Pre-paid travel cards - AusPost Load&Go card?

[AshM]

I'm booked to start a long RTW trip from October this year and had a close eye on the $A as it fell a fair bit in value last week. I see it's rebounded a bit today and, with that in mind, I've started exploring options for locking in exchange rates while the $A remains strong.

I had a look at various options involving forex trading and foreign currency accounts but they're too complicated and involve lots of unexpected fees. Likewise, becoming an HSBC Premier customer was a bit out of my league. So I started looking at pre-paid multi-currency travel cards and compared the Cash Passport (from various outlets), the OzForex Travel Card and the AusPost Load&Go card.

Let me preface this by saying that I have a 28 Degrees card up and running already, which I like, but it obviously doesn't lock in favourable rates in advance. So what I'm trying to do is effectively exchange some money at this stage without having to stuff cash under my mattress. I'm also conscious that simply having the money in the bank for six months is worth around 4% p/a in interest compared to having it sit idly in foreign currency card but leave that aside for now.

Anyway, the gist of what I came up with was that the Load&Go seemed to look the best to me. It has fewer currencies (5 - versus 9 for the other cards - but I don't think I'll need more than the 5) and charges ATM fees ($A2 per withdrawal) and transaction fees (up to a max of 99c/month) but it more than makes up for that by not having initial card fees (1.1% or $15 for the other cards) or reload fees (generally around 1% for others). The exchange rates also were marginally better ($US0.9925 for $A1, compared to around $US0.9850 for the others).

So I guess my question (if you've made it this far) is: has anyone used the Load&Go Travel Card and, if so, what was your experience with it?

Thanks very much!

 

[albatross710]

I'm not a fourex trading person but this is how I reconcile the exchange rates.

If you do lock in rates and the dollar improves further (for whatever reason) how do you feel on your holiday knowing that it is costing you 10% more than it should have?

For me, I travel overseas a few times each year and I just wear the best trade of the day. Considering the total amount of travel money that I might have in play over the year, I trade off the possible loss against the stress of worrying about it all year.

I just treat by 28 Degreees card like an eftpos card and know I'm at least 4% better off than the prepaid charge cards.

The charge cards do have the built in limits but even with credit cards, a disputed transaction usually goes in favour of the card holder with the banks doing a charge back to the merchants.

Happy travels.

 

[simongr]

I am on the same page as albatross710. Any way you load up on money you are betting that you are locking in the best rate - I would only do that if I was an expert in currency trading and exchange rate forecasting.

What if you tie up your money and an unexpected issue arises?

Can you predict with certainty how much of each currency you might want to lock in? What if you are left with a few drachmas and a few euros at the end of the trip?

 

[AVC]

Yes, but you're comparing the exchange rate to other preload cards. Its still lower that the 28 degree card rate.

And by the look theres a 999 limit on the prepaid card

 

[medhead]

There are also fees on all the pre-loaded cards. Monthly account fee for example. The best way if you want to lock in a rate is to get cash as a hedge. Still use the 28 degrees card if you don't want to carry a heap of cash overseas. Just convert the foreign currency back to A$ and load onto the card. Winning if the exchange rate gets worse.

I agree with the idea of being upset about locking in what turns out to be an unfavorable rate. But I think the best thing is to decide what exchange rate you'll be happy to achieve and be satisfied at that.

 

[ortho85]

There are also fees on all the pre-loaded cards. Monthly account fee for example.

I'm interested in the Load&Go card too. It seems to have changed since it started, and appears better. For example, the limit is now $10,000.

As far as I can see, there are no monthly charges. There is a 9 cents per transaction for purchases, capped at 99 cents per month.

There is NO charge to purchase, and NO fee to reload. Sounds too good to be true?

I keep hearing how good the 28 Degree card is, so I did a quick comparison yesterday. For AUD$1000 I would get:-
770.2 Euros on the ANZ Travel card
776.1 Euros on the Australia Post Load&Go card
750 Euros on the 28 Degree card

It may be different in other countries (like the USA) because 28 Degrees first converts to US$ then to AUD$.

However, unless someone can point out my errors, the Load&Go card seems a good deal - assuming you lock in at the right exchange rate!!!

Cheers

 

[serfty]

Were do you get those exchange rates from?

The 28° should give you in the order of €810.

 

[ortho85]

Were do you get those exchange rates from?

The 28° should give you in the order of €810.

Someone elsewhere on this forum said they used the standard Mastercard rate, and linked to https://www.mastercard.com/global/currencyconversion/index.html

I used that, converting via US$ between Euro & AUD$ (which is how the 28 Degree site says they convert).

Am I wrong? That's why I'm foncused - everyone rates the 28 Degree highly. What am I missing?

Cheers

 

[Cynicor]

You are wrong, not sure about the rates there, but just go to xe.com and convert EUR to AUD. Take about 0.2%off to account for worst case intraday variation and Bob's your uncle.

People always get hung up on multiple exchange (EUR-USD,USD-AUD) without realising that if there is no commission nor overheads, then it doesn't matter how many times you convert through other currencies.

 

[curiost]

I did a fair bit of research for pre paid card for last year's europe trip and found this blog useful: Prepaid travel money cards reviewed & compared - Flights | hotels | frequent flyer | business class - Australian Business Traveller

I can vote for the Commbank one, which is the one I chose. I thought it was really great

 

[Cynicor]

I did a fair bit of research for pre paid card for last year's europe trip and found this blog useful: Prepaid travel money cards reviewed & compared - Flights | hotels | frequent flyer | business class - Australian Business Traveller

I can vote for the Commbank one, which is the one I chose. I thought it was really great

These cards don't have a great following on AFF really, they are pretty poor value compared to the 28 degrees or Citibank debit.

Due to various fees, loss of interest in locking money up in advance, poor exchange rates you'd have to expect a major depreciation in the dollar to come out on top.

Take the CBA card for example. $15 or 1% just to add money. $2.5USD for an ATM withdrawal. Rate of .9986 (4.2c/$ worse than XE)
Your first 2k AUD would give you $1978USD. (2000-15, *.9986, minus 2x$2.5).

The same amount via 28 degrees is worth $2080USD.

To make the card worthwhile the rate would need to drop below 0.989, from its current 1.04. Add the loss of interest at about 0.4% per month and you need to be pretty bearish on the dollar to lock in rates via a travel card.

 

[curiost]

I agree with you that 28 degrees is better but keep in mind it is a credit card. I'm an anti-credit card person so for a debit card the commbank one was great. But if you're not fussed whether its a credit or debit card then go for the 28 degrees one

 

[DeKa]

I agree with you that 28 degrees is better but keep in mind it is a credit card. I'm an anti-credit card person so for a debit card the commbank one was great. But if you're not fussed whether its a credit or debit card then go for the 28 degrees one

Get the Citibank Plus account then. Pretty much the same rate as 28 Degrees (the Visa rate rather than the MasterCard rate).

 

[Cynicor]

As above, citibank debit is your answer.

 

[oz_mark]

Someone elsewhere on this forum said they used the standard Mastercard rate, and linked to https://www.mastercard.com/global/currencyconversion/index.html

I used that, converting via US$ between Euro & AUD$ (which is how the 28 Degree site says they convert).

Am I wrong? That's why I'm foncused - everyone rates the 28 Degree highly. What am I missing?

The Mastercard rates got me to 812 Euro, so I suspect there is a glitch in your calculation somewhere.

 

[serfty]

The Mastercard rates got me to 812 Euro, so I suspect there is a glitch in your calculation somewhere.

Same fo me on XE.com - I rounded down.

OP - and others concerned about the 28° being a Credit card, check the index in the first post of this thread: http://www.australianfrequentflyer..../28-wizard-mastercard-cash-advances-6960.html

FWIW, on Thursday I used a 28° to withdraw ¥11000 from an ATM. It Cost me $112.58 - going by XE.com that's a ~0.3¢ commission

 

[ortho85]

FWIW, on Thursday I used a 28° to withdraw ¥11000 from an ATM. It Cost me $112.58 - going by XE.com that's a ~0.3¢ commission

Thanks, serfty - that's what I needed, a simple example!

Cheers

 

[AshM]

The same amount via 28 degrees is worth $2080USD.

Does 28 Degrees publish its rates (or how they are calculated) anywhere?

 

[serfty]

Does 28 Degrees publish its rates (or how they are calculated) anywhere?

Not specifically as they generarally vary day by day.

In reality it's just "MasterCard" rates "of the day".

See this entire thread: http://www.australianfrequentflyer....sion/28-degrees-card-exchange-rate-29400.html

 

[AshM]

Super. Thanks very much.