Overseas Spending Money Strategies

[scwappy]

At that point surely the Citi is easier? I guess it depends how much of a currency bear you are, but I find it rarely moves enough to warrant fixing it in such a way.

It's not something I would personally do, but is an option.

 

[Gold60]

i have now applied for my card/account - and now just hope it comes through in time....

 

[JohnK]

Even if you're in a country where ATMs charge fees or you can't find a free ATM, the ATM fee will still be far cheaper than using a ****ty travel money card or exchanging for cash at a dealer.

Not always true. I can get cash exchange within 0.2 of mid market rate in Chiang Mai and Pattaya. I think that's marginally better than 28 Degrees.

Also at the same exchanges I can buy any other foreign currency at a much better rate than I can buy in Australia and more than likely better than I can get in the cash exchange booths in those countries.

 

[moa999]

Probably only true in Thailand and Malaysia in my experience (and possibly Hong Kong if you go to the Mansions).

Also 0.2/26 = 0.8% which is higher than both Visa and MC embedded margin

The Wiki on the Whirlpool site also has a good rundown on which ATMs do charge in certain countries
https://whirlpool.net.au/wiki/citibank_plus_transaction_account

 

[clifford]

Not always true. I can get cash exchange within 0.2 of mid market rate in Chiang Mai and Pattaya. I think that's marginally better than 28 Degrees.

Also at the same exchanges I can buy any other foreign currency at a much better rate than I can buy in Australia and more than likely better than I can get in the cash exchange booths in those countries.

I agree, John.

Was in London recently and used Thomas Exchange UK, who have several branches in London. Got a better rate for AUD to GBP than I could with a credit card. Simplicity itself.
Travel Money: The best foreign exchange rates - Money Saving Expert

 

[Mattg]

I'm also a huge fan of the Citibank Plus account and the 28 Degrees credit card.

Finally, don't take the risk of being blocked overseas: call all of your card providers (including Citibank) before you leave and tell them to add notes to your record about your travels. If you are planning on using your cards online while overseas, confirm and/or call your card providers about any secondary authentication methods used; e.g. if a method involves sending you an SMS to your card's registered mobile, you need to be ready for this.

I always try to do this for all my cards (or at least any that I might use while overseas). Although the last time I called Citibank to advise them of overseas travel they said that it was no longer necessary to call them and that I just needed to make sure the mobile number attached to my account was up to date in case they needed to call me regarding a suspicious transaction.

 

[RooFlyer]

Not always true. I can get cash exchange within 0.2 of mid market rate in Chiang Mai and Pattaya. I think that's marginally better than 28 Degrees.

Also at the same exchanges I can buy any other foreign currency at a much better rate than I can buy in Australia and more than likely better than I can get in the cash exchange booths in those countries.

I agree, John.

Was in London recently and used Thomas Exchange UK, who have several branches in London. Got a better rate for AUD to GBP than I could with a credit card. Simplicity itself.
Travel Money: The best foreign exchange rates - Money Saving Expert

How much do you price your time and convenience at? While you are finding and then haggling/transacting with dealers and banks in the heat and crowds, I just hand over a Citi or 28 Degrees card to the merchant and keep doing what I went overseas for. If I faffed around trying to save that last fraction of a % on the spot rate, the true cost, after time and opportunity cost, would be pretty expensive.


And yes, Citi no longer need notification of overseas travel.

 

[clifford]

haggling/transacting with dealers and banks in the heat and crowds

No haggling with Thomas, no heat (it's London), and no crowds in their office (I was the only person in there). When I'm in London, I don't regard travelling on the bus/tube as a hassle, but YMMV. I actually quite enjoy it.

Oh, and such great rates, xx_ to GBP and GBP to xx_.

 

[JohnK]

How much do you price your time and convenience at? While you are finding and then haggling/transacting with dealers and banks in the heat and crowds, I just hand over a Citi or 28 Degrees card to the merchant and keep doing what I went overseas for. If I faffed around trying to save that last fraction of a % on the spot rate, the true cost, after time and opportunity cost, would be pretty expensive.


And yes, Citi no longer need notification of overseas travel.

No haggling where I go. Plus where I eat/drink in Pattaya cash is preferred method of payment.

Oh and at times I like going for a walk people watching in the evenings after golf and exchange at the exchanges with the better rate.

 

[ablecookie]

There are two aspects that the banks/credit card issuers hit you. One is the declared fees and other is actual exchange rate. You will find Bankwest exchange rates are far inferior! While Citibank and 28 Degree vary much give the official mid-rates to the minute.

 

[Cynicor]

There are two aspects that the banks/credit card issuers hit you. One is the declared fees and other is actual exchange rate. You will find Bankwest exchange rates are far inferior! While Citibank and 28 Degree vary much give the official mid-rates to the minute.

The exchange rate is from the card issuer, either Visa or MC (or Amex). It doesn't change. The banks mark them up with a stated fx commission but Bankwest MC is on the mark, it's no difference to the 28 degrees MC

 

[motef]

So to clarify, overseas, i can take cash out from an atm, but if i get stuck with no cash or not enough cash because its a large transaction (and my account has funds to cover it) i can select credit at say a restaurant or similar and use this as credit card with no fees?

Is that correct?

 

[IrishPete]

I wonder how the Original Poster fared with opening the account and activating it. I have a 28 Degrees Mastercard, and a few years ago when they stopped allowing free cash withdrawals, I applied for the Citibank card. I received the card and the PIN, but it would not activate. Having failed three times, or whatever number it was, they then told me that to activate it they wanted copies of identity documents mailed to them. So I gave up. I just use my 28 Degrees and withdraw small amounts of cash from it or another credit card, and wear the small amount of fees. You need so little cash these days, if you try, that it's probably only adding $20 or so to my costs.

I usually use my ANZ Platinum Visa for car hire, even though its exchange rate is poor, because of the Excess Reduction cover, which reduces the per-day cost of the car hire by of the order of $20 a day, so well worth it. I usually book my international flights on it or AmEx Platinum Edge for the travel insurance. Edge is sometimes problematic as I only have a $2k limit, which they refuse to increase. Their loss.

 

[Gold60]

i now have my card - i am the OP - and have activated it. am going down town soon make make sure i can get some cash out of it before i leave - don't wanted to be stranded OS without easy access to this cash,. As far as i can make out, there are no other fees and/or costs involved - aside from the exchange rate?

I wonder how the Original Poster fared with opening the account and activating it. I have a 28 Degrees Mastercard, and a few years ago when they stopped allowing free cash withdrawals, I applied for the Citibank card. I received the card and the PIN, but it would not activate. Having failed three times, or whatever number it was, they then told me that to activate it they wanted copies of identity documents mailed to them. So I gave up. I just use my 28 Degrees and withdraw small amounts of cash from it or another credit card, and wear the small amount of fees. You need so little cash these days, if you try, that it's probably only adding $20 or so to my costs.

I usually use my ANZ Platinum Visa for car hire, even though its exchange rate is poor, because of the Excess Reduction cover, which reduces the per-day cost of the car hire by of the order of $20 a day, so well worth it. I usually book my international flights on it or AmEx Platinum Edge for the travel insurance. Edge is sometimes problematic as I only have a $2k limit, which they refuse to increase. Their loss.

 

[IrishPete]

Well done OP!

 

[Gold60]

and i just got an email back from Citi saying yes there are no fees for cash withdrawals except for the exchange rate, etc - so i am good to go - just gotta load the cash up and give it a whirl.............

Well done OP!

 

[marks]

Just to add a few things from my experience.
When travelling, especially if you are going to a few hotels, car rentals, etc within a 2 week period, take an AMEX with you if possible. If not, another card for this purpose. This is not a card for spending on, just securing services.

Everytime you check in and they swipe a deposit on your card they "lock" an amount of spending from that card which can take weeks to clear. Do that a few times and the credit limit is reached and your card stops working.
OR, you are in the US and the joint card you use with the spouse is used to buy a fridge at home and gets declined. Hilarious phone calls ensue from this point.

Why I say AMEX? Being a charge card without a spending limit, you don't hit the credit limit like a regular credit card does.

28 degrees is a winner. Even with there $1 cost to bpay them.... And never accept anything but a local currency charge. I've handed goods back and ask for a refund rather than get scammed by the DCC rort.

Citibank plus for cash via ATMs. Even if there is a fee at the ATM, I've not had it charged to my account by Citibank. The $8USD ATM fee from the MGM grand in LAS never made it to the citibank account. However, as a rule I target the Citibank ATMs to ensure no fees.

If you have a Credit card (or said AMEX) available, or you want to use a certain insurance on a rental, use that card to book and reserve BUT not pay in advance. Hotels, cars, tours, etc. Pay with your 28 degrees card on checkout or return. Only if you need to use the insurance (ie. Car issue) then pay on that card to leverage that insurance cover or your regular card is full.

If you are using the credit card insurance products, do a search on people's success with them. Not always happy stories. Go and have a look at TID or 1cover for something worthwhile.
I believe AFF members get special rates at TID as well.

Enjoy your trip.

Cheers.

 

[Mr_Orange]

3. For times when you don't want to use cash (which you've withdrawn from ATM using Citibank Plus card), put the transaction on the highest points earning card you can find. I recommend Amex Explorer or Amex Platinum Charge card which will both earn 2 points per $ (ie: 2 airline miles per $1 AUD on international transactions). The international fee you'll pay on these cards is ~3%, which almost every card will have anyway, so you may as well go for the one with largest points earn and has the most protection while you're overseas.

Any bankwest Platinum or above card waives the 3% forex fee including the No Fee and Qantas cards or there is the 28 degrees credit card.

Earning extra points for forex spend is all very well but you are paying for the extra points. Bankwest will serve up either 0.5 or 0.66 QF ppd with no forex fee.

 

[Cynicor]

So to clarify, overseas, i can take cash out from an atm, but if i get stuck with no cash or not enough cash because its a large transaction (and my account has funds to cover it) i can select credit at say a restaurant or similar and use this as credit card with no fees?

Is that correct?

This is correct, but most people would have a 0 FX fee CC for this. Either 28 degrees, Bankwest plat/world or similar.

 

[coco50]

What trippin_the_rift said ... but adding:

* Take a back-up ATM card - I simply take my day to day CBA ATM card. It would be expensive to use, but I'd only use it if the Citi card was u/s.

* Have a good read through this thread. (Go backwards; things will have changed from the 2011 thread start). It will alert you to specific non Citi ATMs that charge a fee or not. Many do not, but some zing you for as much as A$8/withdrawal (in which case you make sure you only do one!)

* One thing t-t-r didn't mention is that the Citi FX rate is essentially spot rate (maybe up to 0.5% if you are unlucky). Therefore you can use it for purchases as you would a debit card in Australia.

If you are taking back up cards as well as a no fee card such as 28 Degrees, don't forget to let all providers know that you will be out of Australia - dates and where you will be.