Are you planning to travel overseas and wondering what’s the best way to take money overseas to avoid hefty foreign transaction fees and terrible exchange rates? Let explore what your options are below to help you choose the best way to take your money overseas.
1. Travel Money Cards
Travel money cards (or travel cards) are reloadable prepaid cards that allow you to pay for things in foreign currencies and withdraw foreign currencies while travelling overseas, giving you confidence knowing you would be able to transact freely while on holiday overseas. Essentially, Travel Money Cards offer a secure and convenient way to manage your finances while abroad. You can use them while overseas to withdraw cash, make purchases in person or online. With a Travel Card, you can load multiple currencies onto a single card making it great for travelling.
Below is a list of travel money cards available in New Zealand. Our research shows that the Wise Travel Money Card offers the best exchange rate. They also charge a much lower fund losding fee.
- Wise Travel Card
- Revolut card
- Travelex Money Card
- Westpac Global Currency Card
- OneSmart Card by Air New Zealand
- Cash Passport by Mastercard
How to choose the right travel money card
When selecting a travel money card, consider the following factors:
- Fees and charges: Look for cards with low or no transaction fees.
- Exchange rates: Go for cards that offer competitive exchange rates.
- Currencies supported: Ensure the card supports the currencies of the countries you are planning to visit.
- Reload options: Check if you can easily reload the card online or via an app.
- Security features: Look for cards with robust security measures, such as chip and PIN protection.
Tips for using travel money cards safely
To ensure the safety of your funds while using travel money cards, follow these tips:
- Keep your card information secure: Do not share your card details with anyone.
- Monitor your transactions: Regularly check your account for any unauthorised transactions.
- Use ATMs wisely: Only use ATMs located in well-lit, secure areas.
- Have a backup: Carry a secondary card or another form of payment in case of emergencies.
- Report lost or stolen cards immediately: Contact your card provider as soon as you realise your card is missing.
2. Withdrawing Money from Local ATMs
Withdrawing money from local ATMs while travelling can be highly convenient and often safer than carrying large amounts of cash. However, it is essential to be aware of the potential costs involved. Some ATMs may charge additional withdrawal fees, and if your New Zealand bank also imposes fees, you could end up paying double. To avoid these costs, consider using a debit or credit card with no foreign transaction fees.
How to minimise ATM fees
To avoid excessive ATM fees, follow these steps:
- Choose global banking networks: Select ATMs that are part of a global banking network. Banks with international alliances often offer cheaper or free withdrawals.
- Research ahead: Check your bank’s website for information on international ATM fees and networks to avoid any surprises.
3. Carrying Foreign Currency Cash
Carrying foreign currency cash can be incredibly convenient, especially in regions where card payments are not widely accepted. Cash is universally recognised and can be used for day-to-day expenses such as food, transport, and shopping at local markets. Additionally, having cash on hand can be a lifesaver in emergencies or when you need to tip service providers.
Of course travelling with a lot of cash on hand comes with risks of you loosing the money or becoming a target for thieves. Follow the tips below to help you stay secure while traveling with cash.
How to secure your cash
To ensure the safety of your cash while travelling, consider the following tips:
- Divide your cash: Split your cash into multiple locations, such as your wallet, a money belt, and a secure pocket in your luggage.
- Use a money belt: A money belt worn under your clothes can provide an extra layer of security against pickpockets.
- Stay vigilant: Be aware of your surroundings, especially in crowded areas, and avoid displaying large amounts of cash in public.
- Hotel safes: Use hotel safes to store the bulk of your cash and only carry what you need for the day.
When cash is the best option
There are certain situations where carrying cash is the most practical option:
- Remote areas: In remote or rural areas, ATMs and card payment facilities may be scarce, making cash essential.
- Small businesses: Many small businesses, street vendors, and markets may only accept cash payments.
- Avoiding fees: Using cash can help you avoid foreign transaction fees and ATM withdrawal charges associated with card usage.
4. Using Debit and Credit Cards Overseas
Using your debit and credit cards while travelling can be a highly convenient allowing you to just tap and go. However, it is important to be aware of the potential fees and security risks associated with their use abroad. Here are some key points to consider:
Benefits of Using Debit and Credit Cards
Debit and credit cards offer several advantages when used overseas:
- Convenience: Easily pay for goods and services without the need for cash.
- Security: Cards can be cancelled if lost or stolen, and many offer fraud protection.
- Tracking: Keep track of your spending through online banking or mobile apps.
- Earn Rewards: Some rewards credit cards such as Airpoints credit cards earn you rewards for using your credit cards a home or abroad.
How to avoid foreign transaction fees
Foreign transaction fees can add up quickly. To minimise these costs:
- Choose the Right Card: Look for cards that offer no foreign transaction fees. Many credit cards offer no foreign transaction fees as well as other benefits suitable for frequent travellers.
- Notify Your Bank: Inform your bank of your travel plans to avoid having your card blocked.
- Use Local Currency: When given the option, always choose to pay in the local currency to avoid dynamic currency conversion fees.
Security tips for card usage abroad
To ensure the security of your debit and credit cards while travelling:
- Monitor Your Accounts: Regularly check your accounts for any unusual transactions.
- Use ATMs Wisely: Only use ATMs located in secure, well-lit areas, preferably inside banks.
- Keep Your Cards Safe: Use RFID-blocking wallets and never let your card out of your sight when making transactions.
5. Buying Foreign Currency Before You Travel
When preparing for an international trip, purchasing foreign currency in advance can be a good decision. Banks often provide competitive exchange rates and fees, but it is advisable to compare rates from different banks and other providers to ensure you get the best deal. Some banks may charge fees and commissions, so it is essential to factor these into your calculations.
Comparing exchange rates and fees
To maximise your savings, it is important to research and compare exchange rates and fees from different providers. This can include banks, currency exchange services, and even online platforms. By monitoring exchange rates over time, you can purchase your foreign currency when the rates are most favourable. Additionally, consider any fees associated with the transaction, as these can vary significantly between providers.
How much cash to carry
Determining the right amount of cash to carry depends on several factors, including your destination, the length of your stay, and your spending habits. It is generally recommended to carry enough cash to cover immediate expenses, such as transportation, meals, and small purchases. However, it is also wise to use a combination of payment methods, such as credit or debit cards, to minimise the risk of carrying large amounts of cash. Pre-ordering your currency about a week before your trip can ensure you have the necessary funds, especially for less common currencies.
6. Transferring Money Internationally
While banks offer a straightforward method for transferring money internationally, they often come with high fees and less favourable exchange rates. Consider these alternatives to save on costs:
- Online money transfer services: Platforms like Wise and OFX provide competitive rates and lower fees.
- Peer-to-Peer Transfer Services: Services such as PayPal and Venmo can be cost-effective for smaller amounts.
- Cryptocurrency Transfers: Using cryptocurrencies like Bitcoin can be a cheaper option, though it comes with its own set of risks.
How to choose a money transfer service
Selecting the right money transfer service involves several factors. Here are some key considerations:
- Exchange rates: Compare the rates offered by different services to ensure you get the best deal.
- Fees: Look for hidden fees and understand the total cost of the transfer.
- Transfer speed: Depending on your urgency, choose a service that meets your time requirements.
- Security: Ensure the service is reputable and offers robust security measures.
- Customer Support: Good customer service can be crucial if you encounter any issues.
Tips for secure money transfers
Security is paramount when transferring money internationally. Follow these tips to ensure your funds are safe:
- Verify the recipient: Double-check the recipient’s details to avoid sending money to the wrong person.
- Use secure networks: Avoid public Wi-Fi when making transfers; use a secure, private connection instead.
- Enable Two-Factor authentication: This adds an extra layer of security to your transactions.
- Keep records: Maintain a record of all transactions for future reference.
- Be aware of scams: Stay vigilant and be cautious of unsolicited requests for money transfers.
Balancing Different Payment Methods
When travelling abroad, it might be wise to diversify your payment methods to ensure convenience and security. Relying on a single form of payment can expose you to various risks, such as loss, theft, or technical issues. For example, on the eve of 2020 hackers attacked Travelex which left many Travelex money card owners unable to access their cards. By balancing different payment methods, you can mitigate these risks and enjoy a smoother travel experience.
Why you should use multiple payment methods
Utilising a combination of payment options can offer several advantages:
- Flexibility: Different situations may call for different payment methods. For instance, some places may not accept cards, while others may not handle cash.
- Security: If one payment method fails or is compromised, you have alternatives to fall back on.
- Cost efficiency: By choosing the most cost-effective payment method for each transaction, you can save on fees and exchange rates.
Tips for managing multiple payment options
Managing various payment methods can be challenging, but these tips can help:
- Keep records: Maintain a record of your card numbers, bank contact information, and emergency phone numbers in a secure place.
- Stay informed: Be aware of the fees and charges associated with each payment method. This knowledge will help you make informed decisions.
- Use technology: Leverage mobile banking apps to monitor your accounts and transactions in real-time.
- Set alerts: Enable transaction alerts on your cards to receive notifications of any suspicious activity.
Frequently Asked Questions
What is the best way to take money internationally?
A convenient and safe way to take money internationally is to use a Travel Money Cards. A Travel Card gives you access to cost-effective currency conversion, enhanced security with PIN protection and replacement options, better control over your budget, reduced or zero foreign transaction fees, and can be loaded with manay currencies but the best option would depend on your personal circumstance. For example if you tend to travel internationally a few times a year then a travel credti card might be suitable option as these credit cards tend to come with many benefits for frequent travellers such as free complimenatry travel insurance, airpoints, airport lounge access and more.
What is the best way to withdraw money overseas?
Withdrawing money from a local ATM once you arrive at your destination is convenient and can be safer than carrying a lot of cash all at once, but it can also be expensive due to ATM fees and currency conversion rates.
In what ways can I take money overseas?
You have a variety of options, including Travel Money Cards, debit and credit cards, carrying foreign currency cash, and using money transfer services. It is recommended to take a few different options while travelling to cover all the bases.
Where can I buy foreign currency before I travel?
You can buy foreign currency at banks, currency exchange offices such as Travelex, and online currency exchange services. It is advisable to shop around various providers to get the best exchange rates and lowest fees.
How can I avoid foreign transaction fees when using debit and credit cards overseas?
To avoid foreign transaction fees, consider using a Travel Money Card or a credit card that offers no foreign transaction fees. Additionally, always choose to pay in the local currency rather than your home currency to get a better exchange rate.
What are the best ways for New Zealanders to spend money abroad?
New Zealanders have several options for spending money abroad, including using Travel Money Cards, withdrawing from local ATMs, carrying foreign currency cash, and using debit and credit cards. Each method has its own pros and cons, so it is essential to choose the options that best suit your needs.
For more information and tips to help you choose the best credit card in NZ, visit our website Credit Cards Compare.
