The Federal Government has announced a review of foreign currency conversion fees after reports Australians pay hundreds of dollars more than other countries.
The ACCC will investigate whether Australians are being charged excessive foreign currency fees.
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:
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Converting money into a foreign currency
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Transferring money overseas
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The use of credit and debit cards overseas
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The use of credit or debit cards to make a purchase in a foreign currency
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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.”
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Travel allows you to get outside your bubble. It makes you realise there are other ways to do things, and that’s OK. Plus, I am a huge fan of skiing and for the best powder – you need to head overseas.