this card are:

Annual fee: $0 first year ($69 after)
Minimum monthly repayment: 2% of the closing balance or $20, the greater of the two
Late payment fee: $25
Foreign currency conversion fee: $0
Cash advance fee: 2% or $4, the greater of the two
Overseas cash advance fee: 2% or $4, the greater of the two
Overseas ATM withdrawal fee: $0
Additional cardholder fee: $0
Number of additional cardholders: 3

Applying for this credit card can be done in 15 minutes or less. Just ensure that you tick off all the requirements for eligibility and prepare the needed documents.

A minimum income of at least $35,000 per year.
Applicants must be permanent Australian citizens or residents.
You should be at least 18 years old.
Your balance from any other Bankwest credit card cannot be transferred.
Your personal details, like full name, residential address, date of birth, contact number, and email address.
Proof of identification that can verify your identity in the form of your passport, driver’s license, or Medicare card.
Proof of employment similar to a certificate of employment that details your employer’s name and details, the position you hold, and the length of time you’ve been working with your organization.
Your financial details, like your income, debts, and assets.

Pros

No foreign transaction fees are involved in international purchases.
Credit limit of $6,000.
It comes with basic travel insurance.
Low-interest rates, especially when the card has a balance.
Pay and do your financial transactions with a compatible device using Apple Pay, Google Pay, and Samsung Pay.

Cons

The yearly cash advance rate is too high.
Minimal add-ons and extras.

3. Bendigo Bank Ready Credit Card

Highly recommended for frequent travellers, this credit card is keen on saving you on credit card charges and those unnecessary travel expenses. Since there is no annual fee, and it doesn’t have any FX charges, you can be sure that every international purchase doesn’t have those unwanted surprise fees.

Here are the product details for this credit card:

Balance transfer rate per annum: 99%
Purchase rate per annum: 19.99%
Annual fee: $0
Interest-free period: Up to 55-days on purchase transactions
Cash advance rate per annum: 19.99%
Minimum credit limit: $3,000
Credit Card Type: Mastercard
Foreign currency conversion fee: 0%

The fees involved in availing of this card are:

Annual fee: $0 first year ($69 after)
Minimum monthly repayment: 3% of the closing balance or $10, the greater of the two
Late payment fee: $15
Foreign currency conversion fee: $0
Cash advance fee: 3% or $3, the greater of the two
Overseas ATM withdrawal fee: $5
Additional cardholder fee: $0

Applications for the Bendigo Bank Ready Credit Card can be made online. You must meet the eligibility and documentary requirements to get a credit line.

Applicants must be permanent Australian citizens or residents.
You should be at least 18 years old.
Good credit history and have never declared bankruptcy.
Proof of identification that can verify your identity in the form of your passport, driver’s license, or Medicare card.
Proof of employment similar to a certificate of employment that details your employer’s name and details, the position you hold, and the length of time you’ve been working with your organization.
A detailed list of your finances, assets, and a breakdown of your everyday expenses like bills, education, food, and transport.

Pros

No international transaction fees are involved, even in online purchases
It comes with complimentary international travel insurance
Zero percent annual fee

Cons

No rewards program
The credit limit is low compared to other credit cards
No introductory perks or offers

Final Thoughts

In conclusion, choosing the right credit card for overseas use can save you significant foreign transaction fees. Whether you’re a frequent traveller, an online shopper who often buys from international websites, or a business owner with global operations, the Cape Card, Bankwest Breeze Platinum, and Bendigo Bank Ready Credit Card offer excellent options for minimizing these costs.

Remember, the best card for you depends on your individual needs and spending habits. Consider not only the foreign transaction fees but also each card’s interest rates, rewards programs, and other features.

Don’t let foreign transaction fees take you by surprise on your next statement. Take control of your finances and make your travels more enjoyable and cost-effective. Start your application process today and experience the benefits of a no-foreign-transaction-fee card on your next overseas adventure or international purchase.

Ready to say goodbye to foreign transaction fees? Click on the links below to apply for your preferred credit card now:

Safe travels and happy spending!

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