Surprise Travel Charges Are Driving Aussies to Rethink Their Banks

Conor Keenan
Jun 11
2 min read

Conor's Corner

"Why do Aussie’s continue to pay excessive bank fees…even on debit cards abroad.. Where is consumer protection and disclosure of excessive fee gouging? 3.5% fees to spend your own money."

Australians planning their next overseas trip should be bracing themselves—not just for jet lag, but for unexpected bank fees. According to Mozo’s June 3, 2025 report, one in three Australians say they’re prepared to switch banks over surprise charges while travelling abroad.

✈️ The Hidden Costs of Travel

It’s not just infrequent charges – these are fees many travellers don’t even see coming:

Foreign transaction and currency conversion fees, often hidden behind seemingly small markups or daily inactivity surcharges.
Inflated exchange rates due to weekend or tourist premiums.
Additional ATM withdrawal fees overseas that can quietly chip away at your travel budget.

Mozo highlights that even well-organised travellers are caught by these “bank-attending-you-overseas” costs, making many reconsider their financial provider.

📊 More Aussies Are Feeling the Pinch

Complementing these findings, recent research by Wise with YouGov — featured in CFOtech Australia — reveals a staggering figure: 78% of Australian travellers report being blindsided by unexpected banking fees abroad. Some have lost up to AUD 4,000 annually to hidden fees and poor exchange rates.

The discrepancy between traditional banks and fintech providers is striking: Wise estimates legacy bank fees can be up to seven times higher than alternative services when spending overseas.

🔄 What Aussie Consumers Are Doing

36% of travellers are considering changing banks due to fee fatigue .
Many are sharing their stories on social media to alert others — raising public awareness and putting pressure on banks to be more transparent.

✅ What You Can Do

Read the fine print on your bank’s travel and ATM fees.
Compare providers – digital-first firms like Wise typically offer more transparent currency rates with fewer add-on charges.
Arrange a travel-specific card that ensures mid-market exchange rates and minimal fees.
Plan ahead by withdrawing cash or using travel-friendly payment options to avoid airport or surcharge premiums.

🧭 Final Take

Travel should be about exploration and relaxation—not unwelcome financial surprises. With one-third of Australians actively considering a bank switch, and many losing hundreds—or even thousands—overseas, now’s the time to rethink your travel banking strategy.

Comparing fee structures before your next trip could save you from being quietly "fleeced" while on holiday.