Debit cards can be very useful when going abroad. They are very good for buying items and services abroad as they pay in the foreign currency but charge the bank account in Australian dollars on the same day.
This means that there is less need to get foreign currency out, although it is a good idea to have some foreign currency as there will be some small items where it will not be possible to use a debit card, this includes buying food and newspapers, using taxis and getting tickets for public transport.
Another great advantage of debit cards over foreign currency on business trips is the security that a debit card. For a start if foreign currency is stolen it is very hard to have it replaced. This is not the case with a debit card which can simply be cancelled and replaced with a new card within a couple of days.
If the card is stolen and is not cancelled in time then any unauthorised transactions are usually covered by the zero liability guarantee that is present on most debit cards. With these guarantees there is no charge for an unauthorised transaction that is made on a debit card, as long as the card holder did not co-operate with the transaction and told the bank of the transaction within a relatively short time.
When using debit cards abroad there can be charges for foreign currency transactions. This is usually a proportion of the debit card transaction. This means that if the card is used abroad a lot then the charges can mount up quite quickly. There are some debit cards that do not charge for foreign currency transactions, although these cards are not always offered with normal bank accounts. It can be a good idea to find out about these cards if going abroad frequently. These charges will be included in the reported transaction, so in these cases it will show in the amount when claiming for expenses.
When spending on business expenses a card holder should keep both the receipts and the bank statement. This will mean that the actual amount charged can be claimed back for any spending on the debit card rather than making a calculation based on the foreign currency transaction costs. It will also allow for any charges that are incurred for making a foreign currency transaction.
