Best Credit Card Overseas Travel: Guide for NZ Residents

If you are planning to travel overseas, choosing the right card can make a significant difference to your wallet and overall and experience. In this guide, we'll explore the best travel credit cards available to New Zealand residents, focusing on features like exchange rates, fees, reward points, and travel perks.

We'll also introduce the Wise card as a complementary card for managing your travel money, especially to save on currency conversion rates when spending abroad.

Table of contents
What Makes a Great Travel Credit Card? Top Credit Cards for Overseas Travel Westpac's Fee Free Mastercard® Flight Centre Mastercard American Express Airpoints Cards Kiwibank's Air New Zealand Cards The Wise Card: A Complementary Option. Combining Credit Cards and Wise for Optimal Travel Money Management

What Makes a Great Travel Credit Card?

Before we dive into specific cards, let's look at the key features that make a credit card ideal for international travel:

• Low or no foreign transaction fees
• Competitive exchange rates
• Generous reward points or miles
• Travel insurance coverage
• Airport lounge access
• No annual fee or a fee that's offset by benefits

There are travel credit cards on offer from many providers, which can offer rewards in the form of air miles or higher levels of cash back on foreign currency spending. Some also offer additional travel benefits like travel insurance or airport lounge access.

Usually to get the highest levels of travel rewards from a credit card you’ll also find you have to pay an annual fee. Be on a lookout for foreign transaction fees and the markups on the mid-market exchange rate: the hidden usage cost that you'll need to weigh against all the benefits you get from your preferred travel credit card.

It’s worth comparing your preferred credit card with some debit cards which have been optimised for international use, such as Wise card, that can help save on spending with lower fees and currency exchange at mid-market rates.

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

Top Credit Cards for Overseas Travel

Based on we feel would make for a great option for overseas travel, let's look at some of the popular travel credit card providers in New Zealand.

1. Westpac's Fee Free Mastercard®

• No Annual Fee.
• No foreign currency fee.
• Currency conversion at the rates set by Mastercard (not the mid-market rate)

There's no travel insurance or rewards on spending. But you do get 55 days interest free on purchases when you pay off your balance in full by the payment due date. After that, the interest rate credit card for purchases is at 12.90% p.a. (at the time of publishing this article).

2. Flight Centre Mastercard

• Annual Fee of NZD 50.
• No international transaction fee.
• Currency conversion at the rates set by Mastercard (not the mid-market rate)

Flight Centre Mastercard Reward Programme offers 1 Flight Centre Reward for every NZD spent internationally, and 2 Flight Centre Rewards for every NZD 150 spend at Flight Centre.

3. American Express Airpoints Platinum Card

• Annual Fee of NZD 195
• Earn 1 Airpoints Dollar for every NZD 59 spend.
• Complimentary travel insurance and lounge access (including AMEX Centurion® Lounge) - usage limits apply
• Currency conversion fee at 2.5% of the converted amount

AMEX also offers the American Express Airpoints Card, at zero annual fee but without any Platinum card perks (such aats travel insurance of complimentary lounge access).

4. Kiwibank's Air New Zealand Airpoints™ credit cards

• Annual Fees ranging from NZD 50 to NZD 180.
• Earn Air New Zealand Airpoints Dollars on eligible purchases.
• International transaction fee at 2.5% of the converted amount.

The Wise Card: A Complementary Option

While credit cards offer valuable perks for travelers, the Wise card presents a compelling option for everyday spending abroad:

Key Benefits of using Wise as a Travel Card

• Mid-market exchange rates
• Low, transparent fees
• Hold and spend in multiple currencies
• No annual fee

Our Review of Wise Card 👉

Open a Wise account and order your Wise card for one-time fee of NZD 14. You can spend in 40+ currencies with your Wise card, with mid-market rate on currency conversion and transparent fees.

Plus: there’s no minimum income, no minimum balance, and no maintenance fee, which makes this a great card to hold alongside your travel credit card, to access low cost currency conversion and convenient global spending.

Combining Credit Cards and Wise for Optimal Travel Money Management

For the savvy traveler, using both a travel-focused credit card and the Wise card can offer the best of both worlds:

1. Use your credit card for:

   • Large purchases
   • Hotel bookings and car rentals (for insurance coverage)
   • Accumulating rewards points or Airpoints
   • Accessing travel perks like lounge access

2. Use your Wise card for:

   • Day-to-day expenses and smaller purchases
   • ATM withdrawals
   • Spending in local currency without hefty fees
   • Managing multiple currencies easily

💡 Tips for Using Credit Cards Overseas

Notify your bank: Inform your credit card provider about your travel plans to avoid card blocks. Understand the fees: Be aware of foreign transaction fees and ATM withdrawal charges. Choose local currency: When given the option, always choose to pay in local currency to avoid poor exchange rates. Carry a backup: Consider carrying at least two different cards from different providers. Use digital wallets: Where possible, use Apple Pay or Google Pay for added security.

Conclusion

The best strategy for managing money while traveling overseas often involves using a combination of tools. A travel-focused credit card can provide valuable perks like travel insurance, rewards points, and lounge access. However, these cards may still charge foreign transaction fees and often don't offer the best exchange rates.

This is where the Wise card shines as a complementary option. With its mid-market exchange rates and low, transparent fees, it's excellent for day-to-day spending and managing multiple currencies. By using a credit card for larger purchases and travel perks, and the Wise card for everyday transactions, you can maximize benefits while minimizing fees.

Get a Wise card today 💳

Remember, the best choice depends on your specific travel plans, spending habits, and financial situation. Always compare the latest offers and terms before applying for any financial product, and consider seeking professional advice if you're unsure.

Safe travels and smart spending!

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This article is for informational purposes only and does not constitute financial advice. Credit card terms and conditions may change, so always check with the issuer for the most up-to-date information.