First of all, you should never assume that if you are granted with such a feature, you will automatically be provided with a full refund for every bad thing that happens to you when you travel. This is because policies are different from lender to lender and from product to product and it is very important for you to read all the terms and conditions in advance.

International Travel Insurance

This type of insurance is undoubtedly the most popular one and is used by most of the companies especially for business travelers, who often have to perform trips overseas for business purposes. In most of the situations, the covers of the policy will be evaluated at up to $20,000 and you will be provided with your money bank if your flight is cancelled or you lose your baggage, as well as with a refund for delays and the possible medical assistance you might need in the country you travel.

Rental Car Insurance

This is another important feature you will need to be aware of, especially if you are planning to rent a car during your travels. With this type of insurance, whenever you do certain damage to the vehicle, you will not have to pay from your own money, but instead, the lender will cover everything you need, provided that the total sum does not exceed $6,000 in most of the cases.

Transport Accident Insurance

If you travel overseas and are the unhappy victim of an accident, then you will also be provided with a compensation that can range between $100,000 and even $1,000,000, depending on how hard and complicated your situation is. However, because the sum is a really impressive one, you will always need to prove your injury with documents.

Customer Service

It is very important for you to check whether there is a program available for you that will provide you with the necessary guidance during the entire process. This might be really helpful for you in a great number of situations. For example, if you just arrived in a foreign country and you require medical help, a number to call your insurance provider will be useful since you will be provided with information related to the best doctors in your area.

All in all, you should always be aware of some of the travel insurance features that are included in the financial product you apply for and make a comparison before deciding which one is the best for you.

When Traveling, Limit Your Withdrawals

Always Be Aware Of The Location Of Your Card

Use Cash When Possible

Take Only A Single Card Or Two

How Travel Rewards Programs Work

Credit Cards With Traveler’s Insurance

Comparing Your Rates

Many people simply visit their local bank to exchange their currencies without realizing that there could be cheaper options available.

You can save on your currency conversations in a number of ways. Once you know what to look out for you could potentially save hundreds of dollars.

The Importance of Changing Early

One top tip for converting your currency is to do it as early as possible. This is mainly because some currencies can be harder to get hold of. Therefore the bank or outlet may need time to get you the amount that you need. By doing it early you can guarantee that you will get the currency that you need before you set off on your destination.

Do I Need to Exchange Currency Before I Arrive at my Destination?

It is not essential to exchange currencies before you set off, however it does make your journey more affordable. It can also give you a peace of mind. When you have some exchanged currency in your pocket you know that you can afford a cab on the way to the hotel. You will also be able to pay for any food and beverages that you may want when you first arrive at your destination.

Another reason why you should opt for exchanging the currency before you go is to avoid ATM charges. It is completely possible to use your debit/credit card at ATMs in most countries. However, the charges that are applied if you want to withdraw money are often quite high. Therefore it does tend to work out cheaper if you exchange currencies before you go.

Travellers Checks

One option that you have is to use traveller’s checks. These are not as popular as they used to be but they can come in extremely useful. You simply buy them as you would any other currency.

What If I Don’t Have a Credit Card?

If you don’t have a credit card and you don’t want to carry loose money in your pocket, there is another option. The Travel Funds Card can be debited and you can withdraw up to $400 per day. It is accepted in a large number of different places and it can be used by those who are 18 years of age and older.

The key to exchanging currencies is to shop around. Compare different exchange outlets. Banks are typically the first choice of many but they are not necessarily the cheapest option. Take a look at the average exchange rate and see what you should expect before you go to an outlet.

Overall it isn’t overly difficult to exchange currencies once you know what to look out for. Always aim to do it as early as possible. That way you can ensure that you have the currency that you need when you set off. Research as much as possible about the current exchange rates so that you know what to expect.

Travel Credit Card Tips

Tip One – Look for benefits. Certain cards offer great perks for travellers like airline rewards, car hire insurance, travel insurance, reduced foreign transaction fees, and purchase protection. Make sure you get or use the card that will give you the most benefits while you are away from home.

Tip Two – Check fees. Travel credit cards are not all created equal. When you use your plastic in a foreign country you can expect to pay certain fees including foreign currency conversion fees and international transaction fees. To save the most money look for the card with the lowest fees and the best benefits.

Tip Three – Notify the card issuer. There is probably nothing worse then attempting to buy something and having your plastic declined. Card issuers are famous for freezing cards when they are suddenly used far from the cardholders home. You can avoid this issue by making a quick call and notifying them of your plans.

Tip Four – Carry a back up card. Even if you have made the proper notifications there is always possibility that your card could be lost, stolen, or frozen due to potential fraudulent charges. Carry a back up debit card or other form of payment so that you do not wind up stranded without any way to access money.

Tip Five – Have an emergency number stored in your mobile phone. You never know when you will need to contact your issuing agency so always keep their number handy. Include the number that will get you the fastest service at your destination which might not be the same one you would use at home.

Tip Six – Consider an on line data storage company. One of the worst situations travellers run into is having their card lost or stolen and not having access to the numbers, dates, and other information they need to report it. An on line service can store all this information for you so you only have to make on phone call and they will help you manage the situation.

Tip Seven – When you return home go over your statements. Do not wait until the end of the billing period, as soon as you return home double check your on line account to make sure there are no errors or fraudulent charges. If there are contact your issuer immediately to get the process of fixing those problems started immediately.

Getting the most from your travel credit card is a great bonus to any holiday. When you are spending large amounts of money it is excellent peace of mind to know that your money is secure and that you are getting some return on it.

As you are tacking on amounts for accommodations, dining, and entertainment you would be remiss if you neglected to add these often costly and largely unavoidable charges. This will save you the headache of returning home only to find a credit card bill that is much higher then you expected.

Almost all card issuers and financial institutions charge these fees so there really is no getting around them. Instead take time to understand which ones you might be charged and in which circumstances you will likely incur them. There are three basic charges that you should look for int he terms and conditions of your credit card agreement that will inform you of the cost to swipe you card while travelling abroad.

Foreign Conversion Costs – When you use your Australian card, regardless of where in the world you are located when you do so, your balance and credit is converted to Australian dollars. This conversion will cost you not just in the exchange rate, but also in a duty charged by the card issuer. The big issuers, Visa and MasterCard charge 1-2% and your bank may charge a bit on top of that.

Overseas Transaction Charge – Some card issuers will charge this indemnity which is an additional 1-3% of the total amount of your transaction. This is on top of the currency exchange cost. Should you use an ATM while abroad you might also be charged an amount for doing so. This charge is disclosed at the ATM while you make the transaction.

Cash Advance Fee – If you have ever gotten a cash advance, you are probably familiar with the duties associated with that transaction. It is costly to do it in Australia and even more costly to do it overseas. Usually the cash you withdraw will immediately be charged a high interest rate as these transactions do not have interest free periods. Overseas you will also be charged additional amounts of up to $10 or up to 4%, whichever is higher each time you get cash out. This is on top of the cash advance rate that is standard on your credit card.

After reading about all of these potential foreign currency duties you are probably wondering which ones come attached to your personal credit card. While it should be spelled out in your terms and conditions paperwork or listed on line, here is a quick reference to many of the popular credit cards. Keep in mind that all rates are subject to change so you might want to verify these charges with your financial institution before you start swiping your credit card on holiday.

Foreign Currency And International Fees For Credit Cards

Bankwest – Bankwest will charge a 2.95% of the value of the transaction toll for each overseas transaction which is calculated as a percentage of the foreign currency amount. The cash advance cost is 2% with a minimum $4 charge with a maximum of $50, this is in addition to any foreign currency fee.

Members Equity – Members equity has a 2.00% of the value of the transaction charge on both the currency conversion and the transaction. The cash advance fee is $4.

ANZ – With ANZ you can expect a 3% of the value of the transaction charge for your Visa or MasterCard and a 1.50% of the value of the transaction charge for your American Express. Cash advances incur a $5 charge or a $2 for Maestro per EFTPOS transaction in the foreign currency.

Commonwealth Bank – Commonwealth charges 2.95% of the value of the transaction for MasterCard and Visa and 1.95% of the value of the transaction for American Express on the overseas transaction as well at a 2.00% charge for the transaction overseas in Australian dollars. Cash advances are charged 1.50% with a minimum of $4 on top of the foreign currency exchange charges .

NAB – NAB uses the term multi currency which means a transaction made in money other then Australian dollars either with an international or Australian designated seller. They also have single currency transactions which are those transactions carried out in Australian dollars with an internationally designated merchant. The multi currency charge on Visa and MasterCard is 2.50% of the value of the transaction and 1.50% of the value of the transaction on American Express. The single currency charges are 2.30% of the value of the transaction for Visa and 2.00% of the value of the transaction for MasterCard. If you take out a cash advance you will be hit with currency exchange duties of 1.50% or at least $4 fee.

St.George – The cash advance cost is 1.50% with a minimum of $1.25 and the overseas transaction and foreign currency conversion is 2.50% of the value of the transaction for both Visa and MasterCard. As a subsidiary of St. George, BankSA also has the same applicable duties.

Bendigo Bank – There will be a 2.00% amount charged for the foreign currency conversion and a .5% charge for cash advances with a minimum cost of $3.25. That is on top of the foreign currency conversion duty.

Aussie – Using this card overseas will incur a 3.00% of the value of the transaction charge for transactions and a 2.00% charge for cash advances with a minimum cost of $4, this is on top of any foreign currency exchange duties.

Westpac – Like Aussie the overseas charge is 3.00% of the value of the transaction with a 2.00% charge on cash advances. The maximum cash advance duty is $150.

HSBC – With your HSBC card you can expect a 3.50% of the value of the transaction charge. Of this 2/0% of the total value is the overseas transaction charge and 1.5% in Australian dollars is the foreign currency conversion duty. There is a 2.00% fee for cash advances with a minimum cost of $2.50 in addition to any foreign currency duties.

GE Money Australia – Your GE card will cost 2.50% of the total currency amount converted for transactions. Cash advances will incur a 3.00% charge with a minimum charge of $1.95 plus international cash advance duties that are $4 at the ATM and $5 over the counter.

Bank of Queensland – The bank of Queensland charges cardholders a 3.00% of the value of the transaction cost for international transactions and a 2.00% fee for cash advances with a minimum cost of $4 and a maximum charge of $30.00.

American Express – Since American Express does not allow for cash advances you will only be charged a foreign currency cash conversion duty of 3.00%.

Citibank – Your Citibank MasterCard has a charge of 3.40% of the value of the transaction and your Visa carries a charge of 3.30% of the value of the transaction.. The cash advance fee is a flat $5 as well as the foreign currency conversion duty.

Suncorp – The foreign currency conversion is 3.00% of the Australian dollar transaction amount for any international transaction made on your card. There is an overseas cash advance duty of 1.50% of the cash advance amount.

Wizard – Currently the Wizard card has no foreign transaction or withdrawal fees. Double check before you swipe this card though as all fees are subject to change at any time.

Looking at this long list of charges and international fees it can be easy to assume that the cost to use your credit card abroad is exorbitant. However, when you consider the benefits of using your credit card over other forms of payment it is probably worth the added cost. Your alternatives for overseas spending a fairly limited. One option is to take cash and have it exchanged into cash at your travel destination. Here you will still incur some cost on the exchange rate.

You will also not have the security that is offered with a credit card. Unlike cash, if your credit card is lost or stolen you can have it cancelled and receive a new card right away. Most cards offer international card replacement within 24 hours. If the same circumstance happens with cash, you are simply out of luck. In addition, your credit card may offer you valuable benefits for using whilst you are abroad like travel and purchase insurance.

These protections can help you out of a bind while you are travelling as well as protect your investment in the trip. Cash or travellers cheques will not give you the kind of quality insurance that many cards offer to their travelling cardholders. You may also earn rewards points on your travel which could offset the cost of using your credit card while you travel internationally.

Before you decide that the cost of international fees and currency exchange charges are too much to afford consider the benefit of both perks and convenience that you will reap by using your credit card. As long as you know how much you could be charged you can easily add it to your budget so that there are no financial surprises one you get your bill back in Australia.

But that attitude has changed over the years, and having a credit card has become accepted as part of everyday living, particularly since the advent of the Internet and growth of online shopping to make purchases and bookings.

Living abroad

When you are proposing to be living abroad getting a credit card takes on a different meaning in regard to managing your spending. But there are a few things that need to be taken into account if you intend to use your card whilst outside of Australia.

Most Australian credit cards are accepted in countries worldwide, but being able to use your credit card isn’t the problem. You may find that your credit provider has different rates for purchases and services that take place when living abroad. Before departing it is worthwhile checking to find out exactly what your credit providers’ policies are in respect of using your card internationally.

But that isn’t necessarily the case with all credit cards, and quite possibly yours may not be affected. You will need to confirm with your provider when you change your address to the new overseas one as to whether you are still able to continue using your credit card. It is not unusual for people to still keep an Australian address on their card, whilst living abroad, especially if they are still making repayments on a substantial debt.

This is not a recommended option as you may not receive important information from your credit provider. If your current provider doesn’t have an acceptable overseas policy consider finding another credit provider and transfer your balance to them. It’s a good idea to work out in advance just what cards you might need and will suit your circumstances and apply for them beforehand.

Which currency?

You will need to work out which currency you want your card issued in, and whether having your card in Australian dollars is going to be beneficial for your proposed country of residence. It is better to have your card in the same currency that you will be making repayments in, since this avoids unexpected debts if there are rises or fluctuations in foreign currency rates.

Establish a credit rating

Your decision as to whether your card should be maintained by an Australian bank or a local branch overseas will come down to your circumstances and the intended period of living abroad. If you are only going to be away a few months, then quite possibly there is no need to change your branch. But if your move is of a more permanent nature you may want to consider setting up your accounts in your new locality since you will need to establish another credit rating or the equivalent of in your new country. Particularly if you intend getting a credit card whilst overseas.

The advantage of having your credit card abroad means you don’t have to carry lots of cash, don’t need to find the nearest exchange bureau to cash your traveller’s cheques, and it’s easy to make purchases. If you need some emergency cash you’ll find plenty of accessible ATMs.

Checklist

It’s a good idea before leaving home to make a list of any numbers on your credit card. Not only your account number but also the emergency contacts on the back of your card, then you have all the necessary numbers needed to get in touch with your credit provider if your card is stolen or lost.

Although MasterCard and Visa credit cards have a zero liability, which means if your card is used fraudulently you aren’t liable, your credit card provider wouldn’t be impressed at having to wait until you returned to find out you lost your card the first day of your holidays.

It’s also sensible to contact your credit card provider, and tell them you will be taking your credit card on your overseas holiday. If you fail to do this, there is a possibility your purchases could be refused.

Most credit card companies have systems in place to detect fraud, and may flag transactions overseas as questionable if they are unaware you are travelling.

On your return home let your card company know so they can expect any foreign transactions to cease. By doing this you counteract any fraudulent activity which could occur if your card details had been skimmed.

When you are overseas

Foreign transaction fees are not generally imposed when you travel with your credit card abroad, however currency conversion fees of approximately 2% -3% are usually applied. If you make a cash withdrawal from an ATM you will find the same conversion fee is applied.

Try and keep cash withdrawals to a minimum, as interest is attracted from the day the transaction is made, plus you may have to pay a cash handling fee. If you can’t avoid making a cash withdrawal try and access your Internet banking fairly quickly to reduce your account back to zero and avoid the daily interest charge.

One important point to be aware of when travelling overseas is Dynamic Currency Conversion. A foreign retailer may decide to charge you in Australian dollars rather than local currency. They become responsible for the conversion to local currency, however, they can add 4% or more to your purchase price. By paying in the local currency, your credit card provider will handle the conversion at the lower rate of 2% or 3%. You have a choice which currency to use, but be aware of how this can cost you extra when you travel with your credit card.

Most platinum, gold and travel credit cards will offer travel insurance for overseas travel, however the cover for each card will vary. Compare the different insurance policies until you find the one that suits your needs.

Insurance Policies Included

Some cards advertise that insurance is included, usually these are a complimentary feature of the travel benefits of the credit card, and are covered by the annual fee. Policies and cover vary from card to card, but some of the most common options for travel insurance with your credit card are:

Period covered: Dependent on the annual fee and status of the card, but generally ranges from 3-12 months. May include payout values for property or claims.

General travel insurance for overseas: This covers cancellations, flights, loss of luggage, medical expenses or delays. Payouts can be up to $20,000. Examine the small print as some covers exclude certain payouts, for example losing cash with your baggage.

Purchase security insurance: Any purchases that you make on your card, whether international or domestic, are usually covered for 30 to 150 days from damage or theft. Again you need to check the fine print on your policy because items such as cash, animals, plant life, business products, or products intended for resale are usually not covered.

Extended warranty cover: Many entertainment or luxury items that include a standard warranty will offer an extension from 6 to 24 months. This cover can apply to popular and household items.

Rental vehicle insurance: Occasionally you will find credit card companies that offer rental vehicle access. This type of cover can be anything from $1,000 to $6,000, however, there are usually other conditions. For example you may be required to take out a fully comprehensive policy from the rental company. This type of insurance may not be included with your credit card, but some credit providers such as ANZ, do have rental insurance for $24 per year.

Transport accident insurance: You could be compensated anything from $100k to $1million if you or your family are involved in a transport accident abroad and a family member dies or is severely injured. Family cover is not always available so check that this feature is offered on your credit card insurance. Also the nature and severity of the injury may be questioned.

Personal property insurance: When your property is stolen or lost overseas, you will receive a payout equal to the value of the property, less depreciation. Conditions apply; for example, should your property be stolen from an unattended vehicle your cover will be limited. Some policies will not cover items stolen from public places.

On a final note, if you are interested in travel insurance with your credit card, make sure you compare all offers, and read the fine print so you know exactly what you are covered for.