Travel Money Cards: The Definitive Guide

Updated 19 November 2018

Summary

If you are about to leave New Zealand and go overseas for a holiday or an OE, Travel Money cards have long been a popular option. But which one offers the best deal, and what are the fees?
Our research analysed the exchange rates offered by Travel Money Card providers for popular currencies (Euro, USD, Australian Dollar, the British Pound and three others) and found a significant difference between Travel Money Cards.
Based on our findings, the Travelex Travel Money card offers the best foreign exchange rates, whereas the Westpac Global Currency Card offered the worst foreign exchange rates.
All Travel Money cards charge fees for their use, these varied considerably, and not all were published online - MoneyHub's research team tracked down all the key information and have presented it in our Travel Money card comparison table PDF.

What is a Travel Money Card?

A travel money card is a prepaid card, like a Visa or MasterCard, that you load up with one or more foreign currencies. A travel money card is not a credit card, so you can only spend what you have put on the card, nor can you run up a debt. A wide range of currencies can be loaded on to it, such as US dollars, euros, British pounds, Japanese yen and Australian dollars.

Travel Money cards act like having digital currency in your wallet. For example, you buy 500 Euros, 500 British Pounds, 500 US Dollars. To spend the balance, you use the card when in the countries that use those currencies and the amount spent is deducted. If you run out of any currency, you can use internet banking and top up your balance. Your New Zealand dollars will be converted to the currency using the exchange rate at the time of your transaction.

What currencies you load on the card depends on where you will travel. At the moment a travel money card is topped up, the exchange rate is locked in. If the New Zealand dollar falls in value afterwards the amount on the card is not affected. This means you know how much foreign currency you have at the start of your trip.

While you are overseas, you can reload a travel money card using internet banking. The cards carry either the MasterCard or Visa logo and are always accepted by cash machines and retailers who have EFTPOS-type machines. This means that if a retailer accepts debit and credit cards, it will accept a travel money card.

Our Travel Money Card guide covers:

Why use a Travel Money Card?

Travel Money cards have many benefits over cash, debit cards and credit cards, as we outline below:

Travel money cards are safer than cash; they are prepaid and have a PIN - you can carry one around without the need of having large amounts of cash in your handbag or wallet.
A Travel Money card has the advantage of being protected if your wallet is lost or stolen - cardholders simply call the provider to block the card and ask for a replacement to be mailed out or collected when you get home.
Travel Money cards also help you budget - you can't get into debt like a credit card because the balance is prepaid. But having a debit card and credit card as a backup is never a bad idea in case your Travel Money card doesn't work for any reason.
Travel Money cards fix the exchange rate when you load them - you know, for example, that 1,000 New Zealand dollars bought you 900 Australian dollars. This is different to debit and credit cards, which use the exchange rate at the moment the transactions is processed to convert your spending back into New Zealand dollars.
If you see that the New Zealand dollar is falling before you go overseas, you can buy foreign currency to protect yourself from your money being worth less when you are overseas.

The 10 travel money card need-to-knows

Check if a credit card or debit card is better for your needs

Before you consider getting a travel money card, check out your credit or debit card transaction fees here. The benefits are numerous:

You don't need to preload NZD into one or more currencies
All purchases are processed at the daily market FX rate, meaning you will pay what it costs in today's prices (and not what the NZD was valued at weeks before using a Travel Money card)
You'll pay between 0% and 2.60% foreign exchange commission depending on the bank/provider you use
Withdrawal fees using debit cards overseas hover around $4 to $6.
You have up to 55 days to pay off a credit card before incurring interest charges

Each Travel Money Card company uses its own exchange rates - what you pay will vary between cards

And the range varies. We analysed the rates for a number of currencies listed at 12pm for 12 weekdays during October 2018. We found the following cards had the highest average exchange rates, meaning they were best of that specific currency.

NZD:AUD: Travelex
NZD:USD: Travelex
NZD:GBP: Kiwibank
NZD: SGD: Kiwibank
NZD:EUR: Travelex
NZD:HKD: Kiwibank
NZD:JPY: Kiwibank
NZD:CAD: Kiwibank

Source: MoneyHub raw data

ALL of the travel money cards lock in a foreign exchange rate when you load it with a currency, meaning your foreign currency is fixed

But if you load NZD, you will pay the foreign currency rate at the time of the transaction. You will also pay a commission on the value - anything from 2.50% to as high as 5.95%. For this reason, it's more economical to preload it with the currency used by the country you are travelling to. This not only locks in the exchange rate giving you security about how much money you have, but it also prevents you from being charged sky-high conversion fees.

Have a backup to avoid being stranded

Relying on a travel money card as the only way of spending while overseas is risky. Lose it and you're in trouble, but even simple transactions can cause issues - if your travel money card has a suspicious transaction, you can be instantly cut off. We believe it's best to have a debit card and a suitable amount of money sitting in your bank account available for emergencies.

MoneyHub reader Mark explains it best. He had a problem when one 'suspicious' transaction was flagged by MasterCard, the provider of the Qantas Cash travel money card. His comments:
"Never rely on the Qantas Cash travel money card for your holiday money on its own....always have a backup means of payment or cash withdrawal. MasterCard will block anything it deems as suspicious even though you assure them verbally and in writing on day 1 that the transaction was expected. MasterCard will suspend your card and the travel money and you may be without it for 4 or 5 days until it’s sorted out. MasterCard blocked my card while I was on a cruise overseas and I had to pay for the last 4 days by alternate means. All the conversion fees, Qantas points and convenience was lost. No amount of pleading, written explanations to them has resulted in a satisfactory explanation from Qantas or MasterCard. I got my card back on my arrival back home. Too late. $50 compensation didn’t cover it. No confidence in the system. Use it by all means but with caution and with a back-up".

Travel Money Cards will cause problems if you're renting a car, using pay-at-pump petrol terminals or make online bookings

Car rental companies will need a credit card to secure a booking and as a guarantee for any damage - a travel money card is not a credit card and may not be accepted outright. If it is accepted, the 'deposit' for the car rental will mean there is a hold on your balance - often as high as $3,000. This means you won't be able to use that amount for travel expenses until you return your car, and without any damage.

Other transactions, such as “pay at pump” terminals, cruise, hotel or motel reservations can also place a hold on your funds and reduce your available balance for up to 30 days, until the merchant has obtained authorisation or approval for the final transaction amount. During this time your available balance will be reduced by the amount of the held transaction until the transaction clears. These type of transactions are not ideal for using a Travel Money card.

If your Travel Money Card is lost or stolen, you need to report it right away

This is clear on the terms and conditions, and all of the providers offer a 24/7 worldwide helpline. Arranging a replacement will be as simple or complicated as your travel plans, but the provider will work with your itinerary to get a new card to you.

If you're going to a country that uses a currency not offered by a Travel Money card, don't get one

In most cases, it will be cheaper to use a debit card or credit card, and/or take some cash. The foreign currency exchange fees for non-loaded currencies is between 2.95% and 5.95%, above the standard conversion fee range of 1.85%-2.50% offered by New Zealand credit and debit cards.

Avoid spending your travel money card balance WITHIN New Zealand

If you make the mistake of using a NZD balance within New Zealand, be prepared to get smashed by fees; as high as 5.95% on the value of the transaction.

AVOID 'dynamic currency conversion' options or face paying TWO currency conversion fees

Here is a real example:

Matt goes to an ATM in London to withdraw GBP250 using his travel money card.
The ATM detects the card is from New Zealand and offers to process the transaction in NZD.
Matt clicks 'Accept'. The problem is Matt is charged two currency conversions because his card is only loaded with a GBP balance.
The card provider converts his GBP balance into NZD, and the ATM converts the NZD into GBP.
The result is bad for Matt - the card provider will also charge as much as 5.95% to make the conversion to NZD, and we estimate dynamic currency conversion (the process of an ATM or merchant offering to convert a transaction into NZD) has a fee of around 7%.
The costs add up - ~13% on GBP250 is over $50 right now, and all of it could be avoided by clicking NO to dynamic currency conversion.

Quite simply, NEVER accept dynamic currency conversion - it's always bad value. Even if you don't have any funds loaded onto your travel money card in the currency of the country you are in, you should NOT opt into dynamic currency conversion.

Travelex Travel Money cards can be topped up at kiosks, but the rates may differ from those online and fees DO apply

Travelex offers cardholders to load/reload at kiosks and partners, but to do so comes at a cost of 1.0% of the total amount added (minimum NZ$10) and the currency rates offered may not be as competitive as those from travelex.co.nz. For this reason, topping up online is not only easier but also cheaper.

The BEST Travel Money Cards to lock in an FX rate before you go

With these cards you lock in a rate days, months or even years before you go overseas, so know the rate you'll get before spending.
The standard number of currencies is around 9 or 10, which should cover the main holiday destinations New Zealanders visit.
Our View: Travelex's Money Card is our favourite - it had the best exchange rates for a number of currencies, or came within 99% of the best rate. It also offers free ATM withdrawals (all other travel money card providers charge a fee) and offers up to 80 currencies.
We have outlined each card below, the pros and the cons - you can read more by downloading our Travel Money card comparison table.

Best Travel Money Card: Travelex Money Card

Standout points:

FREE ATM withdrawals worldwide
Best FX rates in our research for AUD, USD and EUR
Cardholders can load 80+ currencies

Watch out for:

The $10 card closure fee
1.50% fee if loading from a debit card
The $4/month fee if your card is inactive for 12+ months
Withdrawing or spending using an unloaded currency will incur a surcharge of 4.00%

Other Travel Money Cards

Loaded For Travel (Kiwibank)

Standout points:

Supports 10 major foreign currencies
Best FX rates in our research for GBP, SGD, HKD & CAD

Watch out for:

NZ$6 ATM withdrawal fees
The $20 card application fee
No additional card option available
Withdrawing or spending using an unloaded currency will incur a surcharge of 2.50%

Qantas Cash

Standout points:

Supports 9 major currencies
1 Qantas point for every NZ$2 spent overseas
ATM withdrawals overseas translate to around NZ$2.50 per transaction

Watch out for:

Withdrawing or spending using an unloaded currency will incur a surcharge of 2.50%
Worst FX rates for all currencies (except the USD) in our research

OneSmart (Air New Zealand)

Standout points:

Supports 9 major currencies
Three free worldwide ATM withdrawals per month, then NZ$3.00 per transaction
Earn 1 Airpoints Dollar per NZ$100 spent overseas

Watch out for:

$1.00 monthly fee from date of issue if there is a balance > $1.00
FX conversion of 2.50% for any unsupported or unloaded currencies
The lowest AUD and USD FX rates in our research
Single-time availability for for Airpoints members - cancel the card and you cannot re-apply.

CashPassport (Mastercard & ANZ)

Standout points:

Supports 10 major currencies

Watch out for:

ATM withdrawals are charged between NZ$3.50 to NZ$4.50 per transaction
Withdrawing or spending using an unloaded currency will incur a surcharge of 5.95%
The lowest AUD and USD FX rates in our research

Global Currency Card (Westpac)

Standout points:

FREE ATM withdrawals worldwide
Supports 9 major currencies

Watch out for:

Withdrawing or spending using an unloaded currency will incur a surcharge of 5.95%
Worst FX rates for all currencies (except the USD) in our research

Research Data: Average Daily Exchange Rates by Travel Money Card at 12pm Between 4 - 23 October

Travel Money Card	NZD:AUD	NZD:USD	NZD:GBP	NZD: SGD	NZD:EUR	NZD:HKD	NZD:JPY	NZD:CAD
Travelex Money Card (Travelex)	0.8987	0.6371	0.4790	0.8596	0.5527	4.8238	70.5936	0.8143
Loaded For Travel (Kiwibank)	0.8842	0.6286	0.4797	0.8666	0.5467	4.9253	71.2012	0.8163
CashPassport (MasterCard)	0.8838	0.6283	0.4742	0.8591	0.5395	4.8827	70.1887	0.8093
Qantas Cash (Qantas)	0.8843	0.6283	0.4789	0.8649	0.5454	4.9108	71.0317	0.8140
OneSmart (Air New Zealand)	0.8834	0.6280	0.4789	0.8658	0.5449	4.9210	70.7385	0.8157
CashPassport (ANZ)	0.8838	0.6283	0.4742	0.8591	0.5395	4.8827	70.1887	0.8093
Global Currency Card (Westpac)	0.8838	0.6300	0.4742	0.8501	0.5395	4.8292	69.4557	0.8017

Travel Money Card Alternatives

Travel Money Cards may not be for everyone - if you're going on a short trip or don't want the uncertainty of something unfamiliar, credit cards with low foreign exchange fees can work out cheaper and easier.

Both the Flight Centre Mastercard (0% currency conversion charge on purchases, $50 annual fee) and Kiwibank Low Fee MasterCard (1.85% currency conversion charge on purchases, $0 annual fee) offer the best deals when it comes to foreign currency spending on credit cards.

These two cards have the lowest foreign exchange conversion charges, low annual fees and are both MasterCards, meaning you'll get a better daily exchange rate compared to Visa (per our extensive guide).

Travel Money Card FAQs

Q: What do I do with leftover money

Unsurprisingly, many providers don't have tips on this. Our view is that if you've returned to New Zealand and have an outstanding balance, 'deloading' is probably a top priority. This is done by transferring the balance back to your bank account, appearing around 3 to 5 days later.

Know this: Using the card balance in New Zealand in an EFTPOS terminal or online will likely incur a 2.50% to 5.95% fee based on the value of the transaction.

Q: Can I withdraw cash abroad?

Yes - all travel money cards allow this. The fees per card vary, from free to up to $6. See our summary table (LINK) for more details.

Q: What currencies can a travel money card hold?

In the case of Travelex, the answer is 80+ currencies. For the other cards, it's around 8-11. These include NZD (New Zealand Dollar), AUD (Australian Dollar), EUR (Euro), USD (US Dollar), GBP (British Pound), HKD (Hong Kong Dollar), CAD (Canadian Dollar), JPY (Japanese Yen), SGD (Singaporean Dollar), THB (Thai Bhat), UAE (Emirate Dihram) and ZAR (South African Rand).

Q: How long does it take to get a travel money travel money card?

This varies. Kiwibank, ANZ and Westpac can give you one right away at any branch, Travelex can be purchased at an affiliated kiosk. MasterCard, Air New Zealand and Qantas' cards can be arranged online with a 2-3 working day delivery time.

Q: Can I use my travel money card in any country?

Yes, with the exceptions of embargoed countries - Iran, Syria, Cuba, North Korea, the Sudan and the Crimea. If you use the card in a country where you don't have a balance loaded, you will pay a foreign exchange fee of between 2.50% and 5.95% commission on the transaction depending on your provider (see Currency Conversion Fees in our summary table LINK).

Q: Who sets the exchange rate?

The exchange rate to load the card is set by the provider of the card, for example Air New Zealand or Travelex. Each provider has their own exchange rates (see our comparison table). When you make a purchase, as long as you have a sufficient balance in the currency the transaction is in, there are no added foreign exchange fees. If you need to use other currency balances, the foreign exchange rate is set by either MasterCard or Visa, depending on what your card is.

Q: Does money expire if I don't use it?

No, but two cards apply monthly fees which will eat into unused balances. The Travelex Money Card charges $4 a month if your card is inactive for 12 months, and the Air New Zealand OneSmart card charges $1.00 per month as an account fee.

Q: What is the best travel money card?

Based on our research, the Travelex Travel Money card offered the best exchange rate for a number of currencies, offered 80+ foreign currencies and had the lowest fees.

Q: Can you change from one foreign currency to another by transferring the balance, i.e. if you leave the USA, can you transfer left over USD to EUR or GBP, for example?

TBC

Q: If I transfer left over foreign currency back to my New Zealand bank account, do I get the rate I paid for it or the market rate at the date of the transfer?

TBC