If you are planning an overseas adventure, you might be wondering how you can access your money without paying high fees or losing out to exchange rates. One of the more popular ways these days is to take a debit card. One of the advantages of debit cards is that they can be used reasonably easily for overseas travel, and they can be less expensive than other ways of accessing spending money.

You can pay for things wherever you see a Visa or Mastercard logo and also get cash out at the ATM. And as a debit card is linked to your bank account, you can spend only what’s in your account. No fees, charges or outrageous credit card interest rates.

But not all debit cards are create equal. Some may have extra overseas ATM fees, currency conversion fees or other nasties hidden in the fine print. You’ll need to compare a range of debit cards before heading off travelling to make sure you find one that will suit your spending style.

Things to consider about travel debit cards

There are different types of debit cards in Australia. We have Visa, Mastercard and EFTPOS. They each have different features and fees that can eat into your travel budget.

Visa and Mastercard debit cards are widely accepted around the world, and they offer security features such as chip and PIN technology and fraud protection. You can also make contactless payments with the PayWave and Paypass technology. Depending on who is your debit card provider, you could up for a range of international fees.

You won’t find many EFTPOS cards outside Australia, they’re bank issued debit cards that don’t use Mastercard of Visa. At home they are cheaper to use than Visa or Mastercard debit cards, but when you use them overseas, they’ll more than likely have higher fees for international transactions.

There’s a few questions you’ll need to ask yourself before you book your tickets that will help you choose the best debit card for your travel needs. You should consider several factors, such as:

• – The countries you are visiting and the currencies they use
• – The exchange rates and fees offered by different card issuers
• – The availability and accessibility of ATMs and merchants that accept your card
• – The security and convenience features of your card
• – The balance and transaction limits of your card
• – The customer service and support of your card issuer

Travel debits cards available

There’s no shortage of travel debit cards in the market today. You can see the details in the table below of the key fees that you’ll need to know when travelling.

Debit Card	ATM Withdrawal Fees	International Transaction Fees	Foreign Exchange Markup	Monthly Fees
ING Orange Everyday	Free	Free	0%	$0
Citibank Plus	Free	Free	0%	$0
CBA Travel Card	$5	Free	5.5%	$0
HSBC Everyday Global	Free	Free	0%	$0
Wise Travel Money	Free	Free	0.35% – 1.5% depending on currency	$0

But what about cash I hear you say. Well, taking cash abroad is not always advisable.  In some areas it can be quite safe to take a large amount of money around, and hotels can be a safe place to leave cash, but in many other areas it can be very dangerous.  It is also the case that tourists and business travellers are likely to be targeted by thieves and muggers.

Tips for choosing the best travel debit card

It’s worth noting that some debit cards charge a flat fee or a percentage of the transaction amount for every purchase or withdrawal you make overseas. This can start to add up if you’re making a multitude of transactions in one day. Others waive these fees or offer rebates if you meet certain criteria, such as depositing a minimum amount each month or using a partner ATM network. Your best bet is to look for a card that offers no foreign transactions fees from the table above.

Check what method your card is converting currency. Some debit cards use the Visa or Mastercard exchange rate, which is usually close to the market rate. Others use their own exchange rate, which might be less favourable. If you are paying for something and the terminal wants to convert your currency, you’re usually better off paying in the local currency and letting you card handle the conversion.

As a backup, you could consider getting a prepaid travel card or a digital wallet. A prepaid travel card lets you load up money before you travel in one or more currencies. You can then make purchases or withdrawals in those currencies without paying any fees.

A digital wallet is an app that you link to your debit card or bank account and use to pay with your phone or smartwatch. Some digital banks like Revolut offer low or no fees for overseas transactions and access to better exchange rates.

Other options to consider

The traditional way around this has been to use Travellers Cheques.  These are cheques that are designed to be accepted by both banks and shops in return for local currency.  They are backed by a bank or large travel agency and they are often made out in the currency of the individual.  As these can be tracked more easily than cash they can be cancelled when they are lost or stolen and they can be quickly replaced.

However Travellers Cheques have over the years been accepted by fewer shops.  While they are sill accepted by most banks, this means that a traveller will be restricted to bank opening times and may have to plan their day around these.

Credit cards have recently become more popular with overseas travellers.  As more credit cards are offered by international companies, particularly MasterCard and VISA they are becoming accepted worldwide, no matter which bank, building society or credit union originally issued the card.  VISA is accepted by 29 million different vendors and MasterCard is accepted at 28 million different vendors.  American Express also offers a range of credit cards with a reasonably wide acceptance.

The problem with credit cards is that it can be easy to build up a large credit card balance, particularly as it can be hard to know how much is spent when using foreign currencies.  This is where debit cards have an advantage as they come straight out of the current account.  Unlike EFTPOS cards, credit cards are accepted in most places that debit cards are accepted.

So now that you have your travel money sorted, the only thing left to do is get on the plane and enjoy your trip!