Have you used Travel Cash by Travelex??
 

Hi we are thinking of using Travel Cash by Travelex. The aussie $ at the moment is not going to get any better at the moment and if I load whatever amount onto one of these cards now it is set at that days exchange rate even though we won't be travelling until June. We want to use this mainly for our accommodation. We have looked at the information and it looks very good but thought I would ask anyway.

Thanks for any assistance.

Deb

Would the effect of the possible gain due to exchange rate fluctuations outweigh the amount of credit interest you'd make if you put the money into a high interest savings account now & just withdraw it using a debit card on holiday ?

Deb

We are going in May and was thinking exactly the same thing myself about the aussie dollar and the travelex card.
caroline I just replied to another of your forums by the way.(Ostia Antica)
I am becoming addicted to this site.
Deb

Hello again Deb ! It is a dangerous site, isn't it ? :-)

"The aussie $ at the moment is not going to get any better".... It has currently gone past US90c and parity with the US$ is thought to be a chance early in 2008, particularly if the Australian Reserve Bank comes up with the expected interest rate increase in a week's time. What are your grounds for thinking that 'it is not going to get any better'? Is the resource boom going to end? What's the 'very good' information you have?

Headline from the Business section of the Melbourne 'Age' newspaper today: "Rate expectations send Aussie dollar on upward trek"

The question to be asked is: What are the fees associated with this card? How much to load, how much to spend,etc..?

I will wager that these costs will FAR exceed any currency fluctuations.

Convenience and cheap don't always go hand in hand.

If this is even remotely like an AAA Visa cash card or an American Express "gift" card -- the costs will far outweigh any advantages. People are shocked to find that the AAA cash card has a 7% conversion fee on all purchases and withdrawals!

Well I have stirred the pot a little bit. Ok so maybe the Oz$ may keep climbing. I just notice of the last cpuple of years that it tends to climb and drop at certain times of the year and not being in the banking business I am just a humble traveller and thought I would get some thoughts on this subject. I have not travelled alot (but intend to)
Caroline's note a certainly did not think of.
I did look at the rates and its $3.50 a withdrawal so you would not want to be taking meagre amounts out. Travelex assistance seemed very good as well. They do say that you may incur another cost from whomever's ATM you used, which put me off.
But he reason I did look at this is because since my last trip to Britain 3 years ago I have been thowing a $10 or whatever into the safe at work and it has built up. Unfortunately I neglected to inform my wonderful husband. Although that isn't a problem but he just does not realise how expensive Britain can be. Anyway you have given food for thought and I will just pop it into the bank and gather some interest! By the way Deb we are headed over there in May as well.

I love this site as well and have received some top information that has saved me heaps and made me aware of things that alot of agents don't tell you or probably don't know.
thanks again
Deb

Hi D,

The Euro is 1.57 AUD this morning. What is the Travelex exchange rate?

((I))

&quot;<i> it tends to climb and drop at certain times of the year</i>&quot;

Sorry, but currency rates have nothing to do w/ seasons of the year.

I think the AUD would have to drop about 20 pct by June to have this be profitable, probably. First, there is a one pct fee just to start the card, then the AUD 3.75 per ATM use, then there is an AUD 10 to close out the card when you are finished with it. On top of that, if you buy it now, sure you will get whatever rate they use that day (not the banks, but Travelex for those cards) and it won't change. But their rate probably has about an 8 pct markup built into it to begin with. Their travelers' checks do, for example. It might be lower for that card, given all the other fees they get with it, though. But even if it's only a 3-5 pct markup in the rate, I still don't see how all those fees could add up to making it profitable for you without a huge decline inthe value of the AUD.

&gt;...currency rates have nothing to do w/ seasons of the year.

But seasons of the year do have an effect on currency rates.

In particular, the USD tends to drop against European currencies in the Summer and rise in the Winter.

This does not happen every year.

((I))

hi, debs,

if you want to do hedge your bets against currency fluctuations, why not just buy some euros? that way you only pay charges once.

work out what you are likely to need in cash, [or in this case for your accommodation] and buy half of it.

when you travel, put it in a money-belt. or two.

when we are off to somewhere where we'll need a reasonable amount of currency, I start buying a few weeks/months before. I've never yet brought any of it home!

regards, ann

regards, ann

I have one question - what exactly is the Travel Cash? We used the travel insurance from Travelex in October of 2005 and had to turn in a claim when I got sick the day before we were supposed to leave for Europe. They paid every dime of the policy and we were very pleased with the company. The policy we bought was also very reasonable for both my husband and I. We also were able to take the trip we had planned a month later. That is our experience with Travelex, but I was just wondering what the Travel Cash is and what is the purpose of having it. Is it like Traveler's Checks? Just curious. Thanks!

Is that the Travelex Cash Passort Debit Card?

If so, the Foreign Exchange Margin is 5.95%.

&gt; there is a one pct fee just to start the card,
&gt;the Foreign Exchange Margin is 5.95%.

So the AUD would have to fall about 7% for you to break even.

((I))

I think it would have to be more than 7 pct, because there are also fees to close out the card and the fee whenever you use it (which is about 2.2 euro). I guess if you only used it a couple times for very large amounts (like your entire hotel stay), that might add on only another one or two percent. If you completely used it up, you wouldn't need to pay the close-out fee, of course.

Glad to be of help, debs.

Thanks everbody !

Deb