Just like Madonna sang, ‘If we took a holiday…it would be so nice.” There’s nothing nicer than taking some time off work, experiencing new cultures and food, or simply chilling out with a cocktail and doing nothing.
But amongst the excitement of packing, checking your destination’s weather and boasting to your colleagues you’re going overseas, many of us forget about our most important travelling companion, money.
Here’s how to access your money overseas:
1. Pack a credit card.
If you don’t already have one, a credit card can make a great travel companion. From booking hotels to flights to even a spontaneous scuba diving course, paying for bigger purchases on a credit card can make things a whole lot easier – especially as most hotels require a credit card for a security deposit during your stay.
Plus, it’s a lot more secure than using cash – and if anything does go wrong, your bank can’t replace the cash but they’re more likely to be able to help with your credit card.
Travel tip: Don’t use your credit card to get cash out at an international ATM. You’ll get charged an international ATM usage fee, cash advance fee, and be charged interest from the moment you withdraw the money.
2. Make room for cash.
Street food, local markets, tipping or perhaps a tuk-tuk ride – for smaller purchases you’ll need cash. It’s also part of the fun using foreign money and wrapping your head around a different currency.
Ordering foreign currency before you jet off is a great way to help ensure you get a decent exchange rate. You’ll find hotels and airports have higher commission fees and their exchange rates often aren’t competitive, so you’ll get less for your hard-earned cash. Foreign travel exchange stores can exchange your Aussie dollars for most international currencies.
Travel tip: When sight-seeing, never take all your cash with you. Securely lock away what you don’t need in your hotel room’s safe or locker.
3. Remember your debit card.
Overspent at the pool bar and need some extra cash? This is when your everyday debit card comes in handy – they’re ideal for withdrawing cash from ATMs or paying for things when you don’t want to use your credit card.
Most debit Mastercards™ are accepted across the globe and because you can only spend what’s in your account, you won’t come home to any nasty bill surprises.
Travel tip: When withdrawing cash from a foreign ATM, you could be charged three fees – an international ATM withdrawal fee, currency conversion fee and international transaction fee. So, you may want to get enough cash to last you a week, not a day.
4. Should you bring a pre-paid travel card?
If you don’t have a credit card or don’t feel comfortable backpacking with your everyday cards, a pre-paid travel card could be a great option. You can use a travel card like you would a debit or credit card, but with your own prepaid funds. Easily swipe or tap in-store, use online and withdraw local currency from ATMs.
Travel tip: Some cards have limited currencies available, so make sure you choose one with your destination’s currency.
5. Share your itinerary.
Before you hop on that plane, make sure you let your bank know your travel plans – otherwise, you could be stuck in Italy with no money for pizza or pasta. ME has a dedicated fraud team that monitors suspicious transactions, and without a heads up, they could misinterpret your souvenir holiday spending and put a stop on your card. And if you lose your card, we can send out a new one to you usually within 48 hours – and even arrange an emergency cash advance to hold you over until you get your new card.
Holidays really are a time “to celebrate”. But remember to always plan how you’ll pay for things when you’re away to ensure a stress-free trip.
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This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.