Common credit card fees and ways to avoid them

How to avoid credit card fees

It important to know what types of fees apply to your credit card. Some fee types, like annual card fees, can’t be avoided. Other types of fees, like late payment or cash advance fees, won’t be charged if you’re smart about how you use your credit card. Credit card fees can add up, so you want to minimise them however you can.

Annual fee

Most credit cards charge an annual fee which varies depending on the type of credit card you've got.

Typically, the more features a card has, like rewards points and insurances, the higher the annual fee. If you've got a premium card and don't use its features, it might be a good idea to switch to a lower-fee card instead. Compare our credit cards. 

Cash advance fee and interest

Spotted a cash advance fee on your credit card statement and wondering how to avoid it?

A cash advance fee is a one-off fee charged when you withdraw cash or transfer funds from your credit card.  Gambling or gaming-related transactions and other cash-like purchases, such as value loaded on a pre-paid card or payments of utility bills over the counter at other financial institutions and post offices, are also classified as cash advances.

A cash advance fee is calculated as a percentage of the cash advance (in Australian dollars) or the minimum fee, whichever is greater.

On top of the cash advance fee, you'll also be charged interest on your cash advance from the day you make the cash advance until the day you pay it off. Any interest-free periods won't apply to any cash advances.

For more information about cash advances visit the how to avoid credit card interest page.

Cash advance controls

You can control certain types of cash advances in the NAB app. Learn how to use the app to restrict gambling transactions and ATM cash advances.

Late payment fee

To avoid a late payment fee you need to make – at the very least – your minimum payment by your statement due date. 

You can set up a regular payment or direct debit to avoid being charged a late payment fee. Just make sure you've got enough funds in your nominated account. 

Another way to avoid a late payment fee is to set up a credit card payment reminder alert. We'll send you a reminder email or SMS up to seven days before your payment is due.

If you prefer to make multiple payments each month, you still need to ensure you make at least the minimum payment shown on your statement between when your statement is printed (statement cycle) and your due date.

International transaction fees

An international transaction fee is a fee you're charged when you use your credit card overseas to make a purchase.

It's important to note that you don’t have to be overseas for an international transaction fee to apply. Learn more about international transaction fees. 

Non-NAB ATM withdrawal fees

This type of fee applies to both credit and debit cards. You may have to pay it if you use an ATM other than a NAB ATM. You can use ANZ, Commonwealth Bank and Westpac ATMs free of charge.

Whatever bank or company owns the ATM will charge you this fee. You’ll see the amount onscreen and have the option to cancel your transaction if you want to avoid the fee.

If you withdraw cash from your credit card, you’ll be charged both the cash advance fee and interest, as well as the non-NAB ATM withdrawal fee.

You can download the NAB app  and use it to find NAB ATMs near you.