Happy holidays: money tips for travellers

by Gillian Bullock, ninemsn Money, November 2008

Travellers cheques or cash were once the only ways to organise your money for an overseas trip. But the arrival of credit debit and prepaid cards have opened up a whole new range of options.

Such cards may well prove easier than having to have your passport at the ready every time you want to cash in travellers cheques. However, there are probably pros and cons with each option.

For many, one of the easiest options would seem to be to just use your regular debit card at an overseas ATM. However, you will be charged for every transaction and you are subject to the vagaries of the exchange rate each time you make a withdrawal.

Nevertheless, Ed Box, head of cards and consumer lending at St George Bank says visa debit and credit cards have become the clear preference for travellers. “Both Visa debit and credit cards are accepted at more than 24 million merchants and more than one million ATMs worldwide,” says Box. “Visa debit cards allow customers to shop with their own money anywhere in the world. The interest free days feature on credit cards help customers to save money on those larger purchases.”

But a downside is that you might lose your card and then it could take time to organise a replacement.

Travelex has a prepaid PIN-protected card called Cash Passport that lets travellers pre-load their holiday fund at the current exchange rate. This means you are not surprised by currency fluctuations and it helps you budget more easily for holiday spending. The Cash Passport is available in US dollars, pound sterling, euros and the New Zealand, Singapore, Hong Kong and Australian dollar. Travelex has recently launched its Cash Passport debit card which allows you to make fee-free purchase at point of sale.

Graham Perry, Travelex regional divisional director of outsourcing, believes the card gives peace of mind over the safety of your holiday spending money. The Cash Passport comes with a second back-up card so your travel plans aren’t interrupted if you were to lose your card.

You can get a Cash Passport from more than 7500 locations including Australia Post outlets, travel agents, selected banks and credit unions. If you run out of money on the card you can top it up in person, online via BPay or by SMS at anytime from anywhere in the world.

Choosing what works for you will depend as much on your individual needs as on your destination. For some, travellers cheques will still be the preferred option…their days are not numbered yet.