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Best Foreign Currency Debit & Credit Cards

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.
Updated 7 October 2024 
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:
​Know This First: The Wrong Card Could Waste $100s Every Year
  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.

MoneyHub 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
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 Winner

Flight Centre Mastercard
This specialist travel product offers a 0% conversion fee. The standard Q Mastercard offers a 1.40% fee.
​
Flight Centre Mastercard Review

Best Debit Card

Wise 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

Our Top-Rated Card for Foreign Currency Transactions - The Wise Debit Card

We like the Wise Debit Card because it lets you:
  1. Get the best exchange rates out of any card on the market in New Zealand
  2. Spend abroad and online without hidden fees, and have an app that lets you track all your spending
  3. Convert and hold 54 currencies (and Wise uses the real exchange rate to convert).
  4. Go 'cardless' by connecting your Wise card to Google Pay
  5. Order the card with a low one-off $14 card issue fee

Our 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.

Credit Card and Debit Card Overseas Fees By Bank

To show the difference in dollar terms from the range of options, we should how much spending NZ$250 overseas will get you from popular options offered by banks and challenger providers, as well as PayPal and other options.

Results:
  • For credit card purchases, the Flight Centre Mastercard outperformed all other cards given its 0% overseas currency conversion fee.
  • ANZ offered the best bank deal with its 1.30% overseas currency conversion fee.
  • We found that for debit card purchases, the Wise Platinum Mastercard Debit (previously known as the TransferWise Debit Card) provides the best deal.

The Worst Cards and Payment Methods for Foreign Currency Purchases

Worst Payment Methods for Foreign Currency Purchases

PrezzyCard

Transaction Fee: 3.5%
The PrezzyCard has been discussed in our PrezzyCard guide and given its function as a debit card, we found the 3.5% fee to be the highest fee of any card and close to twice the standard 1.85% fee for credit cards charged by its parent, Kiwibank.

PayPal

Transaction Fee: Up to 4.5%
There is a common misconception that PayPal offers Kiwis a low-cost overseas payment service. In reality, it charges the highest fees of any bank or payment provider. In short, use Paypal for an overseas purchase and you can pay close to three times what Kiwibank credit card costs to process the same transaction.

However, PayPal isn’t transparent with its overseas fees. The total purchase value is not itemised with conversion and transaction fees like some banks do. Instead, you'll get one number - the total price in NZD. In January 2018 we attempted to make three purchases in three currencies; AU$200, US$200 and £200. Each purchase suggested we convert at the PayPal rates of:
  • $1.00 NZD = $0.863415987 AUD vs $1.00 NZD = $0.903787 AUD (Standard rate) - calculating a 4.5% difference
  • $1.00 NZD = $0.664478304 USD vs $1.00 NZD = $0. 0.690856USD (Standard rate) - calculating a 4.0% difference
  • $1.00 NZD = £0.505143878 GBP vs $1.00 NZD = £0.527961 GBP (Standard rate) - calculating a 4.5% difference

The good news is you can still use PayPal AND avoid their foreign exchange fees - see our tip below. 

Note: The above calculation was prepared in January 2018. While currency exchange rates vary, we believe the PayPal margin does not.

Avoid PayPal's Poor Value Exchange Rates With One Simple Click

​If you choose to pay by PayPal, you can avoid these fees and be charged your bank rates by clicking on “convert with card issuing bank”.

​This means that PayPal will charge your bank the foreign currency amount and your bank will charge you its fee (e.g. 0% to 2.80%) of the amount to translate it into NZD, avoiding the 4-4.5% charged by PayPal. 

The only difference you'll see is a foreign currency charge in your card statement and the fees your bank charges.

Card Fees and Foreign Currency - Our View:

  • There is a huge difference between what banks charge for something as simple as making an overseas purchase.
  • ​Among the banks, TSB and Westpac charge 35% higher fees on international transactions than ANZ and Kiwibank’s credit cards (i.e. 2.5% vs 1.30% or 1.85% on the purchase value).
  • Some banks make it clear what the fees are on your statement, while others don't. For example, Kiwibank shows the total in the foreign currency, the exchange rate used, the "Currency Conversion Assessment" fee and the "Foreign Currency Transaction Fee" all as separate items (see the example below). In comparison, the BNZ shows one number - the total price you pay for the transaction. The "Foreign Currency Transaction" and the "Foreign Currency Service Fee" are aggregated in the New Zealand dollar amount, with the rate of exchange shown on your statement for each purchase involving a foreign currency transaction.
  • PayPal and the Prezzycard’s conversion fees are 143% and 89% higher respectively than the lowest available. ​
kiwibank fx credit card charge
Example of foreign exchange charges on a Kiwibank credit card statement, indicating the FX rate, the conversion fee and the transaction fee.

Travel Money Cards vs Bank-Issued Debit and Credit Cards - What's Best?

  • We have extensively researched and compared this, as outlined in this guide.
  • Bank-issued debit and credit cards charge a fee on the transaction value. For debit cards this is around 2% to 2.60%, whereas credit cards are around 1.30% to 2.00%. This is much higher than Wise, which averages around 0.50% on dozens of popular currencies.
  • Travel Money Cards (excluding Wise) have a margin built in to the exchange rates when you top them up from NZD. We estimate this to be around 2% to 3%, which makes them as expensive or more expensive than using a debit or credit card.
  • Our guide to Travel Money Cards has more details, concluding that the Wise Debit card is, by fees and FX rates alone, the only standout product for anyone needing to buy in foreign currencies.

Our Top-Rated Card for Foreign Currency Transactions - The Wise Debit Card

We like the Wise Debit Card because it lets you:
  1. Get the best exchange rates out of any card on the market in New Zealand
  2. Spend abroad and online without hidden fees, and have an app that lets you track all your spending
  3. Convert and hold 54 currencies (and Wise uses the real exchange rate to convert).
  4. Go 'cardless' by connecting your Wise card to Google Pay
  5. Order the card with a low one-off $14 card issue fee

Our 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. For most people, physical cash is likely to be less secure, and since COVID card acceptance is near-universal.
  • 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.

Our Top Ways to Save Money on Foreign Currency Transactions

  1. If you make a lot of international purchases or travel overseas a lot, consider getting a Wise Debit Card. It's the leading New Zealand card. If you prefer a credit card, the Flight Centre Mastercard is an option, although to justify the annual $50 card fee you would need to spend at least NZ$2,700 on overseas purchases every year to make it more economical than a zero annual fee Kiwibank credit card. The Flight Centre Mastercard also runs in a very similar way to the QMastercard - read our review of this product here.
  2. Be aware that banks charge different fees on debit cards vs credit cards. For example, the 1.85% Kiwibank fee is only for credit cards - you'll pay 2.50% for using a Kiwibank debit card on foreign purchases. On the other hand, ANZ now offers 1.30% fee for both their credit and debit cards.
  3. If you use PayPal, you can save big by avoiding PayPal’s own foreign exchange rates and clicking “convert with card issuing bank”. This dodges the 4.00-4.50% fee and brings the fees down to what your bank charges. 

How Much Money Are We Talking About?
  • ​The percentages we’re talking about add up.
  • Buying something for US$600? You’ll be around NZ$10 to $15 better off with a Wise Debit Card than a Westpac credit card for example.
  • These amounts may not sound like much, but the differences always add up over time.

Beyond Credit Cards - Our Top-Rated Debit Card for Travel and Non-NZD Payments - The Wise Debit Card

Christopher Walsh
MoneyHub Founder (and Frequent User of Wise)
Our View:
  • Very few credit cards offer 0% FX fees; the Westpac and Flight Centre Mastercards are the only two.
  • However, the Wise Debit Card is a popular choice alongside any credit card and offers superior exchange rates and low fees for international transactions.
  • Many New Zealanders use it alongside their credit card to manage finances more effectively while getting the maximum value for every NZD. 
  • The Wise Debit card is a popular backup card useful for everyday spending overseas. MoneyHub readers continue to email our research team to explain how useful the app is to review spending and how surprised they are that the fees for spending overseas are so low.​

Why we like the Wise Debit Card:
  • Best exchange rates: Wise offers the best exchange rates in New Zealand per our research, making every NZ Dollar stretch further.
  • No hidden fees: Spend abroad and online without worrying about hidden fees while tracking all your spending easily through their app with the option to convert and hold 54 different currencies.
  • Go cardless: The Wise Card links to Apple Pay and Google Pay.
  • Low setup fee: For a low one-time fee of $14, you can order your Wise card and set it up in minutes via the Wise website or app.
  • Online shopping benefits: Enjoy smooth and secure online shopping with Wise. Approve payments easily and benefit from low fees compared to traditional credit cards.
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