It's Got Currency
Sydney Morning Herald
Tuesday June 10, 1997
WHAT IT IS Citibank Visa TravelMoney card.
HOW it WORKS It is a prepaid electronic card designed as an alternative to traveller's cheques. It can be bought for any amount over $500 and used at ATMs around the world.
WHAT IT COSTS When you buy the card, there is an up-front commission of 2 per cent of the amount that is bought. Additional cards which have access to the same funds cost $10.
THE PROS The card is available to all travellers, not just Citibank customers. It is PIN protected and the funds are stored in a central location, not on the card. This means that, in case of theft, no-one else can get access to the funds.
The card can be used at more than 315,000 Visa/PLUS ATMs around the world. Its prepaid nature makes it useful for travellers on a budget. It does not incur the added currency service and bank commission fees that are associated with traveller's cheques.
The card is bought in the customer's local currency, not the currency of the destination. This saves the hassle of having to arrange in advance different amounts in different currencies when a number of countries are being visited. Card users simply withdraw cash at each destination in the local currency.
The card gives the user access to wholesale rates of exchange in the same way a credit card is used to withdraw money through ATMs overseas. However, unlike credit cards, there is no charge levied for each ATM withdrawal. This makes it feas-ible to withdraw many small amounts of money to pay for incidental expenses.
The card can be pre-purchased without the user needing to authorise and verify the purchase, as is necessary with traveller's cheques. This means the card can be bought by a third person, for example, as a gift.
Additional TravelMoney cards can be bought for family members with the option of the same or different PINs having access to the same funds. An additional card can also be bought as an instant replacement should the primary card be lost or stolen.
Visa provides 24-hour customer service, including worldwide lost/stolen card replacement within 24 hours. A toll-free or collect phone call connects the cardholder with a multilingual Visa TravelMoney service.
Each card has a serial number printed on the back which is used for customer service, inventory control and card identification. The card has no expiry date and is disposable when the value is depleted.
Residual value can be obtained from the seller, at no charge, or it can be rolled over into another Visa TravelMoney card.
There is no need to spend time producing passports and verifying transactions as required with traveller's cheques.
THE CONS The 2 per cent commission charge is double the 1 per cent charged to buy traveller's cheques but there is no charge to use the money, as there can be when converting traveller's cheques.
The minimum amount the card can carry is $500, unlike traveller's cheques which can be bought in smaller amounts.
Another form of funds still needs to be carried as a backup, whether traveller's cheques or a credit or charge card.
Once the value of the card is used, it cannot be topped up and it cannot be connected to a bank account, so a new card then has to be bought.
Actually buying the card can be a problem for those who don't live in a capital city, as they can only be bought at selected Citibank branches in Sydney, Melbourne, Brisbane and Perth.
WHERE IT FITS IN The card is an electronic replacement for traveller's cheques and can be used at ATM outlets around the world.
© 1997 Sydney Morning Herald
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