ATM and card strategy for Australia — navigating surcharge culture

Australia is almost completely cashless — tap-and-go is the default payment method. But it has a quirk: merchants can legally add card surcharges of 0.5–2% on every transaction. Understanding this is key to the total cost calculation for spending in Australia.

How card surcharges work in Australia

Australian law (Reserve Bank of Australia regulations) permits merchants to pass on their card processing costs to customers. This typically means 0.5–1.5% for Visa and Mastercard, and up to 2–3% for American Express. The surcharge is disclosed at point of sale — you'll see it on the terminal before you confirm. It applies to everyone paying by card, including locals. It is not a foreign transaction fee — it's separate from your card's forex markup.

ATM fees

Commonwealth Bank, NAB, Westpac, and ANZ ATMs typically charge A$2–3.50 for international (foreign) card withdrawals. Some, like CommBank, may charge more. Standalone ATMs in pubs, casinos, or tourist areas charge A$2.50–5. The Westpac Group and CommBank networks are the widest in Australia.

Best cards: Up and ING Australia for residents

If you're an Australian resident, Up Bank and ING Orange Everyday are the gold standard. Up Bank reimburses ATM fees at any ATM in Australia. ING Orange Everyday reimburses ATM fees after making 5 card purchases per month. For Australian residents, these are definitively the best domestic cards. For international visitors, Wise and Starling (zero forex, just pay the local A$2–3 ATM fee) are the best options.

Minimising ATM use

Australia's card acceptance is excellent across the entire country — even in regional areas. Tap-and-go is universal. Given surcharges are applied to card payments anyway, and ATMs charge A$2–5, the optimal strategy is to minimise cash use wherever possible and pay by contactless. This is one country where the slightly higher surcharge on cards is still better than the cash alternative for most spends.

Key takeaways