The truth about travel money cards

LOCKING in exchange rates before an overseas holiday is a significant advantage for travellers but not all travel money cards are created equal. Here’s what you need to know.

Travel Money

LOCKING in exchange rates before an overseas holiday is a significant advantage for travellers but Canstar warns not all travel money cards are created equal.

Canstar research manager Mitchell Watson says it pays for travellers to do their homework and be aware of subtle differences between travel money cards including additional fees.

“Some offer competitive exchange rates but come with higher fees, while others come with lower fees and not as favourable exchange rates,” Mr Watson says.

“Ideally an outstanding-value product offers both low fees and a great exchange rate — a win/win for travellers.” The consumer research and ratings company’s annual travel money cards report has given an outstanding value rating to three of nine products it assessed: Qantas cash, Velocity global wallet and OzForex travel card.

Mr Mitchell says it can be easy while travelling overseas to lose track of currency values and end up paying more than necessary in exchange rates and conversion fees.

“Being able to lock in an exchange rate before you leave the country provides a significant advantage, particularly at a time when the Australian dollar has depreciated in value against most of the world’s other major currencies.

“Locking in that interest rate early gives travellers certainty over their holiday budget at a time when it’s easy to get carried away with your plans and let your guard down — which could cost you.” Canstar says common fees for travel money cards include those for reloads, ATMs, monthly inactivity and the initial card purchase, which can be up to $15.

Travel money cards with good value:

• Qantas Cash MasterCard and Velocity Global Wallet Visa. Canstar says of both (also topped last year): well-priced features, offer frequent flyer points on money spent overseas and in Australia

• OzForex Travel Card Canstar says: relatively straightforward option for travellers who want great value, aren’t looking for bonus incentives