The watchdog said even websites with a .com.au domain or ones that appear to be Australian-based could process transactions overseas, thus causing shoppers to incur an international transaction fee on their debit or credit card.
While these fees can be mitigated with a debit or credit card with no international transaction fees, regular cards can attract an additional fee of around 3%, meaning a $100 purchase could end up costing $103.
Customers might not see this fee until they check their statement.
Australian Competition & Consumer Commission (ACCC) chair Rod Sims said regular online shoppers may wish to look for a card with no international transaction fees.
“It is unclear to many consumers whether a retailer processes transactions overseas, so we expect retailers to make this clear to consumers on their websites,” he said.
“Consumers who have been charged an unexpected international transaction fee for a purchase in Australian dollars from a website that appears Australian-based or has an Australian domain name should query the fee with their bank and report it to the ACCC.
“If you are making regular purchases with overseas businesses, it may be worth considering a credit or debit card with no international transaction fees or asking your bank to block international transactions for certain cards.”
Recently, the ACCC engaged with Nike to change its Australian webpage to alert customers to the fact they may be charged an international transaction fee.
Other popular internationally-owned brands may also have an Australian-looking website but process the transaction overseas.
The ACCC urges shoppers to double-check the fine print before paying for goods online.
Popular debit cards with 0% international transaction fees include transaction account products from Up Bank, ING, UBank, HSBC, Macquarie and Citibank.
Need somewhere to store cash and earn interest? The table below features introductory savings accounts with some of the highest interest rates on the market.
| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
4.40% p.a. | 5.75% p.a. Intro rate for 4 months then 4.40% p.a. | $533 | 4 months | $0 | $250,000 | $0 | $0 | $0 | Featured |
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4.75% p.a. | 5.35% p.a. Intro rate for 4 months then 4.75% p.a. | $518 | 4 months | $0 | $249,999 | $0 | $0 | $0 | Featured |
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0.10% p.a. Bonus rate of 5.00% Conditions apply. | 5.10% p.a. | $515 | – | $0 | $250,000 | $200 | $0 | $0 | No monthly fees |
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0.55% p.a. Bonus rate of 5.00% Conditions apply. | 5.55% p.a. | $561 | – | $0 | $100,000 | $2,000 | $0 | $0 | |||||||||
0.10% p.a. Bonus rate of 5.40% Conditions apply. | 5.50% p.a. | $556 | – | $1 | $25,000 | $200 | $1 | $0 | |||||||||
0.05% p.a. Bonus rate of 5.45% Conditions apply. | 5.50% p.a. | $556 | – | $0 | $50,000 | $1,000 | $0 | $0 | For customers aged 14-35 years | ||||||||
0.50% p.a. Bonus rate of 4.85% Conditions apply. | 5.35% p.a. | $541 | – | $1 | $50,000 | $500 | $1 | $0 |
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0.05% p.a. Bonus rate of 5.30% Conditions apply. | 5.35% p.a. | $541 | – | $0 | $250,000 | $1,000 | $0 | $0 | |||||||||
0.30% p.a. Bonus rate of 4.95% Conditions apply. | 5.25% p.a. | $531 | – | $0 | $100,000 | $$formattedMinMonthlyDep.format("%,d",$!{product.minimumMonthlyDeposit}) | $1 | $0 | |||||||||
0.01% p.a. Bonus rate of 5.24% Conditions apply. | 5.25% p.a. | $531 | – | $0 | $99,999 | $100 | $0 | $0 | |||||||||
– Bonus rate of 5.25% Conditions apply. | 5.25% p.a. | $531 | – | $0 | $1,000,000 | $20 | $1 | $0 | |||||||||
2.00% p.a. Bonus rate of 3.20% Conditions apply. | 5.20% p.a. | $526 | – | $0 | $30,000 | $$formattedMinMonthlyDep.format("%,d",$!{product.minimumMonthlyDeposit}) | $0 | $0 |
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
Emma Duffy
William Jolly
