Australians lose hundreds of dollars on every international trip through unnecessary currency fees. Airport exchange booths in Japan charge 5–8% markup over the mid-market rate. Standard Australian bank cards charge 2–3% on every overseas transaction. A two-week Japan trip spending AUD $5,000 costs AUD $150–250 in pure fees on a standard card. This guide tells you exactly how to eliminate most of these costs.
The Fee Landscape — What Australians Are Paying
| Method | Typical Fee | On AUD $5,000 trip |
|---|---|---|
| Airport currency exchange booth | 5–8% margin | AUD $250–400 lost |
| Standard Australian bank card overseas | 2–3% per transaction | AUD $100–150 lost |
| Australian bank ATM withdrawal overseas | $5 fee + 2–3% margin | AUD $150–200 lost |
| Wise card or Latitude 28° | 0–0.5% | AUD $0–25 lost |
| Wise transfer (send money) | 0.35–2% depending on currency | AUD $18–100 |
The Two Best Options for Australians
Latitude 28° Global Platinum Mastercard — Best for Purchases
Zero annual fee. Zero foreign transaction fees. Zero currency conversion fees. Accepted everywhere Mastercard is accepted — which is effectively everywhere except a handful of very small local businesses. See our full Latitude 28° review.
Best for: paying for accommodation, restaurants, shopping, transport, and online bookings in foreign currency. Use it as your primary overseas spending card and eliminate all purchase transaction fees.
Limitation: ATM withdrawals are cash advances (interest applies immediately). Use for purchases, not ATM withdrawals.
Wise Card — Best for ATM Withdrawals and Transfers
Wise (formerly TransferWise) offers mid-market exchange rates — the same rate you see on Google. A one-time AUD $10 card fee, then free ATM withdrawals up to AUD $350/month (1.75% after that). Available from wise.com/au.
Best for: ATM withdrawals in Japan (yen), Bali (rupiah), Thailand (baht) where you need cash. Also excellent for sending money internationally.
Limitation: It's a debit card (not credit), so hotels and car hire companies requiring a credit card hold will need your Latitude 28° or another credit card.
The Recommended Two-Card Strategy
Most experienced Australian travellers use both:
- Latitude 28° Global Platinum — for all purchases (restaurants, shops, accommodation, transport). Zero fees.
- Wise card — for ATM withdrawals when you need local cash. Free up to AUD $350/month.
- Your Australian points card — for Australian spending to earn points. Don't use it overseas (2–3% FX fee).
What About Airport Currency Exchange?
Generally avoid airport exchange booths in Australia and overseas. They make money on the margin between the rate they pay and the rate they charge you — typically 5–8% on the Japanese yen, Thai baht, and Indonesian rupiah. The convenience is not worth AUD $250–400 on a typical holiday spend.
Exception: taking a small amount of local currency before you leave is fine for immediate needs on arrival (transport, tips, small purchases). Exchange AUD $50–100 maximum at the airport for initial expenses, then switch to your Latitude 28° card and Wise ATM withdrawals.
Japan — Special Considerations
Japan remains more cash-reliant than most developed countries. Many restaurants, smaller shops, temples, and rural businesses are cash-only. Plan to carry more yen than you would in Europe or the USA. Use Wise to withdraw yen from Japanese ATMs (7-Eleven and Japan Post ATMs accept foreign cards reliably). Withdraw in larger amounts to minimise per-withdrawal fees.
Bali — ATM Considerations
Bali ATMs dispense Indonesian rupiah and most accept Visa, Mastercard, and international cards. However, many local ATMs charge a flat fee (IDR 50,000–75,000, approximately AUD $5–7) per withdrawal regardless of amount. Withdraw larger amounts less frequently to minimise these charges. BCA and BNI ATMs in Bali are generally reliable and have competitive rates.
Europe — Use Your Cards Everywhere
Europe is card-friendly — virtually all businesses accept Mastercard and Visa. Cash is rarely necessary except at very small markets or some rural cafes. The Latitude 28° card works perfectly throughout the EU, UK, and most of Europe. No need to pre-order euros or pounds before departure.
Frequently Asked Questions
Should I exchange AUD to JPY before leaving Australia?
Generally no — airport exchange rates in Australia are poor (typically 4–7% margin). A better approach: take your Wise card and use Japanese ATMs (7-Eleven ATMs are reliable) to withdraw yen at near mid-market rates. Alternatively, a small amount at Travelex in Australia at their online rate (slightly better than airport counter) for immediate airport expenses.
What is the best card for Australians in Japan?
The Latitude 28° Global Platinum for purchases (zero FX fees) and the Wise card for ATM withdrawals. Japan is cash-heavy so budget for more ATM withdrawals than you would in Europe. 7-Eleven ATMs in Japan are the most reliable for foreign cards.
How much cash should Australians carry in Bali?
Plan for AUD $50–100 per day in cash for a typical Bali holiday — more if you're shopping or using cash-only restaurants and warungs. Withdraw from BCA or BNI ATMs for reliable service. Avoid money changers on the street — rates are poor and scams are common. Authorised money changers (look for official signs) have competitive rates if needed.
The combination approach works brilliantly in practice. Use the Latitude 28° for all card payments — restaurants in Tokyo, shops in Bali, transport cards in London — and you'll pay zero conversion fees. Keep the Wise card specifically for those times when you absolutely need cash. In Japan, for instance, many small restaurants and local experiences still require cash, but major hotels and department stores accept cards readily.
Both cards also eliminate the dreaded "dynamic currency conversion" trap. This occurs when overseas merchants offer to charge your card in Australian dollars rather than the local currency. It sounds helpful, but the merchant typically adds a 3-5% markup. Always decline and pay in local currency — both the Latitude 28° and Wise will handle the conversion at much better rates.
Pre-loading foreign currency onto travel cards might seem convenient, but it's generally poor value for Australians. Most travel cards charge loading fees, monthly maintenance fees, and offer exchange rates 2-4% worse than the mid-market rate. The Australia Post Load&Go Travel Card, for example, charges a 5.95% foreign exchange margin — significantly worse than either recommended option above.
Timing your currency exchange can also impact costs, though it's impossible to predict perfectly. If the Australian dollar is particularly strong before your trip, consider using Wise to convert some spending money early and hold it in your chosen currency. The Wise app shows you historical exchange rates, helping you gauge whether current rates are favourable. However, don't overthink this — the savings from using the right cards far outweigh any gains from timing the market.
Regional considerations matter too. In Southeast Asia, cash remains king for street food, tuk-tuks, and local markets, making the Wise card essential. European destinations are increasingly card-friendly, where the Latitude 28° handles most expenses. Always research your specific destination's payment preferences and ATM availability before departing.
For business travellers or those making regular international money transfers, Wise's broader platform offers significant advantages. Sending money to overseas suppliers, paying international invoices, or supporting family abroad becomes dramatically cheaper than traditional bank transfers, which often charge $20-30 in fees plus poor exchange rates.