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Mozo experts have compared the costs and perks of nearly 200 credit cards to make comparisons easier for budget-conscious travellers and rewards point chasers, and highlight the best value travel credit cards on the market.
“Finding the best credit card for overseas travel can be overwhelming, especially when credit card rates, conditions and fees are always changing,” says Mozo’s personal finance expert Rachel Wastell.
“Australians are increasingly focused on getting value for money on holidays, making it even more important for savvy spenders to choose credit cards that offer low costs."
"If you’re using your credit card to pay for your next overseas trip, don’t just check the interest rate. Look at annual fees, foreign exchange fees, travel insurance, and any other perks to make sure you’re getting the most from your credit card."
As part of the Mozo Experts Choice Awards for Credit Cards 2024, Mozo compared 199 personal credit cards and 91 rewards credit cards from 67 Australian financial institutions. The research that forms the basis of this report was conducted as part of the Mozo Experts Choice Awards judging process.
Data was collected from the Mozo database as at 5 June 2024. Learn more about how Mozo determined the winners by reading the methodology report here.
“Australians are increasingly focused on getting value for money on holidays, making it even more important for savvy spenders to choose credit cards that offer low costs” ~ Rachel Wastell, Mozo money expert.
According to the latest data from the Australian Bureau of Statistics, Indonesia remains the top destination for short-term travellers, reflecting Aussies’ focus on seeking out great value holidays.
In May 2024, there were 127,650 short-term trips to Indonesia, making up 16% of all short-term returns, following 133,160 trips in April 2024, which was 14% of all returns.
Despite a cost of living crisis, and the rise of Buy Now Pay Later (BNPL) services, Australians continue to use their credit cards overseas with gusto.
According to the latest Reserve Bank of Australia (RBA) payments data, Australians spent $2.3 billion on credit card purchases overseas in May 2024.
If you’re using your credit card to pay for your next overseas trip, don’t just check the interest rate. Look at annual fees, foreign exchange fees, travel insurance, and any other perks to make sure you’re getting the most from your credit card.
Mozo analysis revealed that not only are Aussies still spending on credit cards overseas, but they’re spending more per purchase than they are at home.
RBA data shows that Aussies are shelling out $62 more every time they tap their card, averaging $174 (AUD) per purchase overseas compared to just $112 in Australia.
No forex fees
Low Interest Rates
Low Annual Fees
Additional Perks
The Mozo Experts Choice Awards winners for Low Rate Travel Credit Cards charge just 11.84% p.a. on purchases.
Compared to the average 17.46% p.a. purchase rate, based on the analysis of 199 personal credit cards, and the average of the Mozo winners, switching could save Aussies $281 in interest on a $5,000 balance.
The Mozo Experts Choice Awards winners for Low Rate Travel Credit Cards also have annual fees ranging between $59-$108.
The maximum annual fee of the winning cards is $42 lower than the average annual fee of the 199 credit cards analysed by Mozo experts, and the winners' minimum annual fee is $91 less than the average.
The Mozo Experts Choice Award winners for Low Rate Travel Credit Cards and Rewards Travel Credit Cardshave no foreign exchange fees.
Based on the analysis of 199 personal credit cards, comparing the average forex fee across all cards with the average of Mozo Experts Choice Awards 2024 Low Rate Travel Credit Card winners, switching from the average 2.68%͐ fee to a Mozo winning card with no fees could save Aussies $134 when they spend $5,000 overseas.
For those who don’t mind paying an annual fee or a higher rate in order to earn frequent flyer points, Mozo reviewed 91 credit cards including 78 premium cards with Qantas Frequent Flyer or other Rewards Programs that can be redeemed for Velocity points to find the best for Qantas and Velocity members.
For Qantas fans, the American Express Qantas Discovery Card was recognised as the top value non-premium credit card, offering at least $250 worth of domestic flight redemptions with a $20,000 annual spend, $33 more than the average*.
For those preferring Virgin or Velocity partners, the American Express Velocity Escape Card and Coles Rewards Mastercard offered at least $175 of value in domestic flight redemptions with a $20,000 annual spend, giving travellers $78 more in flight redemption value than the average card.^
For premium Qantas frequent flyer members, the American Express Qantas Ultimate Card, ANZ Frequent Flyer Black, Bankwest Qantas World Mastercard, G&C Mutual Bank Platinum Visa Credit Card, and HSBC Platinum Qantas Credit Card were the best value options. These cards delivered at least $750 of value in flight redemptions with a $60,000 annual spend, $171 more on average than other premium frequent flyer cards**.
Premium Velocity frequent flyer enthusiasts benefited most from the American Express Explorer® Credit Card, Velocity Platinum Card, BOQ Specialist Signature Card, HSBC Premier World Mastercard (Rewards Plus), and Virgin Money Velocity High Flyer Card. Providing at least $700 of value in flight redemptions with a $60,000 annual spend, these cards had excellent rewards benefits, and offered Aussies $339 more in flight redemptions on average when compared to other premium Velocity point-earning cards^^.
*Based on the Mozo Experts Choice Awards for Credit Cards 2024 assessment of the value of Qantas Frequent Flyer rewards points earned assuming a total annual spend of $20,000 when redeemed for domestic flights. With the added value of any ongoing discounts including free or discounted flights and lounge access and the deducted cost of the annual fee. The value of any other offers such as hotel or dining discounts were not assessed, nor were any one-off sign-up offers such as bonus points taken into account.
**Based on the Mozo Experts Choice Awards for Credit Cards 2024 assessment of the value of rewards points earned assuming a total annual spend of $60,000 when redeemed for domestic flights via Qantas Frequent Flyer. With the added value of any ongoing discounts including free or discounted flights and lounge access and the deducted cost of the annual fee. The value of any other offers such as hotel or dining discounts were not assessed, nor were any one-off sign-up offers such as bonus points taken into account.
^ Based on the Mozo Experts Choice Awards for Credit Cards 2024 assessment of the value of Velocity Frequent Flyer rewards points earned assuming a total annual spend of $20,000 when redeemed for domestic flights. With the added value of any ongoing discounts including free or discounted flights and lounge access and the deducted cost of the annual fee. The value of any other offers such as hotel or dining discounts were not assessed, nor were any one-off sign-up offers such as bonus points taken into account.
^^Based on the Mozo Experts Choice Awards for Credit Cards 2024 assessment of the value of rewards points earned assuming a total annual spend of $60,000 when redeemed for domestic flights via Velocity Frequent Flyer. With the added value of any ongoing discounts including free or discounted flights and lounge access and the deducted cost of the annual fee. The value of any other offers such as hotel or dining discounts were not assessed, nor were any one-off sign-up offers such as bonus points taken into account.
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