Flight of Fancy podcast: Why it’s best to by no means use a journey cash card


Don’t use a journey cash card. That’s the gold nugget of recommendation from Traveller’s “Tripologist”, Michael Gebicki, with regards to managing your cash abroad. Don’t go wherever close to one.

“I hate them,” Gebicki tells Flight of Fancy, the Traveller podcast, on this week’s money-themed episode. “I can’t understand why any intelligent person would ever use a travel money card.”

To clear issues up, a “travel money card” is completely different to an ordinary credit score or debit card. These are merchandise supplied by quite a few establishments now – from Australia Post to Qantas to CommBank – that enable travellers to purchase a specific amount of international forex and cargo it onto a card, which may then be used like an ordinary debit or bank card with native forex after they journey abroad.

Sounds nice on face worth, however there are some points, as Gebicki explains.

“The exchange rates, to start off with, are pretty lousy,” he says. “And then there’s the fee structure. For example, if you have your euros [on your card], and you then go to the UK and you want British pounds, you can withdraw those euros as pounds, but the fee for that can be as high as 8 per cent. And you’re also paying for two currency exchanges.

“Then if you get again to Australia and also you may need a few of that cash left in your card and also you need to convert it again to Australian {dollars} – when you do not, when you go away it there, a few of monetary establishments will cost you an ‘inactivity price’, which retains whittling away your funds. And if you do convert it again to Australian {dollars}, there’s one other price for that. And they offer you one other unhealthy change charge, too.”

Money administration is a tough beast for travellers, even these with loads of expertise. Is money king, or is all of it about playing cards? Do you employ debit, or credit score? How do you keep away from paying an excessive amount of in charges?

As one other Flight of Fancy visitor, Germany-based journey author Flip Byrnes, tells us this week, it is doable we may be overthinking this.

“What I do is, I have a credit card, I go to a machine, and I get money out,” Byrnes laughs. “This is the funny thing, when people go, ‘How do you get money out overseas?’, it’s like we’re talking about how to get money out on Mars or something. Think about your daily life at home, how you get money, and it’s pretty much the same. But there are a few tricks.”

The secret to success, Gebicki says, is to have a pockets filled with various monetary choices. And the worth of these choices will rely upon the place you journey to, and the way you need to spend your cash.

“You don’t just travel with one card,” Gebicki tells Flight of Fancy. “You really need to have a combination of cards.

“Let’s discuss debit and bank cards: there is a little bit of a threat with debit playing cards, within the sense which you could lose all the things [if they’re stolen, or you’re the victim of fraud], and the monetary establishment will not essentially provide you with your a refund. They most likely will not. But they’re very helpful for protecting management of your spending.

“With a credit card it’s pretty easy to go over your limit, and then you’re paying 20 or 25 per cent interest. But credit cards are great for paying off your hotel bills, etcetera. As long as you’re not incurring foreign conversion fees.”

There are playing cards that can permit you to journey with out being hit with these charges. There’s even a journey cash card – only one, thoughts you – that Gebicki says many financially savvy travellers are actually turning to.

To discover out which one, pay attention in to this week’s episode:

Source: traveller.com.au