AusPost - AMEX pre-paid USD debit card $15 lock in USD rate forever (upto $30K)

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Australia Post

• 

  nimbin2k on 05/11/2010 - 02:37

  +1

  Correct me if I'm wrong (I know I'm asking for it here…), but if this is effectively an AMEX card, doesn't AMEX have the highest commission cost of any other provider (in this case, visa or mastercard).

  So while AMEX may not charge you for using the card, the 'retailer' almost always will (from my experience anyway), sometimes the difference can be 2% or more of a transaction cost compared to other cards… and what about interest on my money I 'deposited' on the card as well… debit 'credit' cards are always a scam in that way.

  • 

    windsurfer-sp on 05/11/2010 - 03:09

    I often use my fathers Amex, for big companies, like Woolworths etc.. Amex is not surcharged. Great for regular use with petrol+groceries.

    • 

      Legolas on 05/11/2010 - 07:27

      In many cases, when you pay hotels, airfres etc, Amex/Diners surcharged 3% while Visa/Mastercard 1.5%

    • 

      YesPleaseThankYou on 05/11/2010 - 08:52

      it certainly is surcharged at many places.

  • 

    anthony on 05/11/2010 - 10:48

    doesn’t AMEX have the highest commission cost of any other provider (in this case, visa or mastercard).

    No, that is just what people think and merchants are told.
    If merchants bothered to call American express and ask for a better rate then they will find that American express will match the merchant rate the store is paying to accept visa/mastercard.

    So while AMEX may not charge you for using the card, the ‘retailer’ almost always will (from my experience anyway), sometimes the difference can be 2% or more of a transaction cost compared to other cards

    You are thinking about using the card in Australia but as you would be putting USD into it then using it in Australia would not make sense.
    Because the card will have USD in it then you need to think about using it in America.
    If you have never been then I can say from experience that I have never found a store in America who does not accept American express or who charges a surcharge to accept it or any other credit card.
    (It is actually against the merchant agreement for American companies to place a surcharge on American express cards which is not equal to a surcharge applied to VIsa/Mastercard if they choose to apply one)

• 

  nimbin2k on 05/11/2010 - 02:45

  Also, "up to 30K" is extremely misleading, since the max you can hold in your account across any accounts/currencies at any one time is US$15K… you are limited to a total of US$30K worth of deposits over the year…

• 

  soulspawn on 05/11/2010 - 03:01

  +1

  My understanding from the wording of the terms and conditions:
  "Locked-in Exchange Rate
  Exchange rates are fixed at the time you add your funds, so you can avoid currency fluctuations."
  is that the rates at which you initially loaded funds in will be locked in, but any new funds you load in will be re-caluclated at the time which you add the funds (ie. reload) Thus, to lock in the parity rate forever you would have to load in $30k (the limit) into the card and slowly spend it.
  would it then not be the same as converting your funds into USD now? infact, if i did that and put it in the bank, i would earn interest on my "locked-in rate".

  I could be wrong, but the fact that amex will allow customer to indefinately lock in an interest rate would be too good to be true.

  • 

    jtav on 05/11/2010 - 03:16

    Yeh thats how i read it as well. DOes anyone have first hand experience with this card?

  • 

    [Deactivated] on 05/11/2010 - 04:32

    +6

    Simple the funds you have deposited are locked in - by definition they are. The card balance is in US Dollars, so really the "locked in" concept is "Marketing" something that the card is already based on viz, our fear that the good times will go away and our dollar drops again.

    If I buy $US15000 in hard currency guess what I am also protected by a "locked in rate".

    So think of it this way. Yep if I want to buy more currency the existing "locked in rate" will not apply to the new purchase but still applies to the already bought currency - or in this case the balance on this card.

    So "locked in rate" is marketing talk for - You have USD valued funds in your possession. Just as now you have AUD funds (cash) you have "locked in rate" in Australian currency. It doesnt mean you can use that rate for any funds you transfer onto the card in the future.

    But you are right. No interest on this card and also no gain if the AUD continues its upward movement. Also what rate of exchange do AMEX give you now. Is it the interbank rate?

    And then there is the difficulty of spending on Amex when travelling etc (surcharges by retailers) When people quote Woolies and Coles, these are local retailers not OS retailers.

    And card spend in other countries other than the US will mean conversion fees from USD to the local currency. Again what rate is used then. All factors to consider.

    As I have a Wizard card which uses the interbank rate (or very close to it) I would use the following guide to make up my mind. This is percentage expected for a downward movement in AUD and includes a small percent for the "why bother" concept

    1. If using the funds for US purchases maybe 10% (as I would have to pay conversion fees anytime)
    2. If I am using this to speculate on the AUD and spend the money here probably need to consider a downward shift of 15% in AUD (Convert back fees)
    3. If using for Non US purchases 20% (convert back fees to another currency and surcharge cost issues)

    All dependent upon time as well add .5% per month in lost interest

    • 

      JudasX on 05/11/2010 - 04:47

      thanks for the explanation.

• 

  ubs on 05/11/2010 - 06:16

  but their exchange rate not good 0.97, i check on amex website https://www.fx4you.com/australia/americanexpress/rates.cfm?p…

  • 

    oz-dxer on 05/11/2010 - 08:28

    you never get the diaily exchange rate when converting funds as there is always a "margin" in the transaction.

    as i am going OS early next year, i got US$600 yesterday from NAB and it cost AUD $615.50 (0.9748) +AUD $10 fee on top.

    i will use my VISA debit when OS where possible as funds convert on the "daily rate" with no extra fees on the transactions.

    • 

      wiz187 on 05/11/2010 - 22:26

      Try Au post - found their rate as good as I could, with NO fee.

• 

  Lord Fart Bucket on 05/11/2010 - 06:19

  Sorry… but this is IMHO a bit misleading.
  The statement "with this card you can lock in the rate for life." makes it read like it's something fantastic. If i get it now and the Oz dollar goes down to 60 US cents, i'd still get todays rate if i deposit my money on it in the future.

  Certainly not getting a + from me.

• 

  PainToad on 05/11/2010 - 06:50

  Fees, having ur money trapped in USD (unless you paying more fees to use for AU purchuses), the US dollar will likely fall even more, HEAPS of alternatives (such as Travelex). I don't see this as a bargain sorry.

  • 

    anthony on 05/11/2010 - 10:58

    having ur money trapped in USD (unless you paying more fees to use for AU purchuses

    The card it not designed to be used in Australia.

    You put USD in the card and then use it to pay for USD purchases

  • 

    machej on 05/11/2010 - 15:10

    I agree, a lot of Americans are investing in our dollar pushing it only higher. Plus you don't get interest so ultimately you are wasting your money unless you know the USD will get healthy again. The card may be a bargain but transferring money is not. This gets a minus from me.

• 

  ravzter on 05/11/2010 - 07:13

  Can i use this on siteds like apple US which only accepts US credit cards ?

  • 

    maplesyrup on 05/11/2010 - 07:21

    Most probably not, I would think, because the card you use needs to have an American Billing address.

  • 

    jason101 on 05/11/2010 - 08:08

    Can anyone verify this for sure - very good point as some sites will only accept "US issued" cards.

• 

  Victorious on 05/11/2010 - 07:23

  -1

  How is this a bargain? Misleading/confusing description as well.

• 

  gstfree on 05/11/2010 - 08:28

  This offer only benefit to people who travels to the states a lot. If you intended to use the card other than the states, please be aware the currency conversion fees and other fees, usually 2%.

  This card is not an appropriate financial instrument for trading currencies.

• 

  inherentchoice on 05/11/2010 - 08:39

  I'm not too sure this is much different to using your own credit card in the states. I wouldn't be surprised if the answer to the "big question" about what exchange rate they charge is that they take about an extra 2-3% on top of the rate at XE.com, just like paypal and everyone else…

  If you're changing a small amount, the $15 outlay makes it really not worth it, and for big amounts they'll get to earn good interest on your funds while you get squat.

  The 'bargain' value of this seems to be based on the idea that you can lock in the current exchange rate. Time could prove that the exchange rate might get even better, who knows? I would think that a good exchange rate is a lot more of an investment opportunity than a 'bargain'.

• 

  YesPleaseThankYou on 05/11/2010 - 08:56

  -1

  Lock in your exchange rate when you load or reload funds.

  The rate does not apply for the life of the card. The rate that's applied is the rate applicable at the time "when you load or reload funds".

  So if you load funds today it might be 1 AUD = 1 USD. However, if you reload funds next week then they might be at 1 AUD = 0.90 USD, for example.

• 

  King Tightarse on 05/11/2010 - 09:00

  -1

  Just transfer the money to US dollars in your Paypal account and leave it as such.

  Rate locked in/Crisis over.

  • 

    anthony on 05/11/2010 - 10:59

    Using paypal at a hotel desk when you are in America is not possible.

    This card is designed to be sued when you travel.

• 

  abc on 05/11/2010 - 09:13

  1 The American Express GlobalTravel Card can not be used in Australia and certain other countries where Australian or United States sanctions apply.

  Hence why get a Travelex card instead that you can use here. Once the US Dollar goes back up cash out in AU with a double digit percentage profit ;-)

• 

  You and Me on 05/11/2010 - 10:10

  Sounds interesting.

  Useful for purchasing from online shops that only accept American credit cards. The costs and speed are lower than those of wire transfers — especially after several uses.

  This could also be useful for USA-only digital media purchases from Amazon or iTunes.

• 

  fransisqo on 05/11/2010 - 10:39

  In the meantime, that $15k could be earning interest here in Australia, paying $62.50/month (using simple interest).

• 

  stralya on 05/11/2010 - 10:44

  In my experience, Amex tends to have higher fees and poorer exchange rates. If you just want to make money out of parity party, open a multi-currency account with a bank like HSBC. You can convert and move your money between 3-4 currencies with significantly lower fees and better exchange rates.

  http://www.hsbc.com.au/1/2/personal/savings/multi-currency

  • 

    anthony on 05/11/2010 - 11:00

    In my experience, Amex tends to have higher fees and poorer exchange rates.

    I have found the opposite.

    When making purchased in USD putting it on my American express is always cheaper than putting it on my visa or mastercard.

    • 

      stralya on 05/11/2010 - 12:36

      Depends on what card you have. Just called up my bank and Amex to check. As of 12 noon today (5 Nov), if you spent US$100, to be converted at the point of sale:
      On Amex, you will be charged AU$99.11
      On Mastercard, you will be charged AU$99.01

      Some cards will charge you a currency conversion fee of around 2%. Amex corporate does not charge a fee. However, some Amex co-branded cards charge a fee.

  • 

    veritas on 08/11/2010 - 13:15

    +1

    1.9 Multi Currency Account
    Account Keeping fee
    • AUD equivalent per currency per month, $2.50 charged at the end of each month*
    Free Transactions Per Month
    • The first 3 withdrawals* and the first 3 deposits# per currency
    Excess Transaction fee
    • Per transaction per month $1.50
    Other
    • Overdraft Arrangement Fee $9.00 plus daily interest at Excess Rate†
    * The AUD equivalent in the currency of the account when converted .
    * Via permitted access methods .
    † Excess Rate means our applicable Base
    Lending Rate plus 5% per annum . Please refer to our website www .hsbc .com .au or call us on 1300 308 008 for our current rates

    So… if you hold both AUD and USD that's $5/month just for having the account.

• 

  mrhatken on 05/11/2010 - 11:01

  Would this be useful for a holiday in the US (i.e. the cheapest and safest way to make many small purchases whilst not losing the cash if you lose the card)?

  In the past I've been slugged with a big hit each time I have used my CBA Mastercard or Debit card in the US (e.g. using Cirrus network).

  • 

    anthony on 05/11/2010 - 11:15

    whilst not losing the cash if you lose the card)?

    The card is as good as cash.
    If you lost the card then what ever money was on it is also gone.

    In the past I’ve been slugged with a big hit each time I have used my CBA Mastercard or Debit card in the US (e.g. using Cirrus network).

    Using your card to take money from an ATM overseas will always attract high fees.
    It is cheaper to go to a currency exchange store before you leave of when you are over there.

    If you want a card to take cash out get the Wizzard clear advantage mastercard.

    They charge you no fees if you use the card to take money from an ATM.
    You can put money into the credit card like you would with a prepaid card, and if you loose a credit card you do not lose the money which you have deposited into it.

    • 

      retiredfeline on 05/11/2010 - 11:30

      You get a backup card in case the first one fails or is lost. And you can apply for a replacement card with some trouble to access your founds. Similar to those Travelex cards.

      However I would not buy this or the Travelex prepaid cards for travel. The rates are really lousy, plus you get hit by conversion costs left and right. And you cannot get the last bit of money due to minimum withdrawals at ATMs, e.g. dispenses in units of $20 notes minimum.

      I second the recommendation of the Wizard Clear Advantage. Some other cards also offer a good deal, I think the Ingdirect Visa debit card has reasonable transaction fees. Always withdraw as high an amount as you are comfortable with (within the daily limit of course) to reduce the impact of the transaction fee.

      However it's not necessarily the case that currency exchange is cheaper. It depends on the currency. For a currency that has little market in Australia, like say ringgit, you will get poor rates.

  • 

    mrhatken on 05/11/2010 - 11:39

    Thank you for your replies folks.

    I checked out the Wizzard quickly and its no-fee withdrawals are only for Westpacs ATMS, which I would assume is not very useful in the US? I'm really only looking at this for the travel.

    It's a real shame to have to carry cash in this day and age. Unfortunately, the alternative seems to be to pay through the nose.

    • 

      anthony on 05/11/2010 - 11:45

      I checked out the Wizzard quickly and its no-fee withdrawals are only for Westpacs ATMS, which I would assume is not very useful in the US?

      That means the ATM owner fee which is the fee you are charged for using an ATM which is not owned by your bank.
      (Like if you used a Commonwealth savings card in a NAB ATM, NAB will charge you a fee)

      For international transactions Wizard does not charge you a fee

      What does 'no international transaction fees' actually mean?
      On the Wizard Clear Advantage MasterCard, there are no international ATM fees, no international over the counter transaction fees and no international transaction fees for when you make purchases.
      http://www.wizardclearadvantage.com.au/frequently_asked_ques…

    • 

      retiredfeline on 05/11/2010 - 11:47

      Cash has its disadvantages too. You will often get a lower rate than the exchange rate for CCs.

      There is not a single exchange rate. What you see in the news is usualy the interbank rate, which retail customers like you and I will not be able to get. Try the exchange calculator at www.oanda.com to see the kind of spread you will get.

      PS: I'm sure you understand that you have to load up the Wizard card with money before you travel or you will get hit by interest charges for cash advances, which is what an ATM withdrawal will be?

• 

  GarageKid on 05/11/2010 - 14:00

  I received notice on this card the other day with the following features that I don't see listed here;

  • Emergency Travel, Medical and Legal Assistance are included in the card through the Global Assist program.

  • Passport replacement, translation services, and lost luggage assistance through 24/7 emergency assistance program.

  • No inactivity fees

  • Funds never expire

  Though it might help with your comparisons with other cards (I too carry Cash Passports through Travelex, but this card is getting my attention)

• 

  froberts2 on 05/11/2010 - 16:23

  -1

  Lets see…

  • If the Aussie dollar goes up further, this loses money.
  • The money you have locked up in this is earning no interest, where it could have been earning 5+% in a good A$ bank account/term deposit.

  Yeah, this isn't a "bargain"…

• 

  Cap N on 07/11/2010 - 00:33

  A similar thing you could do is add cash to your Steam account. It's also "locking in" the current A$ exchange rate! ;)

• 

  YesPleaseThankYou on 07/11/2010 - 11:50

  -1

  This isn't a bargain.

• 

  bluetongue on 08/11/2010 - 22:18

  When overseas, you cannot add funds to the card locally. Transactions need to be done via Bpay which means via a bank in Australia. So, if you are working in Europe, you can't go into your bank or an Amex office and add funds to your card. This is a disadvantage for me as I don't want to have to route funds via my Australian bank everytime I want to recharge.

  • 

    retiredfeline on 08/11/2010 - 22:32

    Not endorsing this card, but it's not meant for people like you, the primary market is travellers.