Six banking features to make your overseas trip easier

International travel has certainly been back on the cards for many Australians, with 10 million people having taken off abroad last year according to research from the Council of Australian Tour Operators.

While some left on business trips or to visit family, the 2023 International Leisure Travel Trends Report revealed that 5.6 million Aussies packed their bags for an overseas holiday in popular destinations like Indonesia, New Zealand and Japan.

Holidaymakers stayed away for 17.7 days on average and spent around $6700 per person on everything from flights and accommodation to food and sightseeing costs.

Spending, after all, is an unavoidable part of travel. Australian banks know this, which is why many have been rolling out travel-friendly features in their banking apps and platforms in recent years.

So whether you're the kind of traveller who's keen on reducing costs, keeping your card secure or easily viewing your spending in different currencies, these are some of the banking and card features worth knowing about before embarking on a future trip.

1. Enhanced account security

Given the rising prevalence of financial scams in recent years, Australians have become aware of the importance of taking security seriously with their banking and financial products.

Unfortunately, the need for vigilance doesn't stop while on vacation. After all, who wants to end up locked out of their account or unable to pay while on holiday overseas?

Thankfully, banks are increasingly rolling out security-related features to help travellers abroad. For instance, most banks now give users the ability to block and unblock their debit or credit card within their banking app should it be lost or stolen.

Fintech Revolut has also taken security a step further. While most banks allow users to use a fingerprint or face scan as a form of biometric authentication when logging in, Revolut's 'wealth protection' feature adds an extra layer of facial verification when users first sign up.

So even if a phone's security is compromised and the registered fingerprint or face scan is changed, thieves won't be able to enter a Revolut account without being able to match that original face scan.

Tip: Letting your bank know when and where you expect to travel can help them monitor your transactions more accurately for fraudulent activity. This can usually be done in a couple of minutes via the bank's app or website.

2. Foreign currency displays

Even with a strict travel budget it can be easy to lose sight of your spending when you're enjoying yourself - especially if you're paying in Singaporean dollars one week, British pounds the next and then euros the week after.

It can be hard to keep up, which is why some banks have started introducing features that make it easier to see exactly how much you're spending in different foreign currencies.

Up - a digital bank and subsidiary of Bendigo Bank - has recently introduced a 'travel mode' feature in its banking app which allows users to see their balance displayed in both Australian dollars and the currency of whatever country they're visiting.

For example, if an Up user is travelling to Spain they can toggle travel mode on, select euros as their desired currency and then see the balance displayed in both (e.g. $500 and €301).

The digital bank also has an in-app currency conversion calculator which customers can use before they make a purchase to make sure that they're not paying more than they want to.

Tip: It may seem counterintuitive, but if you're given the option of paying in your own currency (AUD) or the local currency (e.g. USD) while overseas, paying in the local currency will generally be cheaper. That's because you'll likely be charged a higher exchange rate and fees to convert the purchase.

3. Lower ATM costs

Card purchases may increasingly be king in Australia, but cash is still the preferred payment method in many parts of the world. Even where it's not, having some cash as a backup is still considered a useful option.

Withdrawing cash overseas can be an expensive undertaking though. In fact, it's not uncommon to have to fork over $5 or $10 in fees alone.

That's because the ATM operators themselves tend to charge a fee for each withdrawal, plus many Australian banks will then add their own withdrawal fees, currency conversion fees or international transaction fees on top that.

Not all Australian banks hit their customers with overseas ATM withdrawal fees though. As the table below shows, there are a small number that don't charge any withdrawal or transaction fees to their customers taking out cash with a debit card.

Tip: It may be tempting to withdraw cash overseas using a credit card, but don't forget that in addition to the fees outlined above you'll also be charged a cash advance fee. The withdrawal will also incur interest at the cash advance rate which will kick in straight away given that interest-free days typically aren't available on cash advances.

4. Reduced card transaction fees

Because of the widespread acceptance of payment networks like Mastercard and Visa around the world, it's easier than ever for Australians to take their regular debit cards and credit cards with them overseas.

There is a difference between spending with a card at home and abroad though: international or foreign transaction fees. These fees are charged as a percentage of any in-person or online transaction made overseas, with rates typically around the 3% mark.

A 3% fee might not seem like a lot, but it can certainly add up throughout a trip away. For example, a traveller who spends $5000 on their debit card with a 3% international transaction fee would end up forking out $150 over their holiday.

The good news is that there are a handful of travel-friendly cards that don't have any international transaction fees attached, some of which are outlined in the table above.

Tip: In the habit of making payments with your phone in Australia? It's worth remembering that Apple Pay and Google Pay aren't available in every country, so packing your physical debit or credit card may also be a good option.

5. In-app travel booking

Let's face it, hitting the streets, the beach or the lounger next to the pool are going to be the parts of a holiday people are going to relish the most. But for some, there's enjoyment in actually planning and booking the components of a trip too.

To capitalise on that, the Commonwealth Bank has recently launched its own in-app travel booking feature that lets customers search, book and pay for flights and accommodation for their next getaway.

Perhaps most interestingly, the new service also comes with a couple of handy tools designed to save would-be travellers money.

For instance, users can set price alerts for specific flights which will notify them if a good deal suddenly becomes available, while the price prediction tool can give users insights into the best times to actually book their flights if they've got a bit of flexibility in their itinerary.

Tip: No matter the product or service, shopping around before booking is never a bad idea to ensure you get the best deal. For flights and accommodation it may be worth checking out the various travel comparison websites around, as well as the website of the specific airline or accommodation provider.

6. In-built credit card travel insurance

While credit card travel insurance isn't exactly a new innovation, it's one of those features that some cardholders may forget they're actually entitled to.

Travel insurance is generally available with premium or rewards credit cards, so it's not exactly free if you're paying an annual fee to access it. But given that it can provide cover for cancellations, medical expenses and more, it may be an option that saves travellers from having to take out a standalone policy.

There are a few caveats. First of all, credit card travel insurance may not provide the level of cover that everyone requires. For instance, if extensive medical cover or cover for certain extreme sports is needed, a standalone travel insurance policy may be more appropriate.

Secondly, credit card providers typically require their customers to spend a certain amount of money on flights or accommodation related to the trip with the card before the insurance is actually activated. In some cases customers will also have to contact their card provider to confirm the insurance.

Tip: Most credit card travel insurance will also cover a cardholder's partner and children, though as always with anything insurance-related, it's worth checking each card providers terms and conditions rather than assuming that anything's given.

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