Is your bank quietly draining your savings? Learn how Aussies lose over $600 million in sneaky fees!
- Replies 9
As the chill of winter tightens its grip, many Australians are packing their bags and setting their sights on warmer, sun-drenched destinations abroad.
The allure of escaping the cold for a bit of adventure or relaxation is strong, but it seems there's a hidden cost to these overseas escapades that's taking a significant toll on our wallets.
Recent research conducted by ING has brought to light a startling figure: Australian travellers have collectively lost upwards of $600 million to international transaction fees, averaging nearly $100 per person.
The study, which spanned the last 12 months, found that a whopping 81 per cent of Aussie globetrotters relied on their debit or credit cards for spending while abroad.
Yet, a mere 15 per cent were aware that swiping their cards overseas could rack up additional fees.
Matt Bowen, the Head of Consumer and Market Insights at ING Australia, expressed concern over the widespread lack of awareness regarding these sneaky charges.
‘Our research shows that a huge number of Aussies are getting hit by those hidden international transaction fees,’ he pointed out.
‘That’s why it’s important that Aussies confirm with their banks ahead of time what fees they may be subject to while on holiday.’
The implications of these fees are not trivial. Imagine what an extra $100 could mean for your holiday budget—that's the equivalent of about 15 Aperol spritzes, three hearty meals of steak frites or paella, or a delightful 23 scoops of gelato to cool you down under the Mediterranean sun.
For many Australians, saving for an international getaway is no small feat.
Researchers said saving up for a two-week holiday in Europe could take nearly two years, with nearly a quarter of those surveyed admitting that such a trip would significantly strain their finances, ‘setting them back heavily in their savings goals’.
Holidaymakers are going to great lengths to fund their travels, from taking on second jobs or side hustles to selling clothes and other unused items.
Some are even willing to endure the winter chill without heating to save a few extra bucks.
When it comes to budgeting for a European vacation, the expectations and realities don't always align.
While the anticipated cost for a two-week trip is around $10,000, most travellers are only willing to part with about $8,000.
The bulk of this budget is allocated to flights and accommodation, followed by food, drinks, and experiences.
The survey also highlighted the top five most expensive European cities, reminding us that location plays a significant role in the overall cost of a holiday:
‘While the costs of a European summer may feel daunting for many, Aussies can make it a reality down the line with the right mix of smart budgeting and a conversation with their bank,’ he advised.
Australians were advised to verify potential fees with their banks before travelling and consider banks like ING that provide rebates on international transaction fees.
The issue of hidden international transaction fees is a significant concern for Australian travellers, with many losing substantial amounts of their savings.
On top of these unexpected costs, the recent hike in passport prices is adding to the financial strain, leaving many Aussies rethinking their travel plans.
However, there are ways to navigate these challenges and minimise expenses, ensuring your holiday remains affordable and stress-free.
Have you been affected by international transaction fees? Which is your favourite Europe destination? Do you have some tips for going on holiday to another country? Share your experiences and tips in the comments below!
The allure of escaping the cold for a bit of adventure or relaxation is strong, but it seems there's a hidden cost to these overseas escapades that's taking a significant toll on our wallets.
Recent research conducted by ING has brought to light a startling figure: Australian travellers have collectively lost upwards of $600 million to international transaction fees, averaging nearly $100 per person.
The study, which spanned the last 12 months, found that a whopping 81 per cent of Aussie globetrotters relied on their debit or credit cards for spending while abroad.
Yet, a mere 15 per cent were aware that swiping their cards overseas could rack up additional fees.
Australians are reportedly losing around $600 million in international transaction fees, averaging nearly $100 per person. Credit: Shutterstock
Matt Bowen, the Head of Consumer and Market Insights at ING Australia, expressed concern over the widespread lack of awareness regarding these sneaky charges.
‘Our research shows that a huge number of Aussies are getting hit by those hidden international transaction fees,’ he pointed out.
‘That’s why it’s important that Aussies confirm with their banks ahead of time what fees they may be subject to while on holiday.’
The implications of these fees are not trivial. Imagine what an extra $100 could mean for your holiday budget—that's the equivalent of about 15 Aperol spritzes, three hearty meals of steak frites or paella, or a delightful 23 scoops of gelato to cool you down under the Mediterranean sun.
For many Australians, saving for an international getaway is no small feat.
Researchers said saving up for a two-week holiday in Europe could take nearly two years, with nearly a quarter of those surveyed admitting that such a trip would significantly strain their finances, ‘setting them back heavily in their savings goals’.
Holidaymakers are going to great lengths to fund their travels, from taking on second jobs or side hustles to selling clothes and other unused items.
Some are even willing to endure the winter chill without heating to save a few extra bucks.
When it comes to budgeting for a European vacation, the expectations and realities don't always align.
While the anticipated cost for a two-week trip is around $10,000, most travellers are only willing to part with about $8,000.
The bulk of this budget is allocated to flights and accommodation, followed by food, drinks, and experiences.
The survey also highlighted the top five most expensive European cities, reminding us that location plays a significant role in the overall cost of a holiday:
- Paris (76 per cent)
- London (75 per cent)
- Rome (55 per cent)
- Venice (41 per cent)
- Amsterdam (32 per cent)
‘While the costs of a European summer may feel daunting for many, Aussies can make it a reality down the line with the right mix of smart budgeting and a conversation with their bank,’ he advised.
Australians were advised to verify potential fees with their banks before travelling and consider banks like ING that provide rebates on international transaction fees.
The issue of hidden international transaction fees is a significant concern for Australian travellers, with many losing substantial amounts of their savings.
On top of these unexpected costs, the recent hike in passport prices is adding to the financial strain, leaving many Aussies rethinking their travel plans.
However, there are ways to navigate these challenges and minimise expenses, ensuring your holiday remains affordable and stress-free.
.png){kind=icon}
