How to avoid conversion fees while paying for stuff overseas?

Riczter on 19/01/2013 - 13:37

So I'm travelling to Hawaii next month (woo). I was just gonna take my Westpac debit mastercard, and withdraw cash from ATMs as needed, and pay for stuff on the card as needed.

Where am I going to accrue conversion fees?

I'm guessing everytime I use the card I will, and every time I use an ATM I will AS WELL AS a surcharge for using a non westpac ATM. Right?

So is there anyway to avoid these fees? I could just withdraw $5k and take it as cash, but that's just asking for trouble.

I've heard of travel cards, but have no idea what these are or how they work. I'm guessing its just a U.S. Credit Card with U.S. funds on it?

Any other options?

Travel

Comments

  • boomramada on 19/01/2013 - 13:46
    +2

    Get a 28 degrees or City Bank Plus? credit card. Just read the terms and condition before use it, I'm using the 28 Degree card, haven't had no issue when I used it in Hong Kong.

    Google it for more information.

  • Riczter on 19/01/2013 - 15:00

    28 Degrees Card looks good. Any one have any information on the travellers cards?

  • ViperAMD on 19/01/2013 - 15:07
    +2

    28 degrees card is legit, best card out!

  • Foxtail on 19/01/2013 - 15:34

    Can also use travel cash cards from most banks and Aust. Post.

    • Riczter on 19/01/2013 - 16:25

      These are just like prepaid mastercards hey? So whats the pros and cons of these compared to the 28 degrees card (excluding things like the 28 degrees shopper price protection). Do they cost more in transaction/conversion/annual fees? How would you add value to a travel card over seas? You'd need to go online to transfer money i guess…

      • tonester on 19/01/2013 - 16:43

        pros

        lock in forex rate

        cons

        worse forex rates, fees for forex conversion/transaction and adding extra value to card

    • r3volt on 19/01/2013 - 16:38

      Are these just pre loaded with a currency of your choice? I would get a 28 degree card but being self employed i really cant be bothered spending time going through the all the forms they will require.

  • tonester on 19/01/2013 - 16:39

    avoid westpac $5 withdrawal fee by using bank of america atms
    http://www.westpac.com.au/personal-banking/services/overseas…

    also http://www.citibank.com.au/plus for fee-free visa debit

    for fee-free credit, bankwest zero mastercard gold/platinum with free travel insurance or 28degrees

  • Foxtail on 19/01/2013 - 17:57

    That's the thing with Travel cards, can get over the counter, walk out with it, first deposit no fee, rate of any country locked in.

  • m0nkeycheese on 19/01/2013 - 21:51
    +2

    28DEGREES!!!1!1!1!1!11

  • bigticket on 19/01/2013 - 22:13

    I can only post my most recent trip experience to the UK. Used the ING Visa debit card. You don't get ripped off on the conversion rates.
    I withdrew cash only, from ATM's and my TOTAL fees were au$2.50 per transaction.
    If you use card itself, there are other fees, so I withdrew cash to avoid these.
    In the UK, the atm's were fee free. In the US or other countries you would need to add their atm fees on top.
    Been a debit card you are using your own money, and can top up your card from another account just before withdrawing, minimising fraud. A credit card would have a credit limit of thousands of dollars, which smart thieves can grab on to if they obtain your card details
    Its easy to apply for, no credit checks and a quick turnaround if you left things too late.

  • Loz56 on 20/01/2013 - 09:12

    In 2008 I went to Thailand and this is what I was advised to do re spending money. Apply for a Wizard card, which has now changed to a 28 Degrees card, put what ever spending money amount you want onto the card. This gives you a credit balance so you don't come home to a debt. No ATM fees, No foreign exchange rate fee as far as I can remember? Current exchange rate.
    Going to Europe this year and will try this process again. 28 Degrees card does seem to be the best .

    • TrendyTim on 21/01/2013 - 09:40

      My friend did that on his wizzard card a few years ago, then they locked his account when he had left becuase he "didnt sign some form" and lost access to $3000. Also make sure they know your going overseas.

  • heatus on 20/01/2013 - 09:50

    I went to the US late last year and used the Citibank Plus VISA debit. Just loaded it up with some cash and it worked well. I had some issues using my PIN at some places but most of the time could just select credit and put it through without a PIN.

    I drew out 500 bucks US from an ATM over there which actually came through as $480 AUD. Comparatively, I got some money from a bank here before I left and got charged $209 for $200 USD. Keep in mind that the exchange rate was above $1 during this whole period.

    When I got back I just transferred the left over money back to my normal account. I believe this is a downside to the 28 degrees card. Since it's a credit card if you want to use it like a savings card you transfer money to it so you have a positive balance. There is no way to get this money back other than to go to an ATM and withdraw it, which is fine, just a bit moe effort.

    • muncan on 05/02/2013 - 22:36

      Or you can spend all your money out $-)

  • Foxtail on 20/01/2013 - 13:12

    I put 2 grand in a ANZ travel card drew out $500 at a time in USA only paid the $2.50 ATM charge (per time). Its so easy to get on the spot at banks, no going through all the motions of a credit or charge card. as said can top up anytime from bank account. Only pay the interantional rate on the day you put the dosh in (less banks few cents). Amex has a good travel card and exchange rate too.

  • Derrick Crane on 20/01/2013 - 13:45
    +1

    It's a no-brainer - get the 28 Degree Card. Forget about the Travel cards - very expensive option.

  • Foxtail on 20/01/2013 - 13:56

    Lot cheaper than using a credit/debit card, not as cheap as GE 28 deg. though, depends if you wan to go through the motions to get it, I couldn't be bothered. Still have $400USD in it, using in March trip to USA.

  • justinp12 on 20/01/2013 - 14:00

    I recently went to Europe for a month and took a Cash Passport (From Travelex, but backed by MasterCard). Its a prepaid credit card where you can load 8 different currencies on. No fee to open, the only fee for it was $10 to close it, but that is dependent on the branch you close it at, my branch waived the fee. There no charge to withdraw from an ATM, however they charge if you use an ATM in your home country where I believe its something like $3/4. The exchange rate is that of Mastercard, I find they are generally a better rate than the banks or exchange counters. If you run load of funds, you can either BPAY straight to your card, or you can transfer funds from one currency to another online. They give you two cards to the same account, so its perfect if you lose your wallet, don't have to re-order new cards and cancel old, just use the second one and its cancels the first. The only downside I found was if you made a transaction in a currency you didnt have, the processing fee for it was high, I was stuck in Russia and needed to pay a bill. It was equal to $100 but was hit with $7 in exchange and processing fees.

    Have a look at http://www.cashpassport.com/1/en/au1/multi-currency/. Available from any Travelex booth, Flight Centre or Harvey World Travel.

    Have fun on your holiday.

  • Foxtail on 20/01/2013 - 14:16

    The ANZ one is similar, they give you two cards in case one is lost, load up to 8 currencies, your Travelex card sounds better, can this be had on the spot?.

  • MrMaxwell on 20/01/2013 - 15:36

    28 Degrees Mastercard or the Citibank Plus Visa debit card - the only true FEE FREE cards on the Australian market. The 28 Degrees is a credit card so you'll need to deposit some cash to put the card into a positive balance to avoid interest charges, whereas the Citibank Plus Visa debit card is a normal online bank account with Citibank.

    Both these cards will use the daily Mastercard/Visa Forex rate when making purchases OS and no fees (except ATM fees which the ATM charges you at point of withdrawal but usually warns you before charging).

    NOTE: Westpac lets you use Bank of America ATMs in the USA fee free however there are NO BOA ATMs in Hawaii - convenient eh?

    • Riczter on 21/01/2013 - 13:08

      Yea the first thing i did when i heard u could use BOA was to look for BOA branches or ATMs on Hawaii. :( Oh well.

  • bobsi18 on 20/01/2013 - 19:31

    I travel o/s a fair amount, mainly to Asia, but occasionally to Europe/America also. My choice for cards is the Citibank Plus for cash - ie ATM withdrawls, the 28 degrees card for credit card purchases (eg paying for a hotel room) and the ING everyday card as a backup.

    As per the above post, using the Citibank/28 Degs cards means a favourable forex rate and no fees if used correctly. I used to use the 28 degrees card as my cash card (load it up with cash, and use it for ATM withdrawls), but there is some speculation as to whether you would be covered for fraud if something was to happen (search whirlpool for more info). The citibank card works well as an ATM card instead, and it's easy to transfer money into it as you're going if you run low.

    The ING card is a good backup - as mentioned above, it's only $2.50 per withdrawl, considerably less than other options. The first time I went overseas, I was paying $5-$8 per withdrawl, ugh!

  • aim54x on 20/01/2013 - 20:21

    +1 for the 28 degrees card! you may even luck out and not even get charged by the ATM for withdrawal (GE wont charge you for ATM withdrawals, but hte ATM may). Just remember to pad out the card before you withdraw cash otherwise you will start paying interest on the amount straight away.

  • masa on 21/01/2013 - 10:35

    IMHO, the best way is using a credit card. The exchange rate for a credit card is just same as in the market exchange rate, not a bloody ridiculous normal bank exchange rate. Only thing added is 2% or 3% international transaction fee. I just brought some cash when I traveled Europe along with a debit card for a emergency cash use and a credit card. I did all maths and it was the best option. Hope this helps.

  • mariapharm on 21/01/2013 - 21:10

    Don't use your westpac card, I used mine overseas to pay for some hotels in Dec and was charged overseas transaction fee (one was $29!) for each purchase

  • Coops1 on 21/01/2013 - 22:07

    No brainer - 28 Degrees Mastercard.

  • Dollarsandsense on 22/01/2013 - 03:49

    I have travelled a lot through Sth East Asia, USA, Canada and Western Europe. I have used an ANZ Visa frequent flyer standard and later on a Platinum card (they accidentally upgraded me from gold). I would put $1-2000 on it in credit and use that for direct purchases and withdrawals. Off memory withdrawals had a 3% charge and direct purchases were 2% there was no additional $5 fee with these cards.

    I would never carry more than $200-300 (usually a lot less in Asia). Even if I was to pay a $5 fee I would way that up against the risk of losing $1000 in my wallet as I tend to leave a trail of belongings behind me when travelling!

    3 months Travel insurance also is included which can save big $

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