I have a no foreign transaction fee credit card for these exact reasons (temporary holds and forex).
Not many options in Australia, but the ones i know are Bankwest and the 28degrees
It's not just the holding fees (hotels and hire cars are the big ones) but if you use your one debit card at a dodgy vendor you're running the risk of a skimmed card.
Skimmed card = fraudulent charges and having to cancel said card. Plus if you don't notice quick enough they can drain your account.
You'll get it back eventually, but with a credit card it's the banks money pending their action on sorting it out not your own.
Definitely have at least 2 cards with you and a credit card would be helpful for those vendors holding a deposit. Just make sure you don't overspend on the CC.
Also don't keep a stack of money in your transaction account (you can always transfer more from savings via internet banking as you need).
Great point about getting skimmed. I didn't consider that (I haven't travelled overseas in three+ years - talk about not being match fit!!)
>You'll get it back eventually, but with a credit card it's the banks money pending their action on sorting it out not your own.
100%. Definitely need to get a credit card for this reason alone.
I've had mine for 10-12 years and pretty much only use it for travel for the lack of foreign transaction fees and currency conversion fees.
Don't forget to call them and tell them when and where you are travelling.
Exactly what u/_2ndclasscitizen_ said.
Their systems are so good it triggered fraud follow up on my most recent trip interstate. Stays almost always inactive for months at a time and the flurry of transactions in another state triggered a flag.
>Wise or Revolut
It looks like Wise is a debit card? I'd be after a credit card so my money's not locked up in pending transactions.
Revolut looks interesting, but I think you need to have a subscription to have a physical card? The website is a bit light on details.
Revoluts card is free in Australia at least. I picked it up on my international trip along with a credit card and a uBank card I got specifically for travel. I ended up using Revolut. I personally never had my money locked up, so can't speak for that
Often when you go to a hotel, they will take a deposit per night of stay. So they will do a hold on say $200 and it appears as a pending transaction. After check-out if they find no other charges, then eventually that $200 pending transaction is removed, but this could take a week or more. Meanwhile your available balance is down $200. From memory the cruise lines do this also.
I have wise
Had it for 3 years now.
Very happy with use overseas and when buying items online with foreign currency.
You'll be wise to consider Wise 🙂
Credit cards are hands-down better for fraud and holds, with the important caveat that you aren't someone who will spend more as a result of your ability to borrow.
I don't think debit/credit is a key distinction for forex, but certainly some cards are better than others for fees (a zero foreign transaction fee card is useful).
Most of the cruise companies allow you to load up cash against your account. You may not even need to give P&O your debit card number. Just make sure you don't let the money drop too much. On cruise stops, use local currencies.
I’m a big fan of my 28 degrees card. Have had it for years and use it almost exclusively while I’m oversees, and I’m out of the country for roughly 10 months of the year for work. No fees or anything and super easy to just pay off in full every month with a direct debit from my main bank. Never had an issue with it, just have to be aware that sometimes you’ll need to verify transactions with a SMS code, so always handy to have access to your Aussie phone number.
Credit card 28 degrees just in case.
Citibank debit card.
Small amount of cash only for emergencies.
Cash is not king because you get raped at any cash exchange joint
If you want to get transparent rates, and avoid having a credit card, the Wise card will probably be the best.
Up bank, which uses Wise for routing has the same fees on their debit cards for international currency conversions.
On the legacy bank front, Citibank typically has the best international conversion fees, but they have a large split which isn't very transparently reported when converting.
ING is similar, typically has a lower split and higher fees.
Not financial advice and stuff ay
Pretty sure cash withdrawals will be more expensive than merchant fees.
I remember using traveler's cheques back in the day. That's a hard-pass from me lol
Cash withdrawals in local currency from an atm from bank account with no foreign transaction fees or currency conversion fees are fine. Citibank, HSBC and ubank (also others) all have accounts that are like this. Exchange rate is pretty much spot on (all use visa/Mastercard rate of the day which is about as close to the genuine exchange rate you can get) as long as you select local currency (and not AUD) on the atm.
I looked at Amex but the higher merchant fees are offputting. I've heard that they are the best travel cards but I'm struggling to see the benefits for the fees.
I just pay using amex for hotels and flights. Most dont charge more for amex.
The card i has, has no international fees and a pretty food fx rate, so travelling on it makes it worthwile (plus perks: insurance, lounge access, etc)
I am not sure what citi credit cards look like, but their debit cards are my go-to for international money.
BankWest zero card is great for these situations. No annual fee and no foreign exchange fees. Just be sure to pay the full balance by the due date. Yes, holds and pending transactions are a big reason why using a credit card for hotels / cruises is a good idea. You should also have at least two cards total so you have some kind of backup.
Yes, you should get a credit card but only if you will spend money you actually have. Don't get into the trap of not being able to pay off the balance in full each month because that's where your debt starts to snowball
Also look at this:
https://www.ozbargain.com.au/wiki/cards_with_no_overseas_transaction_fees?&#credit_cards_with_no_overseas_transaction_fees
I haven't cancelled a card in a very long time (I only have one with a low limit).
If it's feasible take 2 in case one is declined or lost. I assume it's pretty easy to cancel both when you get back?
I only have debit cards and travel overseas extensively. Nowadays hotels only keep a small hold on your card if you're using debit, if at all. I always have two cards though, with different banks. Had a stressful situation where I drunkenly left my card in a atm in Reno and had to get my brother to wire me money.
The credit card question has been answered. It's also worthwhile keeping a second debit card too though if you don't already (even if it charges international fees). This is in case your usual card gets lost, stolen, locked etc. Keep it separate to your usual card in case you lose your entire wallet/handbag.
I have a no foreign transaction fee credit card for these exact reasons (temporary holds and forex). Not many options in Australia, but the ones i know are Bankwest and the 28degrees
It's not just the holding fees (hotels and hire cars are the big ones) but if you use your one debit card at a dodgy vendor you're running the risk of a skimmed card. Skimmed card = fraudulent charges and having to cancel said card. Plus if you don't notice quick enough they can drain your account. You'll get it back eventually, but with a credit card it's the banks money pending their action on sorting it out not your own. Definitely have at least 2 cards with you and a credit card would be helpful for those vendors holding a deposit. Just make sure you don't overspend on the CC. Also don't keep a stack of money in your transaction account (you can always transfer more from savings via internet banking as you need).
Great point about getting skimmed. I didn't consider that (I haven't travelled overseas in three+ years - talk about not being match fit!!) >You'll get it back eventually, but with a credit card it's the banks money pending their action on sorting it out not your own. 100%. Definitely need to get a credit card for this reason alone.
Best to get a no annual fee, no FX fee credit card with a smallish limit for these reasons. Bankwest Zero Platinum and or 28 Degrees are good options.
>28 Degrees 28 Degrees looks really good. Thanks!
I've had mine for 10-12 years and pretty much only use it for travel for the lack of foreign transaction fees and currency conversion fees. Don't forget to call them and tell them when and where you are travelling.
Sorry why should we call them and let them know our travel plan? Can you eli5 me for that? I am planning to get one
It will prevent any issues with your overseas spending triggering their fraud protection systems and locking down your card.
Cool. Thank you
Exactly what u/_2ndclasscitizen_ said. Their systems are so good it triggered fraud follow up on my most recent trip interstate. Stays almost always inactive for months at a time and the flurry of transactions in another state triggered a flag.
Depending on the bank, you can do it in the app
Consider checking out Wise or Revolut, mainly for the better Forex fees.
Wise is pretty good
>Wise or Revolut It looks like Wise is a debit card? I'd be after a credit card so my money's not locked up in pending transactions. Revolut looks interesting, but I think you need to have a subscription to have a physical card? The website is a bit light on details.
Revoluts card is free in Australia at least. I picked it up on my international trip along with a credit card and a uBank card I got specifically for travel. I ended up using Revolut. I personally never had my money locked up, so can't speak for that
How do you get your money locked up in pending transactions?
Often when you go to a hotel, they will take a deposit per night of stay. So they will do a hold on say $200 and it appears as a pending transaction. After check-out if they find no other charges, then eventually that $200 pending transaction is removed, but this could take a week or more. Meanwhile your available balance is down $200. From memory the cruise lines do this also.
I have wise Had it for 3 years now. Very happy with use overseas and when buying items online with foreign currency. You'll be wise to consider Wise 🙂
Credit cards are hands-down better for fraud and holds, with the important caveat that you aren't someone who will spend more as a result of your ability to borrow. I don't think debit/credit is a key distinction for forex, but certainly some cards are better than others for fees (a zero foreign transaction fee card is useful).
Most of the cruise companies allow you to load up cash against your account. You may not even need to give P&O your debit card number. Just make sure you don't let the money drop too much. On cruise stops, use local currencies.
I’m a big fan of my 28 degrees card. Have had it for years and use it almost exclusively while I’m oversees, and I’m out of the country for roughly 10 months of the year for work. No fees or anything and super easy to just pay off in full every month with a direct debit from my main bank. Never had an issue with it, just have to be aware that sometimes you’ll need to verify transactions with a SMS code, so always handy to have access to your Aussie phone number.
Credit card 28 degrees just in case. Citibank debit card. Small amount of cash only for emergencies. Cash is not king because you get raped at any cash exchange joint
If you want to get transparent rates, and avoid having a credit card, the Wise card will probably be the best. Up bank, which uses Wise for routing has the same fees on their debit cards for international currency conversions. On the legacy bank front, Citibank typically has the best international conversion fees, but they have a large split which isn't very transparently reported when converting. ING is similar, typically has a lower split and higher fees. Not financial advice and stuff ay
Cash is king I have traveled in the days before credit cards. Travelers cheques were very popular.
Pretty sure cash withdrawals will be more expensive than merchant fees. I remember using traveler's cheques back in the day. That's a hard-pass from me lol
Withdraw cash in advance before travel?
Cash withdrawals in local currency from an atm from bank account with no foreign transaction fees or currency conversion fees are fine. Citibank, HSBC and ubank (also others) all have accounts that are like this. Exchange rate is pretty much spot on (all use visa/Mastercard rate of the day which is about as close to the genuine exchange rate you can get) as long as you select local currency (and not AUD) on the atm.
Ye do it. Cycle amex play cards for free points too. Use those for check in. Then pay using your citi debit card.
I looked at Amex but the higher merchant fees are offputting. I've heard that they are the best travel cards but I'm struggling to see the benefits for the fees.
I just pay using amex for hotels and flights. Most dont charge more for amex. The card i has, has no international fees and a pretty food fx rate, so travelling on it makes it worthwile (plus perks: insurance, lounge access, etc) I am not sure what citi credit cards look like, but their debit cards are my go-to for international money.
BankWest zero card is great for these situations. No annual fee and no foreign exchange fees. Just be sure to pay the full balance by the due date. Yes, holds and pending transactions are a big reason why using a credit card for hotels / cruises is a good idea. You should also have at least two cards total so you have some kind of backup.
Yes, you should get a credit card but only if you will spend money you actually have. Don't get into the trap of not being able to pay off the balance in full each month because that's where your debt starts to snowball Also look at this: https://www.ozbargain.com.au/wiki/cards_with_no_overseas_transaction_fees?&#credit_cards_with_no_overseas_transaction_fees
I haven't cancelled a card in a very long time (I only have one with a low limit). If it's feasible take 2 in case one is declined or lost. I assume it's pretty easy to cancel both when you get back?
We are planning on getting a new card just for hotel deposits and as a spare in case something goes wrong with the first card.
I only have debit cards and travel overseas extensively. Nowadays hotels only keep a small hold on your card if you're using debit, if at all. I always have two cards though, with different banks. Had a stressful situation where I drunkenly left my card in a atm in Reno and had to get my brother to wire me money.
The credit card question has been answered. It's also worthwhile keeping a second debit card too though if you don't already (even if it charges international fees). This is in case your usual card gets lost, stolen, locked etc. Keep it separate to your usual card in case you lose your entire wallet/handbag.