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Aussie travellers may be paying $1000+ in bank fees


Beware the annual fee

A leading financial comparison website has warned Aussie holidaymakers to be smart about the type of card they take with them on their travels, or risk running up more than $1,000 in bank fees.

 

 

After analysing 314 travel money products from 89 providers, Mozo.com.au found it often made more financial sense to use prepaid travel cards than credit or debit cards.     

 

“A travel credit card can be very appealing when planning a trip overseas, especially when you're able to nab complimentary travel insurance and rack up a few frequent flyer points,” Mozo director Kirsty Lamont told News Corp.

 

Ms Lamont also warned holidaymakers not to “succumb to slick marketing” tactics, and to be especially careful of annual card fees “that could cover a return trip to tropical Fiji”.

 

“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,” she said.

 

International transaction and ATM fees can also “leave a major dent in your pocket”.

 

“If you're booking everything from flights to accommodation to evening meals on your travel credit card, those charges can really add up,” Ms Lamont added.

 

“A travel credit card with a spend of $10,000 can incur charges ranging from $0 to $1089 which is quite the margin.”

 

Additionally, some companies are also confusing travellers with complex fee structures.

 

How do you arrange your spending money whilst away? What is your experience when using money cards as opposed to debit/credit cards?

 


Written by: Mark Harada
Published: 16 July 2018


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