Travel Cashcards

the last twice I have been away I have used a CBA travel card.

The first time I loaded pounds into it and euro, fantastic no other charges except the initial set up fee.

2 problems I encountered, for some reason when I took the euro out of an atm at St. Pancras the money was taken from the pounds rather than the euros. That could have been a user fault rather than a card fault.

The bigger problem, I used it instead of my usual credit card as security or whatever it is called at the Hotel. They were only suppose to be holding £60 so didn't worry. Unfortunately for me, the stuffed up big time and ended up holding over £300 thus when shopping on my last day I ended up not having access to all my funds. My understanding of the card, was in this situation the money should have come from my euros, instead my payment was declined.

Last time I went away I loaded it all with aud, didn't have any problems - can't remember but guessing their would have been a conversion fee on my withdrawals.

have had a quick look at our statement - besides the $15 reload fee, I can't see any other charges other than the $3.50 cash withdrawal fee. No currency conversion charge etc on shopping paid direct with card.

the advantage being able to load into the currency of the country you will be and getting the best rate.

we have been following the Yen, husband bought travel money a few months back at 94c, which is the best we have ever seen it in the past 20 years. If he had of waited he could have got an even better rate. By the time he eventually travels, if it is back at the usual rate of around 80c, he will be getting a better deal for his dollar than ever before. Then again, if he had left the money in the bank, it may have been earning more interest than the saving.

There is the new Qantas Cash card coming out soon.

I would (if I were travelling), still bring along my debit card/s, plus visa or mastercard debit, and the Qantas cash card.

Qantas cash card, as I see it, and other cash card/s, are not linked to your bank account.

Of course, you have to transfer money from your transaction account, but the card itself is not linked to a bank account. Hard to put finger onto what I mean, but to me, its a plus (asset).

How do you think the banks make money on these Travel Cash card?
They give you less than favourable rates and some even charge you a fee to 'top up' the card.

The only Pro I see with them is that the card is not linked to any of your credit/debit cards so if you lose it they can't milk your normal bank account.

This is not a new question for travellers. What is the best way to handle money when travelling is covered on many websites. Here is the MONEY 101 FOR DUMMIES answer Koalas.

1. When travelling outside your home country, credit and debit cards are the best way to handle your money.
2. Use debit cards for cash withdrawals and credit cards for purchases.
3. Find the best cards available in your home country. That means the cards that charge the lowest fees (ATM withdrawal fees) and lowest exchange loading.

Now here are a few facts that help understand the above. First, almost all banks charge you an exchange loading. PoppyG for example is wrong in thinking her cash card doesn't. They simply don't show you what they charge, it's included in the rate they use.

Banks exchange money at the Interbank Rate. What you want to know is what rate the card you have will exchange at. Generally, you can expect anything from 1-4.5% to be added to that Interbank Rate. Finding out what they will charge is well hidden in the fine print.

Pre-paid cards of any kind are to put it simply, for people who can't get normal debit and credit cards for some reason. ie. lack of credit rating or poor credit rating. They ALWAYS cost you more than a normal card.

Carrying cash, travellers cheques or pre-buying cash before leaving home will ALWAYS cost you more than using the best credit/debit cards.

In the case of Australians, the best Credit card currently (I believe) is the 28 Degrees card. No transaction fees and no exchange loading. http://www.28degreescard.com.au/

Simply put, pre-paid 'cash cards' are indeed for dummies.

I consider myself advised ...

** First, almost all banks charge you an exchange loading. PoppyG for example is wrong in thinking her cash card doesn'

Can't recall saying that, I did say except for the $15.00 reload and the atm charge there wasn't any other charges on my statement.

The advantage or disadvantage is you can lock in an exchange rate. Banks and their exchange rates are not always the best, what I was getting was fair and in my opinion a far better deal than the charges I have previously received on my cc per transaction as an international conversion charge, or whatever they called it.

Amex lists all their fees separately, if you have an Aust issued Amex and use it overseas. Citibank too lists fees separate to purchase details.

Maybe some institutions still don't list their forex fees separately, but its built in into the final rate at the end of each line of foreign purchase/funds withdrawal via overseas ATMs.

Edited by: daycat

daycat, you are on the wrong tram.

Travel cards is the topic not credit cards.