Spending Overseas

Over the last 12 months I have been researching the best ways to take money overseas.
Here are the best options I have found. These options are suitable and recommended for Australian travelers! 

Exchanging Money

The first option is to convert the money over to the currency/currencies required and take as cash. DO NOT under any circumstances (provided not life or death) exchange money at the airport. The fees there are dramatically different. To get the best exchange rate change in town before you leave or in the town you are staying at.
The problem with cash, if you are going to multiple countries you will need multiple currencies to take. - Not my preferred option but still having a $100 -$200 on you for the journey might be a good idea (snacks and taxi money etc)

Travel Cards 

What is a Travel card?
It's like a debit/credit card that you can pre-load currencies. Just use it like your bank card. You can use it over eftpos or withdraw cash through the ATM.

Most banks have their own travel cards, some are free others you have to pay for.
These are some of the best travel cards that I have found
Note* Both the Virgin's and Qantas cards are free to signup for. Cash Passport is available for purchase (see their website for availability)

1. Virgin's Velocity Card
2. Qantas Frequent Flyer
3. Cash passport

How do they compare?

CANSTAR has analysed cost and features of the cards on offer. This is how the five star-rated cards compare across some of the main categories.

	Qantas Cash	Velocity Global Wallet	Cash Passport
Number of currencies available	11	10	10
Maximum number of currencies able to be loaded onto card at once	11	5	10
Reload fees	Free	Free	Free
Replacement card fee	Free (from July 10)	Free	Free
Secondary Card	Secondary card not available	Free	Free
International ATM withdrawal fee – New Zealand	$NZ 2.50	$NZ 2.50	Free
International ATM withdrawal fee – USA	$US 1.95	$US 1.95	Free
International ATM withdrawal fee – UK	£1.25	£1.25	Free
International ATM withdrawal fee – – EU	€1.50	€1.50	Free
International ATM withdrawal fee – Singapore	$SG 2.50	$SG 2.50	Free
Monthly inactive fee	Free	$1, charged monthly after 12 months of inactivity	$4, charged monthly after 12 months of inactivity
Frequent flyer point earn rate	1 Qantas Frequent Flyer point for every $2 spent in AUD 1 Qantas Frequent Flyer point for every $1 spent in foreign currency	1 Velocity Frequent Flyer point for every $2 spent in AUD 1 Velocity Frequent Flyer point for every $1 spent in foreign currency	None

Source: Canstar Travel Money Cards star ratings report 2014

Canstar's Pros of a Travel Card

• Your travel funds are locked into the foreign exchange rate of the country you plan to visit on the day you pick up the card. So if the exchange rates take a dive while you’re on holidays, you won’t suffer a loss of funds.
• A variety of currencies (such as USD, EUR, GBP, AUD etc.) can be added to your account but you can also make purchases in a different currency and have your funds converted on the fly. This opens up your spending options.
• Your travel card can be used for most standard debit transactions, either online or in store.
• There’s no need to carry around copious amounts of cash or out-dated travellers cheques.
• Withdrawing money is painless at a large number of ATMs across the globe.
• You can keep track of the money left on your card through internet banking.
• If you need a top-up, transfer funds online from your bank.
• Most travel cards come in pairs so you can keep one in your wallet and the other in the safe at your hotel.
• A travel card is not connected to your transaction account so, in the event of skimming or theft, potential losses are restricted.

Canstar's Cons of a Travel Card

• Locking your funds into a certain currency means you miss out in the event of the Aussie exchange rate suddenly spiking.
• A card from your own bank may prove cheaper if you compare your bank’s wholesale exchange rate to the travel money card company’s exchange rate.
• You will be charged a currency conversion fee if you spend in a currency other than what is on the card.
• Travel money cards will not be accepted by a vendor who only deals in cash transactions.
• ATM charges vary across the world and you will be charged for use by ATM network provider.
• Internet banking is not always “real-time” so you could accidently spend over your budget if you’re not careful.
• Cards reloaded by BPAY can take up to 2-3 days for the funds to be credited.
• Some cards charge a fee to refund the unused money after you return home.
• If the card is inactive for 12 months, you may pay a monthly inactivity fee on the remaining balance.
• If your account is inactive and your card expires during that time, you may either forfeit the unused money on the card or the money will be kept in trust until it is claimed.

Credit Cards

Another option is using your credit card. However there can be some hidden fees so it would be best to find out all that information before travelling. 

If you wanted one of the best traveling credit cards you can not go past the 28 Degrees MasterCard. This card is designed with travelling in mind.

It Features:

• No annual fee
• No international transaction fees on purchases
• No currency conversion fees
• 24/7 worldwide concierge service

The best way to use this card is like a travel card, load up your funds before you travel and then you will never have to pay interest (provided you spend only what you have put on). No hassling over transferring funds into each of the currencies.  Unfortunately there is no way to avoid the cash advance fee, but in my opinion it's still worth it.

I think the 28 Degrees MasterCard will be my option this year!!