JOIN PROBUS TODAY!
AUS: 1300 630 488    NZ: 0800 1477 6287

How to access your money overseas

20 Feb 2013

When travelling around the world, accessing your money can sometimes cost a fortune, especially when transferring and withdrawing from your personal bank account. Banks charge fees when withdrawing from a rival bank in Australia and that can be up to five times the amount when you’re using an overseas bank. 

If the thought of getting slugged with high fees, simply for withdrawing your cash, doesn’t sound right, there are other options.

Prepaid cards

Many banks offer the service of prepaid cards, even giving you the option to load money in the currency of the country you’re going to. You’re also given the option to lock-in the exchange rate when you load the card, meaning you’re not subject to the fluctuating dollar.

Using a Travelex card is quite popular. The benefits of a Travelex card are, as above, you can load the currency of the country that you’re actually going to, so there are limited, if any, conversion fees. You can also load multiple currencies so if you’re visiting a number of countries, again, you won’t have issues with converting your dollars.

Pre-paid cards can be used in any ATM around the world. Your balance and statements can be checked by going through the relevant website and you can also usually top up your card while you’re online. 

Plenty of companies offer pre-paid travel cards including:

  • ANZ
  • MasterCard cash passport
  • Commonwealth Bank
  • AMEX 

However, some pre-paid cards come with exceptionally high fees so remember to do your research. When it comes to setting up anything new for travel, just make sure you read the fine print and check any extra fees, as sometimes these fees can outweigh any ATM charges you may incur.

Credit cards

There are credit cards specifically designed for overseas travel. Of course, using a credit card gives you the option to pay your trip off slower, but there are always costs involved including interest. 

A credit card is an international medium, so it’s great to use anywhere and it’s always recognisable when it comes to a machine. If you’re connected to a loyalty program, this also means you’ll get points.

However, watch out for the conversion rate and conversion fees employed by your bank. You always pay your bill in Australian dollars, so if what you purchase is in another currency, you’ll be subject to the conversion rate on the day of purchase and the conversion rate of the bank.

Debit cards

The benefit of using a debit card linked to your bank account is you don’t need to worry about transferring money from account to account in order to access it while overseas.

Debit cards take the money directly out of your account and act as an access card at any ATM around the world. Another benefit of course, is the fact that you can link it to VISA or MasterCard and it can be used as a credit card anywhere in the world. This means, you can pay for hotels, food, and entertainment using your own money rather than racking up a credit card bill.

Of course, when it comes to debit cards, you must make sure you have an account with that bank. You’re also not able to lock in exchange rates as the conversion depends on the time you withdraw the money.

When it comes to your money and your travel plans, always make sure you think ahead. If you’re going to take an access card or debit card to withdraw money straight from your personal account, bare in mind the withdrawal fee. This may mean withdrawing more money, less frequently, unless you’re happy to cop the fee. Always make sure you’re keeping an eye on whatever account you use to access your money, whether that’s your personal account or a separate travel debit card account that you’ve set up. And remember to keep track of your purchases.