CASH - Travelling Overseas.

We have come a long way from when we used to only be able to have travellers cheques to be able to have money on our overseas trips. Now-a-days our insurance of having money to buy things has a number of options.

Today we have a number of ways.

1. Travellers cheques
2. Credit cards (able to get cash out)
3. Debit cards (purchases only)
4. Visa Passport Money Card ( where you put your money in and use it like a credit card.
5. Foreign Exchange (Currency of the countries you are visiting)

1. Travellers Cheques.
This method has stood the test of time is still used today. They are probably the mst secure of all methods in that you must provide your passport and sign the cheque in front of the person you are paying.

The down side is that apart from larger stores and hotels, most others will probably NOT accept them,. Certainly markets and taxi’s will not accept this type of ‘payment’

2. Credit Cards
With the explosion of credit cards around the world the credit card has become a most preferred way to transact purchases AND get foreign currency on a needs basis.

While you must ensure it is Maestro capable , the other issue WILL arise where you may need to find a SPECIFIC bank/ATM to transact a cash withdrawal. Most banks fail their clients by telling them their card will be accepted at 20,000 ATM’s worldwide, this is NOT the case. They need to tell their clients WHICH ATM’s will allow them to get cash out.

If you doubt that it is true, try using your Commonwealth Credit card in a Westpac ATM or in another major bank in Australia and see what happens. You will find they do not all accept your card. They have to have an agreement that accepts THEIR card.

The advent of some entrepreneurs in this field have led to ‘independents’ setting up ATM’s who will give you cash out (such as a Casino in Las Vegas as an example) BUT they will charge a pretty stiff fee. (to me anything over $2.00 is a stiff fee)

Be very careful of Money Changers in little glass booths as I was stung in Venice where I withdrew 500 euro’s and got stung 75 Euros in fees. I walked out stunned and did not say a word, but never got cash advance out from these sorts of places since.

You need cash out while overseas? Try any bank or ATM and ask what they charge, it won’t be anywhere near that rip off amount I got charged. If it is a single fee, you might choose to take out a higher amount to stop having to get MORE money out later and be charged yet another fee.

BUT … now a NEW rip off by our friendly helpful banks.  I just was advised that ANY overseas transaction (say paying for a meal in Paris) you will be stung an EXTRA 3% for using it overseas.

SO lets see the charges:-

• Their rip off credit card charge of anywhere between 19% and 23% for the ‘priveledge of using the card.
• Foreign currency exchange rip off at a ridiculous amount (which seemed to net them around 3 cents in the dollar)
• The fee for doing the transaction
• Now the additional 3% for using the card overseas.

Oh and don’t forget the MERCHANT also gets stung up to 5% in fees for selling you their product/Service by creditcard (now you know why more merchants are asking YOU to pay the fee)

When are we going to get a government to stop these rip off banks???

3. Debit Cards
This is a form where it is your money you are withdrawing , but it does have its draw backs.
• one is you really have to find a bank with whom your own bank deals
• they are seldom acceptable at a car hire company and so they would ask you for cash to cover your Collision Damage Waiver.

Also remember even though it is your money, you will still be charged a ‘fee” I mean what would a bank product be without a fee? So ask your bank what the charge is to get cash out

When you withdraw money overseas it will give you that country’s currency the ATM may advise you what the amount is in our currency, but again, ask your bank.

4. Visa Passport Money Card
This is a form of credit card that is gaining popularity in that it is a card that you can put money in to a certain amount. Useful if you are travelling to a place where credit card fraud is prevalent. Your local Travel Agent will have a booklet with information on this type. I would suggest you get one and see if it fits your needs.

Again this has limitations in that Car Rental companies may treat it as if it were a Debit Card. I t has mostly to do with the Collision Damage Waiver section of your car hire

5. Foreign Exchange
People will normally forget this item thinking that they will sort this out after their arrival in a country. Sorry folks but that is a recipe for disaster.

You need to remember that you are landing in a country after a relatively long flight and all you want to do is GET TO YOUR HOTEL. So what? Well suddenly you are thirsty and the vendor at the airport only takes local currency, or the Taxi driver you want to take you to that lovely hotel of yours also only takes local currency. Nope he doesn’t want your Travellers cheques.

I always take the equivalent of $200 Australian in that country’s currency, just for those ‘little’ things that can only be bought with ‘real money’.

Remember that your Licensed Travel Agent has facts and information on this issue which can assist you to make a choice about what your money mix might be.

Lately I have been travelling and needing more Foreign Exchange than before.   I tried my ‘bank” who now not only undervalues your transaction by around 3 cents (exchange rate mentioned is say.93 US cents , they will only give you .90 US cents) AND they will charge you a fee as well.  screwing you over two ways.

Dissatisfied, I looked around and stumbled over our lowly, over worked Australia Post office.

They did a rate with the same sort of hit of about 3 cents , BUT no commission fee.  SO my words to you are … Check out your local post office .. open 5.5 days a week, it may be your best travel currency freind.  They only take a couple of days , ..just like the banks.

From the well travelled staff at Travel Insurance Australia