Why avoid Oz Credit Cards when overseas?

• 

  mskeggs on 16/12/2013 - 12:40

  +1

  If the transaction fee was only 1.5% it is still high, but my Westpac card also uses a poor exchange rate plus a separate fee for ATMs.
  I use Westpac to book the airfares to get the insurance, then use 28 degrees for spending (and until 1/1/14, ATMs).
  Last holiday we spent about $8k, so saving versus Westpac was >$100.

  • 

    Pumpkin_rrr on 16/12/2013 - 16:43

    Thanx MsKeggs, I am interested to know how you come to the conclusion that Westpac's rate is worse. In my case we have CBA, and I compared to money changer rates, they seem to be alright.

• 

  Daabido on 16/12/2013 - 13:18

  Free travel insurance only usually applies if you at least purchase the airfares with the card, so make sure you check that.

  Purchase protection sometime only applies to goods purchased in Australia, so check that too.

• 

  battler on 16/12/2013 - 13:41

  28degrees also comes with interest free period (on o'seas purchases)

  • 

    Pumpkin_rrr on 16/12/2013 - 16:44

    I thought people load cash into the 28Degrees card.
    If that is the case, interest-free is not relevant??

    • 

      retiredfeline on 16/12/2013 - 16:51

      People load cash so that they can get cash advances from ATM without charge. This won't be possible anymore soon, they've changed the rules.

      In all other respects 28degrees is just like any other Australian CC. It is an Australian CC, just operated by GE Money, who also operate the Coles CC.

• 

  nubzy on 16/12/2013 - 14:23

  It adds up and if you are going overseas for medical work you could end up paying a few hundred $ in conversion/transaction fees

• 

  [Deactivated] on 16/12/2013 - 15:35

  +2

  I work in travel so understand why you might be confused about using your CC for benefits.

  The big reasons to not use your credit card are:
  - Overseas ATM fees: they can be from $5 - $21 per transaction. This gets added onto the amount you are withdrawing, and have nothing to do with your bank
  - Stores may only be cash only (In which case you have to use an ATM and get hit by fees)
  - The conversion rate on your card will be a lot worse that the conversion fee on a travelers card
  - CC theft (where your card # is copied, not stolen) - it is a real inconvenience if your card gets cancelled, and you are stuck overseas.

  The misconceptions you have about getting travel insurance on your CC by using it overseas:
  - You must make a travel related purchase before your trip (i.e. prepaid) to get the insurance
  - Most credit cards it has to be a single purchase of over $1000 (so using the card on your trip doesn't matter)
  - You have to activate your insurance (ring them up to check) before you make the $1000+ purchase before your trip

  Hope this helps.

• 

  OutOfComplaintForms on 16/12/2013 - 19:57

  +1

  snowblindnz's pretty much covered the key points.

  Some other things to consider:
  (1) Not everyone is a fan of using a credit card for holidays (and for some, at all). Debit and pre-loaded travel cards make budgeting much easier. Personally, I don't prefer to splurge on credit only to come home to a whole heap of debt. Not a fun end to a holiday.

  (2) Also, the free travel insurance only applies to specific cards, and not everyone qualifies or is willing to spend the quota. The free travel insurance may not suit the more comprehensive type of travelers either, and of course, there are travelers who don't even see the need for travel insurance.

  I'd have varying opinions about whether I require just medical, comprehensive, or any at all depending on the destination. My opinion of travel insurance if going to Canada would not be the same if I decided to go to the US as well. ;)

• 

  alvinmk on 18/12/2013 - 01:03

  Purchase Protection - I can confirm the Coles CC provides coverage only in Australia.
  If you buy an item in Australia with your Coles MasterCard, and within two years (24 months) of purchase the item is reduced in price by $10 or more, in the same store or another store of the same name, we’ll pay the difference between the purchase price and the reduced price.

  This also applies to items purchased:
  • for someone else as a gift, and
  • through a mail/telephone order catalogue or online order.

  The item with the reduced price must be exactly the same as the item you bought, including size, colour, make and model number,attachments and accessories.

  • 

    donga100 on 19/12/2013 - 16:27

    Might be a good way to purchase a PS4 or XboxOne. The price will likely be significantly less in two years from now.

• 

  Archi on 18/12/2013 - 09:51

  Citibank visa debit card is fee free, and also fee free for international ATM withdrawals