If you’re like most Aussies, you love to travel and explore new places. But travelling abroad can be expensive, especially when it comes to using your debit card at foreign ATMs. According to the ABS, there was almost 10 million international departures last year. That’s a lot of money being spent on flights, and you don’t want to waste anymore on unnecessary fees and charges when you withdraw cash overseas.

So how can you use your debit card wisely when travelling internationally? Here are some tips and tricks to help you save money and avoid hassles when using foreign ATMs.

Using your debit card in a foreign ATM can be convenient, but also very costly. Depending on the type of card and the ATM network, you will most probably have to pay fees for withdrawing cash overseas.

Things to check before packing

Here are some things to consider before you use your debit card abroad.

Partner or alliance ATMs.

Check if your bank has any ATM partners in the country you are visiting. Some Australian banks have agreements with foreign banks that allow you to use their ATMs without paying a fee. Westpac is part of the Global ATM Alliance, which includes banks such as Barclays, Bank of America and Deutsche Bank.

READ MORE: How to use your debit card overseas

Use official bank ATMs

You should also try to avoid using private ATMs that are not affiliated with any bank. These ATMs usually charge higher fees than bank ATMs, and may not give you the fees clearly upfront before you take out your cash. You can recognise private ATMs by the lack of a bank logo or name on them.

You should also check the faceplate of the ATM to make sure there isn’t a skimming device.

Foreign transaction fees

In a nutshell, foreign transaction fees are fees charged by your bank for converting your Australian dollars into the local currency and vary from 2% to 5% of the total transaction value. Some debit cards waive these fees, so check your card before you travel and if you don’t have this feature, consider comparing a range of debit cards suited to overseas travel.

Currency conversion fees

Behind the scenes of all international currency transactions is how the banks and ATMs convert your currency. They use what is the “market rate” and “swap rate“. The market rate is the official exchange rate that is determined by supply and demand in the foreign exchange market. The swap rate is the rate that banks use to swap currencies with each other. The swap rate is usually better than the market rate, but it is not available to consumers.

Avoid Automatic Conversions

When you are using your debit card overseas, the terminal may offer to convert your currency during the transaction, which seems harmless enough. If you do accept the exchange, you may be worse off, because you’ll be using the machines exchange rate. This may not be the same as your “market rate” your bank will offer you, as the Point-of-Sale provider may take a percentage cut of the transaction.

How to avoid these fees

One option for avoiding these fees is to use a debit card that has no foreign transaction fees. This means you can use your card to make purchases or withdraw cash without paying extra charges.

There are a few Australian debit cards that offer this feature, such as the:

– HSBC Everyday Global Account: You’re able to hold up to 10 currencies and earn 2% cashback on tap and pay purchases. You can also take advantage of fee-free international money transfers and no monthly account fees.
– Suncorp Everyday Options Account: This account also has no international transaction fee or overseas ATM withdrawal fee charged by Suncorp. You can also link up to 9 sub-accounts and earn interest on any savings you have.
– ING Orange Everyday Transaction Account: This account waives the foreign transaction fee if you deposit at least $1,000 and make 5 card purchases per month. The overseas ATM withdrawal fee waiver ends on 1st August, 2023.

If you want to learn more about these debit cards, you can check out our expert reviews. You can compare their features, fees and rates and find one that best suits your needs.

Bon Voyage

Travelling should bring you joy, so you shouldn’t have to worry about excess fees charged on top of everything. Now you know the things to look out for, you’ll be able to access your own money and avoid those fees banks like to charge. Happy Travels!