Best ways to spend travel money in New Zealand: Debit and prepaid cards

Since The Lord of the Rings, the Land of the Long White Cloud has been growing in popularity as a destination for tourists and expats alike. Whether you’re heading to see the Redwoods of Whakarewarewa Forest or to hit the slopes near Queenstown, find out the best way to access New Zealand dollars when you’re there.

Low-cost travel money options for New Zealand

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• No foreign cash withdrawal fees
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Earn interest on your holiday money with a savings pot

• Make fee-free cash withdrawals
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Spend in 20 major currencies for free

• No monthly fees
• Up to 3.5% cashback
• 20 currencies on one card

Using a debit card

As in the UK, you can use a debit card to make ATM withdrawals, purchases over the counter and get cash out using EFTPOS in New Zealand. Most of the debit cards available to British people will charge an additional fee for currency conversion when you transact in New Zealand dollars. There’s also the international ATM withdrawal fee to think about too.

Using a credit card

If you want to apply for a credit card to use overseas, start by looking at the credit cards we’ve listed in the comparison table. Look out for cards that don’t charge a currency conversion fee when you’re transacting in a currency other than British pounds. Some cards also offer up to a number of interest-free days when you pay your balance in full before the end of the statement period, which could help you save on interest costs. Some credit cards also offer complimentary travel insurance, which could save you the time and money you’d need to organise your own.

Don’t use your credit card to withdraw money from an ATM, though. Credit card withdrawals are considered cash advances and will usually incur high interest and a fee. You can avoid some of these fees by loading your own money onto a credit card. Note that the card scheme anti-fraud guarantees don’t apply if you’re using a credit card with a positive balance.

Using a travel prepaid card

You can hold New Zealand dollars on every prepaid travel card on the market. The benefits of a travel card include that you can load British pounds and convert the funds to New Zealand dollars at a fixed rate of exchange. This means that you can spend in New Zealand without paying extra for currency conversion. You also get a backup travel card, which could come in handy if you lose your card.

There are drawbacks too, however. There are a number of fees on the front and back end, such as international ATM withdrawal fees, card issue fees, initial load fees and reload fees. Some travel cards even charge for inactivity.

Using traveller’s cheques

Traveller’s cheques have been replaced by other travel money products such as debit cards, credit cards and travel money cards. A cheaper way to get cash in New Zealand is to make an ATM withdrawal. This is especially so if your card provider has a relationship with the bank that owns the ATM. The main advantage of traveller’s cheques is they can be replaced if they’re lost or stolen, and only you can cash them. The card schemes (Mastercard, for example) give you a money-back guarantee if you’re the victim of card fraud. This means traveller’s cheques are often more hassle than they’re worth.

Paying with cash in New Zealand

Save on foreign currency exchange fees by using a product which lets you make cheap ATM withdrawals. Currency exchange offices charge a commission to exchange British pounds as well as making money off a margin applied to the exchange rate.

How many dollars do I need to bring to New Zealand?

Auckland	Budget	Mid-range	Expensive
	Hostel dorm £15–£20 per night	2-star hotel £35–£80 per night	5-star hotel £150–£500+
	Vegan and vegetarian diner £5–£10	Dinner at a mid-range restaurant £25 per person	5-star restaurant £60+ per person
	Walking tour of Indigenous New Zealand £15–£30 per person	Waitomo Caves and Rotorua day trip £160	Skydive from 16,500ft tour £250

_{*Prices are approximate and are subject to change.}

Which should I opt for: travel card, debit card or credit card?

If you’re wondering about card acceptance, it works in New Zealand the same as the UK. ATMs are everywhere and nearly all businesses accept EFTPOS payments, which you can use for contactless purchases and to get cash out over the counter when you use your debit card. To give you an idea, 70% of all EFTPOS transactions in New Zealand go through the Worldline (formerly Paymark) system, so there’s no issue using your Visa and Mastercard credit card or debit card. American Express cards are accepted in fewer places than Visa and Mastercard. ATMs are available in most towns with the major banks represented: ANZ, ASB, Bank of New Zealand (BNZ) and Westpac.

Travel money options for New Zealand at a glance

_{This table is a general summary of the travel money products in the market. Features and benefits can vary between cards.}

Buying currency in the UK

You can bring the British pound equivalent of $10,000 New Zealand dollars with you from the UK. If you take any more than this, you have to declare your cash when you pass through customs. You will get a better deal if you wait to get your money changed in New Zealand, and even better still if you make a withdrawal from an ATM rather than use a money changer. If you want to get your money changed in the UK, have a look at these companies – they can sell your foreign cash.

• No1 Currency
• FairFX
• Marks & Spencer
• Travel Money Delivered
• Tesco
• Covent Garden FX
• ICE
• ASDA
• Sainsbury’s

Bottom line

As a flourishing modern economy New Zealand offers visitors the ability to withdraw cash from a wide range of ATMs across the country. Visa and Mastercard are widely accepted, while American Express can be used but is not as widely accepted by merchants.

New Zealand dollars can be held on pretty much every prepaid travel money card on the market today, leaving you with plenty of choice when it comes to buying currency at a decent, fixed rate. So whether you use cash, prepaid travel money cards or credit and debit cards, you’ll be well accommodated.