Report: One in three Aussies ready to switch banks over surprise travel charges
Planning your next overseas trip? You might be booking the perfect Airbnb and budgeting for cocktails by the beach but there’s a good chance your bank is secretly coming along for the ride and quietly skimming your spending.
New research from money transfer specialists Wise reveals a staggering 90% of Australian travellers rely on airport currency exchanges or bank-issued debit and credit cards when spending abroad – methods that may incur hidden fees. As a result, over a third (36%) of Wise’s survey respondents say they’re ready to ditch their bank altogether because of these surprise charges.
The true cost of convenience
From foreign transaction fees to inflated exchange rates and sneaky surcharges, the hidden fees attached to traditional cards can silently slash holiday budgets. In fact, more than three quarters (78%) of Aussie travellers admit they’ve been blindsided by hidden fees after returning home.
Despite being meticulous planners – 86% of Aussies set and track travel budgets – many are being fleeced without realising. Wise’s Shear Madness Index highlights that common payment methods are far from cost-effective:
- 52% exchange cash before they leave Australia
- 38% use bank-issued debit cards
- 35% use credit cards
- 25% rely on prepaid travel cards
These choices might seem convenient, but may come at a steep cost. 30% of Aussies assume overseas transaction fees fall between $21-$50 – far underestimating the cumulative costs.
Wise claims it’s up to 7.4 times cheaper to use its card abroad than those of the big banks – and with over a million Aussies already onboard, travellers are obviously keen to save money.
Time to pack a smarter card
With EOFY just around the corner and winter holidays taking shape, now could be an ideal time to rethink how you spend abroad. Choosing a low-fee prepaid travel money card or bank account with low international fees can help preserve your holiday funds – and spare you the nasty surprise of an inflated bank statement when you return home.
The Mozo Experts Choice Awards for Travel Money Cards highlight the best-value options for Aussies heading overseas, based on expert analysis of fees, exchange rates and usability by comparing over 180 cards from 83 providers.
Don’t let your bank card shear hundreds of dollars off your travel budget. Before you zip up your suitcase, pack smarter by comparing bank accounts that don’t charge international fees.