The Federal Government has announced a review of foreign currency conversion fees after reports Australians pay hundreds of dollars more than other countries.
The Australian Competition and Consumer Commission will deliver the review to the Government early next year. It comes after evidence from the Productivity Commission found banks charged Australians $2 billion in foreign currency conversion fees each year.
Banks charge foreign currency conversion fees for:
Converting money into a foreign currency
Transferring money overseas
The use of credit and debit cards overseas
The use of credit or debit cards to make a purchase in a foreign currency
Transferring money to a foreign currency on a pre-paid travel card.
“A customer of an Australian bank who travels overseas and spends $5000 on their credit card can expect to incur $140 in foreign exchange fees,” Treasurer Josh Frydenberg said in a statement.
“Those fees are higher than other countries, costing Australian hundreds of dollars more each year. The 10.5 million Australians who travel abroad every year deserve a better deal.”