Travel Money for Kiwis: Cards, Cash and Fees

What is the cheapest way to spend money overseas?

There isn't one winner for every Kiwi, because fees depend on your bank, your card and where you're going. Consumer NZ's advice is that an ordinary debit or credit card is now a perfectly reasonable way to spend abroad, and that travel money cards and some credit cards are often the cheapest options. The main drawbacks of an everyday card are exposure to the New Zealand dollar's exchange rate moving, and not knowing your total until the charges land in your account.

A travel money card lets you buy foreign currency in advance, or when the rate looks good, and hold it in a currency-specific account, which locks in the rate. The trade-off is that you need to load it before you go, and some travel cards carry set-up, loading, inactivity or ATM charges of their own. Whichever you choose, read the fee table, not the headline.

• Everyday debit card - Convenient and linked to your own account, but check the foreign transaction and overseas ATM fees your bank charges.
• Credit card - Good purchase protection and a fallback if your debit card is lost, but check the conversion fee and never use it for cash.
• Travel money card - Can lock in a rate and avoid some fees, but check loading, inactivity and ATM charges, and that it holds New Zealand dollars.
• Foreign cash - No card fees, but a loss is a real loss. Carry only what you'd be happy to lose.

How much cash should you take overseas?

Consumer NZ suggests carrying a small amount of foreign cash for emergencies or remote travel rather than your whole trip budget. SafeTravel also recommends keeping some cash in your emergency supplies and planning how you'd access money if you needed funds to get help or get home.

How much that means depends on the destination. Some countries are almost entirely tap-and-go; others still lean on cash for markets, small restaurants, local transport and rural areas. Check the destination's tourism board or government site, or ask a friend who's been recently. For an island or rural stop, land with enough cash for the first day and the trip to your accommodation, then top up from an ATM.

Should you pay in New Zealand dollars or the local currency?

Pay in the local currency every time. Card terminals and ATMs overseas sometimes offer to charge you in New Zealand dollars, which sounds helpful but is called dynamic currency conversion: the merchant or its bank sets the exchange rate and adds its own margin. Choosing the local currency means the rate is set by your card network instead. Consumer NZ's advice is the same: when an ATM offers a choice, always choose the local currency.

Check the receipt as well as the screen. If a till has already converted the amount, ask for it to be reprocessed in the local currency. Once you've paid, it's hard to change.

How do you avoid overseas ATM fees?

Fewer, larger withdrawals usually beat lots of small ones, because many banks and ATM operators charge per withdrawal, and your own bank may add a percentage on top. Withdraw once you've arrived and you know what you need, rather than buying currency at the airport at poor rates.

Never take a cash advance on a credit card. Consumer NZ warns that interest starts the day you withdraw, at a minimum of 10% a year, on top of any fees. Use a debit or travel card for cash, and use machines in a well-lit public place or inside a bank, as SafeTravel advises. Cover the keypad, and check your statements afterwards for transactions you don't recognise.

What should you sort with your bank before you fly?

Ask your bank what it charges for overseas purchases and ATM withdrawals, whether you need to tell it your travel dates, how to freeze and replace a card from overseas, and whether the card works contactless in other countries. Save the bank's overseas contact number in your phone, since the usual free-phone number often doesn't work from abroad.

Take at least two different cards and keep them in separate places, so a lost or swallowed card doesn't end your trip. Consumer NZ also suggests keeping an everyday card as a backup even if you're relying on a travel card. Our travel packing checklist has the full list of documents and gear to pack alongside them.

Why does your phone matter for travel money?

A working phone does a lot of the heavy lifting: banking apps, card-freezing, one-time passcodes, mobile wallets and maps to find a fee-free ATM. Roaming on your home plan can be expensive, and if you rely on a text message to approve a payment you want a reliable connection when you land.

The easy fix is to install an eSIM before you leave. Check the plans for your first stop, such as Japan eSIM plans, the Thailand eSIM, USA eSIM plans or an Australia eSIM, where $4.99 is the current starting price for Japan. Keep your home SIM as a second line so bank texts still arrive, and see our guide to eSIM versus physical SIM if you're unsure which suits you. Banking and wallet apps use very little data, which our data guide explains in more detail.

How do you keep your money safe on the road?

SafeTravel's general advice is to maintain a high level of personal security awareness: don't leave valuables where they're easy to reach or see, lock up your passport, and be careful what you post on social media while you're away. Spread your money across cards, a little cash and a hidden pocket or money belt rather than one wallet.

Set up card alerts so you can see every transaction as it happens, and report a lost card the moment you notice. If you're away for months, for example on an OE, review your fees again after the first few weeks; our OE planning guide covers setting up for longer stays.

Your travel money checklist

• Cards: two different cards, kept apart, with the bank's overseas contact number saved.
• Fees: check foreign transaction, ATM and travel-card charges before you go.
• Cash: a small amount for arrival and emergencies, not the whole budget.
• Checkout: always choose the local currency, and check the receipt.
• ATMs: fewer, larger withdrawals at a bank or well-lit machine; no credit card cash advances.
• Phone: eSIM installed and banking apps working before you leave home.