Tuesday, August 14, 2012

How to avoid fees and charges when travelling abroad

This post is proudly supported by the Commonwealth Bank’s Travel Money Card.
Travelling overseas is a chance to have fun, experience new things and really soak up the atmosphere of another culture. The trick to ensuring all of the above, is limiting the number of things you have to worry about, both back home and while abroad.
One of the biggest challenges is always how to handle the money situation. You require the ability to pay for hotels, hire cars, shopping sprees and more. You also need access to local cash for the occasions where a card just won’t cut it. Fees and charges when doing the above can really eat into your spending money, especially if you are using an everyday credit or debit card.
By using a prepaid travel money card, you are able to limit the fees and charges associated with overseas spending – however, it definitely pays to be smart in how you use your card to ensure maximum return.
Here is how to avoid fees and charges when using your travel money card abroad.

 

Limit the number of ATM transactions

There is often a charge per withdrawal from an ATM on your travel money card. While this fee is often quite low, it is wise to limit the volume of ATM transactions you make by withdrawing sufficient cash for your requirements. This means planning ahead and thinking how much cash it is you will need over the coming days.
It is also wise to note that many ATM operators charge their own withdrawal fee. This is an independent fee that is charged by the owner of the ATM machine. Be sure to check the cost of this before withdrawing money, the operator fees vary between different ATMs and are often more expensive in popular tourist locations.

Avoid paying in your home currency

Many hotels and merchants abroad will offer you the chance to pay in your local home currency. For instance, a hotel in London might allow you to clear your bill in Australian dollars instead of Great British Pounds – this is referred to as ‘dynamic currency conversion’.
Avoid this method of payment as the currency rates are often set by the hotel themselves. This means they will likely contain a commission and offer less value than say locking in conversion rates on your prepaid travel money card before leaving.

Opt to pay using your travel money card where possible

Where possible, try and utilise your prepaid travel money card as the number one form of payment. It works the same as a credit card and has no fees for purchases when used accordingly. This means you can make a purchase in store, online or over the phone for no extra charge.

Pay for others on your travel money card, request cash in return

A great way to avoid ATMs altogether is to pay for others you are travelling with and then asking for cash in return. For instance you could pay for your own hotel room along with your friends. This limits the number of times you in turn need to withdraw cash as they will reimburse you directly, while you pay no fees for making a direct payment using your travel money card.
For more information on Commonwealth Bank’s travel products and services, please visit http://www.commbank.com.au/personal/international.

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