Editorial note: Forbes Advisor Australia may earn revenue from this story in the manner disclosed here. Read our advice disclaimer here.
A debit card is among the most popular type of payment and, usually, the first card that an Australian will own. It is linked to a specific transaction account, rather than a high-interest savings account or credit account.
Unlike a high-interest savings account, a transaction account doesn’t automatically offer interest on your balance—or if it does it is often a very low rate—and there are usually no deposit conditions. Instead, the money you have on your debit card is the money you use to spend on everyday items such as groceries, petrol, cafes and shopping.
Debit cards are often a good way to spend within your means, considering you aren’t borrowing money that you don’t have, which is often the case with credit cards.
Some 99% of Australians have at least one debit or credit card, with almost half holding both, according to the Reserve Bank of Australia (RBA). In fact, since the pandemic, our use of debit cards in favour of cash continues to climb.
“Card payments made up the bulk of consumer payments, with debit cards accounting for half of all payments and credit cards another quarter,” the RBA noted in its bulletin on Consumer Payment Behaviour in 2023.
Forbes Advisor Australia has researched some of the most popular best debit cards on the market that are linked with everyday transaction accounts. We have compiled a list of our top picks below.
Note: the below list represents a selection of our top category picks, as chosen by Forbes Advisor Australia’s editors and journalists. The information provided is purely factual and is not intended to imply any recommendation, opinion, or advice about a financial product. Not every product or provider in the marketplace has been reviewed, and the list below is not intended to be exhaustive nor replace your own research or independent financial advice. For more information on how Forbes Advisor ranks and reviews products, including how we identified our top category picks, read the methodology selection below.
1
Wise Personal Account
$0 Monthly Account Fees, No Sneaky Transaction Fees.
Take Out Up To 350 AUD in Cash a Month For Free.
Use Google or Apple Pay Straight Away
To determine our pick of the best debit cards for Australians, Forbes Advisor Australia researched and analysed the most popular cards on the market. We considered key factors, including:
We then compared the cards against one another—looking at which cards had higher minimum monthly deposits than others, or how much interest you could earn on a balance.
By comparing these features Forbes Advisor Australia was then able to make an independent assessment of each card and provide it with a star ranking, as seen above.
A Note on Star Rankings
You will note that we have included a star rating next to each product or provider. This rating was determined by the editorial team once all of the data points above were considered, and the pros and cons of each product attribute was reviewed. The star rating is solely the view of Forbes Advisor editorial staff. Commercial partners or advertisers have no bearing on the star rating or their inclusion on this list. Star ratings are only one factor to be considered, and Forbes Advisor encourages you to seek independent advice from an authorised financial adviser in relation to your own financial circumstances and investments before you decide to choose a particular financial product or service.
It’s common these days for debit cards to waive monthly account-keeping fees. Only two of our top picks charged a fee, and in each case, the fee was waived if you meet certain criteria.
However, some institutions still levy fees, and it’s worth finding out if your current debit card does—or if the debit card you’re interested in applying for—will.
Some banks and financial institutions will charge a monthly account fee simply to keep your account active, while others will charge you for transactions, such as internet banking or ATM withdrawals. You may even be charged overdraft fees if you spend more than your card balance, or fees for making deposits or withdrawals at an in-person branch.
ASIC’s Moneysmart site suggests Australians “think about their spending habits” when choosing a debit card.
“For example, if you often use ATMs, choose an account that has low or no ATM fees,” Moneysmart recommends.
Perhaps the biggest hot-button issue regarding debit card fees is the surcharges that many retailers levy at the point of sale. Eftpos transactions are usually 0.5% of the sale, but Mastercard and Visa debit cards are usually around 1%, according to the Australian Competition and Consumer Commission (ACCC). This means consumers are paying an extra 1% every time they pay by card.
Businesses are only supposed to charge consumers the cost of processing the transaction. So if Mastercard charges a small business a processing fee of 0.5%, it is illegal for the business to then charge the customer more than this amount.
However, there are concerns some businesses are charging more than the cost of the transaction, prompting the Australian Government to threaten to ban the charges from 2026, pending advice from the Reserve Bank of Australia (RBA).
While 0.5% may not sound like much, the fees add up. An ABC analysis of RBA data last year revealed Australians are losing $960.26 million—just shy of $1 billion—a year in surcharges when they pay with their cards.
For its part, the Australian government has already stopped levying surcharges on debit card payments for frontline government services at the Australian Taxation Office (ATO) and Services Australia.
Yes, while it is possible to earn interest with a debit card, it’s not always common for regular transaction accounts to offer interest on a balance. In fact, from Forbes Advisor Australia’s best debit card list, only one—Macquarie Bank’s Transaction Account—offered the ability to earn interest.
It’s more common for transaction accounts to be linked to high-interest savings accounts, which then requires cardholders to meet specific criteria each month to earn the highest interest rate on offer.
For example, the ANZ Plus Transaction Account can be linked with an ANZ Plus Save Account. This way customers can receive 4.90% interest per annum on their balance in the ANZ Plus Save Account; the ANZ Plus Transaction Account does not accrue interest.
You can learn more about savings accounts and how to earn interest on your bank balance in our guide here.
Related: Best high interest savings accounts
1
Wise Personal Account
$0 Monthly Account Fees, No Sneaky Transaction Fees.
Take Out Up To 350 AUD in Cash a Month For Free.
Use Google or Apple Pay Straight Away
While debit cards and credit cards are used in a similar manner to pay for goods and services, there are key differences.
Of course, the main difference is that credit cards are a loan of money from your bank or financial institution which must be repaid, while a debit card is your own money that is used up-front. This means when you pay with a debit card, you pay the transaction up front and are not left owing anything. When you pay with a credit card, you are taking on a debt and are required to pay this off before the end of your statement period. If you don’t, you’ll be charged an interest rate and/or fees.
Other differences between debit cards and credit cards include:
Whether or not a debit card or a credit card is best for you will depend on your personal needs and financial circumstances. You can learn more about credit cards here.
Related: Our Pick Of The Best Credit Cards For Australians In 2024
Yes, most debit cards can be used internationally, but check with your financial institution. Some banks won’t charge you for using your card abroad, including for ATM withdrawals and other foreign transactions, however, many do. It’s important to understand the fees and conditions of your debit card if you wish to travel internationally.
A CVV is a three or four digit number on a debit card that helps prevent fraud, and is usually found on the back of the card. CVV stands for ‘card verification value’ and is used to authorise transactions made online or over the phone.
According to Forbes Advisor Australia’s independent analysis, the leading debit card for Australians include Macquarie Bank Transaction Account, HSBC Everyday Global Account and Up Everyday Account, among others. The best card for you will depend on what you’re looking for—zero foreign transaction fees and multiple currencies may be important for global roamers, but for those after a basic account then zero ATM fees may suffice.
While Eftpos remains popular in Australia, it is increasingly being replaced with point-of-sale systems that usually levy higher surcharges. What’s more, Eftpos must be accessed by an in-store Eftpos machine, but debit cards can be used online for store purchases.
The information provided by Forbes Advisor is general in nature and for educational purposes only. Any information provided does not consider the personal financial circumstances of readers, such as individual objectives, financial situation or needs. Forbes Advisor does not provide financial product advice and the information we provide is not intended to replace or be relied upon as independent financial advice. Your financial situation is unique and the products and services we review may not be right for your circumstances. Forbes Advisor encourages readers to seek independent expert advice from an authorised financial adviser in relation to their own financial circumstances and investments before making any financial decisions.
We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes Advisor provides an information service. It is not a product issuer or provider. In giving you information about financial or credit products, Forbes Advisor is not making any suggestion or recommendation to you about a particular product. It is important to check any product information directly with the provider. Consider the Product Disclosure Statement (PDS), Target Market Determination (TMD) and other applicable product documentation before making a decision to purchase, acquire, invest in or apply for a financial or credit product. Contact the product issuer directly for a copy of the PDS, TMD and other documentation. Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved or otherwise endorsed by our partners. For more information, read our Advice Disclaimer here.
