How to avoid international transaction fees

Here are some useful tips to travel smarter by minimising overseas transaction fees and getting your money's worth while spending overseas.

Credit cards can be convenient when you travel, but they usually charge a currency conversion fee. If you withdraw cash at an ATM you could pay a cash advance fee and higher interest rate.

A pre-paid travel money card allows you to top up with the currency you need and lock in the exchange rate. You can also withdraw cash or make purchases in the local currency.

A multi-currency account with a debit card is good for both everyday and international needs. For example, with the HSBC Everyday Global Account, you can: 

Explore HSBC Everyday Global Account

Save time and convert some of your spending money ahead of time into the local foreign currency. You can keep an eye on the exchange rate and buy when the rate is good. 

If you have a multi-currency account, you can log on and convert your Aussie dollars to any of the available foreign currencies. Then you can withdraw the converted currency from an ATM in your network overseas, or pay for things as you go with your debit card. 

If you use an ATM to take out cash while overseas, make sure it's in your bank's network. If you use an ATM from a different bank or a different network, you could be charged a substantially higher transaction fee. In some cases, you'll also be charged an ATM and overseas transaction fee, both by the ATM provider and your own bank for the transaction.

Whether using a debit card or a credit card, if you get the option of paying in your home currency or the local currency, always choose local. The merchant's bank or terminal device usually has a much wider foreign exchange spread, compared to your own debit/credit card company making the exchange.

You'll usually get the best rates if you exchange currency during bank hours, on weekdays. 

Why are weekends usually the worst time? Currency markets around the world are closed. And since banks don't know what the new rate will be on Monday morning, they charge a slightly higher rate to protect themselves against unforeseen market movements when the market re-opens.

Many currency exchange shops advertise a fantastic rate on the board out front. But make sure you get all the details. Do they have a commission or a charge for each transaction? What is the rate after their commission? Is that good rate only applicable to notes of a certain denomination or from a certain year? Or is there a certain amount you'll have to convert to get that rate?

It's always worth shopping around and asking the right questions. Or avoiding this by exchanging money at bigger banks or post offices. 

If you're going to a bank or a currency exchange centre, choose a big one. Smaller shops often have fewer notes in stock, so they might charge a premium for exchanging. Choosing a reputable brand for your foreign exchange needs will also give you the security that you won't get shortchanged or cheated with counterfeit notes. A big, busy venue with more turnover is a better option, but that might mean you're in for a long queue.

Using credit and debit cards means that you can carry less cash around, which is always a safer choice. Plus, you won't be going home with 'souvenirs' of small bills or coins. With the HSBC Everyday Global Visa Debit Card, you're covered for any fraudulent or unauthorised transactions with Visa's Zero Liability Policy.