rmgood

We will be traveling to Australia and New Zealand , starting in Melbourne February 18. Where is the best place to convert US dollars to Australian dollars?

dulciusexasperis

After your arrival, any normal bank ATM is the best place to wihdraw local currency. That applies to whatever country you go to.

It is NOT a good idea to take large sums of cash with you and I hope your question was simply badly worded as it indicates you do intend to convert cash.

You should also use an ATM card that does not charge foreign ATM fees or foreign transaction fees. The same applies to which credit card to use.
http://www.nerdwallet.com/blog/banki...onal-atm-fees/

longhorn55

The best (safest, most efficient and most cost-effective) way to obtain local currency in both Australia and New Zealand is by using your ATM card to withdraw money from an ATM. And for large purchases, e.g. hotel bills, use your credit card. It is difficult to avoid paying ATM fees charged by your own bank or foreign transactions fees of 1% - 3% (and sometimes higher) unless you are willing to apply for a new credit card/ATM card, which is not always a good financial move. In any event, contact your bank to find out what they charge for foreign ATM withdrawals and the foreign transaction fee. Also, you will need to let the bank know of your travel plans so they do not put a hold on your ATM or credit card for possible fraudulent use. (If they don't know you are in Australia and start seeing charges from there, they will naturally assume that your card has been compromised.)

Some people buy foreign currency before they leave the U.S. so they have it on hand when they get to their destination. This is a personal choice, but be aware that buying foreign currency is not cheap. We just wait until we land at the airport in Australia or New Zealand and use the ATM to withdraw cash then. You will find ATMs in all the airports.

halfapair

We have a Capital One credit card and a savings account with them as well. When we travel we use our Cap One credit card because there are no fees for international purchases.

Our Cap One savings account has an ATM card and we use this for getting foreign currency when we travel. Capital One does not charge a fee when we make a withdrawal. The bank we withdraw from does charge a small fee, but we withdraw the highest amount possible (usually around $300 USD) so we make fewer withdrawals and we incur fewer fees.

We never use the currency exchange kiosks and never use the ATMS associated with those kiosks.

eliztravels2

I like to have a little bit of local cash when I arrive, with some small denomination bills for cab fare, tips, etc. and get it from a currency exchange at home which has good rates. While in Oz, I agree a bank ATM is the way to go. It will dispense in $50 bills. You will need a 4 digit PIN for both your credit card and ATM, I'm pretty sure. Also, the debit system is different than in North America so it is unlikely your debit card will work in stores.

mareeS55

Bring a debit card, pre-loaded, Visa or MC, ATMs on practically every corner, plus change a bit of cash at the airport on entry. Australia is a civilised first-world country, nothing here that will cause you trouble with money.

dulciusexasperis

MareeS55, it appears that you are suggesting a 'pre-loaded' card of some kind. It's not real clear what you mean when you drop that term in but if it is some kind of 'pre-loaded' travel card to replace a normal credit card, you need to know that 'pre-loaded' cards are NEVER the best in terms of exchange rate used. Basically, the only traveller they are best suited for is the one who cannot get a normal credit card due to a bad or non-existant credit rating (student for example). They ALWAYS cost you more than using a normal credit card would.

dulciusexasperis

Halfapair, check on your Cap One ATM card. I believe that as of August 2012, they charge 3% exchange loading. I don't think they do on their credit card though. Only on ATM/Debit cards.
http://www.tripadvisor.ca/ShowTopic-...ce_Veneto.html

halfapair

I just checked out ATM withdrawal statement on the Capital One site. I don't see any fees for our activity in Australia.

Additional advice: The BOQ (Bank of Queensland) bank gave us the most favorable exchange rate and didn't charge any banking fees on their end for the withdrawal.

So keep an eye out for the BOQ ATMs in your travels.

mareeS55

dulciusex, I was speaking of a pre-loaded cash card that we use from Australia, 1% commission on putting money into it and nil retrieving cash from an ATM. Some difference in currency conversion whether you buy $US, Euros, UK Pounds or Swiss Francs. Like traveller cheques to buy, but nil to get cash. Credit cards are 4% for cash now through ATMs. Pre-paid cards are pPurchasable through Visa and most financial institutions, they get the 1%.

mareeS55

I should add, when you buy these cards in Australia, you get two with different PINs as a single or a couple. Good security to have one in reserve if a bag gets stolen.

eliztravels2

I have never heard of these pre loaded cards before. 1% sound good, but where do you get the money to purchase the card? Has to come from your home bank account, or credit card which may well have fees, often hidden in the exchange rate.

Although I tend to be be pretty careful with money in general, I've learned not to worry too much about these matters when travelling. Once I am in another country I consider the currency 'play money'. I'm there to have a great experience and if there are extra costs here and there I figure they are offset by the cheap airfare I was able to find, or a wonderful unexpected free activity, or a meal from a street vendor or market. Unless you are on a very tight budget, don't sweat the small stuff.

dulciusexasperis

RED FLAG !!!!

Name the card and provide a link maree555. I have never heard of a pre-loaded card that does not add exchange loading.

Forget the using in an ATM vs. a credit card. No one in their right mind uses a credit card in an ATM. That's what Debit/ATM cards are for.

The issue to stay focused on is what exchange rate they use when you pre-load them. The best rate possible is the Interbank Rate. Most normal credit card providers (banks) add a percentage on to that when you use the card overseas. Typically, 3% is added which includes 1% that Visa/MC charge the bank for use of their system.

Pre-loaded cards typically charge as much as 5.95% as well as having other fees for loading and sometimes for each ATM withdrawal. Look at this chart. The Travelex Cash Passport which is quite well known charges 5.95% exchange loading. Not a good deal at all compared to a normal credit card.

Pre-loaded cards are for people who cannot get normal credit and debit cards.

You have to be careful of the wording used by card providers. I am not current on all the best cards for Australians to use but I do know that the 28 Degrees Mastercard is generally mentioned as the best credit card for an Australian to take when travelling. Note how they specifically differentiate on the page linked below, 'international transaction fees' from 'currency conversion fees'. http://www.28degreescard.com.au/

Often people read the 'no transaction fees' line and THINK it means 'no currency conversion fees'.

Next, consider what you pre-load mareeS55. Having paid exchange loading to load in GBP (example) off you go. You decide to visit Paris while away but did not load any Euros. So you use your card in Paris and the ATM gives you Euros but you have now paid a second exchange loading for that second conversion. The card provider is in fact 'double dipping' from you.

Suppose you come home with some GBP still on your card. You don't plan to travel anytime soon so you decide to take the money out of the card. Again, you will pay a second exchange cost to convert the GBP back to AUS dollars. Double dipped on you again.

Some pre-paid cards have a time limit. If there is still money on the card when that time expires, the money is GONE, they take it, all of it.

Pre-paid cards are one of the biggest rip-offs perpetrated on travellers as far as I am concerned. So I would warn you strongly mareeS55 to look very carefully at what your card is costing you.

dulciusexasperis

Oops, in paragraph 4 I wrote, 'look at this chart' and forgot to add the link. Here it is.
http://www.finder.com.au/travel-mone...el-money-cards

You will see the 3 areas where fees are added. Withdrawal fee, loading fee and currency conversion.

dulciusexasperis

Eliztravels, for the average person who takes a two week holiday once a year and uses their normal bank credit and debit cards, the costs of using them are not that important.

However, for someone who travels a lot or for extended periods of time, those costs add up. If your bank is taking 3% of your money every time you withdraw from an ATM in a foreign country using your debit/ATM card or make a purchase using your credit card, then you have to determine how much that works out to in hard cash.

Suppose you spend an average of $10k each year for 5 years. That 3% of your $50k is 1500 DOLLARS. Would you be happy letting your bank have $1500 for doing nothing?

If you go to Thailand for 2 weeks and spend $2000 then 3% is only $60, no big deal and not worth the hassle of changing your cards but not everyone does that.

northie

we have travelled with a prepaid travel card from our bank over the last 2 years to US and Europe, dulciusexasperis. It has an initial loading of $15 and after that no fees on transactions or purchases. We love them -certainly cuts down on horrendous fees from ATM for money straight from our account.

dulciusexasperis

I'll say again northie, pre-paid cards are the most expensive cards to use. Name the card, I believe you believe it has no fees but I DON'T believe that to be likely.

Besides travel for business and pleasure for many years, I have spent the last 25 years basically living off cards from various countries while living/travelling in various other countries. So my experience with cards is not that of the average tourist.

There is a huge amount of misinformation and misunderstanding about pre-loaded cards and you can find posts about them in every travel forum there is. I have NEVER read a post where someone had found a pre-paid card that could not be beat by normal bank credit and debit cards from any country.

For Australia the best is the 28 degrees card. Read another opinion here.

http://www.theaussienomad.com/travel...rd-for-travel/

Take a look at this UK site which is great for travellers from the UK to find the current best cards to use as it is kept up to date. See what it says about pre-paid cards, basically, 'if you can't get the best normal bank cards we have listed above' pre-paid is the next best thing.

Then look at the info provided for the pre-paid cards they do list. On each one you will see two things. They say 0% exchange loading and at the same time say, 'Exchange rate: Our own rate'. What that means is they say 'no loading' but don't tell you what rate they will use. It is NOT the Interbank Rate.

http://www.moneysavingexpert.com/tra...p-travel-money

I have no axe to grind here or wish to upset anyone who has used a pre-paid card. But they are a rip-off and should be avoided UNLESS you cannot get a good bank card like the 28 Degrees card in Australia or the Halifax Clarity in the UK etc. Those cards are TRUE no exchange loading cards.

If you don't beleive me guys, name your cards and I will dig out the info for you if you can't find it yourself.

mareeS55

Well, dulcius, you obviously have never bought a pre-paid card from my building society in Australia. It's 1% commission, linked to our account, just like traveller cheques. Denomination nominated and exchange rate on the day, then off you go.

We have done this in USD, Euroes, Ringitts, Pacific Francs. 1% was the commission, pre-loaded,. And we still have traveller cheques from 10yrs ago that are currency, bought with 1% commission.

The card is a Visa through our financial institution, because we have a good long-term relationship and some major funds invested.

So don't tell me I'm talking nonsense.

eliztravels2

Point taken, Dulcius. Certainly a 'different kettle of fish' for someone who spends a lot of time (and money) travelling throughout the year, vs. one or two short vacations.

Maree: you still have traveller's cheques from 10 years ago? You've lost a fair bit due to inflation in that time. Not sure they are particularly useful anymore, either. Even before various electronic transactions became commonplace I found them hard to cash at times. Anyone have recent experience with them?

Not sure if we have the kind of prepaid card you are talking about here in Canada. You buy a card in your home country loaded with the currency of the country you are travelling to, is that correct? You pay the exchange rate plus 1% , then use it wherever Visa is accepted?

dulciusexasperis

MareeS55, I'm not looking to argue, name the card issuer etc. and I'll have a look. Nothing you have said tells me what exchange rate you are being given. You write, 'exchange rate on the day' but that doesn't say WHAT exchange rate you are getting relative to the Interbank Rate.

Simple example: You go to a bank and say, 'I want to buy 100Euros for my upcoming trip. What will it cost me to put that on a pre-paid card?'

They say 100E will cost you $166.42. If you then immediately look at the Interbank rate and find it is 1.57 AUD to the Euro, you can determine what you are getting relative to that Interbank Rate. If you were getting the Interbank rate plus 1% it should have cost you $157 + $1.57 = $158.57, not $166.42.

A little calculating and you discover they actually added 5% onto the exchange rate plus the 1% 'commission'.

You can determine this for yourself if you want to. Call your building society and ask them how much it would cost you to put 100E on a card today. Then check this site for the Interbank Rate. http://www.oanda.com/currency/converter/

Instead of getting mad mareeS55, find out for sure what it is costing you. I will be very surprised indeed if you don't get a surprise.

Eliztravels2, Canada has lots of pre-paid cards with all the same costs/issues. http://www.canadaprepaidcreditcard.com/

It is easy to find how much they charge you for use when travelling eliz. For example: https://www.bmo.com/pdf/Prepaid_Travel_COB_E_FNL.pdf

That shows you clearly that they charge 2.5% plus the 1% Mastercard charges to use their system.

When someone tries to say they only pay $15 to load a card, that 1% that Mastercard and Visa charge on all foreign transactions should tell anyone that there can't just be $15 being charged to use a card. Where would they get the money to pay MC/Visa their 1% on every transaction?

In Canada eliz, unfortunately, there are no Zero loading cards of any kind from the banks and it is more complicated to try and get a card that avoids exchange loading.
http://gingyandsama.wordpress.com/20...-credit-cards/

That's a simple explanation.