All too often you hear of friends who pack all their holiday savings into their wallet only to have it stolen in the first few days of their trip. With this in mind, it’s little wonder that the number one rule for taking money overseas is to have a back up option for finances. Without it, a hungry ATM or a pickpocket could ruin your well-deserved break.

Many Australians try to get around this risk by taking out small sums of money from ATMs, but this can mean high cash withdrawal fees and conversion rates of up to 3% of the transaction. So what is the best option?

For a short trip, a debit card will suffice. Most overseas ATMs will accept your card, and you have assurety of security and set rates – not like the dodgy looking money changer doing business on the side of the road.

One of the biggest trends right now for long-stay overseas travel is a prepaid travel card. Your money is converted into your requested currency and the conversion rate is locked into a particular rate. Providing you are travelling within twelve months, this gives you the option to convert money when the exchange rate shows a spike in value.

The security aspect of a prepaid travel card is one of its greatest assets, as cards are not linked to a personal bank account and a pin is required to make a transaction. A back up card can be issued immediately if your initial card is stolen or lost.

They can also be used to withdraw money from an ATM just as any other ordinary credit or debit card. The downside to prepaid travel cards is that sometimes it can take a few days for money you are transferring onto the card to come through. Reloading the card can also involve a small fee.

Source:http://www.westernadvocate.com.au/story/1580954/it-pays-to-plan-ahead/?cs=9