There’s no one size fits all when it comes to travel cards—or any type of debit or credit card, for that matter. Instead, you need to consider your financial habits while abroad to choose the best prepaid travel card to suit your holiday.
This includes (but is not limited to):
- Whether it has the currencies you need for the destinations you are visiting;
- If it doesn’t have the currencies, how much it will charge you for ATM withdrawals in a foreign currency, or to complete transactions in that currency;
- How much ATM withdrawals cost in the local currency, and if there are any limits;
- The amount it costs to order the card and whether there are any account keeping fees;
- Whether you are charged each time you load money onto the card or not;
- Any balance limits, such as if you can only add $10,000 AUD onto the card within a month;
- If you can shop online with the card, or anywhere that it may not be accepted; and
- The accessibility of the card and your balance—does it have a user-friendly app?
Benefits of a Travel Card
There are many benefits to having a prepaid travel card. With multiple currencies on offer, it allows you to save money on having to go to a currency exchange store to exchange AUD for the local currency.
This is particularly important in the post-pandemic world, where many places are no longer accepting cash as a form of payment. Thus, having a card that can pay in the local currency and skip foreign transaction fees that your regular debit or credit card would charge can definitely be a blessing.
As previously mentioned, it can also be a helpful way to stick to your budget while abroad by having all of your funds in one place—even if in numerous currencies. Most travel cards will have a smartphone app associated with them, allowing you to view your balances in real time and make sure you aren’t going overboard with your spending.
There are many other benefits to prepaid travel cards but, since all card offerings are different, it’s best to look at the product disclosure statement of the cards you’re considering to see if the benefits suit you. These could include:
- Locked currency conversion rates;
- Complimentary travel insurance;
- Fraud protection;
- Free reloads; and
- Other travel perks.
Should I Use My Bank’s Travel Card?
It can be tempting to simply choose the travel card that the financial institution you already use offers, as quite a few of them do—including the highly ranked CommBank Travel Money Card or the Westpac Worldwide Wallet.
Unfortunately due to the rise of independent bank travel cards, many of the bigger institutions are winding back their offers. The NAB Travel Card was discontinued in November 2020 for new customers, while the ANZ Travel Card closed in October 2022.
If your bank still offers a prepaid travel card option, then the convenience of using a card offered by the bank you are familiar with can be enticing—and may also come with pitfalls. You may be met with high currency conversion fees, limited currencies to load onto the card, ATM withdrawal charges and more.
A key benefit of using your standard bank for your travel card is often that it allows for simultaneous transfers, therefore helping you out if you need to reload your prepaid travel card in a hurry.
With many other cards on the market offering instantaneous transfers, too—without all the hidden charges—it’s definitely worth shopping around and considering a card outside your usual banking habits.
