Australians lost $138m in foreign dining fees last year—here’s how to avoid them

If you’re among the many Australians who love to travel and eat around the world, you might want to sit down for this: last year, Australians forked out a whopping $138 million in avoidable foreign transaction fees, just on food and dining purchases overseas! 

That’s enough to buy a lifetime supply of lamingtons, or at least a few extra Aperol Spritzes on your next Italian holiday. Let’s dig into what’s going on, why these fees are so sneaky, and—most importantly—how you can keep more of your hard-earned cash for the things that matter (like that extra scoop of gelato).

According to new research from ING, Australians increasingly prioritise food and dining experiences when they travel. 

Three out of four travellers (75 per cent) say that local cuisine is one of their top five considerations when planning an international holiday, second only to the trip’s overall cost.

And we’re not just talking about the odd croissant in Paris or a cheeky curry in Bangkok. On average, Australians who travelled overseas in the past year spent a hefty 20 per cent of their total travel budget on food and dining. 

That’s about $1,477 per person, adding to a national spend of over $12 billion! Clearly, culinary tourism is on the rise, and we’re all for it.

It turns out that 88 per cent of Australian travellers are happy to cut back on other expenses (like shopping or sightseeing) to have more to spend on food and dining. 

But here’s the kicker: despite being savvy about budgeting for food, many of us still lose money to international transaction fees without even realising it. On average, these fees cost each traveller $82.28 last year. 

Every time you use your Australian debit or credit card overseas, your bank may charge you a foreign transaction fee—often around 3 per cent of the purchase price. That might not sound like much, but it adds up quickly, especially if you eat out for every meal.

For example, if you spend $1,477 on food and dining, a 3 per cent fee is about $44. Add in other purchases, and the total quickly balloons to $138 million nationwide.

How to avoid foreign transaction fees

The good news? These fees are often avoidable with a bit of planning. Here are some practical tips to help you keep more money in your pocket for your next overseas feast:

1. Plan ahead: Work out your travel budget and decide how much you want to spend on food and experiences. A little planning goes a long way! 
2. Eat like a local: Skip the tourist traps and try local eateries or street food. Not only is it usually cheaper, but it’s also more authentic. Local markets are an excellent place for fresh, affordable meals and snacks. 
3. Check your bank’s fees: Before you go, find out what fees your bank charges for overseas purchases. Some banks charge hefty fees, while others offer cards with no foreign transaction fees. 
4. Consider fee-free cards: Look for banking products that rebate or waive international transaction fees. For example, ING’s Orange Everyday debit card offers international transaction fee rebates for eligible customers, saving an average of $87 annually—almost enough for nine Aperol Spritzes in Italy! 
5. Stay vigilant: Be wary of scams, especially when making online purchases or using unfamiliar payment methods abroad. Always use secure payment options and keep an eye on your statements.

Let’s say you’re heading to Europe for a two-week holiday. You plan to spend $1,500 on food and dining. 

If your bank charges a 3 per cent foreign transaction fee, that’s $45 down the drain—money that could have gone towards a fancy dinner or a few extra pastries. You could pocket that cash by switching to a card with no foreign transaction fees.

Have you ever been stung by unexpected foreign transaction fees while travelling? Do you have any tips for saving money on food and dining overseas? Share your stories and advice in the comments below.

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