TransferWise, the global technology company making it easy for Aussies to spend in multiple currencies at the real exchange rate, is celebrating a $2.6m savings milestone by launching a campaign urging Aussies to take a look at how they could be throwing money away on hidden bank fees.
In just one year after launch, Australian customers using the TransferWise Platinum Debit Mastercard have saved $2.6million (over $7,000 a day) in fees while shopping online with overseas retailers and on international travel (pre-pandemic). The saving is in comparison to the same purchases using their bank issued debit or credit card.
To expose just how much consumers could be wasting on hidden fees, TransferWise conducted research revealing a large portion of consumers that are aware of international card charges but are not intent on finding solutions.
One-third (35 per cent) of consumers know they could be charged lower fees with a different card provider but will not change their spending habits, while 55 per cent simply refuse to online shop with international retailers in order to avoid transaction fees entirely. The research also revealed:
- Over half (57.7 per cent) of Australian shoppers claim to know which fees their bank is charging them, however when pressed further to describe what these fees were, 59.6 per cent answered incorrectly. 61.2 percent are not even fully aware of currency conversion fees when it comes to spending overseas. A concerning statistic, given one fifth of Aussies (20.1 per cent) plan on travelling as soon as international travel restrictions ease up.
- Despite hidden transaction fees affecting so many Australians, 17.4 per cent admitted they don’t bother to investigate unexplained fees being deducted from their account after shopping online and 15 per cent review their bank statements every 6 months or less.
- In addition, only 27.6 per cent correctly identified the average percentage mark-up banks charge on international purchases and one in four (24.1 per cent) of Aussies believe there are no fees associated with using their bank card for shopping overseas. A further 37 per cent have never compared an exchange rate from an overseas retailer to the rate on Google.
Both the ACCC and MP Andrew Leigh have recently sounded the alarm on exorbitant fees and hidden exchange rate mark-ups charged by banks when Australians spend in foreign currency, claiming that consumers deserve to know exactly what they’re paying for when they send money overseas.
TransferWise is encouraging banks to be fully transparent with their customers and disclose exactly how much they’re charging in exchange rates as a fee upfront. The global technology company enables its customers to save money by removing any hidden transaction fees and high exchange rates when spending overseas or on international products.
Tim Cameron, TransferWise Australia, Country Manager, said: “In just one year, our Aussie customers made substantial savings by ditching their bank cards and using the TransferWise card instead.”
“Getting the most out of our finances is more important than ever. We may not be travelling right now, but Aussies still face significant fees when purchasing from international websites. Whether it’s a new pair of shoes from your favourite UK retailer, or a Bintang in Bali, each transaction adds up and we want every Australian to be aware of exactly what they’re paying for.”
“If you are the 57.7 per cent of Australians that are aware of hidden fees, our question is, why would you put up with that? Especially when there are solutions out there to give you back your spending freedom.”
Fees to watch out for when paying in a different currency using your bank card:
- Foreign transaction fee – Even if you pay in Australian dollars, most banks charge what’s known as a foreign or international transaction fee if the retailer is outside of Australia. If you have a Visa, Mastercard or American Express credit/debit card with any of the big four banks, you’ll be hit with these international transaction fees which shows up on your statement after you purchase.
- Currency conversion fee – While some debit or credit cards won’t charge a foreign transaction fee, a hidden cost you won’t know about until it happens is the currency conversion charge. Credit and debit card issuers will often charge you a transaction fee of 3-3.5% of your purchase in order to convert your Australian dollars into the currency used by the retailer.
Since COVID-19, more than half of Australians (56 per cent) have reduced their spending and saved money. But many Aussies also proved their ability to save one item more than any other: toilet roll. To celebrate this first birthday of its Platinum Debit Mastercard, TransferWise showed Aussies how to save another much-loved item: cash.
Encouraging Aussies to $*it and Think About where they’re spending their hard-earned cash, TransferWise unveiled a vault in Sydney’s Circular Quay housing 2,500 loo rolls, for one day only (30th September). Lucky passers-by had the opportunity to score not only some free toilet paper, but randomly placed rolls which also included a wad of cash – $145 – reflecting the average saving each Aussie TransferWise Platinum Debit Mastercard holder made in hidden international card charges over the past year.
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