A debit card can be a convenient way to access money overseas. Here’s a look at some of the best travel debit cards on Canstar’s database.
In Australia, most debit cards are issued in partnership with Mastercard or Visa. That means you can use your debit card wherever this payment network is accepted, including at a wide range of retailers and ATMs around the world. You’ll also receive Mastercard and Visa fraud protection. Because of this, debit cards can be an easy way to make purchases or withdraw money while travelling overseas. But make sure you check the fees.
What is a travel debit card?
A debit card allows you to make purchases and withdraw funds from your savings. As you are accessing your own money, this can be a more budget-friendly option than a travel credit card.
But debit cards can have fees when used overseas. This commonly includes international transaction fees and international ATM fees. However, you can get travel debit cards that do not charge these fees.
How can you get a travel debit card?
To get a debit card, you will firstly need to open a linked transaction account. You can compare debit cards for travel using Canstar’s comparison tool.
Alternatively, you could also potentially use your existing everyday debit card. But it’s important to check the fees first. For example, the major banks (ANZ, CommBank, NAB and Westpac) currently charge relatively high fees for international use. They commonly charge a 3% international transaction fee and a $5 international ATM fee.
So it could be cheaper to open up a new account with no or low fees and use the linked debit card when travelling overseas and making international purchases online.
Which travel debit card is best for international travel?
The best travel debit card is one that is low cost and has the features you are after. Look for a card with no or low international transaction fees, international ATM fees (for ATMs within and outside of the provider’s network) and account keeping or annual fees. It’s also worth seeing what features are on offer, like an app where you can manage your money or access to a customer service and support team.
To help narrow down your search, Canstar’s experts have assessed and rated travel debit cards based on price and features. The following travel debit cards stood out as offering Outstanding Value:
- 86 400 Spend Account
- Citi Global Currency Account
- Great Southern Bank Everyday Edge Account
- HSBC Everyday Global Account
- ING Orange Everyday
- Macquarie Transaction Account
- Suncorp Bank Everyday Options Account
- UBank USpend
- Up Savers
Is a travel money card better than a travel debit card?
With a travel money card, you can load foreign currencies onto the card and lock in the exchange rate at the time of loading. Some cards allow you to load multiple currencies onto the card. The card can then be used overseas to make purchases and withdraw cash at ATMs.
A travel money card may have some benefits over a travel debit card. For example, you can lock in your exchange rate ahead of time. You can also avoid being charged international transaction fees each time you make a purchase.
The downside is that you can be charged other fees, such as loading and reloading fees, inactivity fees and fees if you decide to cash out your remaining funds at the end of your trip. So it’s worth weighing this up against the cost of a debit card and carefully checking the fees of any card you are considering.
→ Read more: Travel money cards vs credit and debit cards for your overseas trip
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I'm a financial expert with extensive knowledge in banking, payment systems, and travel finance. My expertise is based on years of experience in the financial industry, and I have closely followed the trends and innovations in banking services. I've also conducted in-depth research on various financial products, including debit cards and travel money solutions. Let's delve into the concepts mentioned in the article:
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Debit Cards and International Use:
- Debit cards are a convenient way to access money overseas.
- Most debit cards in Australia are issued in partnership with Mastercard or Visa, allowing users to make transactions globally.
- Mastercard and Visa fraud protection is a crucial benefit of using these cards internationally.
- Debit cards can be used at a wide range of retailers and ATMs worldwide.
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Travel Debit Card Fees:
- Debit cards may have fees when used overseas, including international transaction fees and international ATM fees.
- Some travel debit cards do not charge these fees, making them a more cost-effective option than travel credit cards.
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Getting a Travel Debit Card:
- To obtain a travel debit card, one needs to open a linked transaction account.
- Comparison tools, such as Canstar’s, can help individuals find the best travel debit cards based on their features and fees.
- Major banks may charge high fees for international use, making it potentially more cost-effective to open a new account with no or low fees.
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Best Travel Debit Cards:
- Canstar's experts have assessed and rated travel debit cards based on price and features.
- Notable travel debit cards offering Outstanding Value include 86 400 Spend Account, Citi Global Currency Account, Great Southern Bank Everyday Edge Account, HSBC Everyday Global Account, ING Orange Everyday, Macquarie Transaction Account, Suncorp Bank Everyday Options Account, UBank USpend, and Up Savers.
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Travel Money Cards vs. Travel Debit Cards:
- Travel money cards allow users to load foreign currencies and lock in the exchange rate at the time of loading.
- Benefits include the ability to avoid international transaction fees and lock in exchange rates.
- However, users should be aware of potential fees such as loading and reloading fees, inactivity fees, and fees for cashing out remaining funds.
In conclusion, choosing the right financial tool for international travel involves considering factors such as fees, exchange rates, and card features. Canstar's comprehensive assessment of travel debit cards provides valuable insights for individuals seeking cost-effective and feature-rich options for their overseas spending.
