What the ACCC does

  • We receive reports about misleading behaviour by businesses. These reports help us identify issues where we may need to take action.

What the ACCC can't do

On this page

Buying and converting foreign money

Shopping around can save money

Using a supplier out of loyalty or habit can cost money.

The ACCC’s Foreign Currency Conversion Services inquiry in 2019 and our update report in 2024 found the big 4 banks were often more expensive than other suppliers for buying foreign cash and international money transfers. For common currencies, such as the United States dollar (USD) and Great British pound (GBP), we found the big 4 banks were rarely the cheapest option.

Some comparison websites don’t list all options

Comparison websites compare the services or products from more than one provider. Some of these sites display options for foreign currency.

Be aware that some commercial comparison websites:

  • are not independent and suppliers can pay to promote their services on the site
  • do not include all available services and so they're not comparing all available options.

There are 2 government-funded comparison websites for international money transfers. They compare prices of services available to Pacific Island and several South-East Asian countries:

  1. SendMoneyPacific
  2. SaverAsia.

Compare the total price

Consider all parts of the price when comparing services and suppliers. This includes the retail exchange rate and any fees. A service advertised as 'fee free' does not mean it will be the cheapest option.

Exchange rates vary across suppliers and include a margin or mark-up. They may not be as good as the rates reported on the news.

For online services, you can use foreign exchange rate calculators to compare suppliers, as recommended by the ACCC Best Practice Guidance.

Compare prices on the same day

For an accurate comparison, compare prices on supplier websites at the same time on the same day. Some suppliers may also offer discounts, especially for large or repeated transactions.

Buy online if possible

Buy international money transfers, foreign cash and travel money cards online if possible. Many suppliers offer better retail exchange rates and lower fees when buying online.

Avoid buying foreign cash at the airport

Foreign cash is more expensive at airports. Shop around and buy foreign cash before getting to the airport to save money.

Our research found that consumers buying USD$200 in February 2019 could save AUD$40 by buying from the cheapest supplier at a non-airport location compared with the most expensive supplier at the airport.

Buying foreign cash in Australia can be cheaper

It may be cheaper to buy foreign cash in Australia before travelling.

This avoids possible fees charged by card issuers and overseas ATM operators for using a travel money, credit, or debit card to withdraw foreign cash or for cash advances.

Sending money overseas

Shop around for the cheapest and fastest service using foreign exchange calculators

Compare supplier prices using foreign exchange rate calculators. This is the best way to find out who offers the best value deal for a consumer’s transaction.

Suppliers who do not have an foreign exchange rate calculator aren’t following the ACCC Best Practice Guidance for IMT transparency.

We found significant price differences across international money transfer suppliers.

Consumers should consider using non-bank suppliers as they are often better priced, and consumers can save. The more consumers that are willing to switch the more likely prices will continue to fall.

Based on the average transaction of $3,138 for a big four bank international money transfer, consumers could each save approximately $108 if they shopped around for a cheaper supplier.

Look at the total price and the amount the recipient will receive

Total price and the amount received is the best representation of value for money when comparing suppliers.

Comparing the amount that will be received also limits any tricky calculations that consumer needs to make to account for fees and foreign exchange margins.

Learn how suppliers charge you using fees and foreign exchange margins

Suppliers who advertise as fee-free may still charge a margin on the exchange rate. It is often hidden and sometimes negotiable or it changes based on how much is being transferred.

Consider if other fees will be charged which aren’t a supplier’s own fees. Ask the supplier if:

  • the bank will deduct fees from the funds being transferred (known as correspondent banking fees)
  • the bank or supplier that receives the money charges a fee (known as recipient bank fees). If the supplier deducts extra fees, ask them:
    • to estimate the funds they will deliver to the recipient if the supplier will absorb these fees, and/or
    • refund you any fees incurred.

Know the best time to transfer

If you can wait, timing may impact the value for money you get. Currency markets can change, and high value transactions can be impacted by the time of year or even whether you make a transfer on a weekday or weekend. Currency markets close for the weekend and some suppliers can charge an extra fee or may charge a worse value exchange rate over the weekend to mitigate for any possible movement in the market.

Making purchases while travelling overseas

Choose the most appropriate payment method for the trip

There are 4 main things to consider when choosing a payment method for overseas travel:

  1. Acceptance – is the payment method commonly accepted in the overseas destination?
  2. Certainty of price – what the total price is going to be?
  3. Convenience – how easy is it to transport and use?
  4. Security – what happens if it gets lost or stolen?

Travel money cards can be more expensive

Travel money cards are one option when travelling overseas.

Fees connected with travel money cards can sometimes make them more expensive than other services. This includes fees for:

  • buying a card in store
  • ATM use
  • inactivity and closure
  • using the card for transactions in a currency that is not loaded on the card.

Our research found that if a travel money card holder with one of the big 4 banks withdrew the equivalent of AUD$100 in GBP from an overseas ATM in May 2019, and GBP was not pre-loaded onto the travel money card, they would be charged an ATM fee of around GBP$2 (about AUD$3.70) plus a 5.25% currency conversion fee.

The total fees for this transaction would be about AUD$8.90 or almost 9% of the transaction amount.

Debit and credit cards can be cheaper than travel money cards

It is cheaper to use a debit or credit card to make purchases while overseas than to use travel money cards.

It is even cheaper to use credit and debit cards that don’t charge international transaction fees.

Our research found if customers of the big 4 banks used a debit or credit card:

  • without international transaction fees instead of a travel money card, they could save up to AUD$13 on a USD$200 purchase
  • with international transaction fees instead of a travel money card, they could save up to AUD$5 on a USD$200 purchase.

Debit and credit cards have several other fees, such as annual fees and interest charges on credit cards.

It may also be more difficult to see the exchange rate when using a debit or credit card. It is easier when foreign currency is loaded onto a travel money card or buy foreign cash. Check the fees and the difference in retail exchange rates when choosing a card.

ASIC is responsible for regulating banks and financial service providers. See Loans and credit cards on the ASIC website for more information.

Choosing to pay in Australian dollars may be more expensive

Some merchants give the option of paying in Australian dollars or another currency when using a debit or credit card. This is referred to as ‘dynamic currency conversion’.

Choosing to pay in Australian dollars may be the more expensive option.

An overseas bank will usually add a margin or mark-up to the exchange rate when it handles the transaction and currency conversion.

The card issuer may still charge an international transaction fee if payment is made in Australian dollars, as the transaction occurred overseas.

Cards are not widely accepted in some overseas locations

Debit, credit and travel money cards are not accepted in some overseas locations and cash is essential to make purchases.

See Buying and converting foreign money.

Buying items from overseas suppliers

Consider an international transaction fee-free card

When buying an item overseas, an international transaction fee is generally charged. Fees are usually around 3% of the sale price.

If buying overseas items or travelling overseas, consider an international transaction fee-free credit or debit card. Make sure to compare fees and charges of different options.

Avoid international transaction fees

It is not always clear from a website that an international transaction fee applies.

Even if a website has a ‘.com.au’ domain name or lists prices in Australian dollars, it doesn't mean that the business will process the payment in Australia.

International transaction fees can be avoided when buying items from overseas suppliers by:

  • checking if the transaction will be processed overseas or in Australia
  • asking if the bank can block international transactions for certain payment cards.

If you operate a business and process payments outside of Australia, you should alert your customers before entering into a transaction with them if they are likely to be charged international transaction fees. This could be as simple as:

  • including a prominent statement during an online order process (but prior to taking payment)
  • informing your customers of the country the payments will be processed
  • directing consumers to contact their financial institution to check whether international transaction fees will apply to their purchase.

You can find this information in our Best Practice Guidance: Disclosure of international transaction fees.

Consumers can request a refund if they've been misled

It may be considered misleading under Australian Consumer Law if:

  • consumers are charged an unexpected international transaction fee for a purchase in Australian dollars, and
  • the business appeared to be in Australia.

Consumers should contact their card issuer, such as their bank or the international card scheme like Visa or Mastercard, to request a fee refund.

It may also be misleading if an overseas business indicates that a consumer will be charged in Australian dollars but then charges in a foreign currency. As a result, the consumer pays a higher price for the purchase than expected. The consumer may also be charged unexpected currency conversion fees. In this situation, the consumer should contact the business to request a partial refund. They can also contact their card issuer to request a fee refund.

ASIC is responsible for regulating banks and financial service providers. See Banking information on the ASIC website for more information.

Next steps if you believe you’ve been misled

Contact the business

If you have been misled when making a purchase involving foreign currency or money exchange, the first step is to contact the business to explain the problem.

If the business doesn’t resolve the problem, there are more steps you can take.

Get help contacting a business or taking a problem further

Report the misleading behaviour to the ACCC

You can also report that you have been misled when making a purchase to the ACCC.

We use these reports to identify issues that need investigation.

Make a report to the ACCC

Foreign currency and international money transfer reports and guides

Inquiry into foreign currency conversion services

Foreign currency conversion services inquiry - final report ( PDF 1.83 MB )

This is the report of the ACCC’s inquiry into the supply of foreign currency conversion services (FX services) in Australia. It highlights important competition and consumer issues and makes recommendations to address them. 

2 September 2019

Market update on international money transfers

Transparency and competition in international money transfer services ( PDF 4.75 MB )

This report examines the international money transfer market 5 years on from the Foreign currency conversion services inquiry final report. It contains findings from how businesses have responded to competition and what can be done to improve consumers engagement and interaction with international money transfers.

30 July 2024

ACCC best practice guidance for foreign cash and international money transfer service businesses

Best practice guidance: For foreign cash and international money transfer services ( PDF 269.17 KB )

Following consultation with industry after the publication of our 2024 update report, this is our current best practice guidance for businesses that supply foreign cash and international money transfer services.

October 2024

ACCC best practice guidance for disclosure of international transaction fees

Best practice guidance: disclosure of international transaction fees ( PDF 88.17 KB )

In December 2019 the ACCC published a voluntary guide for businesses where their website is an Australian ‘.com.au’ URL and advertises prices in AUD, but process payments overseas.

December 2019