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Mozo - LogoIt sounds like a deal too good to pass up. “Fee-free” travel cards, boldly marketed to Australian globetrotters as a smarter way to carry foreign currency abroad, might be giving you a few fewer dollars for your hard-earned Aussie buck than you think. A deep dive from comparison site Mozo has unmasked what your bank might not tell you: sometimes, the cheapest-looking travel card is a wolf in sheep’s clothing.

The latest Mozo analysis, which reviewed six popular prepaid travel money cards and a whopping 175 debit cards, shows that in the jungle of exchange rates and hidden fees, it’s often not the obvious costs that sting.

“A travel card can help you lock in an exchange rate and manage your budget abroad,” said Rachel Wastell, Mozo’s personal finance guru. “But if you skip the fine print, you could be caught out by sneaky charges that chip away at your travel budget like termites in a Queenslander.”

The Travel Card Trap

Mozo’s research put six major prepaid travel cards to the test, simulating a standard $1,000 AUD to USD conversion. The results were eyebrow-raising: a $31 difference between the best and worst-performing cards.

Travel Money Card Exchange Rate Conversion Fee USD Value
Revolut 0.6316 $0.00 $631.60
Wise 0.6329 $3.99 $630.51
Travelex Money Card 0.6158 $0.00 $615.80
CommBank Travel Money Card 0.6092 $0.00 $609.20
Qantas Pay 0.6048 $0.00 $604.80
Australia Post Travel Platinum Mastercard 0.6004 $0.00 $600.40

Source: mozo.com.au, data collected 16 April 2025

Interestingly, Revolut topped the chart despite imposing a 1% fee on weekend transfers. In contrast, Wise, the only card in the lineup that charges a conversion fee, still came in second, thanks to its superior rate. Cards from big-name institutions like CommBank and Qantas fared poorly, with unfavourable rates that quietly took the biggest bite out of your dollars.

“A lot of Aussies assume ‘no fee’ means the best value,” Wastell explained. “But the hidden exchange rate margins are where the real cost hides. If you’re not doing the maths, you’re not getting the full picture.”

More Than Meets the Eye

Many travel cards add fees in the least convenient places. Load funds on a weekend? That’s a fee. Use BPAY to reload? Cough up again. Withdraw from an ATM overseas? You might face charges from both your provider and the ATM owner.

“Some cards even slug you for letting them sit idle,” added Wastell. “The minute you think you’ve found a winner, there’s another clause in the fine print.”

Debit Cards: The Underdog Option?

While travel cards offer budgeting perks, Mozo’s survey of 175 everyday debit accounts from 74 providers found just nine accounts that charged no international transaction or ATM fees. A rare breed indeed.

According to the findings, most Australian debit cards charge an average foreign exchange fee of 2.67%, with some charging as high as 3.65%.

“Those small percentages can add up quickly,” said Wastell. “On a $10,000 overseas trip, paying the average forex fee could cost you over $260 more than a fee-free alternative.”

The best travel debit cards identified in Mozo’s 2025 Expert’s Choice Awards included:

  • AMP Everyday Account

  • Macquarie Transaction Account

  • Suncorp Carbon Insights Account

  • Bankwest Easy Transaction Account

  • HSBC Everyday Global Account

  • ubank Spend Account

  • Up Everyday Account

These accounts stand out for their zero percent foreign exchange fees, no international ATM withdrawal charges, and no monthly maintenance costs—the triple threat of overseas convenience.

What Should Travellers Do?

The message is clear: whether you’re sipping sangria in Spain or queueing at LAX, don’t assume the words “fee-free” mean free rein.

Before you jet off, crunch the numbers. Compare both travel and debit card options based on where you’ll be going, how you plan to spend, and when you plan to load or withdraw funds. And always, always read the fine print.

As Wastell so aptly puts it, “It pays to treat travel money like you would a travel itinerary: plan it carefully, review the options, and don’t leave it until you’re at the airport kiosk.”

For a complete list of Mozo’s Travel Money 2025 award winners and comparison tools, visit mozo.com.au.

 

 

 

By Alison Jenkins

 

 

 

 

 

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