Debit cards for travel

Pick the right debit card for your trip abroad to avoid paying ATM fees.

Debit cards are the best way to get access to your money while you’re overseas. Carrying too much cash on you is risky, making you vulnerable to thieves.

But the fees for debit cards can be excessive. If you choose the wrong card, you can pay anywhere from $2–$10 per withdrawal at an ATM, not to mention 3% foreign transaction fees.

Some debit cards will waive those fees and even will reimburse you for ATM operator fees. Banks that are members of the Global ATM Alliance waive the ATM fees with their partner banks around the globe.

Let us help you sift through you’re options for the best debit cards.

Debit cards for travel

Why debit cards work for traveling.

• Global ATM alliances. Bank of America and Barclay Bank are American banks that are members of the alliance. If you have an account with these banks, avoid withdrawal fees and currency conversion fees when you use one of their partner banks.
• Access your savings. Travel debit cards allow you to manage your spending by using cash, rather than credit.

Considerations when choosing a debit card for traveling.

• Booking services. When you book with a hotel, vehicle or other rental agency the holding fee can often take a few days to return. The fee, sometimes a $100 or more, can lower your account balance, causing trouble when you need your money.

What are the different types of debit card to take overseas?

Debit cards with no foreign transaction or ATM fees

If you can find a bank that waives the foreign transaction fee and ATM fees, you’ll not only save money at the ATM, but you’ll also save money on purchases you make with your card.

We found that Capital One 360 and Discover Bank both offer debit cards that waive the foreign transaction and ATM fees.

• Tip. If your card doesn’t waive ATM fees, save by taking out the maximum amount each time you withdraw.

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What are the pros and cons of using a debit card when you’re overseas?

Avoid this if you use your debit card abroad

Avoid making frequent ATM withdrawals while you’re abroad. Even if you have an account that does not charge for you for international ATM withdrawals — local operator fees still apply.

Frequently asked questions about using a debit card in another country

• Will my debit card work in another country?

  The answer is probably yes. Visa, Mastercard and EFTPOS debit cards should work at the majority of ATMs you encounter. Be sure to look for the logos which are displayed on the front of the machine.

  If your debit card does not have a chip, it will not work at overseas merchants when you go to pay over the counter.

• What fees will I be charged by my bank when I use my debit card?

  The fees and charges vary depending on whether you use your debit card at an ATM or to make a purchase over the counter, and on the type of card you’re using.

  Expect to pay the following with the majority of Australian debit cards:

  Withdrawing cash:
  When you withdraw cash from an ATM, there’s the international ATM fee (about $4 – 5 depending on the account issuer) and a local ATM fee of roughly the same amount. Add the currency conversion fee (2 – 3% on average) to this transaction as well.

  Paying over the counter:
  When you make a purchase over the counter, only the currency conversion fee will apply.

  You can avoid the currency conversion fee by going with a debit card that waives this fee, like the Citibank Plus Transaction Account.

• If I apply, how long till I receive my new debit card?

  Allow up to two weeks to receive your debit card in the mail following a successful application.

• What happens if my debit card is lost or stolen?

  If your debit card is lost or stolen, get in touch with Visa or Mastercard and your bank right away and they will block the card and arrange for a new card to be sent to you.

• What if I see transactions on my account that I didn’t make?

  If you’ve been the victim of card fraud, notify Mastercard or Visa and your financial institution immediately and they will open an investigation into the transactions. If you’ve been defrauded, and you’ve taken steps that comply with the guidelines of the Mastercard and Visa no liability guarantees, you will be fully reimbursed.

• Which accounts do not charge for currency conversion?

  Currently only the Citibank Plus Transaction Account does not charge for currency conversion.

  You can compare credit cards with no foreign transaction fees here.

• Which accounts don’t charge for international ATM withdrawals?

  Currently only the Bankwest Qantas and Rewards Transaction Accounts do not charge for international ATM withdrawals.

• What do I press when I want to make a purchase over the counter?

  When you want to make a purchase over the counter at an international merchant, press ‘debit’ to complete the transactions. If your debit card is enabled with contactless technology, simply press your card against the reader for transactions under $100.