Mozo guides

Tips for Australians sending money overseas

girl holding a suitcase

Whether you're off on a backpacking adventure, studying abroad for uni, taking a job transfer, or making a permanent move to another country, managing your money across borders is one thing you want to get right. 

Understanding your options for transferring money internationally will help you save time and avoid costly fees, no matter how long you're staying or where you're heading.

Tips for short-term overseas moves

If you’re planning to live abroad for less than 12 months — for example, to study or travel — it’s smart to keep your Australian bank accounts open. This way, you can hold your money in AUD and transfer it to local currency when needed, saving you from unnecessary exchange rate costs.

Use a debit or credit card with no international fees

Credit cards and debit cards are convenient for payments while abroad, but be mindful of foreign transaction fees. Many cards charge around 3% for currency conversion, which adds up over time. Look for cards that offer no international fees or even reward points for overseas spending. Setting up online banking will also make managing repayments easier while you're away.

Minimise atm withdrawal fees

ATM fees can be steep when using your Australian debit card abroad — up to $5 per transaction. To cut down on these costs, look for a debit card with low international ATM fees, or choose a bank that has partnerships with global ATM networks. Consider withdrawing larger sums to avoid paying multiple fees for small withdrawals.

Remember, don’t use your credit card to take a cash advance as these can attract significantly high interest charges.

Prepaid travel cards: plan ahead

Prepaid travel cards are a great way to lock in exchange rates before you leave. You can load them with foreign currency and use them like a debit or credit card. Many of these cards are reloadable, but check for any fees when topping up. This can be a good option to manage your money and avoid conversion costs while overseas.

Tips for long-term or permanent relocation

If you're making a permanent move, you'll need a more strategic approach to managing your money, especially for large payments like rent, deposits, or purchasing big-ticket items.

Use international money transfers (IMT) for large payments

For big expenses, such as paying rent, buying furniture, or even a car, credit and debit cards might not offer the best value. IMTs can often provide cheap money transfers by offering better exchange rates and lower fees compared to banks. Services like TorFX, Wise, XE and OFX can offer quick, easy and competitive transfers, potentially saving you a lot of money.

Consider spot rate contracts

Spot rate contracts let you transfer money based on the current exchange rate. This is the most common service and works well for smaller transfers or large one-off payments. However, the rate will fluctuate depending on market conditions, so if you're transferring a larger sum, you might want to explore other options to lock in a better rate.

Lock in exchange rates with forward contracts

If you know you'll need to transfer large sums of money in the future, a forward contract can protect you from exchange rate fluctuations. This allows you to lock in the exchange rate for a future transaction — sometimes up to two years in advance. This is especially useful for major payments like property purchases.

Set up limit orders for better exchange rates

With a limit order, you can specify the exchange rate you want, and your provider will automatically transfer funds when that rate is met. It’s a set-and-forget method that saves you from constantly checking exchange rates. Just keep in mind that once the rate is triggered, the transfer is final and you can't change your mind.

Tips for setting up international money transfers

Before you make your first transfer, there are a few steps to take to ensure everything goes smoothly.

Set up your account early

Most international money transfer providers have a simple sign-up process that can be done online. Be sure to complete your account verification well in advance of your transfer to avoid delays. This is especially important if you’re planning a large or complex transfer.

Double-check recipient details

When sending money abroad, you’ll need accurate information for the recipient, including:

  • Full name, address, and account number
  • IBAN (International Bank Account Number) or bank account number
  • SWIFT/BIC code (identifies the recipient’s bank)
  • Any other information like routing or sort codes

These details are crucial to ensuring your money reaches the right account without any hiccups. If you want to learn which IMT provider might be the best, consider checking out the winners of the 2024 Mozo Expert Choice Awards.

How can I transfer money overseas without high fees?

To avoid high fees, compare online money transfer services like Wise, Revolut, or OFX, which often offer better rates and lower fees than banks. Also, consider using prepaid travel cards to load up local currencies before you go and avoid conversion fees.

How long does an international money transfer take?

Transfer times depend on the provider and destination. With services like Wise and Revolut, transfers typically take 1-3 business days. Bank transfers can take longer, up to 5 business days.

What are currency exchange rates and how do they work?

Currency exchange rates fluctuate based on market conditions, interest rates, and global economic factors. The better the exchange rate you get, the more foreign currency you’ll receive for your Australian dollars (AUD).

What are common fees to watch out for when transferring money overseas?

Be aware of currency conversion fees, international transaction fees (on credit/debit cards), ATM withdrawal fees, and transfer fees from international money transfer providers. Always compare fees before choosing a transfer method.

What is SWIFT and IBAN, and why do I need them?

SWIFT (Society for Worldwide Interbank Financial Telecommunication) codes identify international banks, while IBAN (International Bank Account Number) ensures the money is transferred to the correct account. These details are required for smooth and accurate international transfers.

Can I send money to family or friends in Australia while I'm abroad?

Yes, you can send money to family or friends in Australia from overseas using money transfer services like Wise, OFX, PayPal, or even traditional banks. Always compare fees and exchange rates to ensure you're getting the best deal.

How can I handle problems with an international money transfer?

If an issue arises, contact customer support straight away. Have your transaction ID and recipient details ready. Most providers offer online tracking and dedicated support to resolve issues quickly.

Personal international money transfer comparisons on Mozo

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Last updated 11 December 2024 Important disclosures
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Peter Terlato
Peter Terlato
Senior Money Writer

Peter understands the value of financial fluency and is passionate about helping others achieve their savings goals.


* The exchange rates offered by each provider are indicative exchange rates that have either been supplied by each provider or gathered by Mozo. Exchange rates fluctuate constantly and as a consequence the exchange rates listed here may vary to the actual exchange rate you are quoted by a provider. Please ensure you confirm the actual exchange rate with the relevant provider prior to conducting any transaction. These exchange rates are updated every hour.

^See information about the Mozo Experts Choice International Money Transfer Awards

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