Australian’s are being charged 30% more than other countries.
Aussies who travel overseas or purchase international products have been paying over $2 billion per year in invisible or hidden fees – and most have no clue what they’re being charged until it’s too late.
News.com.au reports that many banks are charging “exorbitant” and “invisible” fees for international money transfers, resulting in an government investigation.
Transaction fees are attached to transferring money overseas, converting it to a different currency, using a debit or credit card while abroad, buying something online with foreign money, or transferring funds onto a prepaid travel card.
Treasurer John Frydenberg revealed that Aussies are paying significantly more for international banking compared to other countries.
“Evidence from the Productivity Commission suggests these fees are high than other countries, costing Australian’s hundreds of dollars more than other countries per year,” he stated.
“A customer of an Australian bank who travels overseas and spends $5000 on their credit card can expect to incur $140 in foreign exchange transaction fees. If a customer was to transfer $1000 overseas, it would cost an Australian an average of around $80 in fees and exchange rate mark-ups, compared to around $60 for someone in the United States.”
Following these revelations, the Australian government directed the Australian Competition and Consumer Commission (ACCC) to investigate and review foreign transaction fees, and present their findings next year.
According to news.com.au, the biggest problem with these transaction fees is the lack of transparency about what customers are actually being charged.
“Foreign transaction fees can be difficult for consumers to respond to. Consumers generally do not see these fees upfront at the time the transaction takes place. Rather, they show up on the card statement after they make the purchase,” the ACCC stated.
The ACCC report is due to be presented in 2019.
Written by Kate Stevens
Images: Unsplash
