New research has revealed that Australian travellers are being routinely stung by hidden fees when using bank-issued cards overseas, with 78% reporting unexpected charges on their return.
Wise, the international money app, has launched its Shear Madness Index in collaboration with YouGov, uncovering widespread frustration among Aussie holidaymakers who unknowingly fall prey to a mix of foreign transaction fees, currency loading charges, inflated exchange rate markups, and even weekend surcharge penalties.
It comes as nine in ten Australians rely on cash converted at the airport or debit cards while abroad - but most remain unaware that these options often come with significant hidden costs.
"The Big Banks have been pulling the wool over Aussies' eyes for years, sneaking in hidden fees that would make a ram blush," said Anhar Khanbhai, Wise's Chief Anti-Fleecing Officer.
"They're making a mint off people's hard-earned holiday money, and this type of baa-d behaviour is shear madness that needs to stop."
The findings show that Australians are growing increasingly frustrated.
Around 70% say they feel fleeced not just by foreign exchange practices, but also by broader travel experiences - ranging from misleading restaurant recommendations to overpriced tourist activities.
Two-thirds of Australians have been blindsided by hidden fees while travelling, prompting over a third to consider switching providers, while another third say they've warned others on social media.
For Sydney-based executive Matthew, these charges added up quickly. As a frequent traveller, he was unknowingly losing up to $4,000 per year due to what he describes as "sneaky hidden fees and poor exchange rates" tied to traditional bank cards.
"That's more than 666 pints in London, 266 pub meals in Glasgow, or even 2000 missed Portuguese tarts in Lisbon," he said.
Since switching to Wise nearly two years ago, Matthew has joined over a million Australians using the platform's debit card, which allows users to convert 40 currencies at mid-market rates - the same seen on Google - with no additional fees or markups.
According to Wise, their card is up to 85% cheaper to use abroad than those offered by major banks.
Khanbhai added, "We're bringing sheep to Bondi to ram home the message that Aussie travellers deserve transparency and this upcoming travel season they should have absolutely zero tolerance for all kinds of financial and travel fleece-ery."
To highlight its campaign, Wise will host a Fleece Free FX pop-up event at North Bondi Surf Life Saving Club on Friday 30 May and Saturday 31 May.
The event will feature live sheep, free yoga sessions, giveaways of fleece-themed merchandise, educational challenges on how to avoid travel fees, and complimentary 'flocktails' served by Bondi local bar Glory Days.
The Shear Madness Index also sheds light on generational travel habits.
Sixty-six percent of Gen Z respondents admit to adopting a "YOLO" (You Only Live Once) approach to spending at airports—one of the riskiest times to exchange money.
Meanwhile, 72% of Gen Z use social media to plan their trips, but 81% report feeling misled or disappointed by what they find.
Restaurants top the list of travel let-downs, with 70% of Australians saying they've been overcharged or misled while dining abroad. One-third said the quality of food did not match the price, raising broader concerns about the reliability of travel recommendations found online.
Other key findings include:
- 61% of Australians feel fleeced by airport currency exchange rates.
- 69% report paying more than locals - the so-called 'tourist tax.'
- Nearly 60% of Australians now say they will be more cautious with travel advice sourced from social media.
With the peak travel season fast approaching, Wise is urging Australians to be more informed and vigilant when managing money overseas.
"Financial transparency should be the norm, not the exception," said Khanbhai.
"Aussie travellers work too hard for their holidays to be taken for a ride by hidden fees."
