Hi all,
Looking to spend a few weeks in Europe soon, and was wondering what the consensus was on the best FX card that allowed you to take cash out/spend locally, but by pre-converting first.
I.e. I want to know how much each transaction is costing me and not just rely on whatever rate is prevailing at the time.
Anyone had any good/bad experiences with any product?
Looking to load Euro and GBP on it.
Cheers
Tino
^^this. discussion closed
As a newcomer to the boards, why is this discussion "closed" - I think it is very topical?
Travel money cards make their money off bad exchange rates.
"And it's important to bear in mind that the exchange rate margin – the amount you pay the card provider above and beyond the official exchange rate (aka the mid-market or bank-to-bank rate) – is one of the ways the travel money card providers make money. In fact, it may be the main way."
Source: https://www.choice.com.au/travel/money/travel-money/articles…
Look at the exchange rates for today. CBA for travel money card is selling EURO at 0.6512. Citibank is 0.6753. For $100 AUD, that is already $2.40 more that you've spent with the travel money card (ignoring set up costs, transferring money to the card and any ATM/transaction fees). If you're going for a few weeks, let's say $3000, this is translates to $72.30. Sure by the time you go, the EUR may go down, but even going down 2 cents, you're still ahead. It could go down more, of course. But there's also those other fees you haven't paid. Oh, and it also may go up.
Also note in the article, which I definitely think anyone interested in comparing travel money cards should read, the section "Other travel money options" scares you a bit.
"But you'll have to go to the trouble of opening an account before you travel, and if the overseas ATM is not operated by Citibank, Rams or an affiliated partner, you'll almost certainly be charged a fee by the local ATM operator."
In Europe, many ATMs do NOT charge fees. If you find one that is going to charge you, cancel the transaction and move to the next. I've been in remote European villages with only one ATM, and it didn't charge.
The final section worth noting: "What about money left on the card?". Cards also make their money off inactivity and transferring money BACK to your bank account. Citibank doesn't. It is your account. Use it in Aus. Transfer it all back to your main account. Whatever. It's a normal account. (Though 6 month inactivity and the block the card, but you just call up to reactivate, no issues. just put 1c to the card when you're at coles/safeway every 6 months).
Citibank debit card. Knowing the rate is only helpful when you change the money. You have such a gamble deciding on when to do that anyway. Then when you're away, because you changed it earlier, you'll probably have a better exchange at the time haha.
Citi's rates and lack of fees are generally so much more beneficial than "locking in a rate". Those cards tend to cost too much in conversion or withdrawing or even opening the card.