Travel Guide

Travel Money

Confused with what currency options to take when travelling?

Read on for our suggestions...

Credit Cards/Visa Debit Cards

• Credit cards or debit cards with credit facilities are obviously a necessary tool when travelling. You don't have to make a trip to a bureau de change to exchange funds or carry around large amounts of cash.

• We recommend avoiding Debit cards where possible while travelling. As it's your money if it gets lost and the bank suspends your account what will you do? Keep your money in your savings account and use the banks credit whilst travelling and transfer funds to pay it off as you go along using internet banking. That way, if the card gets lost all your lose access to is your credit and not your actual funds.

• Exchange rates for credit cards are always less favorable than the rate you see on the nightly news, bear in mind that's the market rate you often see is for huge transactional volume so always budget on a 3% lower rate for currency spread taken by financial institutions.

• We recommend using your credit cards for the larger transactions while travelling; hotel bills, souvernirs, shopping and restaurant bills. With a credit card you are protected from fraudulent use should your card become lost or stolen as long as you contact your bank as soon as you become aware of the situations.

• Banks will generally charge a currency exchange fee, find out in advance how much and minimize the amount of transactions where possible.

• For locations of ATM's which accept your credit card check out the visa or mastercard website to ensure there are ATM's near by. One of our travel experts once went to Japan to find out there are very few ATM's except at post offices and city banks and it can be very difficult to get cash out without travelling considerable distance.

Debit/ATM Cards

• When overseas, you can use your debit/ATM card to pay by EFTPOS in New Zealand or use an ATM around the world if your card carries a "PLUS" or "Cirrus" logo. You'll find them in hundreds of thousands of locations. We recommend to check the fees of your account before travel, if it's over $5 per transaction to withdraw funds you can do better.

• If you find that your bank ATM card charge high fees check out the ANZ, Commonwealth or Travelex prepaid travel cards. Fees are lower but factor in the ~1% fee to transfer funds to your account but this is generally charged by banks in their currency spreads as well.

Travellers Cheques

• Traveller's cheques are a thing of the past. Forget them for now, it's too hard to find a place to change them and who can be bothered when there is an ATM on every corner in most countries.

Cash

• Most currencies are available through your local bank or outlets such as Travelex. If you can't obtain the currency of the country you are travelling to, take an internationally accepted currency with you, generaly US Dollars is best.

• How much to carry? That's a very good question. Generally we think it's good to have between $50 and $150 on you depending on the situation. Always arrive in a country with $70-100 to cover a snack on arrival or in transit, a cab fare just in case your transfer doesn't arrive and some money to buy emergency supplies should you lose your wallet or your bags don't arrive. Never carry $0 cash on you.

• How to carry your cash? For most countries we suggest a money belt over the money pouch [the one that goes over your neck]. A money belt is much more inconspicuous, never flash around your money. It's a good idea to still carry an empty wallet with $5-20 to destract potential muggers or pickpocketers, that way you have something to give them and they [hopefully] won't hassle you for your watch or money belt.

So, all in all it's best to carry a few forms of currency options. During the day take 1 card and some cash in your money belt and secure the rest in the hotel safe in case you get mugged or lose your money belt/wallet you have another card and more cash at the hotel.

* This advice is of a general nature. Please take into account the general safety concerns of the destination you are travelling to. See smartraveler.gov.au for more information.