Travel & Holidays Travelling Overseas - 28 Degrees and Citibank Card compared

When travelling overseas, I no longer exchange large chunks of cash before I leave. Instead I now use "Travel Cards", as for me its way more convenient to withdraw what I need rather than walk around with several thousand in my back pocket.

The cards I use are not the travel cards offered by the foreign exchange providers that charge you a loading cost, or some sort of fee. They are much simpler than that, in fact its no different to your normal keycard that you would use every day to withdraw money while in Australia, only difference is that you aren't slugged the heavy overseas ATM fee and you end up with much better rates.

Attached are transactions (mainly from myself and some are from friends who have used the cards too) with the amount charged while overseas, and what it converted to in AUD. I then compared the exchange rate (closing price on the day) using the data xe.com to see what I should have been charged (had there been no margin applied on the foreign exchange).

For example:
In Vietnam, i withdrew VND$3,000,000 at a Citibank ATM. My statement shows it withdrew the equivalent of AUD$184.96. This translates to an rate of AUD$1 = VND$16,244.11. The XE Rate on the same day was AUD$1 = $16,104.25, so if my calculations are correct, I should have been charged AUD$186.29 on the withdrawal. So effectively I made a profit of $1.33 on the transaction

However a few days, I used a non Citibank ATM and withdrew VND$2,000,000 and was charged AUD$124.38. Using the XE Rate, I should have been charged AUD$123.30, so in this particular transaction it "cost" me $1.08.

Upon returning to Australia, I transfer any surplus from the Citibank Plus account to my normal account, therefore minimising excess foreign cash.

 

I have 28 but haven't withdrawn cash overseas. Can I? Or is citibank better?

 

I use to use the 28 degrees credit card prior to them changing the rules.

I would load up the card with my own cash and withdraw while I was overseas. They've since caught on that people were doing this an applied a 3% of the withdrawal charge with ATM withdrawals (this fee was verified by a friend of mine who went to NZ recently). In doing so, its no longer as attractive as a card to use overseas for cash out.

However, there is no charge on EFTPOS transactions, so I used this while I was in overseas purely as a Credit Card and paid things back when i returned to AU.

For Cash out, I now use the Citibank Plus card. This is a debit card, so its got its own bank account that you transfer money across to. While there is no fee on overseas ATM's (have used this in US, Thailand, Vietnam), you will get the best rate if you use a Citibank ATM. Even if you can't find a Citibank ATM, the exchange rate is still better than changing the money over here in Australia.

You can also use the Citibank Plus card on EFTPOS terminals and no fee is charged either.

Hope this helps!

 

28 Degrees now charge 3% on the withdrawal amount at an ATM, so its no longer attractive to do so.
Citibank don't charge any fees, so this is what I use now.

In the image I've attached, it shows the different rates that Citibank and 28 Degrees applied. I compared these against XE rates (closing price Australia time)

 

They are still two distinctly different cards. One is a debit, one is a credit, and can both be useful in different situations.

That being said as has been pointed out the changes to the 28 Degrees card make it less attractive now.

 

Thanks guys. I will look into it. I will be spending 5 weeks in US/Hawaii from December. The AUD is so low now. Sigh.

 

+1 for Citibank card.....it is best for its intended use.

Wish had bit better Internet banking

 

I still use both. Citibank Plus debit card for cash out. 28 Degrees for credit card eftpos transactions.

Though after running these numbers, I think i might just stick the with Citibank Plus.

 

I never used 28 degrees as I am not a big fan of credit cards but maybe good for insurance and purchases.

 

I use Citibank plus for cash withdraws, and Bankwest more mastercard world for credit payments. Both don't charge forex margin.

 

What i wish i did, so that I could gauge a better comparison when using EFT is pay half my hotel bill with 28 degrees, and the remaining half with citibank.

Hopefully i'll remember on my next trip... though that could be a while away.