This is a question that many Brits who are travelling or expats living in Australia might have. You’ve still got your Lloyds or Barclays in your wallet, so you should be able to still use it.

So the good news is that yes, you can use a British debit card in Australia. Most Australian ATMs and shops accept Visa and MasterCard debit cards, so you shouldn’t have any trouble paying for things or withdrawing cash. But it’s a good idea to note that there are some things you should be aware of before you swipe your card.

The big kicker is the fees that your bank might charge you for using your debit card overseas. These fees will vary depending on who you bank with and your account type, but these fees are usually made up of:

– A foreign transaction fee: This is a percentage of the transaction amount in Australian dollars, and is usually around 2.75% to 3%. This fee covers the cost of converting your pounds to Aussie dollars at the exchange rate set by your bank.
– A foreign ATM fee: This is a flat fee that your bank charges you every time you use an ATM that is not part of their network. This fee can range from £1.50 to £5 per withdrawal, depending on your bank back home.
– A local ATM fee: This is a fee that the ATM owner charges you for using their machine. This fee can vary from $0 anywhere up to $4 per withdrawal, depending on the ATM provider. The ATM will tell you this fee before you proceed, so make sure you’re comfortable with this amount.

These fees add up pretty quickly if you’re constantly using your card. For example, if you withdraw $200 from an ATM that charges a $2 local fee, and your bank charges you a 3% foreign transaction fee and a £3 foreign ATM fee, you’ll end up paying around $14 (£8) in fees for that withdrawal. That’s 7% of the amount you withdrew!

How to minimise the fees

No one likes paying fees to access their money., but there are some ways you can minimise the damage they do to your balance.

Check if your bank has an ATM alliance.

Check your banks website to see what is on offer. Some British banks have special deals or partnerships with Australian banks that allow you to use their ATMs for free or at a reduced rate. Westpac has partnered with Barclays Bank to provide fee-free ATM withdrawals at Westpac Group ATMs (but there may be other fees you pay). HSBC customers can use HSBC ATMs for free(or at a low rate) as well as Citi with their respective ATMs too.

Grab a prepaid debit card.

If you plan on staying in Australia for a while, you could consider a prepaid debit card. These cards let you load money into the foreign currency before you travel and then use it without being slugged with fees. The advantage this has is that you’ll be able to lock in the exchange rate when you load and avoid any exchange rate fluctuations.

Tesco offers the Clubcard Pay+ card if you have a Clubcard. Ode features a prepaid card that offers cashback and HyperJar have one too, but it doesn’t offer cash withdrawals. If you can, compare your options before you travel to find out what will work for you.

Stick to cash.

If you’re only making purchases in stores then you could think about just using cash. Of course, using cash also has it’s downside too. Most notably is the security risk if you lose it or a robbed, and difficulty in tracking your spending. You should always keep your cash in a safe place and avoid carrying too much at once. You should also keep receipts or notes of your expenses so that you can budget accordingly.

Same, but different

There’s no real difference between British and Australian debit cards. They’re both linked to your bank account and both allow you to make purchases and withdraw cash from ATMs. They also have very similar security features, such as chip and PIN technology and contactless payments. You can use your British debit card in Australia and vice versa, as long as they have the Visa or Mastercard logo on them.

If you plan on staying in Australia for a long period of time, it might be a good idea to set up a bank account in Australia and a get the debit card that comes with it. This will help you avoid those nasty fees and also give you access to local services and benefits.