Money Tips With Tristan Dakin, ANZ Country Manager

As Aussies become more comfortable with the idea of travel and Australian summer comes to an end, many will be jumping ship to seek warmer climates. However, off the back of two years of strict lockdowns, many will need a quick refresh on the financial tips and tricks to travel like a pro.

Tristan Dakin, Australian Country Manager for Wise, the global technology company building the best way to move money around the world, is here to offer up easy and cheap solutions to 3 common international money traps travellers should be mindful of before they depart.

Converting cash: 
Many travellers unknowingly get ripped off by poor exchange rates at an airport or local currency converter due to the inflation of fees and exchange rates. To avoid the exorbitant costs, withdraw money from an ATM at your destination with a multi-currency card. Cards like the Wise debit card offer customers free ATM withdrawals around the world up to $350 a month.

If you really need foreign currency in cash, watch out for tricks like “0% commission” or “zero fees” at cash converters. Instead, Google the amount you’re looking to convert to compare whether you’re getting a good deal. The closer the amount you’re receiving is to what you see on Google, the better.

Using your Aussie bank cards:  
While using your Aussie bank card to travel may seem convenient, it is likely to result in extra charges being added to your account. Most travellers aren’t aware that their bank gives them a terrible deal on exchange rates, up to 6% more than the rate you see on Google. On top of a bad rate, you’ll be hit with international transaction fees every time you tap your card overseas or withdraw money from an ATM, which only shows up on your bank statement after you’ve done your transaction. 

Often your bank multi-currency cards can come with different fees such as initial load fees, reload fees, ATM withdrawal fees and even inactivity fees. 

There are bank card alternatives which provide better value for money such as the Wise Card, which was named Canstar’s 2021 Money Card of the Year based on rates and features. The Wise card allows you to spend money in 55+ currencies at the same rate you see on Google, with no markups or hidden fees. 

Wise gives you unique bank accounts in 10 countries, which means in those places you really can spend like a local and help you avoid those pesky bank transfer fees.  

Always purchase in the local currency: 
When you purchase something overseas in-store, use an app like Uber or withdraw money through an ATM, you’re usually presented with the option of paying in the local currency or your home currency. This is known as “dynamic currency conversion” and it’s designed to exploit – not help – you. 

Paying in Australian Dollars might sound like a good plan but it allows the merchant to convert the purchase from the local currency on your behalf, which means the exchange rate is guaranteed to be much worse compared to your card provider. The golden rule is always pay in the local currency of where you are.