- When travelling abroad this past year, 31% of Aussies lost out on $100 or more in international transaction fees
- Despite this, 13% admit to having no idea that using their Australian debit and/or credit card overseas incurred international transaction fees
- A third of Aussies say foreign exchange (FX)/ international transaction fees are among the top costs for an overseas holiday
New research from ING reveals Aussies that travelled overseas in the last 12 months (and used their debit or credit cards whilst overseas), lost out on a total of approximately $600 million in international transaction fees – or $92.62 per person.
This comes as 81% of Aussie travellers say they used their card (physical or on mobile) to make transactions while recently holidaying overseas over the last 12 months.
While a third (33%) of Aussies think FX/international transaction fees are among the five biggest costs for an overseas holiday, as many as 13% of those who travelled abroad last year admit to having no idea that using their Australian debit and/or credit card overseas incurred international transaction fees.
For those travelling abroad for a European summer this year, the average figure of $92.62 AUD can go a long way, equating to approximately 15 Aperol Spritzes, 3 steak frites or paella, or 23 scoops of gelato. That’s a lot of ice cream!
As we hit the peak season for Euro Summer holidays, ING’s research also uncovers Aussies’ attitudes towards travelling to Europe – including the costs associated, the most expensive cities and what Aussies are sacrificing to make their Euro Summer dreams a reality.
For the 70% of Aussies who are dreaming of holidaying to Europe this year, but couldn’t, affordability continues to be a top barrier, with 61% citing this as a blocker. The average amount Aussies think they’ll need for a two-week holiday to Europe is $10,490, but they are only willing to spend $8,866 – about 15% less than what they believe the trip will cost.
On average, it would take almost two years (one year and 11 months) for Aussies to save for a two week holiday in Europe, with nearly a quarter (23%) saying it would be a big strain, setting them back heavily in their savings goals.
The biggest costs primarily go towards accommodation (86%), flights (85%), food and drink (56%) and experiences (45%) while on an overseas holiday – but how expensive these are may be dependent on the destinations, with Aussies ranking the following European cities within their five most costly:
- Paris (76%)
- London (75%)
- Rome (55%)
- Venice (41%)
- Amsterdam (32%)
In terms of what Aussies would do to save for a Euro Summer:
- 34% would take up a second job or side hustle
- 33% would sell their unused items or clothes
- 22% would turn off their heating to save on energy bills
- 15% would cancel their gym memberships
Matt Bowen, Head of Consumer and Market Insights at ING Australia, says:
“While the costs of a European summer may feel daunting for many, Aussies can make it a reality down the line with the right mix of smart budgeting and a conversation with their bank.
“Our research shows that a huge number of Aussies are getting hit by those hidden international transaction fees. That’s why it’s important that Aussies confirm with their banks ahead of time what fees they may be subject to while on holiday.
“ING’s Orange Everyday debit card offers international transaction fee rebates to hopefully help Aussies travel a little lighter when it comes to their finances. On average, eligible ING customers have saved an average of $87[i] per year on international transaction fees, which is almost 9 Aperol Spritzes in Italy!
“We encourage Aussies to confirm with their banks what fees they might be subject to while on holiday, ahead of time.”
Matt’s budget-savvy travel tips:
- If you’re asked on holidays whether you want to convert the transaction into Australian dollars, consider whether you’re better off paying in the local currency. Check with your bank whether they can do the conversion for you at a more favourable rate.
- If you’re planning on using apps overseas for any food purchases or transport, add your debit or credit card details into them before you leave. This will prevent any hassles when you arrive at your holiday destination.
ING encourages Aussies to check out our collection of helpful financial tips, hints and guides.
More information
Before making any decision in relation to an Orange Everyday, you should read the Orange Everyday Terms and Conditions booklet and Everyday Banking Fees & Limits Schedule available at ing.com.au. Products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL 229823 and Australian Credit Licence 229823.
ING International Transaction Fee Rebate Offer for Orange Everyday Customers
The ING International Transaction Fee rebate offer will apply for the next calendar month when you meet the following eligibility criteria during the current calendar month:
- deposit at least $1,000 from an external source to any personal ING account in your name (excluding Living Super and Orange One), and
- also make at least 5 card purchases that are settled (and not at a ‘pending status’) using your ING debit or credit card (excluding ATM withdrawals, balance enquiries, cash advances and EFTPOS cash out only transactions).
Orange Everyday customers who hold an ING Home Loan are automatically eligible for this offer, and are not required to meet this monthly criteria.
Under this offer, each month that you’re eligible you’ll receive unlimited rebates on the ING International Transaction Fee.
Merchants may charge you a separate fee for their services (which is not rebated under this offer).
For full terms and conditions, see the Orange Everyday Terms and Conditions, the Everyday Banking Fees and Limits Schedule, and Orange Everyday Benefits Schedule.
Subject to the Orange Everyday Terms and Conditions, we may change or cancel Orange Everyday Benefits (including the ING International Transaction Fee Rebate Offer) at any time at our discretion.
