Best credit card to use in Australia: Top 6 UK picks

Jetting off to Australia from the UK? Whether you’re visiting the bright lights of Sydney or Melbourne, surfing along the Gold Coast or exploring one of the country’s many national parks, you’re going to need some spending money.

If you prefer the convenience of a credit card for overseas spending, but aren’t sure which UK card is best for international use - read on.

We’ve put together an essential guide to the best UK credit cards to use in Australia, including top picks from Halifax, NatWest, Zopa, Barclays, RBS and Bip.

We’ll also show you a travel-friendly alternative - the Wise card. It’s not a credit card but an international debit card linked to your Wise account. You can use it for spending in 150+ countries including Australia, automatically converting your pounds to the local currency at the great mid-market exchange rate, only adding a tiny, transparent conversion fee*.

Learn more about the Wise card 💳

Table of contents
Top picks compared: The best UK credit cards to use in Australia Halifax Clarity Credit Card Barclaycard Rewards Card Bip Credit Card NatWest Travel Reward Credit Card Zopa Credit Card RBS Reward Black Credit Card How do credit cards work in Australia? Is it best to use a credit card in Australia? What to look for in a good credit card to use while travelling to Australia FAQ

Top picks compared: The best UK credit cards to use in Australia

To help you find the best way to spend abroad, here’s our top picks for travel-friendly UK credit cards you can use in Australia:

Card name	FX rate	Foreign currency transaction fees	ATM fees	Interest rate (APR)	Best feature
Halifax Clarity Credit Card¹	Mastercard	None	None	Check eligibility to find out	No ATM fees
Barclaycard Rewards Card²	Visa	None	None	28.9% Interest-free for 56 days³	No ATM fees
Bip Credit Card⁴	Mastercard	None	None	29.9% Interest-free for 48 days	Cardless credit
NatWest Travel Reward Credit Card⁵	Visa	None	3% (min. £3)	27.9% Interest-free for 56 days	Cashback on travel spending
Zopa Credit Card⁶	Visa	None	£3	34.9% Interest-free for 56 days	Easy in-app management
RBS Reward Black Credit Card⁷	Mastercard	None	3% (min. £3)	40.7% Interest-free for 56 days	Rewards on spending

Halifax Clarity Credit Card - Best for withdrawing cash in Australia

If you want zero fees while travelling abroad, the Halifax Clarity Credit Card is a solid choice.

It has no annual, foreign transaction fees or ATM withdrawal fees,¹ although interest on cash withdrawals is likely to start accruing right away. It uses the Mastercard exchange rate for converting currency.

You’ll need to check your eligibility on the Halifax website to see what interest rate and credit limit you’ll get, along with your interest-free period on purchases.¹

Barclaycard Rewards Card - Best for withdrawing cash and cashback on spending

Just like the Halifax Clarity Credit Card, the Barclaycard Rewards Card charges no fees for spending or withdrawing cash overseas. It also has no annual fees. There’s also an extra perk, as the card offers 0.25% cashback on all everyday spending.²

The representative APR for the card is 28.9% (variable)² and you’ll get a 56-day interest-free period on purchases.³ But remember that interest on cash transactions like ATM withdrawals is likely to start accruing right away. The card uses Visa’s exchange rates for converting currency.

Bip Credit Card - Best for cardless credit

Prefer not to carry plastic around with you? You might want to take a look at the Bip Credit Card, which is a digital-only credit card. This means it only lives on your phone - in the Bip app and in your digital wallet.

It’s ideal for people who prefer to pay using their phone, but it could be a little tricky to find a cardless ATM during your trip to Australia.

Along with no annual fees, the card charges no foreign transaction fees for spending or cash withdrawals in AUD or other currencies.⁴

It has a representative APR of 29.9% (variable), a 48-day interest-free period for purchases (none for cash withdrawals) and uses the Mastercard exchange rate for converting currency.⁴

NatWest Travel Reward Credit Card - Best for cashback on travel spending

The NatWest Travel Reward Credit Card is specially designed for spending overseas, which includes Australia. It has no annual fee and no foreign transaction fees on spending, but there is a 3% (£3 min.) fee for cash withdrawals.⁵ It uses the Visa exchange rate for converting currency between GBP and AUD.

You’ll get a 56-day interest-free period on purchases, but interest on cash withdrawals will start accruing right away. The representative APR is 27.9% (variable).⁵

A major perk of this card for overseas use is the cashback it pays on eligible travel-related purchases. You’ll get:⁸

• 1% cashback on flights, trains, car rental, ferries, buses, hotel accommodation, travel agents, cruises, campsites and more.
• 1% to 15% cashback at selected partner retailers.

Zopa Credit Card - Best for in-app money management

The Zopa credit card has no annual fees, and no fees for spending in AUD or other foreign currencies when you use it abroad. However, it does have a cash withdrawal fee of £3 per transaction, which applies whether you’re in the UK or overseas.⁶

You’ll get a 56-day interest-free period on purchases (none for cash transactions) and a representative APR of 34.9%. Currency conversions are carried out using Visa exchange rates.⁶

The card is fully app-managed, with handy in-app money management tools including a Credit Cushion feature, instant spending notifications and real-time balance updates. You may also find it useful to know that Zopa was also named Best Credit Card Provider at the British Bank Awards 2024.⁹

RBS Reward Black Credit Card - Best for spending rewards

Last but not least, the RBS Reward Black Credit Card. It charges no foreign transaction fees for spending abroad, although there’s a 3% (min. £3 fee) if you withdraw cash over in Australia.⁷

You’ll get rewards for everyday spending, including 1% at supermarkets and 0.5% on spending at supermarket petrol stations. Plus, between 1 and 15% at selected retailers, and 0.5% everywhere else.¹⁰

The only drawback is that the card has an annual fee of £84, although this is waived if you have an RBS Premier Reward Black current account.¹⁰ This also has a fee, but it comes with a number of useful travel benefits such as travel insurance and car breakdown cover.

The card has a representative APR of 40.7% (variable) and an interest-free period on spending of 56 days. Interest on cash withdrawals will start accruing right away. The card uses Mastercard’s exchange rates for currency conversions.⁷

How do credit cards work in Australia?

Credit cards in Australia work in just the same way as in the UK. You can use them for spending and cash withdrawals (although this usually comes with a fee, so is best avoided) anywhere that accepts Visa/Mastercard. In many cases, you can make a contactless payment with your credit card.

Anything you spend will be added to your balance, and you need to pay off the minimum amount required before the interest-free period ends or you’ll be charged interest.

If you’re planning on shopping up a storm with your credit card during your trip, you might want to read our guide to VAT refunds in Australia - it could save you money.

Can I use my UK credit card in Australia?

Yes, you should be fine to use your UK credit card in Australia. Visa and Mastercard are widely accepted, although American Express credit cards may not be accepted everywhere.

As you’ll be spending in Australian dollars, you’ll just need to check whether your UK credit card charges any foreign currency transaction fees (also known as non-sterling transaction fees).

If it does, you may be best switching to a travel-friendly credit card, or even a debit card which has no foreign currency transaction fees. Another option is a travel card, one specially designed for spending in AUD.

Is it best to use a credit card in Australia?

Debit and credit cards are widely used and accepted in Australia, especially in bigger towns and cities. But whether a credit card is the best choice depends on what fees your card charges for spending and cash withdrawals in foreign currencies.

If you’re visiting more remote or rural parts of the country during your trip, it could be best to take a mix of cash and cards with you - just in case cards aren’t accepted.

What to look for in a good credit card to use while travelling to Australia

Here’s a quick checklist of things to look for when choosing a credit card for your trip to Australia:

• No foreign transaction fees
• No overseas cash withdrawal fees
• A generous interest-free period for purchases - this gives you plenty of time to make repayments after your trip
• Cashback or rewards on travel or everyday spending
• Decent currency exchange rates - most credit cards use Visa or Mastercard rates, which are known to be pretty good.

FAQ

Do you get charged for using a credit card in Australia?

Your credit card provider may charge you for spending or withdrawing cash in Australian dollars during your trip. You’ll need to check the fees list for your card, ideally before you travel.

The vendor may also add a credit card surcharge - it’s best to ask before you pay.

How do I avoid credit card foreign transaction fees?

To avoid or minimise fees when using a credit card abroad, follow these tips:

• Choose a credit card with no foreign transaction fees
• Avoid cash withdrawals overseas - these usually come with fees
• Always pay in the local currency
• Remember to make minimum repayments before the interest-free period ends.

Is it better to pay in local or foreign currency on a credit card?

It’s always best to pay in the local currency when spending overseas. This will mean that Visa or Mastercard exchange rates will be used, which are usually much better than those applied by the vendor, retailer or ATM.

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That concludes our guide to the best credit card for spending in Australia. Hopefully, this helps you find the one that suits your needs best.

And if you want another option for spending abroad without worrying about exchange rate markups and hidden fees, the Wise card could be a great solution.

Open a Wise account online and you can order the Wise card for a one-time fee of £7. You can use this clever card in 150+ countries, including Australia. It automatically converts your pounds to local currency whenever you spend using the mid-market exchange rate, only adding a tiny, transparent conversion fee* – or it’s free if you already have the local currency in your Wise account.

You also get two free ATM withdrawals for up to 200 GBP (or currency equivalent) each month. Wise will not charge you for these withdrawals, but additional charges may occur from independent ATM networks.

Sign up with Wise for free 🚀

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Sources used:

1. Halifax - Clarity Card
2. Barclays - Barclays Rewards
3. Barclaycard Rewards - Summary Box
4. Bip - Summary box
5. NatWest - Summary box for Travel Reward credit card
6. Zopa - Summary box
7. RBS - Summary box for Reward Black credit card
8. NatWest - Travel Reward Credit Card
9. Zopa - Credit card
10. RBS - Reward Black Credit Card

Sources last checked on date: 21-Feb-2024