Travel Card vs Credit Card vs Cash.
What's the Best Way to Take Money Overseas?

Trying to decide between a travel card, credit card or cash for your next trip? Here's how each option stacks up.

What is the best card for travel?

Planning an overseas adventure? Whether you’re off for a short break or a year-long escape, figuring out the best way to carry your travel money is key. With so many options — travel cards, credit cards, debit cards or cash — it’s easy to get overwhelmed.

We’ve broken down the pros and cons of each travel money method to help you choose the best option for your trip. From fees and exchange rates to safety and convenience, here’s what you need to know.

Travel Money Cards

Travel cards are a secure, flexible and cost-effective way to manage your money abroad.

Pros of Travelling with a Travel Card

Load Multiple Currencies: Unlike debit or credit cards, some travel cards allow you to load multiple currencies onto the one card. The Travelex Travel Money Card lets you load up to 10 different currencies, making it easier to manage funds across multiple destinations. Plus, you can easily manage your travel money on the go with the Travelex Travel Money App. See our travel money cards comparison.

Locked-in Exchange Rate: Travel money cards allow you to lock in one exchange rate at the time of purchase. This means you know exactly how much you’ve paid and you won’t need to stress about exchange rate fluctuations affecting your holiday budget on your trip.*

No Foreign Currency Conversion Fees: The Travelex Travel Money Card lets you exchange currencies with no currency conversion fees, unlike with a debit card, so you can stretch your Australian dollars even further.

No International ATM fees: There are no fees when you withdraw cash from an international ATM with the Travelex travel money card. Some cards offer no international fees. While regular ATM withdrawal fees may apply, none will be charged to your card by Travelex, which often happens when using a debit or credit card internationally.

Cons of Travelling with a Travel Card

Not all Destinations and Experiences Accept Card: Not all destinations or vendors will accept travel money cards as a form of payment. Because of this, it may be a good idea to have some cash on hand to avoid tricky situations where your prepaid card may not be accepted.

Fees: There may be fees associated with certain travel cards1. These can range from fees to load and reload your card, purchase fees, issue fees, and fees when you decide to cash out any remaining balances. Make sure you compare cards online, and are fully aware of any fees which may apply. Here are the fees and limits that apply to the Travelex travel card.

Fees: Depending on the provider, some travel money cards come with fees1. These can range from fees to load money, purchase fees, issue fees, and additional fees when you decide to cash out any remaining balances. Make sure you compare cards online, and check the fine print. Here’s a breakdown of the Travelex Travel Money Card fees.

Travel Money Cards
image of the award winning Travelex money card

  • Holds up to 10 available currencies
  • Use your card globally wherever Mastercard is accepted
  • Buy online and collect in-store or get delivered to your home
  • A multi-award winning travel card | 5☆ Canstar rating for Best Value 2016 - 2020 and Mozo Best Prepaid Travel Card 2022, 2023 & 2024
Bank Cards

Bank Cards

Using your normal debit or credit card overseas can be a convenient option, but there are some key considerations.

Pros of Travelling with Bank Cards

Access to More Funds: Bank cards, particularly credit cards, may give you access to a larger pool of money when travelling. This is ideal when you need access to more money abroad, as they can provide you with a safety net of cash to dip into if needed

Pre-Authorisations: Like travel money cards, credit or debit cards are great for pre-booking hotels, car rentals services, and other activities that require a deposit.

Rewards & travel insurance: Some credit cards offer extras like frequent flyer points or complimentary international travel insurance . Just make sure you check with your credit provider to understand your credit limit and whether interest-free days apply, so you’re not caught off guard when your bill arrives.

Cons of Travelling with Bank Cards

Withdrawal & Conversion Fees: If you plan on travelling with a credit or debit card overseas, make sure you are aware of any ATM withdrawal fees, international transaction fees or currency conversion fees as these can be higher for foreign cards2, and may catch you off guard!

Overspending risk: The flexibility of a credit card can be a double-edged sword — it’s easy to overspend and return home with unwanted debt.

Weak security: If stolen or skimmed, credit and debit cards can put your bank account details at risk and replacing a lost or stolen card abroad can be a slow and frustrating process, leaving you without access to your own money.



Cash

Cash is king in many places — especially where credit cards aren’t accepted — but it’s not without its challenges.

Pros of Travelling with Cash

Universal acceptance: Cash is widely accepted as a form of payment and a reliable method of paying in many countries. In fact, some venues like markets, restaurants, and small hotels may only accept cash.

No hidden fees: Unlike some ATMs that have withdrawal fees, once you have exchanged your Australian dollars into the local foreign currency, there are no more associated fees.

Cons of Travelling with Cash

Safety Risks: Carrying large amounts of cash can feel risky, especially without a secure place to store it.

Pre-Booking & Pre-Authorisation: Many bookings (hotels, transport, etc.) require a credit or debit card to hold your reservation, which cash can’t do.

Managing multiple currencies: If you're visiting multiple countries, juggling different types of foreign currency can be a pain — especially when you’re stuck with leftover cash you can’t easily exchange.

Cash

FAQ

Is it better to travel with cash or card?

Using both is ideal. Cash is essential for small purchases and places that don't accept cards. However, travel money cards offer security, locked-in exchange rates, and are widely accepted. Combining both ensures flexibility and safety during your travels.

Check out our tips on the Best Ways to Buy Foreign Currency.

Can I use my debit card overseas?

Yes, you can use your debit card overseas, but check with your bank first — foreign transaction fees, daily limits, and ATM access can vary depending on your provider and destination.

What is a travel money card?

A travel money card is a prepaid card that lets you load foreign currencies before you travel. It’s not linked to your bank account and helps avoid currency conversion fees. Most are widely accepted and can be added to digital wallets for easy payments.

How do travel cards work?

You transfer money from your bank account to the card and load your chosen currency. Then you spend like a normal card — in-store, online or at ATMs.

Is it better to use a travel card or a credit card?

While credit cards have the advantage of a larger credit limit than other options, the best option for travelling overseas is still a Travel Money Card. Travel cards offer several advantages that a credit card can’t compete with, including the ability to load multiple foreign currencies, secure PIN protection, locked-in exchange rates, no foreign transaction fees, online account management, and the option for emergency assistance.

What is the disadvantage of a travel money card?

If you don’t load the right currency, you may pay currency conversion fees. Depending on the card issuer, some cards charge a reload fee or inactivity fees if you don’t use them. And if lost or stolen, all your funds on the card could be at risk.

Can I withdraw money from my travel card?

Yes. With the Travelex Travel Money Card, you can withdraw cash fee-free from international ATMs where Mastercard is accepted. You can take out up to the equivalent of $3,000 AUD in 24 hours. Note: while Travelex charges no fees, some ATM operators may apply their own fees or limits.

Can I use travel card for online purchases?

Yes! You can use the Travelex Money Card for online shopping anywhere Mastercard is accepted. Manage your card easily through the Travelex Money App for safe, secure online payments and account management on the go.

Can I buy a prepaid travel card for someone else?

No. For security reasons, the name on the order must match the name on the payment method. This means you can’t purchase a Travelex Money Card as a gift. Each person must order and hold their own card under their name.

Can I get a travel card instantly?

Yes, you can walk into a Travelex store, purchase and load a Travelex Money Card on the spot. Alternatively, order online for next-day collection (when paying by debit or credit card) or have it delivered in 5–7 business days.

Can I top up my travel money card with cash?

Absolutely! you can top up your Travelex Money Card with cash at participating Travelex stores or top up online via BPAY, PayID, or the Travelex Money App.

* Lock in your exchange rates means the exchange rate is locked in for the initial load only. The exchange rates for subsequent reloads will be set at the prevailing exchange rate at the time of the transaction.

Mastercard Prepaid Management Services Australia Pty Ltd (ABN 47 145 452 044, AFSL 386 837) arranges for the issue of the Travelex Money Card in conjunction with the issuer, EML Payment Solutions Limited (‘EML’)(ABN 30 131 436 532, AFSL 404131). You should consider the Product Disclosure Statement for the relevant Travelex Money Card and Target Market Determination available at www.travelex.com.au, before deciding to acquire the product. Any advice does not take into account your personal needs, financial circumstances or objectives and you should consider if it is appropriate for you. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

References

  1. “Travel Money Card Fees and Charges to Watch out For.” Canstar, 11 Sept. 2017, www.canstar.com.au/travel-money-cards/.
  2. Kossman, Sienna. “What Is a Foreign Transaction Fee? (Details by Card).” CreditCards.com, Creditcards.com, www.creditcards.com/credit-card-news/what-is-foreign-transaction-fee

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