On the fly: How to manage money when you travel overseas

• Fantastic plastic: When it comes to cards, there are three main options that you can go for: debit, credit, or a travel money card, which are offered by most major financial institutions. Angus Kidman, travel expert at Finder, recommends people opt for some sort of combination of both, so if one doesn’t work, you can rely on the other as a backup. “A credit card and a travel money card makes a good base pairing,” he says. “Having a card specifically for travel can make sense − that way, if there are any issues, you won’t mess up any regular payments that come off your day-to-day card.” Credit cards are useful for checking in at hotels where they need a copy of your card on file, but they can sting you with significant fees or charges if you need to take money out, so it’s best to check. Travel money cards let you pre-load money for different currencies. This may lock you in at a lower exchange rate, but Kidman says not to worry about that too much: “Market movements aren’t easy to predict!”

• Easy debit: However, if you’re not going away for long, or you’re doing an impromptu trip to escape Melbourne’s offensively cold weather (or whatever’s going on in Sydney), many modern debit cards offered by financial institutions could be a hassle-free option. Bendigo Bank-owned Up allows you to spend overseas on your debit card with no additional fees, as do cards offered by NAB-owned UBank, Macquarie, Bankwest, and Suncorp. Money writer Noel Whittaker recently opined in favour of the Wise debit card, which allows you to hold 40 different currencies and get two fee-free ATM withdrawals of $350 per month. Keep in mind the debit cards offered by the big four banks still slug you with 3 per cent foreign exchange fees, so they’re better as a backup option rather than your daily driver.

• Tap and go: To take it one step further, depending on the country you’re going to, a physical card may not even be necessary. Apple Pay and Google Pay can be used overseas at supported merchants and don’t charge any additional fees, though you’ll still will need to pay any fees associated with your card. You may need to switch your payment network from eftpos to Visa/Mastercard, and it’s worth checking the uptake of tap and go payments in the country you’re attending – not everywhere is as widespread as Australia.
• Do we still need cash? In times gone by, taking out wads of cash before you leave or on arrival was the go-to for many countries. However, with improvements to payment networks, in many places you can get by without having physical bills. Even tipping-centric cultures like the US now often have the tip incorporated into the payment terminal. Having some cash on you can still be invaluable, however, and for many South-East Asian countries you will definitely need cash, so do your research.

Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.