For Travel
Foreign Exchange for Travel
Planning a trip abroad? There are now lots of ways to use money abroad – from cash in local currency, prepaid currency cards, traveller's cheques – and with ever-changing currency rates, finding the cheapest option is essential. You can usually opt to buy your travel money online to pick up from one of many branches or visit a store directly to order your cash.
Always check whether a travel money firm offers the currencies you need – especially if you are going to an unusual or far-flung location.
Online Travel Money
Ordering travel money has never been easier with the amount of currency firms that offer online travel money services.
Online travel money firms allow you to compare, calculate and select travel currency in the comfort of your own home and in your own time, without pressure. With daily updated foreign exchange rates, you can see where the best deals are and buy online – your currency will then be delivered to a branch for easy pickup.
Most online travel money services list all the major currencies, such as
- Canadian Dollar (CAD)
- Euro (EUR)
- Hong Kong Dollar (HKD)
- Indian Rupee (INR)
- Japanese Yen (JPY)
- New Zealand Dollar (NZD)
- South African Rand (ZAR)
- UK Pound Sterling (GBP)
- US Dollar (USD)
- Other European currencies (including Norwegian Kroner (NOK) Swedish Kroner (SEK) and Swiss Franc (CHF)
They will usually list other global currencies such as the UAE Dirham (AED) and the Thai Baht (THB) but for less commonly used currencies such as the Iranian rial (IRR) you might need to look a bit further or ask directly.
Generally, online travel money comes at a better exchange rate than if you buy it on the high street or at the airport. Online firms can give their customers cheaper deals than their high street competitors or counterparts because in most cases they offer the service commission free.
Bureau de Change / Airport Travel Money
You can opt to buy your travel money directly at the airport, before you board your plane. This might seem like the easiest way – very little forward planning is required (unless you forget about it entirely!). However over the past few years, it has been found that airport or high street travel money kiosks generally offer poor exchange rates and might add commission fees on top.
The majority of airport and station currency bureaus are serviced by just one or two different firms, meaning they have very little competition to contend with. This is great news for them – but means that customers might be better off looking around for a cheaper deal.
Heading online usually means finding far more competitive exchange rates and zero commission fees to contend with. Always compare and shop around, because the offers vary greatly between travel money providers. If you're still not satisfied with the exchange rate you are offered, feel free to contact them directly and ask for a quote – they might be able to offer you a better deal.
Travel Cash
Foreign currency in cash is the simplest way to take money overseas. Many people opt to take a set amount of their holiday money in cash, to pay for small items at a market, take a trip in a cab or to leave a tip in a bar or restaurant.
Before you leave on any trip abroad, it is a really good idea to look at that country's official website. This will help you to find out what the local customs are with regards to money. For instance, in some countries only small currency denominations are used and there are places where using plastic (credit or debit card) is impossible.
Next, you will need to work out how much you want to take with you – remember to include accommodation and food bills but also for unexpected expenses or an emergency.
Use the OZ Foreign Exchange Currency Converter to find out what the latest Interbank spot rate is for your chosen currency.
Finally, compare the rate that the Converter gives you with the rates offered by travel money merchants…
Traveller's Cheques
The vanilla of travel money types, traveller's cheques are one of the most traditional ways to pay abroad. Offering safety (they can be easily replaced), they can be exchanged abroad in some banks and retailers.
Traveller's cheques are very simple to use and are usually available in US dollars, UK Pounds Sterling or Euros. Most often issued by American Express®, they give the holder access to a 24 emergency customer service number, in case an emergency arises while abroad.
When you purchase traveller's cheques you are usually required to sign the back of each cheque – then when you use them to make a purchase you are asked to sign them again. You may be asked to provide your passport as identification.
Before heading abroad, make sure you find out how widely accepted traveller's cheques are in the country you are visiting. Some global locations might be less happy to accept them and you may end up being stuck with effectively 'useless' money.
As with cash or other forms of travel money, remember to compare the offers from travel money providers before you buy.
Prepaid Currency Cards
Prepaid currency cards are the latest way to pay abroad. As an alternative to a credit or debit card, travel currency cards are pre-loaded with funds and offer a very convenient and secure way to transport currency.
With PIN protection, they are usually issued with one of the main credit card providers (such as MasterCard®) which gives them a high level of worldwide acceptance.
Like traveller's cheques, you can replace a stolen or lost prepaid currency card, but you can choose from more currencies, these usually include:
- US Dollars
- UK Pounds
- Euros
- Australian Dollars
- New Zealand Dollars
- Singapore Dollars
- Hong Kong Dollars
Prepaid travel money cards usually carry excellent exchange rates (though as usual you are well advised to compare offers). Most travel money firms brand their own prepaid travel cards, such as the Cash Passport offered by Travelex. Some firms offer various card types, from ATM-only cards for cash withdrawals, to cards which can be used directly to make payments in stores and restaurants.
Prepaid cards usually carry a better overall deal than if you were to use your own credit card for overseas use. This is because ATM and purchase fees are usually lower (in some cases even nonexistent) and the exchange rate is far superior.
Leftover currency can be used for the next trip abroad – most prepaid cards are only valid for 1 to 2 years so make sure you make the most of yours before it runs out!