Large purchase overseas - looking for advice

devpress on 29/03/2013 - 23:44

Hi all - firstly hope you're all having a great Easter weekend :)

I'm going overseas shortly and am looking for some advice on payment options for a large purchase I'm looking to make.

The purchase amount is about $11k. I already have a 28 Degrees card, but the limit is $6k.

Apart from applying to have the credit limit increased, what are the better options in terms of covering the shortfall?

Some options I've considered:

  • Putting it on my other Australian credit cards — but I'd then have to wear a 1-2% FX fee
  • Paying by cash — then I'd have a massive bulge in my pants (well I already do, it'll just be even bigger. :)
  • Taking a pre-paid debit card (which I understand you can also fix the exchange rate upfront?)

Collective wisdom of the community would be much appreciated!
cheers

Travel

Comments

  • XoiThit on 30/03/2013 - 00:48
    +4

    Pump some money (say $5k) to your 28 Degrees card (via BPAY) before making the purchase. It worked for me once.

    • RockyRaccoon on 30/03/2013 - 01:18

      thats the go.

      Or can you prepay your purchase with a $5K deposit now, then pay this down just before you leave, which is similar.

      Keep in mind that you will need more if you want to use your card os for other transactions.

      You can also set up a post dated transfer of funds via bpay into your 28 degrees card so that the funds are there to cover the purchase(s) when you expect to make them instead of prepaying before you go.

  • zambuck on 30/03/2013 - 07:44
    +1

    One observation regarding taking the money with you out of the country:

    There is no limit to the amount of currency you can bring in or out of Australia. However, you must declare amounts of A$10,000 or more in Australian currency or foreign equivalent. You must also disclose any promissory notes, traveller’s cheques, personal cheques, money orders, postal orders or other bearer negotiable instruments, regardless of value, if requested by a Customs and Border Protection officer or police officer.

    Couldn't you pre-load your 28 degrees card before you go? ie. if you deposit/transfer $5k into that account before you go, then a transaction for $11k should be approved. Obviously leave some headroom as suggested by the previous reply, and maybe confirm it with them beforehand. I've done that in the past with my bank.

    • devpress on 30/03/2013 - 09:33

      I did actually think about pre-loading (sorry forgot to mention that before).

      However, when I spoke to GE Money about overloading my 28 Degrees card, they strongly advised me against it — they said the card will likely to be flagged as having "suspicious transactions" and subsequently blocked.

      One of the reasons why they do not suggest cardholders overload is that it could be used as a form of money-laundering (which makes sense to me).

      In any case, have others done this subsequently experienced problems with GE Money ??

      EDIT: my concern is due to the amount — if it was for a few hundred $$ then I wouldn't worry, but given its $6-$7k then I'm afraid their system may pick it up ?

      • RockyRaccoon on 30/03/2013 - 16:20

        You seem to know the amount. Do you know where you are buying it from?

        If so then arrange to put a deposit down - $5K then when that gets charged to your 28 degrees card then pay it off then you have the $6K limit left on the card again.

        Or likewise when you are where you want to buy it, if you have a few days then you can part pay, then transfer money to your 28 degrees so it goes back to zero, then pay the rest of the transaction.

        Only works if you have a few days or say a week for this to occur.

        Alternatively if you have time you can open a citibank plus account and part pay with that. Its a debit card but has exactly the same terms as the 28 degrees card

  • sparkles on 30/03/2013 - 08:00
    +2

    You might want to let them know this transaction is coming. Something this large coming from OS might be flagged as suspicious and rejected automatically.

    • devpress on 30/03/2013 - 09:33

      Yep absolutely — all of my banks have been duly notified :)

      • RockyRaccoon on 30/03/2013 - 16:23

        I do that regardless, so 28 degrees can note that on their records, I have never been declined os when I do this. I let them know time leaving time back and countries visiting. each time they say thats a good idea.

  • plowry1977 on 31/03/2013 - 08:58

    Using banks/credit cards for such a large payment will mean incurring high fees I imagine.
    I use CurrencyFair for making international payments. Great concept which involved an exchange for people wanting to exchange currencies. Minimal fees as you website charges only $4, you get great rates and no conversion fees. Been using for over 2 years

  • goyourself on 31/03/2013 - 17:59

    This was almost a decade ago but I had a HSBC account in Aus, I was working overseas and wanted to purchase a car so i went into the HSBC overseas, they accessed my aus HSBC account and I could withdraw the sum i needed. All i paid for a small fee and fx. It was pretty seamless actually.

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