Whether you have a short business trip planned or regularly travel abroad for work, there's a couple of things you're guaranteed to need - your passport, your travel tickets, your suitcase and of course, some form of foreign currency. Where we once would have gone to a financial institution and exchanged cash for foreign currency, this is no longer a feasible option for the fast-paced professional. Credit cards and travel money cards are seen as much more convenient means of paying for goods or services abroad.
Travel money cards in particular are rapidly growing in popularity with Australian business travellers and quickly even surpassing credit cards as the preferred choice for foreign payments. Why should you choose to use a travel money card over a credit card when travelling abroad for business?
A core benefit of using a travel money card is that you can effectively "lock in" currency rates. That means you are protected against any sudden dips in currency rates which is a frequent occurrence in many economies across the globe.
Your travel funds are locked into the foreign exchange rate of the country you plan to visit on the day you pick up the card. This can be particularly important if you will be carrying a large sum of money on your travel card. If the exchange rates take a dive while you′re away on your trip, your company need not be concerned about suffering a loss of funds.
You can add several currencies to your travel money card account, enabling you to make purchases in a different currency and have your funds converted on the go during your business trip. If your business trip involves visits to multiple currencies or you regularly travel for business, the ability to swiftly change the currency of your funds is a key benefit.
One of the key reasons that business travellers choose travel money cards over credit cards is that in doing so you can avoid paying extortionate international surcharges. Using a credit card abroad can incur fees of around 3% - 4% on all international purchases, as well as withdrawal fees for each and every ATM transaction. Depending on your use of the card and the length or frequency of your business trips, these costs can swiftly become quite significant.
International ATM cash withdrawals from a prepaid travel money card cost a lot less than credit card withdrawals and the surcharge for topping up the card will usually only fall around the 1% mark.
Many business travellers will likely have experienced the pain at least once of discovering your credit card is not accepted in a foreign ATM. This can leave you in a tricky situation - no one likes to be stuck in a foreign country on a business trip without any access to funds! You'll be much less likely to experience such a difficult issue if travelling with a travel money card as they are more widely accepted by ATM machines.
An even more prominent issue that business travellers face when travelling abroad is that their credit card is not accepted in stores. This can make even the simplest of purchases quite painful. Travel money cards on the other hand, are widely accepted, even by small corner stores. You can be assured that you are not denied a quick cup of coffee before a business meeting because the store of coffee shop can't accept your form of payment.
Another of the most celebrated benefits of using a travel money card over a credit card is that it can easily be topped up. If you reach your maximum spend on your credit card limit, it may prove a lot more timely and costly to clear before you are free to continue using the card again on your travels.
The account balance on your travel money card can be easily topped up online by yourself or somewhere back at your company HQ. You can keep track of the money left on your card through internet banking and if you need a top-up, simply transfer funds online from your bank. Any top-ups are subject to the currency rate locked in at the start of your trip.
Whether travelling abroad for business, you need to be fully focused on the meetings, conferences and other events you have pencilled in to attend. You don't need to be caught up in issues with making foreign payments. Travel money cards can ensure that you hit the ground running and can solely focus on the agenda for your trip, knowing that you can withdraw cash or charge payments without experiencing difficulties.
Going overseas? If you’ve ever considered flying on a private jet, now is the perfect opportunity to contact Luxaviation and discover how well it can work for you.