Financial

While travelling it is not only the holiday finances that are of concern.
Thought must be given to what is happening at home.
Certainly it is worth considering using direct debit payments or other arrangements while on holiday to avoid any concern of unpaid bills.
Most direct debits and some BPay payments can be arranged online or through internet banking.

Travel Payments

For the holiday itself payments can be arranged through:

  • Travel debit cards are available and can be set up with multiple currencies or have zero fee for currency transfer.
  • Cash in foreign currencies can be ordered online to a local currency exchange outlet for convenient pickup before travel.
  • Credit and Debit cards with electronic chip are more widely accepted overseas now but not everywhere
  • Mobile Phone Payment - Apple Pay, Google Pay etc. Many countries now accept direct payment from mobile phones.
  • Internet banking and card top up is possible while on holidays but use a VPN app when using free wifi in hotels to ensure security!

Remember:

  • BPay can be used to load travel and credit cards but there may be delays from making payment to having cash in a card!
  • Some overseas facilities do not accept international credit cards even if they are 'chipped' types (eg Non-european cards won’t work in some areas in France)
  • Some shops, hotels and service providers will offer to take credit card payment in AUD (Australian Dollars). This is not usually a good deal as the merchant has control of the exchange rate and fees you will pay. Better to take the payment in local currency and take the bank exchange rates.
  • Many smaller businesses still may insist on cash. Merchant fees deter them from using card payments. Make sure you have enough cash.

Travel Cards

Online comparison sites allow evaluation of the different options and performance of many types of travel card.
While local credit cards may be accepted overseas, each payment has an associated foreign currency transaction fee (look for newer cards with zero transaction fees).
A travel card has a single transaction fee when loaded and can have currency conversion done when the currency rates are more favourable.
Cash out at foreign ATMS will also likely result in transaction and foreign exchange fees unless a travel card with local currency is used.
(Some foreign ATMS will still charge a small transaction fee for cash out with a travel cards so take out what you need in few large withdrawals)

Banks and airlines have travel cards available.
The 'best' card changes frequently as this is a competitive area.

Be aware of ongoing fees to keep cards active. Some cards require a minimum level of transaction or a fee to maintain when you have returned from a trip. If you want your card for another trip, check the fees. If you will not use it again check your options for closing the account and reclaiming residual funds, if any.

What is the best way to pay?

This question probably has no reasonable answer. Each individual will have different needs and it is always preferable to be able to use multiple ways of payment when on holidays.
This is because:

  • Some businesses will accept credit cards where others will only accept cash in local currency.
  • If relying on one payment method there is a big problem if the credit card, cash or travel card is lost.
  • Some services (such as car hire) will put a 'lock' on card payment to guarantee payment when the service is delivered. If a card is unexpectedly locked after payment is made it can block further purchases. (this can happen with travel cards)
  • Credit cards charge significant fees for a 'cash advance' if taken from an ATM. This can be a problem if local currency in cash is required. This is not normally the case with a travel card or debit card.
  • Different types of credit card will have differing fee structure for foreign currency transactions. Some are zero fee some charge transaction fees and exchange fees.
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