Aussies hit by hidden international transaction fees losing upwards of $600 million in hard-earned savings

Australians love to travel, and as winter reaches its peak, many are ditching the cold and chasing the warmth of summer on a foreign shore.

However, these holidays are costing travellers more than they should, with new research showing we are losing an estimated $600 million in international transaction fees, equating to almost $100 per person.

The research conducted by ING over the last 12 months revealed 81 per cent of travellers used their debit or credit cards while overseas, but fewer than 15 per cent knew that using their cards could incur an international transaction fee.

“Our research shows that a huge number of Aussies are getting hit by those hidden international transaction fees,” ING Australia Consumer and Market Insights head Matt Bowen said.

“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.”

For people saving for an international holiday, $100 can go a long way — approximately 15 Aperol spritzes, three steak frites or paella, or even 23 scoops of gelato.

Researchers said it would take almost two years for Australians to save for a two-week holiday in Europe, with nearly a quarter admitting it would be a big strain, “setting them back heavily in their savings goals”.

Those surveyed broke down their budgets, saying they expected to spend about $10,000 on a two-week European holiday, but were only willing to spend about $8000, with many saying they would take up a second job or side hustle, sell clothes and unused items and even turn off their heating in an attempt to save money for a trip.

Most money was spent on flights and accommodation, followed by food, drinks and experiences.

The top five most expensive European cities according to the survey were:

1. Paris (76 per cent)
2. London (75 per cent)
3. Rome (55 per cent)
4. Venice (41 per cent)
5. Amsterdam (32 per cent)

“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,” Bowen said.

Aussies are urged to confirm with their banks what fees they might be subject to while on holiday, ahead of time, and look for banks such as ING which offer international transaction fee rebates.