The choice between using credit or debit cards and prepaid travel cards just became simpler, after research reveals that Australians are being stung thousands of dollars in fees for using credit cards overseas.
Analysis of 314 travel money products from 89 providers proved that prepaid cards are the way to go when it comes to saving on fees.
Travellers are being warned about falling into the trap of marketing techniques that promise ‘free’ travel insurance and double frequent flyer points. These strategies hide the fact that you’re actually paying for these features in annual and per-transaction fees.
“Travellers should always look out for the annual fee as this is where you can get really slugged, and it pays to always keep an eye on the foreign exchange margin on overseas transactions, which can range from 0 per cent to 5 per cent on a debit card and 0 per cent to 3.65 per cent on a credit card,” says Mozo director Kirsty Lamont.
“If you’re booking everything from flights to accommodation to evening meals on your travel credit card, those charges can really add up.
“A travel credit card with a spend of $10,000 can incur charges ranging from $0 to $1089 which is quite the margin.”
Do you have a credit card that offers ‘free’ benefits such as those listed above? Do you have any tips for our members on how to manage travel money?