Travel Credit and Debit Cards Background

Travel Credit & Debit cards

Aussies love to holiday overseas and many of us take our credit or debit cards along to help pay for the fun. Working out the fees and charges that could apply when you use your credit card or debit card overseas can be complex, and currency conversion and ATM fees can really add up if you don’t have a strategy in place to avoid or minimise them.

Check out our tips on how to save money when travelling, and view the award winners of our Travel Credit & Debit Card Star Ratings.

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Travel Credit & Debit Cards Star Ratings

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What are travel credit cards and debit cards?

Canstar Outstanding Value Travel Credit Card

Canstar Outstanding Value Travel Debit Card

Travel credit and debit cards are two popular ways to spend money overseas. They can be used as an alternative to cash and allow you to make purchases and withdraw cash when travelling abroad.

Travel credit cards work like regular credit cards but they may come with added benefits. Common examples include no or low currency conversion fees and overseas ATM fees, and perks like reward points, travel insurance and airport lounge access.

A travel debit card is a regular debit card that you can use overseas. These cards are attached to a transaction account, so you are spending your own money rather than borrowing money from the bank. Like travel credit cards, you can also get travel debit cards with no or low currency conversion and overseas ATM fees.

The features on offer and the costs involved will depend on the card in question, so it’s important to compare individual options carefully. As with other travel money options, there are also various pros and cons to weigh up.

How do Canstar’s Travel Credit & Debit Cards Star Ratings work?

Canstar considers over 200 travel credit and debit cards from different banks and financial institutions. Our expert researchers use a sophisticated methodology to rank accounts, with a particular focus on features and fees for owning and using the card. Canstar gives the top-performing cards a 5-Star Rating.

Canstar’s Star Ratings do not focus on the cost of financing an overseas trip. Credit cards can be an extremely expensive way to finance a holiday if your spending is not paid off within the interest-free period, particularly if the provider charges high fees as well.

Some of the factors we consider for travel credit and debit cards include:

  • Fees – currency conversion fees and overseas ATM fees, as well as ongoing account-keeping fees, annual fees and any fee waivers
  • How easy it is to use the card and manage your account – including the ability to make international purchases, international ATM access, cash advances for credit cards, and merchant acceptability
  • Rewards for travel credit cards – some cards allow you to earn reward or frequent flyer points for your spending, which could help offset any annual fees
  • Premium travel features for travel credit cards – common examples include travel insurance and access to airport lounges.

About our finance experts

Nina Rinella, Editor-in-Chief

As Canstar’s Editor-in-Chief, Nina heads up a team of talented journalists committed to helping empower consumers to take greater control of their finances. Previously Nina founded her own agency where she provided content and communications support to clients around Australia for eight years. She also spent four years as the PR Manager for American Express Australia, and has worked at a Brisbane communications agency where she supported dozens of clients, including Sunsuper and Suncorp.

Nina has ghostwritten dozens of opinion pieces for publications including The Australian and has been interviewed on finance topics by the Herald Sun and the Sydney Morning Herald. When she’s not dreaming up ways to put a fresh spin on finance, she’s taking her own advice by trying to pay her house off as quickly as possible and raising two money-savvy kids.

Nina has a Bachelor of Journalism and a Bachelor of Arts with a double major in English Literature from the University of Queensland. She’s also an experienced presenter, and has hosted numerous events and YouTube series.

You can follow her on Instagram or Twitter, or Canstar on Facebook.

You can also read more about Canstar’s editorial team and our robust fact-checking process.


Josh Sale, Travel Credit and Debit Card Ratings Manager

Headshot of Josh Sale, CanstarAs Canstar’s Ratings Manager, Josh Sale is responsible for the methodology and delivery of Canstar’s Travel Credit and Debit Card Star Ratings. With tertiary qualifications in economics and finance, Josh has worked behind the scenes for the last five years to develop Star Ratings and Awards that help connect consumers with the right product for them.

Josh is passionate about helping consumers get hands-on with their finances. Josh has been interviewed by media outlets such as the Australian Financial Reviewnews.com.au and Money Magazine.

You can follow Josh on LinkedIn, and Canstar on Twitter and Facebook.


Travel credit and debit card FAQs

1. Can I use my everyday credit or debit card overseas?

Yes, many credit cards and debit cards can be used overseas. But it’s important to check the fees first. See what foreign currency conversion and international ATM fees your bank charges. If they are high, you might like to consider taking out a new credit or debit card with low or no international transaction fees. Or you could consider other options like a travel money card.

2. What are the pros and cons of using a travel credit card?

If you’re considering a travel credit card, make sure you weigh up the pros and cons first. Some of these are as follows.

Pros:

  • Widely accepted
  • Useful in an emergency as you have access to a line of credit
  • Can have extras like reward points, travel insurance and airport lounge access

Cons:

  • May incur currency conversion, overseas ATM, cash advance and annual fees
  • Temptation to overspend and get into debt

Read more about the pros and cons of travel credit cards and other options.

3. What are the pros and cons of using a travel debit card?

If you’re considering a travel debit card, consider the various pros and cons, such as:

Pros:

  • You are spending your own money, which can help keep costs down
  • Widely accepted

Cons:

  • May incur currency conversion, overseas ATM and account-keeping fees
  • No access to additional funds if you need it (unless you have an overdraft facility)

Read more about the pros and cons of travel debit cards and other options.

4. What other travel money options are there?

Another popular option is to take out a travel money card. A travel money card is a card that you can preload foreign currencies onto before you set off. You can then use it like a regular debit card. Most cards are issued by Visa or Mastercard so are widely accepted.

With a travel money card you can lock in your exchange rate before you travel and avoid paying multiple currency conversion fees each time you make a purchase. Most travel money cards also let you load multiple foreign currencies onto them at once.

5. Will travel insurance offered by my credit card be enough?

It depends on your personal needs and the specific travel insurance policy. Think about what you want to be covered for, the amount of cover you need and the type of activities you will be doing on your trip. Read your credit card travel insurance policy carefully, including:

  • The policy conditions. Who does the policy cover? Does it cover only the cardholder or does it also cover your partner and/or dependents? What excess applies? How long are you covered for?
  • The policy benefits. What are you covered for? For example, it could include cover for overseas medical and dental, cancellation fees, luggage and travel documents, emergency travel arrangements and rental vehicle cover.

Travel credit and debit card providers

Canstar recognises the top performing cards with a 5-Star Rating. In 2023, the following providers received at least one 5-Star Rating for their travel credit cards:

  • Bank Vic
  • Bankwest
  • Bendigo Bank
  • Coles
  • Commonwealth Bank
  • Great Southern Bank
  • HSBC
  • ING
  • Latitude
  • Macquarie Bank
  • ME
  • Suncorp
  • Ubank
  • Up
  • Westpac

In 2022, the following providers received at least one 5-Star Rating for their travel credit cards:

  • ANZ
  • Bank First
  • BankVic
  • Bankwest
  • Coles
  • Commonwealth Bank
  • Horizon Bank
  • HSBC
  • ING
  • Latitude Financial Services
  • Westpac

 

This content was reviewed by Deputy Editor Sean Callery and Sub-Editor Tom Letts as part of our fact-checking process.

Important information

For those that love the detail

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.

Canstar does not rate or compare every provider in the market and we may not compare all features relevant to you. Learn more about our Canstar Travel Credit and Debit Cards Star Ratings Methodology. Star Ratings are only one factor to take into account when considering products. Check current product details with the product issuer. Sometimes the methodology uses profiles with categories or bands, but sometimes a single methodology, without any categories or bands, is applied.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. You may need financial advice from a qualified adviser. Canstar is not providing a recommendation for your individual circumstances. It’s important you check product information directly with the provider. Consider the Product Disclosure Statement and Target Market Determination (TMD), before making a purchase decision. Contact the product issuer directly for a copy of the TMD. For more information, read our Detailed Disclosure.

What is a Target Market Determination?

A Target Market Determination (‘TMD’) is a document that explains which people particular financial products may be suitable for (the target market) and sets out any conditions around how financial products can be distributed to consumers.

Why do product issuers provide Target Market Determinations?

From 5 October 2021, TMDs are compulsory for most financial products.

Issuers and distributors of financial products must take reasonable steps that are likely to result in financial products reaching consumers in the target market defined by the product issuer.

We recommend that you consider the TMD before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

Canstar may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it’s an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product's rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar. Payment of fees for ads does not influence our Star Ratings. See How We Get Paid to find out more.