Australian travellers at risk of ATM fee rip-offs according to new data from Wise

The analysis, which explores the impact of third-party charges from banks and ATM operators, places Vietnam in pole position, with the average transaction costing a whopping 27.1%. This is followed by Argentina (20.5%), Colombia (16.66%), and Indonesia (10.91%).

The news comes as Vietnam experiences an Aussie travel boom, with the Australian Bureau of Statistics’ reporting a 20% year-on-year increase in short-term visitors1, according to the latest data. And Indonesia, remains the most popular destination for Australian tourists overall, accounting for 15% of all resident returns.

As the upcoming school holidays and Christmas break approaches, Aussie travellers should be on the lookout for fees which can become a significant drain on holiday budgets.

Tristan Dakin, ANZ Country Manager at Wise said, “Given the relatively weak spending power of the Australian dollar in Europe and the US currently, more Aussies are looking to locations such as Vietnam and Indonesia for cost-effective getaways. While this can be a smart move, it’s important to consider the intricacies of spending in each region, and avoid getting caught out by overly expensive ATM fees.”

He continued, “That said, if travellers need to use ATMs, there are ways to ensure it's done as cost-effectively as possible. Tips include looking for bank-operated ATMs, that offer clearer fee disclosures, making fewer, larger withdrawals rather than many small ones, and being sure to select local currency rather than AUD when withdrawing cash, to avoid higher mark-up rates.”

While ATM fees are higher in some regions than others, it’s important for Aussies to consider fees, no matter where they may be heading. As another recent report by Wise and YouGov2 shows, 90% of Australians are still using payment methods that come with other hidden fees, regardless of ATM usage.

This includes common pitfalls such as exchanging cash locally before travelling (52%), and using expensive bank-issued debit (38%), credit (38%) or pre-pay travel cards (25%).

Dakin continued, “ATM fees are an important consideration, but it’s just one of many costs when it comes to spending abroad. While cash withdrawals may be cheaper in the US and Europe when compared to Vietnam, general costs are likely to be much higher, once currency considerations have been factored in.”

“Regardless of where people travel, one of the best ways to save is by avoiding cards with hidden fees. Many banks use inflated exchange rates to mask their charges, claiming to offer 'fee free' foreign transactions, that in reality, are much more expensive than the true mid-market rate you would find on Google.”

 

 

* Most popular travel destinations data sourced from the Australian Bureau of Statistics