Travel cards are prepaid debit cards designed for travel and foreign transactions. You can use these cards to lock in exchange rates and load several international currencies to avoid foreign transaction fees when you spend overseas.
| Travel Money Feature | Prepaid Travel Card | Credit Card | Debit Card |
|---|---|---|---|
| Fees | |||
| No currency conversion fees | |||
| No ATM withdrawal fees | |||
| No initial currency load fee | - | - | |
| Currency | |||
| Pre-load currencies | |||
| Instant reload (no delay) | - | - | |
| Convenience | |||
| Worldwide acceptance | |||
| Emergency cash facility | |||
| Purchase over the counter (EFTPOS) | |||
| Security | |||
| Chip & Pin protection | |||
| Emergency card replacement | |||
| Backup cards | |||
| Account management | |||
| Mobile application | |||
| Online account login | |||
| Rewards | |||
| Reward points for spending | |||
| Frequent flyer benefits | |||
| Promotional interest rates (0% purchases, 0% balance transfers) |
This table is a general summary of the travel money products in the market. Features and benefits can vary between cards.
The best* travel money card for you will depend on your holiday destination, how you plan to use the card and what you can afford. Prepaid travel cards, credit cards and debit cards all have their uses, but the differences lie in their features and fees. As such, many travellers opt for more than one type for greater convenience and security.
Here you can compare the different travel money options available on the Australian market to discover which one offers you the best value for your next holiday.
When you load Australian dollars onto a prepaid travel card, you can transfer them into the supported currencies (such as USD, GBP, Euros and NZD) so that you can spend or withdraw your own funds without the cost of currency conversion fees while overseas. To determine whether a travel card is the right choice for you, weigh up some of the pros and cons below.
The ANZ Travel Card is a prepaid card that can be loaded with up to 10 currencies to make purchases overseas at over 38 million merchants and over 2.3 million ATMs worldwide.
Jeremy stood shoulder to shoulder with locals and tourists, trying to keep his footing as the metro made its way towards the Colosseum. As more and more people packed onto the train, Jeremy lost his girlfriend to the glacial movement of the crowd pulling her towards the back. When he felt a brush against his rear, he was a little surprised but thought nothing of it and put it down to one of those 'packed train moments'. A moment was all the pickpocket needed to steal Jeremy's wallet.
Jeremy got on the phone to his card protection service, Secure Sentinel. A call to this service is supposed to be the 'one stop shop' for cancelling cards, but Jeremy ended up having to call each bank separately, which led to a number of frustrating hours spent on the phone, instead of hours negotiating in Italy's famous tourist traps.
Luckily for Jeremy, he had done his homework. Jeremy is a publisher at finder.com.au, so he knew to get a prepaid card before he left - they come with a backup. To his girlfriend's delight, the backup card saved their trip and they were back on the streets of Rome the next day; albeit with an eye on their pockets. It almost wasn't such a sure thing. Like any smart traveller should, Jeremy had done his research before he left the country and he knew to spread his money between a couple of cards and his girlfriend.
Be like Jeremy and do your homework before you leave.
Enjoy financial security, flexibility and extra features with a credit card. Look for a credit card that is designed for overseas use, preferably one that doesn’t charge currency conversion fees, foreign transaction fees or overseas ATM withdrawal fees. If you have a prepaid or debit card for everyday purchases, you might want to leave your credit card for emergencies. Plus, credit cards come with features like overseas travel insurance, a concierge service and rewards programs that could come in handy on your travel. Credit cards tend to be expensive though, so you can weigh up the costs and the benefits here.
Eligibility criteria, terms and conditions, fees and charges apply
The Bankwest Zero Platinum Mastercard offers 0% foreign transaction fees, complimentary insurance and no annual fee.
Travel debit cards draw funds from a savings account and enable you to access your funds whilst overseas and manage your budget. The advantages of using a debit card can include international ATM alliances and no withdrawal fees, no currency conversion fees on foreign transactions and access to your savings.
Comprehensive guide to using debit cards overseas
Holding a certain amount of cash/foreign exchange provides convenience and payment flexibility for your travelling needs. It is commonplace to exchange a practical amount of currency in Australia for when you land (for taxis, travel tariffs, food etc) to ensure a smooth transition into your new holiday destination.
Knowing how the Australian dollar (AUD) has performed against the foreign currency in the past few years and the months where it typically peaks will enable you to secure the best exchange rate for your foreign exchange transaction. Our travel money guides will inform you on some of the ways to access cash and ATMs worldwide.
Travellers cheques were once a widely used form of travel money, but they’re going the way of the dinosaur. You can weigh up whether they’re worth your time below:
How a travellers cheque could still work for you
Considerations to keep in mind
A cross currency conversion fee is charged when you use your Australian card with Australian dollars to make a purchase in a foreign country. The money is exchanged from Australian dollars into the local currency electronically.
Banks who have international ATM alliances will allow you to withdraw cash for free. Westpac have one of the largest ATM alliances out of any Australian Bank. Global lenders like Citi and HSBC have a number of ATMs worldwide, and Citi do not charge for international ATM withdrawals. So if you're a Citi customer looking to use your card overseas, head to a Citi ATM and all you'll pay for the withdrawal is the currency conversion fee.
Although this method of loading travel funds is rarely disclosed in the banks terms and conditions, loading your credit card into a positive balance can avoid the cash advance interest rate.
As smart travellers have continued to use this method, banks have made changes to their fees and charges. The following fees may still apply when you load your account into credit:
Many premium credit card issuers will offer complimentary travel insurance as an added bonus for successful applicants. The decision on whether to go with this complimentary cover or to purchase a standalone policy will really come down to your cover requirements and budget. While the cover provided on credit cards may not offer the same comprehensive level of cover as that from a travel insurance issuer, you may already have other cover in place from other insurance and feel that your trip requirements don't need the cover options available on standalone policies. Either way it's important to compare the benefits available from both options and get a clear understanding of the exclusions for payment. The last thing you need when travelling is the nasty surprise that you are not actually covered for losses in the event that you need to make a claim.
Compare credit cards with free international travel insurance
If you have a travel card that has an inactivity fee (a fee that's charged every month when your account is inactive for a period of time), you will lose any remaining funds on the card, but your account won't go into a negative balance. Once the card has no funds left on it, this fee will not be charged.
The eligibility requirements will differ between policies, but a general rule is that you have to pay for a percentage of your prepaid travel expenses with your card or by simply logging into your account online and activating the policy with your trip details (departure date, travel destinations etc). Once you've done this, you're automatically covered under the policy agreement — although keep in mind that each policy has a list of exclusions that you should check before travelling.
Usually the most practical solutions aren't the most appealing to the eye. Travel money belts keep your money and important valuables/ documents safely tucked in acompartment under your shirt to minimise the risk of theft and loss. If security and peace of mind is your first priority when travelling and you don't mind a piece of fabric strapped around your waist, then investing in a travel money belt will protect your travel money cards and important valuables.
Compare Anti Theft Bags and Gadgets to protect your important items
Hi,
I am going to Russia is a couple weeks time and I would to known that if I load my 28 degree Platinum Mastercard card with Australia dollars, do I still have to pay any fees for withdrawing cash from ATM?
Many thanks!
Hi Kia!
Thanks for the comment.
The 28 Degrees Mastercard doesn’t charge for international ATM withdrawals, but ATM withdrawals may have a fee of 3% of the cash advance or $4 (whichever is greater). Local ATM operator fees may still apply too. This will be advised prior the transaction.
You can read our guide right here.
Hope this helps.
Cheers,
Jonathan
We are currently holidaying in Bali. Before leaving we loaded our GE 28 Degrees Platinum Mastercard so it was in a positive/credit balance. We have done this on previous holidays & it worked perfectly for us.
This time we are being charged a Cash Advance Fee everytime we withdraw money from an ATM.
Is this correct, even though its our own savings & not technically a cash advance?
Hi Franndon,
Thanks for your question.
If you have preloaded money into your account, you will still incur a cash advance fee of 3% of the amount your withdraw or $4 (whichever is greater), even if technically it is not a cash advance. Also, third party ATM operators may charge a fee.
Cheers,
Anndy
I am going to live in England for about 18 months or more and have CBA credit cards and debit cards. I will be wanting to withdraw money regularly and also use credit card, which would you recommend?
Hi Julie,
Thank you for your inquiry.
Unfortunately, we cannot recommend what is best for you. Our company finder.com.au is a financial comparison website and general information service designed to help consumers to make a better decision. Please note we do not represent any company we feature on our pages.
With Commonwealth Bank, MasterCard credit cards are accepted in millions of locations all over the world. Use your card to shop online, make purchases over the counter and withdraw cash from ATMs everywhere MasterCard is accepted.
I hope this information has helped.
Cheers,
Harold
I am travelling to the US and Canada do I need to take US and Canadian money or convert US dollars while in the US to visit Canada. Would the exchange rate be higher in the US than purchasing Canadian dollars in Australia.
I am looking for the easiest way to travel without carrying a lot of money on me.
I have a velocity mastercard which I can load with my own money or would a Travelex travel card be a better way to go.
I do not know whether to buy now whie the US dollar is around .76 or wait closer to the time when I leave.
Hi Linda,
Thanks for your question.
When you travel overseas, it would be best to bring a combination of cash and card for your needs.
Unfortunately, we can’t tell if the rate in the US is higher than in Australia when purchasing Canadian dollars. We also cannot forecast the movement of US dollar rate in the coming weeks.
In regards to having a Velocity Mastercard, since you did not mention the full name of the card, I am unable to check its complete features and fees. Generally, credit cards charge foreign currency transactions fees while Travelex Travel Money does not charge currency conversion and international ATM withdrawal fees.
You may check our travel money guide to Canada on this page for more information.
Cheers,
Anndy
I’m travelling from Australia to Argentina then NY and LA. what are the best options for travel cards when a credit card or any kind of loan is out of the question?
Hi Steve,
Thanks for your question.
If you’ll be spending most of your time in the US, you may compare your travel card options here.
Alternatively, you mentioned going to Argentina. Our travel card comparison page for South America can be found on this page.
Cheers,
Anndy
Hi im going to the UK and europe i have a travel card i tried to get a 28degree credit card just for a backup but was denied I have a visa card but i don’t want to use it because of all the fees .what i want to know is would it be cheaper to transfer $2000 from my commonwealth credit card and put it in my commonwealth travel card while im still in australia and when i come back if i haven’t used the $2000 transfer back to the visa card
Hi Donna,
Thanks for your question.
When transferring a balance/money from a credit card to another account, that would be treated as a cash advance, so most likely, you’ll be charged cash advance fee and interest on your credit card.
So in this case, if you will load your CBA travel card with funds from your CBA Visa credit card, then the CA fees and interest will be applied to your credit card.
Cheers,
May
Hi Coming from UK to AU soon would i get a better rate taking sterling ? Regards Brian.
Hello Brian,
Thank you for your question.
Since your destination is from UK to AU you may find this article useful.
Cheers,
Harold
Going to china / sth Korea
Lots of travel cards don’t lock in these 2 currencies some have Chinese currency only. Think better getting cash. Which site is best for updated cash currencies comparisons. Many institutes state can match a retail quote if done same day . Thanks
Hi Jon,
Thanks for your question. You can compare your travel money options for your holiday using our China travel money guide and South Korea travel money guide.
Unfortunately, no travel cards currently support the Korean Won, so you might want to consider a prepaid travel credit, credit card or debit card that doesn’t charge currency conversion fees.
I hope this has helped.
Cheers,
Sally
We are traveling to italy london canada n usa
I was looking at going with Quantas travel card as there are rewards points but it didn’t show if there are other chargers
Can you help us please
Hello Robyn,
Thanks for your question.
You may access the Qantas Travel card by visiting this link https://www.finder.com.au/qantas-cash-card you will able to see and find out what this card can do for you as well as the currency they support. We have also included the fees for your convenience.
I hope this helps.
Cheers!
Chester
IF yo
Hi, I am flying to Hawaii in two weeks and need to decide the most cost efficient way to take money. Can you advise me please.
Regards Susan
Hi Susan,
Thanks for your question.
As a financial comparison service, we can’t provide you with recommendations for any specific products or strategies. However, we can provide you with the information you need to compare and make the right decision.
Currently, the local currency of Hawaii is the US dollars. Fortunately, almost all Australian prepaid travel cards currently support US Dollars. This means you could load your card with Australian dollars then move it into your US Dollars currency wallet and avoid currency conversion fees when making purchases and withdrawals in Hawaii. When you move your Australian dollars into US dollars, they’ll be locked into the exchange rate that’s in place at the time, so your funds won’t be affected by fluctuating exchange rates while you travel. You can then top up your card with more funds via the online account while you’re travelling, giving you an easy way to access your own cash overseas.
As most travel money cards support US dollars, you might want to compare cards based on the load and reload fees (which will be charged when you load Australian dollars on your card), ATM withdrawal fees and any other perks such as rewards or online account features.
Otherwise, you can also compare debit cards and credit cards that charge low or no currency conversion or foreign transaction fees. As Visa, MasterCard and American Express are all widely accepted in Hawaii, you should have no trouble using these cards on your holiday.
I hope this has helped.
Cheers,
Sally