Starting from 27 November 2024 members will notice changes to the way foreign currency transactions on Visa cards will be processed and displayed.
For many years, transactions involving multi-currency conversions (foreign currency converted to US dollars and then to AUD) have incurred a 3% fee. This fee is applied when the transaction is converted to AUD. While this fee has been disclosed in Australian Mutual Bank’s Fees & Charges and Transaction Limits brochure, the specific calculation has not been itemised on cardholder account records.
In addition to these multi-currency conversions, Visa also processes transactions in a single currency (where the purchase is made in AUD from an overseas merchant) and dynamic currency transactions (where the merchant allows the cardholder to decide the currency of purchase, and the cardholder chooses to pay in AUD). For these transactions, Australian Mutual Bank is charged a fee which has not been passed on to the cardholder.
To improve transparency and align with emerging industry standards, we are transitioning to a new fee structure.
Here are the key changes:
- Multi-currency transactions: the 3% fee will continue to apply, but the fee will now be itemised on cardholder’s account.
- Single currency and dynamic currency transactions: the same 3% fee structure will be applied to these transactions. Previously, no fee was charged to cardholders for these transactions, but under the new fee structure, a 3% fee will be introduced.
- Improved transparency: all fees will be separately listed on cardholder’s account records as "Int Tran Fee", allowing for greater transparency.
This foreign currency transaction fees applies to transactions in:
- Foreign currency, once converted to AUD; and/or
- AUD (or any other currency), when either the merchant or its financial institution/payment processor is located or registered overseas.
The process of conversion and the exchange rates applied will be determined by the relevant merchant, ATM, or dynamic currency conversion service provider. Australian Mutual Bank does not determine whether a card transaction will be converted into local currency by the merchant or ATM, and you may have to check with the relevant merchant or ATM provider.
Please note:
- Even if an online shopping website ends in ‘.com.au’, the business or its bank might be located overseas, potentially incurring this fee.
- Some overseas merchants and electronic terminals may also charge a surcharge for using your Visa card, which will appear on your statement as part of the purchase price.
- Some merchants may offer the option to convert the transaction value into AUD at the point of sale (Dynamic Currency Conversion). Once confirmed, the exchange rate applied cannot be disputed.
- The fee will only apply when you transact with a merchant or payment processor located or registered outside Australia*.
If you have any questions or need further clarification, please don't hesitate to contact us on 13 61 91, 8am - 7pm Monday to Friday and 8:30am - 11:30am on Saturday (Sydney NSW local time) or via email info@australianmutual.bank.
*Note: It may not always be clear that the merchant or its financial institution / payment processor is located or registered outside Australia.
