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Small Business CardsSummary: Did you know that travel money cards can help you avoid the shock of costly bank transaction fees when travelling? When you purchase the cards in advance you can manage to get better deals on money conversion rates than you would get at your destination, provided you purchase the card in the currency of the destination you'll be travelling to.
Benefits of Travel Money Cards
There are many reasons to consider using travel money cards for your next overseas trip. Learning about the benefits of using these cards will help you make an informed decision before you head on your next travel adventure. The tips and suggestions outlined in this article will turn you into a savvy spender; one that can have fun while spending responsibly.
Featured Woolworths Qantas Credit Card
A great card for those who travel frequently. The Woolworths Frequent Flyer credit card allows you to accumulate Qantas Frequent Flyer points with you Woolworths purchases.
- 19.99% p.a. on purchases
- 5.99% p.a. for 6 months on balance transfers
- $89 annual fee
- 20.99% p.a. on cash advances
Reason # 1: Locked exchange rates - The beauty about travel money cards is that exchange rates are "locked-in." While you will still need to budget for transaction fees they are generally more reasonable than with traditional credit cards. Since the money has already been converted before you leave home you won't be needing to worry about pesky exchange rates that can change within hours.
Reason # 2: Security - If you use a normal credit card for your holiday adventures you always run the risk of losing it, therefore making yourself vulnerable to identity theft. Travel money cards protect you in the sense that they are like cash, with no personal information attached. While you still have to use a PIN number you don't have to worry about giving a thief access to your whole savings should things go bad.
Reason # 3: Budget friendly - These type of cards are great for people struggling with their holiday budget. Since they act like a debit card, loaded with the currency of your choice you can't run the danger of overspending. If the money ain't loaded on your travel money card you can't spend it. It's a simple as that. If you have a hard time resisting souvenirs and trinkets this may be the perfect solution to help you keep control of your spending.
Reason # 4: No pesky need for Einstein-esque calculations - Finally, you can avoid the hassle and mental gymnastics of trying to figure out currency conversions for the purchases you make. You purchase these cards in the currency of your travel destination. There is no longer a need to calculate whether you can afford the new t-shirt. For many travellers this is a huge load off the mind that leaves them free to truly enjoy their holiday.
Are there Disadvantages of Travel Money Cards?
As with any card travel money cards are not always the best choice. The biggest disadvantage of these cards are the associated fees. While the fees are generally lower than those of traditional cards they are still more costly than if you were to use cash or traveller's cheques.
Another downside to these cards is the fact that they are not linked directly to your bank account. This means that you have to actively transfer funds to the money card rather than them being simply deducted from your account like they would be with a typical bank card. On the upside, this also means that if someone were to steal your travel card, they would not have direct access to your bank account. The really good news here is that it isn't a terribly difficult ordeal to reload your travel card. Many card issuers allow you to load the card via SMS (short message service also known as a mobile text message). If you are worried you can always carry a selection of funds on you to prepare adequately.
How to Get the Best Value from your Travel Money Cards
Travel money cards are only as good as you allow them to be. There are things you can do that will maximise their value or worth to you. Here are some tips to help you get the most out of these cards.
- Keep your PIN number secure at all times. Make this a number you can remember so you won't need to write it down, but make sure that it's a number that won't be too easy for people to figure out with minimal information about you. No one can access these funds without the PIN code so this is the best way to protect your travel funds.
- Use your money card to budget. It's easy to overspend and over-extend with traditional credit cards and even bank cards. Budget well by loading your travel card with a set amount of money. Avoid touching the other cards you own (if any) while your on holiday unless a major emergency comes up that requires money you wouldn't have access to with your travel card alone.
- Get savvy about transactions fees. Limit your transactions to those that are free or have minimal fees. Most cards charge a larger fee for cash withdrawals through ATMs than they do for charged purchases. Keep this in mind and limit the number of times you go for a cash advance to avoid those extra charges. Also keep in mind that reload charges can be somewhat expensive and avoid those by loading the full amount of money you believe you'll need for your holiday from the start.
You don't have to make major changes in your spending or jump through flaming hoops in order to get a great deal of value from your travel money cards. Some people choose to travel with a few of these cards, loaded with a range of denominations. I prefer to use one and load it with the biggest amount I can safely afford to spend without breaking the budget. Spending wisely will save you a lot of money and grief for the duration of your holiday travel.
