Foreign Exchange – travel cards
A travel card can be an easy and secure way to manage the costs of FX while travelling. They're the travellers cheques of the 21st century. They’re easy to use because you can load multiple currencies onto the card before you go: once loaded, the travel card can be used to pay for items at point of sale, online and where credit cards are accepted.
- sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
Published on 08 Jan 15
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A travel card can be an easy and secure way to manage the costs of FX while travelling. They're the travellers cheques of the 21st century. They’re easy to use because you can load multiple currencies onto the card before you go: once loaded, the travel card can be used to pay for items at point of sale, online and where credit cards are accepted.
Sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
-
Venezuela tension heats up
Duration 03:16
-
Aussie dollar surprises market
Duration 03:10
-
Markets climb as investors watch US healthcare bill
Duration 02:31
This pre-loading means the exchange rate you pay is the rate at the time you pre-load the card, not the rate on the day you make your purchase. This gives you certainty, you know your rate and you don’t have to worry about fluctuating exchange rates. While you’re using the card you're transacting in the local currency, which means you’re avoiding the currency conversion fee common with credit cards and debit cards.
You can manage the card and load currencies while you're travelling, through your card provider’s web portal, although you need to be aware how long it takes for money transferred into the card to clear. Depending on the card, reload times can be immediate or up to three days.
Travel cards can be used like any credit or debit card and are linked into the Mastercard, Visa or AmEx networks. Thus they can be used anywhere overseas where a credit or debit card could be used, as well as at ATMs. Travel cards don’t charge a flat fee for every transaction like some cards do. With a travel card, you may avoid ATM withdrawal fees, EFTPOS transaction fees and currency conversion fees, but you may face an initial card fee, purchase fees, reload fees and even inactivity fees.
Travel card accounts usually come with two cards, one to use as a back-up, which can be very handy if your wallet is lost or stolen. If your card is lost or stolen, your remaining balance can be transferred onto a new card, making travel cards more secure than cash and travellers cheques.
Another potential surprise could be a non-native transaction fee, where the card uses an alternative currency if funds in the local currency are too low.
Travel cards are not linked to your primary bank account, so they do help with controlling your spending. And some cards let you earn frequent flyer points, without having to own a credit card.