Oceania (Australia, New Zealand & the South Pacific) - Currency Conversion Question

I am planning on spending about 8 days in Australia with the wife. I usually plan on using my credit card as much as I can however I have the option of exchanging for some AUD before I leave or wait til I get there. Are banks the best place to get the best rates at? How much AUD should one usually carry as I'm not sure the average food/transportation cost. thanks

In my experience the best rates can be found using ATMs, however check your bank fees. Usually there is a one-time fee from your bank, so I ask my bank to up the withdrawl limit. A $3.00 fee on a $500 withdrawl is not a bad deal, but if you take it out $50 at a time, it's $30.00.

As for credit cards, I am not sure where you are from, but be aware that most US cards charge a foreign exchange fee and that is 1-3%. Not a good deal. Capital One is the only card that doesn't as far as I know.

Australia does not accept credit cards quite as readily as in the US, I would plan on keeping about $200 on hand at all times to be safe, but you can probably get away with $100.

Just a few notes from a Yank who's an Aussie permanent resident...

Don't change cash until you arrive in Oz. ATMs are your best approach for getting local currency. If you happen to have a Bank of America ATM card you can use Westpac ATMs without any fees or surcharge. Otherwise check with your card provider for their schedule of fees. Banks are the next best place to exchange money but you'll find that they can be a tad slow.

My experiences are a bit different than CPMaverick's about credit card usage. I haven't had any problems at with Visa or MC being accepted (Schwab or Cap1 for no forex fees) but I have run into the damned Dynamic Conversion where the bill is automatically converted into USD (with a 3-5% surcharge) without telling you. Always check your bill before signing to make sure you're paying in AUD. The merchants are very pleasant, but act like they have no idea what your problem is. Usually they'll offer to call the owner but that'll take 30 minutes or so. This is a good reason to always keep a bit extra in cash so you can request that they void the CC transaction & pay cash instead. I usually carry $200-300 when in tourist mode.

You'll find meals a bit pricey especially with the current exchange rate. A pub dinner for two runs about $30-60 AUD + alcohol. Unlike the U.S. for many mid-range establishments you'll pick a table, go to the counter, tell them your table number, order and pay. Tipping is not common and generally not expected. It takes effort to break this habit which is so culturally engrained.

Have a great time in the lucky country.

Don't change cash until you arrive in Oz. ATMs are your best approach for getting local currency. If you happen to have a Bank of America ATM card you can use Westpac ATMs without any fees or surcharge.

BoA is a little bit of a fractured company, so maybe this depends on your BoA account state (mine is CA). But I use my BoA ATM card at Westpac for a fee reduction, there is a still a fee though. Westpac doesn't charge a fee but BoA does. BoA charges $3.00 for each transaction at WestPac and $5.00 everywhere else. I also learned the hard way that they charge this fee for 'everything', even account balance requests.

Very strange, both banks are part of the "Global ATM alliance" which states they will not add transaction fees when using a certain bank in a specific country. They have a blanket disclaimer that they may impose a 1% conversion fee but I check online after each withdrawal and found them to be extremely close to the daily interbank rate and suspect this disclaimer is for countries other than Australia.

http://en.wikipedia.org/wiki/Global_ATM_Alliance

http://infocenter.bankofamerica.com/ic2/atm/getting-started/?panel=qna&qna=x400
(scroll down to Global ATM alliance -- odd that this is hard to find on their website)

I don't think it varies by state but my BofA accounts are also based out of CA and in seven trips over the past three years (at least 5 Westpac $300 withdrawals per trip) I've never been charged a fee. And trust me, I would truly enjoy busting the chops of my Merrill rep over a $3 fee :)

Not sure what to say; I was last there in March and before that, October. Both times I got a $3.00 bank fee at Westpac, and a year earlier I had a $5.00 fee before I found out about the Westpac alliance.

I found this on their website too:

For transactions in currencies other than U.S. Dollars when using a Bank of America ATM card or debit/check card, Bank of America may charge its account holders an International Transaction Fee for purchases or ATM cash withdrawals regardless of whether the transaction occurs within the Global ATM Alliance or outside the Global ATM Alliance. This International Transaction Fee will appear as a separate item on your banking statement for each international transaction.

Did you look for late posting fees? Mine posted a few days later, though they were not 1%, definitely 3.00. Maybe I will contact them...

HSBC will waive ATM fees if you have a premier status with them...

I don't think it varies by state .....As another point of reference, I use my FL B of A ATM cards regularly and I've never been charged a fee either by B of A or Westpac.

Did you look for late posting fees? Mine posted a few days later, though they were not 1%, definitely 3.00. Maybe I will contact them...

I'm sure there were no late postings on my account. I have a liquid account on the Merrill side (so-so interest, no ATM card) and a Prima checking account on the BofA side (no interest with ATM.) Just before leaving for Oz I'll transfer a few grand to the checking account so I can grab AUD from Westpac. When I head home I'll double check the transactions & transfer whatever's left back to Merrill leaving $1 in checking. Never received an overdraft notice.

The website wording "Use your Debit Card or ATM card within the Global ATM Alliance in the countries shown with no ATM operator fees or Non-Bank of America International ATM Fee." is pretty clear and you shouldn't have been dinged the $3. I'd give them a call and try to get your fees back.

HSBC will waive ATM fees if you have a premier status with them...

I'm a US HSBC premier customer & recently opened an AU premier account. I haven't tried using their ATM cards yet but in the AU premier welcome guide it specifically mentioned that there were no fees when using St. George's, Westpac, and BankSA in Australia. I'm guessing that HSBC might waive their out-of-network ATM fee with premier status but not that of the ATM's owner unless you use one of their listed partners. Might have misread it though & can't find info on the premier website.