Are Aussies losing out by using credit cards for overseas purchases rather than money transfers?


Are Aussies losing out by using credit cards for overseas purchases rather than money transfers?

A Money Transfer Comparison Study

May

2023

About the study

Money Transfer Comparison commissioned a survey of 1002 Australian adults to gauge whether they prefer to use secure money transfer platforms or credit cards when making overseas purchases or international transfers. Respondents were asked if they would do their research first to find the most cost-effective payment method, and whether they would really use a money transfer platform over a credit card, if the former had no fees or low fees.

The survey respondents matched the geographical and population spread of the Australian population.

pay

What would Aussies rather use when making international purchases or transfers?

Money Transfer Comparison asked Australians if they would either shop around and to find the most cost-effective payment method for overseas payments, or whether they would automatically pay with their credit card.

The survey found that over a quarter (27 per cent) of Australians would normally automatically pay by credit card. Three-quarters (73 per cent) would research the most cost-effective method before proceeding with payment.

When making an overseas payment, would you do your research to find the most cost-effective payment method, or would you automatically use your credit card?
chart

When making an overseas payment, would you do your research to find the most cost-effective payment method, or would you automatically use your credit card?

By age.

While similar proportions of respondents across the age groups would choose to research to find the most cost-effective method before making a purchase, Money Transfer Comparison found that the older the age group, the more likely they are to do their research. For over-55s respondents, it was 77 per cent, followed by 74 per cent of 35-50-year- olds and 69 per cent of 18-34-year-olds.

chart

When making an overseas payment, would you do your research to find the most cost-effective payment method, or would you automatically use your credit card?

By State.

Across the States, similar respondents said they would do their research before choosing to purchase with either a money transfer platform or a credit card. Specifically, 78 per cent of Queenslanders indicated this, followed by 75 per cent of NSW respondents, 71 per cent of South Australians, 69 per cent of Victorians and 66 per cent of West Australians.

chart

Across the States, similar respondents said they would do their research before choosing to purchase with either a money transfer platform or a credit card. Specifically, 78 per cent of Queenslanders indicated this, followed by 75 per cent of NSW respondents, 71 per cent of South Australians, 69 per cent of Victorians and 66 per cent of West Australians.

Money Transfer Comparison asked respondents whether they would continue to pay by credit card, whether private card or business card even if they had known a secure money transfer platform offered lower fees for overseas purchases and transfers. The survey found that almost nine in 10 (88 per cent) Australians would choose to save on unnecessary fees and interest rate charges by selecting the money transfer over their credit card when making an overseas payment. This compares with 12 per cent of respondents who would still choose to use their credit card regardless of the extra fees.

If you knew there was a secure bank transfer platform for overseas money transfers and which charged no fees or lower fees than a credit card, would you use it to make an overseas payment over a credit card?
chart

If you knew there was a secure bank transfer platform with lower fees than a credit card, would you pick a transfer over a credit card for overseas payments and purchases?

By age.

Similar proportions of respondents across the age groups said they would pick the bank transfer if they knew they could save money on fees and exchange rates. Younger respondents aged 18-34-years-old were most likely to do so at 91 per cent. This is followed by 88 per cent of 35- 54-year-olds and 85 per cent of over-55s respondents.


If you knew there was a secure bank transfer platform with lower fees than a credit card, would you pick a transfer over a credit card for overseas payments and purchases?

By State.

Money Transfer Comparison found a similar spread across the States, but a higher proportion (91 per cent) of respondents in NSW would pick the bank transfer to save on fees and exchange rates as opposed to using their credit card when making overseas purchases. Queenslanders (89 per cent) followed closely, then South Australians (87 per cent), Victorians (85 per cent) and then West Australians (84 per cent).

Response
By State (%)
NSWVICQLDSAWA
Yes, I would pick the bank transfer to save money on fees and exchange rates.9185898784
No, I would still choose to use my credit card no matter the extra fees.915111316
chart

Studies you might be interested in:

How Many Aussies Are Ignorant About The Meaning Of Exchange Rates And International Transfer Fees?

Uncover the surprising level of misunderstanding among Australians regarding exchange rates and international transfer fees. This Money Transfer Comparison study dives into the awareness gap, revealing key misconceptions and the actual knowledge spread across the population.

Are Aussies losing out by using credit cards for overseas purchases rather than money transfers?

Discover the financial impact on Australians using credit cards versus money transfers for international transactions. This Money Transfer Comparison study investigates preferences and awareness around costs, revealing the potential savings from choosing more cost-effective payment methods.

Do Australians research lower fees before making international money transfers or purchasing foreign currency?

Assessing the savvy of Australians in financial matters, this study probes whether they seek out lower fees for international transfers and currency exchanges. It unveils a significant proportion that may not be optimizing their financial decisions, shedding light on the potential for better financial education and awareness.

Basic quiz reveals Australians’ lack of understanding on impacts of AUD fluctuations

This study reveals a surprising gap in the understanding among Australians of how AUD fluctuations affect the economy and individual purchasing power. A quiz uncovers common misconceptions and provides a snapshot of the nationwide need for improved financial literacy.

Are Australians saving money on payments?

Investigate the strategies Australians employ to reduce expenses and avoid fees in their payment processes. This study captures the intent of consumers to alter their payment methods in the face of economic shifts, highlighting the proactive steps taken to economize in day-to-day financial transactions.

Are Australians willing to financially help families overseas, despite the rising cost of living?

Examine the willingness of Australians to support family abroad in light of the increasing expenses at home. This survey uncovers the financial commitments Australians are prepared to make to assist their overseas relatives, despite domestic economic pressures.