Spend your own money. Compare your travel card options for your next holiday.
Trending Travel Cards
- ANZ Travel Card - A travel card allowing you to lock in currencies.
- Qantas Cash - Earn points on your overseas and everyday spending.
- Travelex Money Card - $0 dollar fees at ATM's overseas.
- NAB Traveller Card - You can lock in up to 10 currencies with this pre-paid travel card.
How do prepaid travel cards work?
A travel money card is a convenient way to access your travel cash while you’re on holiday. There are three main types of travel cards available in Australia: prepaid travel cards, credit cards and debit cards. This guide focuses on prepaid travel cards and their benefits.
Prepaid travel cards
How it works: Prepaid travel cards let you lock-in exchange rates before you travel. This type of travel card allows you to budget more effectively, by knowing exactly what exchange rate you have secured and how much money you have on the card. Why you should consider a prepaid travel card.
- Lock-in exchange rates. Preload and secure your exchange rate before you travel
- Multiple currencies. Load up to 10 popular currencies for with prepaid cards
- Fewer fees.
- No fees for currency conversion
- No fees for ATM withdrawals
Things to consider when choosing a prepaid travel card.
- Currency availability. If you are travelling to multiple destinations, some of your currencies might not be supported
- Lower exchange rates. Lock-in exchange rate from the bank is lower compared to physical foreign exchange (cash) and credit cards
What additional benefits come with prepaid travel cards?
There are a number of different prepaid travel cards on the market. They can be broken down into the following categories.
Prepaid travel cards with frequent flyer points.
The Qantas Cash travel money card allows you to earn Qantas Points when you use the card to make eligible purchases. The Global Wallet from Velocity, functions in the same way, only rewarding you with Velocity Frequent Flyer Points. Points are awarded for eligible purchases, which are your usual everyday transactions. You won’t earn points on cash transactions like ATM withdrawals. These cards couple the convenience of being able to spend without being charged international fees with rewards points earning. There are other products on the market that offer rewards and frequent flyer points when you spend, but these cards may also attract currency conversion fees, which negate any real value of rewards or frequent flyer points.
How to compare prepaid travel money cards
The main fees to look out for include:
- Initial load fee. Depending on the card, you might be charged a fee (such as a percentage of the loading amount) when you first load funds on the card.
- Reload fees. If the card doesn't charge an initial load fee, it may charge another fee each time you load funds on the card. If this is the case, you might want to reconsider how often you reload the card.
- ATM withdrawal fees. Some cards will charge a different ATM withdrawal fee depending on where you're withdrawing your cash. If the bank provider belongs to an ATM alliance, you might be able to avoid ATM withdrawal fees from the issuer. It's important to note that local ATM fees may still apply.
- Inactivity fee. An inactivity fee is charged if you don’t use the card (usually after 12 months) and there’s money remaining on the account.
- Currency conversion fees. Charged when you make a purchase overseas.
When comparing travel money cards to find the right one for you, check the available currencies on the card. Find a card that will allow you to load the currencies of the countries you plan to visit. If you spend on a currency not loaded onto the card, you will be charged for currency conversion. Remember that each type of travel card has its own pros and cons to accessing currencies, so travellers often take a combination of prepaid, credit and debit cards for convenience.
In terms of receiving the best exchange rate, you can either pre-load currency or withdraw when you arrive at your destination.
- Prepaid travel cards. Allow you to pre-load and secure your currency. Whilst the exchange rate may be considerably less favourable than the market rate, you are safeguarding yourself from receiving a worse exchange rate closer to your trip.
- Credit and debit cards. Provide you with the exchange rate set by the card network (Mastercard, Visa) when you withdraw. This exchange rate is much closer to the market rate compared to prepaid travel card rates. To find out the exchange rate provided by your network on the day, simply google the "network + exchange rate + currencies" e.g. Mastercard exchange rate AUD to USD.
Pros and cons of prepaid travel money cards
- Spend like a local. Prepaid travel cards allow you to preload multiple foreign currencies onto the card at a time. Spend in a currency loaded onto the card and you avoid a fee for currency conversion.
- Backup card. Designed specifically for travel (and the mishaps that happen when you’re travelling), prepaid travel cards come with a backup in case the first card is lost or stolen.
- Manage your travel budget. Reload the card when you need funds. The exchange rate is locked in. This protects you from movements in the exchange rate and also allows you to budget down to the last dollar.
- Travel card fees. As convenient as these accounts are, they do come with fees and charges. Fees are usually charged when the card is first issued, when you first load the account with funds or when you reload the card with funds. Inactivity fees and ATM fees are also common among different travel money cards.
- Exchange rates. It’s worth having a look at the exchange rates offered through travel card products. Often, travel card issuers will have a different exchange rate for travel cards.
- Reloading time. Typically, BPAY is the easiest way to reload your account with funds. BPAY transactions can take up to three business days for the transaction to process. It can take up to six days for the funds to clear in your account when you factor in Australian bank holidays and weekends.