THE FUTURE OF TRAVEL MONEY •You can already buy foreign currencies and travel money cards online; one day soon you might be able to buy them with your airfare or online accommodation booking.
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•With the rise of mobile and contactless payments using ‘near field’ technology, there could come a time when you won’t travel with cash or cards, just your smartphone (or a wrist-embedded chip).
PLASTIC FANTASTIC: CREDIT/DEBIT CARDS
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For sheer spontaneity, you can’t beat credit cards and debit (or ATM) cards; the latter can be used the same way as a credit card but the money you spend comes out of your account instead of being on credit. PROS: Convenience is the big one – just pack and go. When you’re overseas you’ll have access to 29 million Visa or 34 million Mastercard EFTPOS and ATM locations worldwide. Most cards can be replaced if lost or stolen, often within 24 hours, and many credit card companies offer insurance for items bought with their card. CONS: Fees and charges, which will depend on how you use your cards and which bank you’re with (though some banks are dropping foreign transaction fees to encourage card usage). The most common fees are: withdrawal or ATM fees (usually $5 per withdrawal), foreign transaction fee (2-3 per cent of the transaction amount in AUD) and cash advance fees (when using your credit card to withdraw cash from an ATM). OPTIONS: Take your existing credit/debit card or cards, or get one specifically for travelling, such as GE Money’s 28 Degrees Mastercard , which won the 2012 CHOICE Award for Best Travel Money Card for having no charges for international transactions or cash advances, and no currency conversion or annual fees. TIPS: Before you go, let your bank know when and where you’re travelling (so they won’t query unusual spending or put a hold on your card) and check their fees and charges (so you don’t get a surprise bill on your return). Make sure you have a fourdigit PIN (that’s not your birth date); for countries that require a six-digit PIN, just add two zeros (00) at the end.