What are your options when taking money overseas?

Australia Broadcast Center

05-06-2025

What do you look forward to the most before an overseas holiday? It's probably not the admin.
Deciding how you're going to take money overseas is one of those tasks that can seem overwhelming.
Here's what experts have to say about your options while travelling.
If you're planning to use physical currency overseas, Angel Zhong, a professor of finance at RMIT University in Naarm/Melbourne, says you will often get a better exchange rate (converting your Australian currency into local currency) once you've reached your holiday destination.
While converting cash into foreign currency in Australia is possible, services in convenient locations (such as the airport) are typically more expensive.
Professor Zhong says she wouldn't carry thousands of dollars' worth of currency around on holiday with digital payment so widely accessible.
Also, if you're leaving or entering Australia with more than $10,000 in cash, it needs to be declared.
In many cases you can use an existing credit card or debit card while travelling overseas.
Australian consumer advocacy group Choice says "Visa and Mastercard credit cards are accepted almost everywhere for purchases and cash withdrawals".
Professor Zhong says it can be convenient to use your ordinary debit card or credit card, but you would "usually incur some foreign transaction cost".
Before using an existing card overseas, she suggests checking the terms and conditions. We'll go into this in more detail shortly.
Another option Choice highlights is low-fee debit cards "that don't charge a currency conversion fee" with a competitive exchange rate set by Visa or Mastercard.
Source: Moneysmart
If you're looking to take a card overseas, the Australian Securities and Investments Commission (ASIC) recommends shopping around, as exchange rates can vary between banks and travel card providers.
When reviewing the terms and conditions of cards, you want to look out for fees. ASIC says charges may include "a foreign currency conversion fee, an overseas transaction charge or an additional cash advance fee (for credit cards)".
Again, being across the terms and conditions of cards is key.
While some cards have no foreign transaction fees, Professor Zhong says "it could be the case that their conversion rates are high".
It can be difficult to compare exchange rates between lenders and their different cards (including travel money cards) because it varies from day to day.
She says comparison websites may help.
A travel money card, travel debit card or travel cash card is another option offered by banks and other lenders, such as airlines and travel agents.
An ASIC spokesperson says, "You can add money in your preferred currency to most travel money cards before you leave Australia" and "most allow you to top up your card with extra currency if you need it while you're travelling."
A prepaid travel card may even help you stick to your getaway budget and manage exchange rates because it can be loaded with a locked-in exchange rate before you depart.
Choice notes that travel money cards can have a higher exchange rate margin (or more expensive mark-up), and a no-fee debit card may be a better option.
Travel cards "are better suited to longer trips … [and] usually won't be worth getting if you're only taking a one-off short trip, as some come with fees for closing or inactivity".
If you're withdrawing cash overseas, Choice says a travel debit card or travel money card is generally a better option than a credit card — which can involve a cash advance fee and high interest rates
Professor Zhong says you need to set up these cards before you travel, so you'll need to be more organised (compared to using one you already have).
While your normal credit or debit card may have a high credit limit, such as $5,000 a travel card will often have a limit of $500 or $1,000, Professor Zhong says.
This means travel money cards aren't usually a good candidate for hotel security deposits, as a pending charge could leave you without access to your money.
Choice also advises checking that a card supports the currency you'll need. Not every card will work with every currency.
This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.