When budgeting for an overseas trip, it’s easy to overlook the hidden cost of currency conversion fees and transaction fees. When using an Australian card to withdraw money from a foreign ATM, banks can charge a surprisingly hefty amount for the privilege – and an additional cost for converting to another currency.
Dedicated travel cards may be an ideal solution. Some of the most popular options are tied to frequent flyer programs, so we recommend weighing the short-term fee benefits against long-term program rewards before making a decision.
To help prevent travellers overspending, Moneyhound recently investigated the some of the best low-fee options for Australian travellers abroad. Their findings make a great starting point for anybody eager to compare their options:
ANZ Frequent Flyer Card
At the time of writing, one of the biggest selling points of this traveller-friendly card is the promise of $0 ATM fees worldwide, provided you use ATMs that display the Visa symbol.
It also includes automatic overseas travel insurance cover for medical fees, lost luggage, cancelled trips and more. Compare the overall cost of maintaining this card with the money you may otherwise pay on insurance, and you may be in for a pleasant surprise.
28 Degrees Platinum MasterCard
This popular travel card comes with one major caveat: up to 20.99% per year in interest if you don’t pay your credit card bill on time – so if you’re worried about missing payments, the stakes are considerably higher. On the flip side, there is no annual fee, which is obviously a fantastic selling point.
This card will charge a $4 transaction fee for MasterCard ATM withdrawals, but no commission or transaction fee if you use it for larger flight/accommodation bookings using the “credit” option.
Qantas American Express Discovery Card
This card also has no annual fee. There is also no charge for supplementary card holders, which could make this an ideal pick if travelling with a partner. This program boasts an impressive support program, with an emergency replacement card able to be sent to you – no matter where you are in the world – in less than 48 hours.
HSBC Platinum Qantas Credit Card
This option will involve withdrawal and conversion fees, but offers some bells and whistles that may still make this a more economical option. Selling points that may push this over the line for some travellers include a comprehensive insurance package, a large number of free Qantas Frequent Flyer points on sign up, and – at the time of writing – two complementary Qantas Club invitations.
Citibank Clear Platinum Card
While not branded as a travel card, this option could be useful if you’re expecting to spend big on your trip and need lower rates. With 0% p.a. interest in the first nine months of purchases, some smart timing here could give you the extra edge you need.
How have you avoided unnecessary fees while travelling overseas? What money-saving advice would you share with your fellow Starts at 60 travellers?
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