Travelling well oiled

Q: MY WIFE and I will shortly be travelling to Europe for a river cruise. Our travel agent suggested we obtain a Travelex Cash Passport ATM Card and deposit funds into it to draw as necessary whilst overeas. Would that card be more beneficial than just using our Visa card overseas, taking into consideration the various costs and security/safety considerations?

Our expert, Neil Dearberg, is a certified financial planner with Lifestyle Financial Solutions.

A: Ah, great questions for all overseas travellers!

First thing to do – go to www.cashpassport.com, where fantastic detail is provided. Assuming you already know how your other debit cards work, you can make a value judgement for your circumstances. The Travelex card is linked to Visa.

The key to these comparisons is ‘your circumstances’ – what may be right for one person may not be for another.

I’m off to Turkey and Syria in May/June and some concerns exist for money access. For example, our Syrian guide has just advised that travellers cheques are no longer accepted anywhere in Syria. He says ATMs are in most towns but we are going to some isolated places. It is worth noting that Cash Passport is available in your choice of five currencies – and if you are in a country without of those currencies, you can still obtain local currency with another conversion, at a fee. So, you can buy a card in EUR and still go to the UK and withdraw local pounds. Or buy USD and access Syrian pounds.

If you are going to Europe, you can expect Visa ATM access freely, once more assuming you are going to the developed parts where electricity flows. So if you are cruising through many countries, ask the boat company now about ATM access everywhere.

My view is you would have both a Cash Passport and a debit card for purchases and points collection – after all, cash is usually only for coffee these days.

The big advantage of Cash Passport is, once you have purchased your currency, you are no longer subject to currency fluctuations. Now, that could be a problem if the currency goes the other way – but at least you know what you’ve got when you buy. But it does have big fees, including 1% just to buy it and to reload it. Transaction fees vary depending on currency selected and the agent where you access. It also has PIN security, should it be lost or stolen, whereas debit cards and Travelex Cards may be subject to fraudulent access.

My tip: take a debit card for purchases and major transactions and a Cash Passport for incidental cash needs.

Our Expert, Neil Dearberg's phone number is 07 5479 1977 and his website is www.lifestylefs.com.au

UPDATE: A keen eyed reader mailled in with the following follow up:

"Why do you suggest to take a debit card & not a credit card when travelling? I would put cash into the credit card before leaving?"

Neil's reply is:

I should have said take a credit card and cashpassport. The credit card for using “borrowed money” and gaining loyalty points on major purchases and the cashpassport for incidental cash

I am sorry for the confusion."