Hi....I am counting down to my Australia Adventure in July and was curious as to what kind of money to bring: American cash/dollars? Exchange my money for Australian currency at the airport? Travellers checks? Can someone suggest the best option? Thanks in advance!

Hi Broadway girl; most use credit cards, there's ATMs almost everywhere for withdrawing cash. Travellers cheques almost seem to be a past these days. Foreign currency exchanges are at international airports; US $'s are not legal tender in Australia.

The worst rate of exchange is always at airports. Travellers checks are the most economical as American Express usually waives commision. My advice is to arrive with an amount of Australian dollars bought at a bank in the U.S. then if you want to change money later go to a bank in Australia. Of course ATM's are everywhere if you want to use your credit or debit card. Arriving with a couple of hunderd Aussie dollars will get you through the normal arrival costs, cab fares etc. At the moment there is not much difference betwen the Aussie and US dollars. The official exchange rate being about A84cents, but of course you will get a bit less than that.

Oops! $A1 = 84 US cents.

If it's inconvenient, costly, etc. for you to exchange money before you arrive in Australia, you can always go to one of the ATM's in the airport after you arrive. This is what we did on our last trip there and, as I recall, there was a Commonwealth Bank ATM just outside the customs area. We always just use our ATM card for cash and our credit card for other purchases in Australia.

Downunder - I haven't used a travellers cheque for years (though I always carry a few left over ones as an extra extra means of getting the ready).

But it has always been my understanding that you pay no commission when cashing an Amex TC ONLY if you cash it at an Amex office. If the OP is only travelling to the big cities that'd be fine - but if she (assume she) is somewhere as on the beaten track as, say, Katoomba or Port Fairy or Airlie Beach, I seriously doubt there will be an Amex office.

And even in a city - why waste time finding said office when you can to to any ATM displaying the relevant logo and get money straight out of the wall on a debit card? The exchange rate from an ATM is usually reasonable (and far better than for foreign cash) and even if your home bank charges per withdrawl it's small beer compared to the cost of getting here in the first place, and the time saved.

ATMs rule!

Just my x cents' worth.

ATMs are the way to go, pretty much around the world, now.

American cash - will be a bloody nuisance - you'll have to find somewhere to cash it - at exhorbitant rates. It's not legal tender in this country, you know.

To be fair, margo, the OP didn't imply that she thought US money was legal tender in Australia.

But there are plenty, no doubt, who do.
52nd state and all that.

Thank you all for your help! I wanted to mention that I have an ATM card for my local bank here in Minnesota, but my mom does not (she claims she wouldn't know how to work it, but that's another story!) See, I have $1,000 I am taking out of a savings account, and obviously that will be in American money. Should I just convert that to Travellers Checks? I would rather go on the trip with money in hand, and at the ready, versus having to keep withdrawing it from ATMs. Hmmm, oh the questions! I can't believe the time is almost here, there is still lots to do! But thank you for your time and your help, it's appreciated!! Dana

I don't think anyone has mentioned this aspect yet, but to use credit cards in Australia, your PIN has to be 4 digits. I believe you have additiona digits in America, is that right?

Don't forget that the credit cards now charge you 3% on each use of your credit card in foreign currency (grrrrr). I don't think they charge you if using a debit card at the ATM, but I am not sure. Better check. It's not a lot at once, but it is quite annoying and adds up.
Sally in Seattle, finally sunny here and delightfully 70 degrees F.

BroadwayGirl,

If it were my $1000 I'd take it out of savings and put it in the account where you could access from the ATM. I hate carrying around a lot of money, in anybody's currency. When we were in Sydney last year, my husband paid the cab driver and then left his wallet on the seat of the cab. Fortunately, I had the ATM card and all the credit cards, so the loss was minimal. Even replacing traveler's check is a pain in the butt, and I would resent the time it took away from my vacation to deal with it!

They get you don't they Sally - then there's the credit card charge for merchants. Amex charges us somewhere between 3%-4%, others such as Visa and Mastercard are significantly less. For this reason some smaller operators won't accept Amex.

There's an $8 charge at ANZ Bank for converting US cash to Australian, that could mount up too over a few transactions.

Broadway Girl - as Pat Woolford said there is always a charge for each withdrawal plus a conversion rate so it is best to take out the maximum amount each time. At most ATMs here, I think it is A$1000. The other thing is, if you look at the back of your keycard or sometimes at the front (if you aren't withdrawing from a credit card), there should be a signs like "Cirrus" "Maestro" - look for ATMs with the signs on your card and you can withdraw from these ATMs. If I am wrong, guys, correct me...at the moment ANZ charges a minimum of $8 or 1% of the Australian equivalent for changing foreign currency. Their rates always seem better but their fees a little higher...NAB charges $5 (unless it has gone up recently) but their rates aren't that good so you can shop around. Most tellers will gladly give u the rates so don't be scared to go in and ask...

sorry...I am correctly what I told you...there is only a 1% charge of the Australian equivalent if you want to "buy" foreign currency. Since you are bringing US$ in, you are only selling so the only fee is A$8, whether you sell $100 or $1000 (I believe for non ANZ customers, you can only sell a maximum of A$equivalent 2000). Just ask...this may defer from branch to branch. I know it is a max of A$2000 in some branches.

BroadwayGirl

You could get travellers cheques in Australian Dollars from the USA before you leave. You would probably get charged a small one-off fee by your financial institution, but once you are in Australia you should be able to exchange them at banks, hotels etc. free of charge. As the travellers cheques would be in Australian Dollars, you could also use them like cash in the bigger stores etc. Just remember to have I.D. with you when you exchange.

If you decide to use an ATM this link comparing American cards and their fees might be helpful

http://www.fodors.com/wire/archives/002384.cfm