Save money on overseas purchases by picking the best credit card with the lowest fees. We review all the banks, highlighting the cheapest fees available.

Credit Card and D​ebit Card ​Overseas Fee Summary

• Using your debit card or credit card on overseas purchases (either online or when outside of New Zealand) will cost 1.3-4.5% on top of what you spend, depending on what card you have. 
• Each bank usually charges two fees; “Currency Conversion Assessment” fee and a Mastercard or Visa “Foreign Currency margin”. Both of these fees vary per bank, meaning the total you’ll pay for a purchase depends on your bank’s fees. For this guide, we have combined them to give one figure to make comparing simpler.
• The Flight Centre Mastercard has a 0% foreign currency conversion fee and is arguably one of the most attractive options currently available.
• Best and worst way to pay – The Flight Centre Mastercard offers the cheapest overseas fee (0% on purchases), PayPal offers the worst (up to 4.5% on purchases)​
• Picking the right card will save you money immediately – the more you spend in foreign currency, the more you will save.
• If you decide to pay by PayPal, you can avoid their poor foreign exchange rates and get the best rate with your bank by following our tip to avoid PayPal fees.

Our Guide to Lower Overseas Credit Card Fees 
This step-by-step guide covers what your card currently charges you to use it on any foreign purchase, the cards and payment methods to avoid and finally a few tips to make big savings. Highlights include:

• The ​Best Debit And Credit Card For Overseas Purchases
• Credit Card and Debit card Overseas Fees by Bank
• Revealed – The Worst Cards and Payment Methods for Foreign Currency Purchases
• Know This: Avoid PayPal’s Poor Value Exchange Rates With One Simple Click
• Travel Money Cards vs Bank-Issued Debit and Credit Cards – What’s Best?
• Our Top Ways to Save Money on Foreign Currency Transactions

1. ​Going overseas or spending on foreign websites? Who you bank with and how you pay makes a big difference in how much you spend. Every overseas transaction incurs a “Currency conversion charge” – you pay this on any transactions you do in a foreign currency, such as spending when you are overseas or buying goods or services online from an overseas eCommerce shop.
2. In New Zealand, you’ll pay between 0% and a whopping 4.5% (depending on who you bank with and how you pay) when it comes to foreign currency purchases. We found that two popular payment methods, PayPal and the PrezzyCard, charge you a lot more than standard cards.

​​Advertising Disclaimer: MoneyHub may earn a referral bonus for anyone that’s approved through some of the below links. Our research and findings are independent of any bank, credit card issuer, or product manufacturer/service provider, and have not been endorsed by any of these entities. Please see our Advertising Policy for more details about how we make money.

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Money Hub Founder Christopher Walsh shares his views on bank foreign currency fees and the alternatives that innovate to help New Zealanders:

“Unfortunately for most New Zealanders, banks charge high foreign currency fees that earns them lucrative profits. Worst of all, they keep doing this transaction after transaction.New Zealanders holidaying overseas and shopping online in foreign currency increasingly use a debit or credit card to pay for purchases, but doing so attracts 1% to 3% FX fees on every transaction per our research below. Traditional travel money cards are meant to eliminate these fees, but they don’t (per our research), and I think they do their best to find other ways to charge. I’m wary of cards with ‘load’ fees, withdrawal fees, ‘unsupported currency’ charges, etc. And I don’t like most of what I see in terms of functionality.There is good news. While the banks are not competing to lower foreign currency fees, one card is outshining everyone. I use the Wise Debit Card and swear by it. It doesn’t have any tricky fees – you pay NZ$14 for the card to be issued and posted to you, and then get the best exchange rates and pay very low fees on each transaction. It also has an app so you can track your spending, which is very helpful. You can transfer NZD from your bank account to the card for free. The balance is yours to spend or withdraw as you please – every transaction will then be deducted in NZD at the best rates and lowest fees.I don’t have much time for the rest of the travel money cards available. They seem like old technology and have not innovated (other than how to charge fees). Most of the bank debit and cards listed below don’t excite me either. For this reason, the Wise debit card leads the market”.

MoneyHub Founder Christopher Walsh

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Video highlights of our guide: The video below explains the key details outlined in this guide, including what the banks charge, alternative payment methods, must-know tips and leading products.

The Best Debit And Credit Card For Overseas Purchases

Credit Card WinnerFlight Centre MastercardThis specialist travel product offers a 0% conversion fee. The standard Q Mastercard offers a 1.40% fee. ​ Flight Centre Mastercard Review

Best Debit CardWise Debit Card This card offers low (or free) conversion fees on major currencies, and other perks. There’s a one-off card issuing fee. ​ Wise Debit Review

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Our Top-Rated Card for Foreign Currency Transactions – The Wise Debit CardWe like the Wise Debit Card because it lets you:Get the best exchange rates out of any card on the market in New ZealandSpend abroad and online without hidden fees, and have an app that lets you track all your spendingConvert and hold 54 currencies (and Wise uses the real exchange rate to convert).Go ‘cardless’ by connecting your Wise card to Google PayOrder the card with a low one-off $14 card issue feeOur view:The Wise Debit Card doesn’t have any tricky fees, and it is years ahead of all the other traditional travel money cards.You will convert at the best exchange rates and pay very low fees on each transaction. Best of all, it’s easy to use and doesn’t confuse you as traditional travel money cards can.There may be fees for anyone who relies on physical cash – you can make two withdraws up to NZ$350/month in total (or the equivalent foreign currency) without any fees. However, after NZ$350, you will pay ATM fees (NZ$1.50/withdrawal) and a 1.75% commission. These fees are not charged when you use the card to pay online or in-store. We don’t have much time for the rest of the travel money cards available and can’t offer a “runner up” standard debit card, which is unusual in most comparisons on MoneyHub. In this case, the other options don’t offer anything as innovative and cost-effective as Wise does.