One of the advantages of debit cards is that they can be used reasonably easily for overseas travel, and they can be less expensive than other ways of accessing spending money.
Taking cash abroad is not always advisable. In some areas it can be quite safe to take a large amount of money around, and hotels can be a safe place to leave cash, but in many other areas it can be very dangerous. It is also the case that tourists and business travellers are likely to be targeted by thieves and muggers.
The traditional way around this has been to use Travellers Cheques. These are cheques that are designed to be accepted by both banks and shops in return for local currency. They are backed by a bank or large travel agency and they are often made out in the currency of the individual. As these can be tracked more easily than cash they can be cancelled when they are lost or stolen and they can be quickly replaced.
However Travellers Cheques have over the years been accepted by fewer shops. While they are sill accepted by most banks, this means that a traveller will be restricted to bank opening times and may have to plan their day around these.
Credit cards have recently become more popular with overseas travellers. As more credit cards are offered by international companies, particularly MasterCard and VISA they are becoming accepted worldwide, no matter which bank, building society or credit union originally issued the card. VISA is accepted by 29 million different vendors and MasterCard is accepted at 28 million different vendors. American Express also offers a range of credit cards with a reasonably wide acceptance.
The problem with credit cards is that it can be easy to build up a large credit card balance, particularly as it can be hard to know how much is spent when using foreign currencies. This is where debit cards have an advantage as they come straight out of the current account. Unlike EFTPOS cards, credit cards are accepted in most places that debit cards are accepted.
There are charges for using debit cards overseas, this can apply for both overseas transactions and the rate of exchange may not be as advantageous as it would be from a bureau de change. Many debit cards are also able to be used in overseas ATMs, although these also attract a fee.
