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Travelling abroad? Don’t be tempted to pay your way using your home currency

Part of the joy of travelling comes from experiencing the unfamiliar – a different climate, culture or cuisine. But when it comes to paying for things abroad, we might feel more comfortable using the currency we are most familiar with, the one we use at home. This has recently become a common – and expensive – option for tourists withdrawing money from cash machines, or paying electronically in shops and restaurants. When a restaurant bill arrives for example, foreign customers may be offered the choice on the card reader to pay in their home currency rather than the local one. This feature, known as “dynamic currency conversion” or “currency choice” sounds appealing at first – a service which has done the hard work for you, converting the bill to a currency you understand, giving you a better idea of how much money you are spending. But it comes at a price – as the fees charged for this convenience can be exorbitant. In fact, <a href="https://fil.forbrukerradet.no/wp-content/uploads/2017/07/input-from-ncc-to-the-european-commission-on-dcc-30062017.pdf">one study</a> shows that the average fee applied to this kind of conversion is a whopping 7.6%, more than double the cost of paying in the local currency (usually between 1.5% and 3%). So suppose a French traveller goes out for dinner in a British town, and the final bill comes to £88.43, the equivalent of €100. Paying in UK currency, which would then converted to euros by the French diner’s bank, would lead to a payment of around €102. But using the dynamic currency conversion to pay the restaurant bill directly in euros would end up costing them €107.60. Despite the high fees, <a href="https://journals.sagepub.com/doi/full/10.1177/07439156231157721">our research shows</a> that more than half of international customers still choose to pay in their familiar home currency. The most obvious explanation for this is an understandable preference for the familiar when dealing with money abroad. But it is also true that the fees are not explicitly shown to customers. That is, tourists may see the applied exchange rate, but they are not shown the hidden fees or how that exchange rate compares with others. And while expensive for tourists, the currency choice “service” can be highly lucrative for those who operate it. The companies which provide dynamic currency conversion options earn significant conversion revenues – a portion of which is often shared with the business where the transaction takes place. <a href="https://www.electronicpaymentsinternational.com/opinion/dcc-routing-revenues-away-from-issuer-into-acquirers-pockets/">Sources indicate</a> that extra revenues for retailers come to around 1% of the transaction value. We have also been told of well known department stores training employees to actively encourage foreign customers to pay for purchases in their home currency. <h2>Greater transparency</h2> And despite the high conversion fees involved with dynamic currency conversion, most government regulators around the world have been hesitant to intervene. One possible reason for this is that regulation would be seen as potentially hitting the profits of local businesses. The exception is the European Union (EU), which considers excessive transaction costs <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32021R1230">to be a barrier</a> to the development of businesses and aims to protect European consumers. The latest <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32021R1230">EU regulations</a> (not yet enforced) aim to enhance transparency by including extra information about the costs of currency choice on card readers and ATMs. This is a step in the right direction. But we would in fact encourage a reduction in the amount of information to make things simpler, so that customers are made aware purely of the percentage fee being added if they choose to pay in their own currency. We also think there should be maximum conversion charges to protect unaware customers from excessive fees. With the continued growth of international travel, it is crucial to find ways to help people make informed financial decisions when dealing with exchange rates and making payments outside of their currency zone. But for now, travellers are likely to spend more of their money abroad than they need to, because of something they intuitively feel will make a transaction simpler and less time consuming. So if you’re on holiday or travelling for work, our advice is to decline the option of paying in your home currency and instead opt for the more reasonable conversion fees charged by your bank. Your travel experience could end up much cheaper if you do. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/travelling-abroad-dont-be-tempted-to-pay-your-way-using-your-home-currency-202795" target="_blank" rel="noopener">The Conversation</a>.

Travel Tips

New $2 coin skyrockets in value to $1,200

A coin expert has shared how a brand new $2 coin has soared in value just 10 days after its release. The accredited numismatist from Perth, Joel Kandiah, revealed the Royal Australian Mint’s latest Vietnam Silver $2 is now in high demand. Kandiah, known online as @TheHistoryOf_Money has attracted a large following on his Instagram and TikTok with his insights on the value of multiple coin and bank notes. Speaking to 7News.com.au, he said the coveted coin is selling for up to $1,200 online with an increase of 1,400 per cent on the retail value. Kandiah shared that the shocking price hike, “has never been witnessed before on the numismatic market”. He added that the Royal Australian Mint released two brand new Vietnam War commemorative $2 coins on April 6, 2023. The first coin was an uncirculated C mintmark that has a retail value of $15 and a mintage value of 80,000. The second coin was a silver version of that same coin, but was proof finished, meaning it had been struck multiple times and hand polished for a shiny, spot-free finish. That coin had a retail value of $80, and a lowly mintage of just 5,000. Both coins were initially in demand, however the silver $2 commemorative coin has seen a remarkable price increase. Kandiah said there were two reasons behind the massive interest in the silver coin. “The first reason for the hype of this coin is that it is the first silver version of a coloured two coin and will most likely the only version that will feature the Queen’s effigy,” he told 7News.com.au. “It has a lower mintage than the most valuable coloured $2 coin, the Mars $2 coin from the 2018 Planetary Series collection, which is currently valued at around $4000. “The combination of these two factors have led to this price spiral which has never been witnessed before on the numismatic market.” Kandiah also revealed the release of the sought-after coin has stirred up a heated debate among coin collectors in Australia. “Within minutes of release, dealers across the country sold out of their allocations,” he explained. “Meanwhile, people were on the mint’s online store, call centre and in person in Canberra. Silver coins were completely sold out by the afternoon and the uncirculated coins were sold out by midnight. “People were waiting up to 16 hours in the Mint’s online queue system to try and get their hands on the coin. “Many collectors who were purchasing online had to compete with people from the ’sneaker bot’ community, who used sophisticated software to buy up new releases - only to release them on eBay at a significantly higher markup hours later. “By mid-afternoon, prices had gone up to $100 for the uncirculated coin and $300 for the silver coin. “Since then, the price of the uncirculated coin has fallen down to around $60 as ‘fear of missing out’ (FOMO) dies down. “However, the silver coin has continued to spike in price, which has now increased 15-fold to $1200 by April 16.” Kandiah said time will tell whether the silver coin will continue to increase in value. “Whether the value is due to FOMO, is too early to determine,” he told 7News.com.au. “Once we find more people get hands on their orders from the Mint, it is likely that they will sell their coins to cash in on the price rise but the relative rarity of the coin could be a long-lasting factor in its valuation. “The coin collector market has changed considerably over the last few years and it is in a new space where the buying and selling are done with each other through Facebook groups and eBay rather than through dealers. “The democratisation and accessibility of this process has led to improved liquidity within the market and hence we will continue to see rapid fluctuations in the Australian coin collector market in the future.” Image credit: Instagram

Money & Banking

New coin featuring Queen Elizabeth II carries hidden detail

The final design for the coin featuring Queen Elizabeth’s profile has been released by the Royal Australian Mint. Since taking the throne in 1953, six portraits of the Queen have appeared on Australian coins and next year the late monarch will feature for the last time. The new design was unveiled this week, after her death in September, and will include her familiar profile but with a notable difference. Featuring British engraver Jody Clark’s portrait of Queen Elizabeth II, the memorial coin’s notable addition will include the Queen’s 70 years of reign and will read "Elizabeth II 1952-2022". Australian coin expert Joel Kandiah says this will be the first time this detail has appeared on an Australian coin. The change will only be for the collectable coin, and not for normally circulated coins. “Any new circulation coins minted next year will be dated 2022 until the King Charles III effigy is introduced,” he told 7News. The coin has been called Queen Elizabeth II Memorial Obverse and will be released in January 2023. Existing coins bearing the Queen’s profile will remain in circulation and continue to be legal tender forever. In the coming months, the Australian Government will announce details of the transition to the profile of King Charles III for all Australian coins. Assistant Minister for Competition, Charities and Treasury Andrew Leigh said: “This final series of collectable coins will serve as a lasting tribute to Her Majesty Queen Elizabeth II, and a reminder for all Australians of her 70 years of service to Australia and the Commonwealth". Image: Royal Australian Mint

Money & Banking

"We ought to honour a true Aussie hero": Petition to put Steve Irwin on Aussie currency

In light of the change of monarchs, the long-term debate has res-parked regarding who should appear on our nation's currency. With the opportunity for a new face to appear, dedicated fans are petitioning for one specific Aussie icon to be branded. Vincent Wu and Kirby Miles have posted a petition online to the Australian Parliament House website, advocating for Steve Irwin to be featured on the $5 bill as opposed to King Charles III. The petition has noted that the conservationist and wildlife expert has made exceptional contributions to the country, which is necessary in order to be included on the banknote according to the Reserve Bank of Australia. "There is no one more vital to the Australian culture and identity than Steve Irwin. Steve is beloved by all and has become synonymous with the Australian values we hold so dearly," the petition read. "He epitomised the spirit of mateship; he deeply loved the Australian Wildlife, working hard towards conservation and education but perhaps most importantly he's just a good bloke. "This should not be seen as a step away from the crown, but as a step towards honouring a beloved Aussie hero. There is so much more that could be said about Steve but it comes down to this: we ought to honour a true Aussie hero." "We therefore ask the House to change the face of the $5 note to Steve Irwin." Vincent and Kirby's wishes are not completely misguided after Assistant Treasury Minister Andrew Leigh previously said King Charles may not replace the late Queen on the $5 note, but will be featured on coins instead. This isn't the first time a fan has advocated to have Steve Irwin on Australian currency. Six years ago a fan posted a petition to have the icon on the $100 bill. Although it gained 31,000 signatures it wasn't enough to sway the government. The petition going around is gaining traction and numbers continue to increase with each passing hour, it will be open for signatures until October 27. Image: Getty

Money & Banking

King Charles III's new coin effigy finally unveiled

The first coins to feature the effigy of King Charles III have been unveiled. The Royal Mint in the UK released the first look at the official effigy of the new monarch on Friday, announcing the coins will start to circulate in the coming months. The design was personally approved by the King himself and was sculpted by Martin Jennings. It will appear on commemorative 50 pence pieces and on the five pound note. Chief executive officer of The Royal Mint, Anne Jessopp said they were honoured to keep the effigy tradition going for more than 1000 years. “The Royal Mint has been trusted to make coins bearing the monarch’s effigy for over 1,100 years and we are proud to continue this tradition into the reign of King Charles III. Although technology has progressed, we continue to honour British craftsmanship passed down through the centuries,” Ms Jessopp said. “Her Late Majesty ruled with heart and devotion for 70 years, and this memorial collection commemorates her remarkable legacy as Britain’s longest-serving monarch. "To ensure everyone can hold a piece of history in their hand, the 50p will also enter circulation in the UK.” Read more: The Royal Mint

Money & Banking

The origins of money

<div> From cowrie shells to native resources and animals, currency in some shape or form has long been a part of human history. <div class="copy"> A currency of sorts was first thought to emerge as trade and exchange, with trade being tracked through the archaeological record, starting in the <a rel="noreferrer noopener" href="https://www.annualreviews.org/doi/10.1146/annurev.anthro.31.040402.085416" target="_blank">Upper Palaeolithic</a>, when groups of hunters traded the best flint weapons and tools. Throughout the years, various objects were used as units of value until nearly 5,000 years ago, when the <a rel="noreferrer noopener" href="https://theconversation.com/when-and-why-did-people-first-start-using-money-78887#:~:text=The%20Mesopotamian%20shekel%20%E2%80%93%20the%20first,gold%20coins%20to%20pay%20armies." target="_blank">Mesopotamian shekel</a> emerged as the first known form of currency. Now, researchers from Leiden University in the Netherlands are adding an Early Bronze Age piece to the currency puzzle. They’re proposing that Bronze Age people may have used rings and axe blades as an early form of standardised currency. “Archaeology can provide a unique perspective on the development of money and systems of weighing over space and time, but the discipline has difficulties with the identification of objects that functioned either as commodity money or as weights,” the authors write in their paper, <a rel="noreferrer noopener" href="https://dx.doi.org/10.1371/journal.pone.0240462" target="_blank">published</a> in the journal PLOS ONE. The authors compared objects from Early Bronze Age Central Europe. Based on the similarity in weight and shape of the objects, they suggest that ancient people used bronze objects that were standardised in shape and weight as currency. “Found in bulk, sometimes in hoards containing multiple hundreds, many of the rings, ribs and axe blades are considered to have no other practical function besides their tentative use as ingots, or rough-outs for further production,” the authors write. “Moulds, made of clay, stone or casted directly in sand made serial production possible, which led to some degree of unintentional standardisation. However, there are indications that for some types of objects, a deliberate effort was made to achieve a specific weight interval, meaning that weight mattered.” The researchers studied just over 5,000 objects made of bronze in rings, ribs and axe blades from more than 100 ancient hoards. The objects’ weights were compared using a psychology principle known as the <a rel="noreferrer noopener" href="http://apps.usd.edu/coglab/WebersLaw.html" target="_blank">Weber fraction</a>, which suggests if objects are similar in mass, a human being weighing them by hand can’t tell the difference. Around 70% of the rings were similar enough in weight – they averaged about 195 grams – and would have been indistinguishable by hand, as were subsets of the ribs and axe blades. Standardisation is a key feature of money. However, the researchers say this can be difficult to identify in the archaeological record since ancient people had inexact forms of measurement. “Commodity money displays rough similarities in terms of shape and weight, because of standardisation, without necessarily following a strict metrological system,” the authors write. “Though archaeologists have no insight in the transactions that took place, there can be no doubt that at least the rings and ribs conform to the definition of commodity money.” More precise weighing tools appear in the archaeology record later, in the Middle Bronze Age of Europe, along with an increase in the availability of scrap bronze.  <img id="cosmos-post-tracker" style="opacity: 0; height: 1px!important; width: 1px!important; border: 0!important; position: absolute!important; z-index: -1!important;" src="https://syndication.cosmosmagazine.com/?id=135363&title=The+origins+of+money" alt="" width="1" height="1" /> </div> <div id="contributors"> <a rel="noopener" href="https://cosmosmagazine.com/history/the-origins-of-money/" target="_blank">This article</a> was originally published on <a rel="noopener" href="https://cosmosmagazine.com" target="_blank">Cosmos Magazine</a> and was written by <a rel="noopener" href="https://cosmosmagazine.com/contributor/amelia-nichele" target="_blank">Amelia Nichele</a>. Amelia Nichele is a science journalist at The Royal Institution of Australia. </div> </div> Image: M.H.G. Kuijpers

Money & Banking

Great Aussie Coin Hunt: Australia Post and Royal Australian Mint release limited edition $1 coin celebrating Aussie icons

A new craze is about to sweep the country after Australia Post and the Royal Australian Mint announced the Great Aussie Coin Hunt. Millions of $1 coins have been released, featuring iconic Australian themes such as the Hills hoist, a quokka and an Esky. Each letter of the alphabet with have a different design with the first six available to collect now. A fill feature Australia Post, F for foot, I for Iced VoVo, M for meat pie, S for surf life saving and X for the tiny township of Xantippe. New coins will be released every Monday until October 21, ending with the letter Z which comes complete with an engraving of the summer staple Zooper Dooper. <img style="width: 500px; height: 460.3053435114504px;" src="https://oversixtydev.blob.core.windows.net/media/7831356/1.jpg" alt="" data-udi="umb://media/efd25b69b4b54a01a2bd558c6f8d92da" /> <img style="width: 500px; height: 473.3231707317073px;" src="https://oversixtydev.blob.core.windows.net/media/7831357/2.jpg" alt="" data-udi="umb://media/306c6af80d524fa4bcaf05ab8f9460b2" /> But there’s a catch. The only way to get your hands on the coins is to make a purchase at an Australia Post store and receive the limited edition $1 coin in change. “We want everyone to get involved,” said Australia Post consumer and community executive general manager Nicole Sheffield. “Not only will it be really exciting to hunt for all the coins and build an amazing collection, but each and every coin opens up the opportunity for wonderful conversations about quintessential Australian life. “It’s a great way for grandparents to connect with grandchildren, and for all of us to share our own experiences and memories with each other – both here and with friends and family overseas.”

Money & Banking

Do you think it’s reasonable that tourists pay more than the locals?

While some have resigned to being charged more than the locals when travelling, other tourists are taking a stand against the price hikes. The issue is more complex than tourists tend to think, as the prices that tourists are charged can often help the local economies of the destinations they’re visiting. Award-winning travel photographer Lola Akinmade Åkerström says that tourists should be okay with paying higher prices. She told <a href="https://www.abc.net.au/life/is-it-reasonable-to-pay-tourist-prices-when-travelling-overseas/11395356">ABC Life</a>: "I truly believe travellers should be OK with paying higher prices as foreigners," Lola says. "Aside from opening their land, country and homes to us as travellers, there might also be income disparities between visitors and the locals. "Your one lavish dinner might equal the cost of someone's monthly rent." However, one other traveller disagrees as they were charged a huge rate for a short journey while travelling overseas. Gunnar Garfors broke the record for being the youngest hobby traveller to visit all 198 countries in the world. However, one cab ride in 2009 stands out as his worst rip-off attempt. "My brother Oystein and I stopped a taxi in Riga," he says. "We told the driver we were headed to the airport. 'Please use the meter,' I asked. He didn't respond, but turned it on — seemingly reluctant. "In less than a minute, the meter had managed to clock up almost 10 euro, more than what we'd normally pay for the entire trip to the airport [a 10-15 minute drive from town]. I have never seen a meter run like that before. It looked like a stopwatch. "We weren't in the mood to fight so we asked him to pull over, I paid him and we left. "He immediately sped off. He had probably pressed a hidden button on the meter. There is no way he could get away with charging locals anywhere near what he had done to us. We managed to stop another car a few minutes later, and he drove us all the way to the airport for a fiver." He believes that the prices should be the same for everyone, regardless of whether or not you’re a tourist. "I think prices should be the same for everyone," he says. "Travel is about creating a mutual understanding between people of different cultures, backgrounds and faiths. It can create lasting friendships, new ideas and opportunities. "But then, we should strive towards equality and sustainability. Tourists should compensate for any pollution or damage, but this needs to apply to anyone — local or foreign." The price you pay as a tourist is dependent on the country you’re travelling in, as well as the situation you find yourself in. For some locals, tourism impacts their lives greatly whereas others won’t be impacted at all. Despite the differing opinions, it’s a personal choice as to whether or not you’re okay with paying more than the locals.

Travel Trouble

Top tips for travellers on currency exchange

Many overseas travellers make the assumption that exchanging your Aussie dollars for cash in foreign currencies, like US dollars, Euros or Pounds, will be pretty much the same deal no matter which institution they choose. In reality; nothing could be further from the truth! Even a fraction of a cent difference in exchange rates can add up to big dollars, once you multiply it over the amount of funds you want to exchange. What’s more, the method you use for purchasing foreign currencies can make an even bigger difference and fees and charges can slug you again. So, what are the key rules to go by for making sure you don’t ‘get fleeced before you fly’? Plan ahead for big savings The best option is to plan at least three days ahead and order your currency exchange online. This means you generally get a better exchange rate and can cut out potential commissions and fees that may apply. Here’s an example: Say you want to buy $2000 USD for your trip to America. After comparing some rates, a foreign exchange company provided the best deal at a cost of just AUD$2739. If you wait to exchange at their airport counter or local bank, you would pay AUD$2833.05. That amounts to a hefty saving of $94.05 – enough for some fine dining at a fancy LA restaurant! Use BPay to maximise the savings The above example is based on paying online via BPay, which is the most cost efficient method, as Travelex will not charge fees or commission for online orders using BPAY. You simply make an online transfer from your bank account and the purchase is complete and the savings locked in. The other good news when you purchase this way is that you can still pick up the cash at the airport, so you can avoid having to run around to get the cash beforehand. Don’t assume that the banks are best It might be reflex action to assume that the “big four” banks will have the best deals, but such an assumption could cost you money. It’s also a good idea to avoid shopping centre exchange kiosks too. They may be convenient, but you will probably pay more for the privilege. Beware of fees and charges Currency exchange operators have two ways of making profit; <ul> <li>putting a margin on the inter-bank exchange rate that they pay, and</li> <li>charging fees and commissions.</li> </ul> The complexity of these fee structures can make them tricky to compare, so rather than trying to sift through this yourself the best approach is to just ask for a quote from each institution. This way you will end up with bottom line figures to compare after differing exchange rates and fees are taken into account. Don’t rely on plastic alone Credit cards can also be more expensive. While you may see banks offering deals that say things such as “no overseas transaction fees on purchases”, they will still charge other fees such as an exchange charge - typically around 3% of the value of the amount exchanged. Of course, no one wants to carry around all their foreign funds in cash and the security of plastic does have merits, so the best solution is usually to use a combination of cash along with a prepaid travel card and/or a credit card to optimise convenience, cost savings and security. What is your experience on saving money on exchange rates? Share your ideas below. Written by Tom Raeside. Republished with permission of <a href="https://www.wyza.com.au/articles/travel/top-tips-for-travellers-on-currency-exchange.aspx">Wyza.com.au</a>

Travel Tips

Damaged money: Can you still use torn banknotes to buy things?

We're sure the situation seems familiar. You forgot to take your cash out of your pockets before throwing it in the wash, and out comes damaged notes. Or maybe, you ended up receiving a torn bill in change. The question is, is it worth anything? According to the Reserve Bank of Australia (RBA), it depends on how badly it’s damaged. In 1988, Australia phased out paper notes and replaced them with hi-tech plastic bills made from polymer. But while they are tougher, they aren’t completely foolproof with around $2 billion worth of "unfit" money getting disposed of each year. The RBA receives money that has been ripped, graffitied or have slowly worn out with time, but what happens if you have one in your wallet? If it’s less than 20 per cent missing, you’ll be paid the full value when you take it into your local bank. If the damage is more than 20 per cent but less than 80 per cent, then a value is paid in proportion to what remains. For example, if a quarter of a $20 note has been damaged then you’ll get $15 when you hand it in. But if more than 80 per cent is missing, then you’ll receive nothing in return. “These banknotes may not be worth full value because the Reserve Bank needs to take into account the possibility that pieces of the banknote may be presented for value separately,” said the RBA. When it comes to notes that are “unfit”, the RBA encourages banks to send it directly to them, as they want it taken out of circulation. “A banknote that has become worn or sustained minor damage is classified as unfit,” it says. “Even though these banknotes can continue to be used, to maintain the high quality of banknotes in circulation, the Reserve Bank has asked (banks and other deposit points) to remove any unfit banknotes from circulation.” Notes that are vandalised with graffiti, have signs of heat damage, tears or worn ink are considered to be unfit. And it’s not to ensure that the notes look good, but more to prevent counterfeiting as good quality money makes the fakes easier to spot. If you have money that fits the description above, head to your bank, otherwise, you can get in touch with the <a rel="noopener" href="https://banknotes.rba.gov.au/damaged-banknotes/redeeming-damaged-banknotes/" target="_blank">RBA for assistance</a>.

Legal

The Australian $2 coin is about to get a makeover

The Australian $2 coin is about to get a colourful makeover for Remembrance Day, in honour of those who have been killed and wounded in armed conflicts. The traditionally gold-coloured coin, which will be in circulation from Wednesday next week, will now feature purple flowers and green rosemary leaves on one side. <img width="498" height="430" src="https://oversixtydev.blob.core.windows.net/media/45261/rembrance-day-coin_498x430.jpg" alt="Rembrance Day Coin"/> Image credit: Facebook / Guy Stuff Coins The new design was unveiled by Small Business Minister Michael McCormack, at the pool of reflection at Sydney’s Hyde Park Anzac memorial. Mr McCormack says the coins will serve as a symbolic reminder. "On the 99th anniversary of the Armistice which ended the First World War the nation will observe one minute's silence in memory of those who died or suffered in all wars and armed conflicts," said Mr McCormack. "Rosemary has traditionally been worn on Anzac Day and Remembrance Day as a way to commemorate those who have died in active service and other military operations. "This is the sixth coloured circulating coin made by the Royal Australian Mint to honour the bravery and sacrifice of our servicemen and women." Two million of these coins will be released. What do you think of the design?

Money & Banking

Travellers warned about currency conversion swindle

A travel trend has descended on Europe. It's worse than selfie sticks. It's worse than drone photography. Like a pickpocket at a train station it pretends to be your helpful travel guide before leaving you a few euros short. It's called Dynamic Currency Conversion (DCC), and despite its off-putting name it can butter up unsuspecting tourists when they come to pay their bills. You've probably been one of them. Picture this: you're finishing up dinner at a Parisian brasserie or pizza parlour in Naples, you hand over your debit or credit card and the friendly waiter asks if you'd like to pay in your home currency used on the card – dollars – or euros (or whatever the local currency is). So helpful, right? Travel budgets are hard enough to manage (especially after a few drinks at dinner) and then along comes this offer to convert your meal bill into simple New Zealand dollars at the point of sale to help you track you spending. Do not do it. This is Dynamic Currency Conversion. The exchange rate applied to convert your dinner bill (or new shoes, or souvenirs) is the worst currency conversion rate going and the merchant is offering you the "convenience" at the point of sale not from the good of their heart, but because they earn a small commission for on-selling this service. Offering a conversion rate of €0.58 to the dollar instead of your bank's €0.63 may not sound like much of a margin, but over a month-long jaunt to Europe that could see you losing out hundreds while the merchants cream it. You wouldn't be alone in opting for this cheeky convenience - one in five travellers fall victim to this pushy trick, according to currency company FairFX. Although now common throughout Europe and elsewhere, the mark-up charged varies a lot depending on the shop or restaurant, your credit card firm, the DCC operator and the payment gateway being used. Since the merchant is getting a slice of the action, suddenly it makes sense why they are suddenly worried about your convenience and ability to track your holiday spending. Yeah, right. Several shop assistants and restaurant staff have been rather too forward in offering this service, making the assumption that I, the customer, would much rather pay in my home currency and present the bill already converted when handing me the card payment terminal. Like an over-cooked steak, send it back. Do the same if asked when using a foreign ATM to withdraw cash, because to choose the convenience for knowing exactly how many dollars will come out of your home bank account will only mean that more will be deducted. And in case you're feeling smug because you think your pre-paid, pre-loaded travel debit card protects you – that's not always the case. You will still be offered the service and if you accept (or don't decline the converted rate that appears before you on the terminal) it will still deduct the agreed dollar equivalent from your pre-paid account, even if you have pre-loaded local currencies. Sound complex? It's meant to. To win the war on confusing currencies: just say no. Written by Josh Martin. First appeared on <a href="http://www.stuff.co.nz/" target="_blank">Stuff.co.nz</a>.

Travel Tips

Australian dollar finally back above 77 US cents

If you’ve been putting off a trip to the USA due to the Australian dollar’s poor performance, it might finally be time to book those flights – we’re back above 77 US cents at last (77.08, to be exact). The Aussie dollar has been given a big boost after the Government auctioned off a record $1.1 billion of 11-year bonds, not to mention a high level of demand for the 2.75 per cent coupon. In fact, Chief Economist of Deutsche Bank, Adam Boyton, told <a href="http://www.news.com.au/finance/economy/australian-economy/australian-dollar-could-hit-80-us-cents-deutsche-bank-chief-economist-claims/news-story/f352f6854823233a7403710729d524a3" target="_blank">News Corp</a> he believes we may be on our way to hitting the 80 cent mark for the first time since May 2015. “Instead of being driven by a weaker domestic economy lowering imports, the current narrowing in the current account deficit is being driven by a surge in exports,” he said. “It also prompts the question of whether or not an export driven narrowing in the current account can tell us something about the likely direction of the AUD? Interestingly, it appears that it can.” Related links: <a href="/finance/money-banking/2017/02/australias-biggest-bank-accused-of-ripping-off-thousands-of-workers/">Australia’s biggest bank accused of ripping off thousands of workers</a> <a href="/finance/money-banking/2017/02/you-could-be-eligible-for-hundreds-of-dollars-interest-free/">You could be eligible for hundreds of dollars interest-free</a> <a href="/finance/money-banking/2017/02/how-to-find-out-which-is-the-best-credit-card-for-you/">How to find out which is the best credit card for you</a>

Money & Banking

Aussie teens desperate to honour Steve Irwin

Five Aussie teens have thought of a unique way to pay tribute to legendary wildlife conservationist Steve Irwin, and it’s dividing opinions all over the country. Kyle Ryan, Jake Ryan, Luke Brown, Daniel Brown and Riley McConville have started an online petition to immortalise one of Australia’s most recognisable figures by putting him on our $100 bill. “It's about time we paid our respects to the all-time greatest Australian bloke, Steve Irwin,” Kyle Ryan writes on the petition’s <a href="https://www.change.org/p/put-steve-irwin-on-the-australian-currency" target="_blank">Change.org</a> page. “It's been ten years without the Aussie icon and although he's been recognised in many ways I'd imagine we could all support the idea of going one step further.” The teenagers have even made a mock-up of what the bill might look like. <img width="497" height="280" src="https://oversixtydev.blob.core.windows.net/media/27496/steve-note_497x280.jpg" alt="Steve -note" style="display: block; margin-left: auto; margin-right: auto;"/> The Royal Australia Mint has previously paid tribute to the Crocodile Hunter with a special edition one-dollar coin as part of their 2009 Inspirational Australians series, however the Mint’s Chief Executive says he’s open to reproducing the coin. “Should there be another proposal for a dedicated coin, the public are invited to submit a written proposal.” If you would like to sign the petition (which already has more than 18,000 signatures), <a href="https://www.change.org/p/put-steve-irwin-on-the-australian-currency" target="_blank">click here</a> and tell us in the comments below, do you think this is a good way to honour the Aussie icon? Related links: <a href="/news/news/2016/09/bindi-irwin-heartfelt-tribute-to-steve-on-10th-anniversary-of-his-death/">Bindi Irwin's heartfelt message to Steve on 10th anniversary of his death</a> <a href="/news/news/2016/09/steve-irwins-heartbreaking-letter-to-his-parents/">Steve Irwin’s heartbreaking lost letter to his parents</a> <a href="/news/news/2016/08/terri-irwin-heartbreaking-revelation/">Terri Irwin’s heartbreaking revelation about life after Steve</a>

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The cheapest way to manage money overseas

With travel cards and ATMs aplenty the world over, when it comes to managing money while travelling today we have more options at our disposal than ever before. But some options work out to be much cheaper than others. But which option gives travellers most bang for their buck? We’re going to look at the different ways travellers can manage money overseas so you can figure out which option works best for your next holiday. 1. Prepaid travel cards Increasingly popular with overseas travellers, prepaid travel cards like the <a href="https://oversixty.cashpassport.com.au/" target="_blank">Over60 Cash Passport™</a> give you the opportunity to manage multiple currencies on one card, with the option to top up at anytime. Furthermore, with the Over60 Cash Passport you can load up to 10 currencies at once. These cards have the advantage of locking in an exchange rate* before you go. For a limited time, for new customers who buy an Over60 Cash Passport you’ll receive a bonus $25 to spend on whatever you want. The offer is valid between 26th May to September 30th 2016* and all you have to do is load a minimum of $1,500 AUD in foreign currency. To sign up for an Over60 Cash Passport and redeem your $25 bonus <a href="https://oversixty.cashpassport.com.au/bonus25" target="_blank">click here</a>. 2. Credit cards Another popular option with today’s travellers, credit cards are useful for larger holiday purchases with the added advantage of accumulating reward points. The problem with using credit cards is you’re at the whim of fluctuating exchange rates. A combination of withdrawal and transaction fees can also see you spending more when all is said and done. <img width="500" height="250" src="https://oversixtydev.blob.core.windows.net/media/21733/shutterstock_106598126_500x250.jpg" alt="travel money"/> 3. Traveller’s cheques Once all the rage for people headed abroad, traveller’s cheques are fast going the way of the dodo, mostly due to the widespread proliferation of ATMs. That being said, traveller’s cheques do have some advantages. For example, if you lose one of your cheques and can get into contact with the issuing authority it can generally be replaced within 24 hours. 4. Cash Probably not the smartest money-management option when it comes to the lion’s share of purchases you will make overseas, cash is especially vulnerable to theft and damage. By the same token, it’s generally not the worst idea in the world to have a small portion of local currency on hand, particularly if you find yourself in a tricky bind. You never know when you’re going to find yourself in a situation where you can’t find an ATM. How do you like to manage your money when you’re headed overseas? Are there any methods that you find especially effective (or you wouldn’t use again)? Please share your story in the comments below. No matter where you’re travelling to, making sure you know how to access your cash while away – and in the most affordable way – is very important. Easy to use and with countless benefits, the Over60 Cash Passport allows you to securely access your cash in the same way you use an ATM or credit card. <a href="https://oversixty.cashpassport.com.au" target="_blank">To apply for an Over60 Cash Passport, click here.</a> *The prevailing exchange rate is locked in for the initial load value only. Subsequent card reloads will be processed at the then prevailing exchange rate on the day of the reload transaction. **For new customers only. For more information and full Terms and Conditions, <a href="http://www.cashpassport.com.au/promotions" target="_blank">click here</a>. Related links: <a href="/travel/international-travel/2016/05/aerial-tour-of-beautiful-flower-field-in-the-netherlands/">Aerial tour of beautiful flower field in the Netherlands</a> <a href="/travel/international-travel/2016/05/10-breathtaking-photos-new-zealand-beautiful-roads/">10 breathtaking photos of New Zealand’s beautiful roads</a> <a href="/travel/travel-tips/2016/04/10-incredible-things-to-do-in-tokyo/">10 incredible things to do in Tokyo</a>

International Travel

New Zealand $5 note named “Banknote of the year”

New Zealand’s five-dollar note has been named “banknote of the year” by the International Bank Note Society, beating 40 other eligible designs from 20 countries. For a design to be eligible, it must be issued for the first time and in general circulation during the year of the award. Banknotes are assessed by a panel on “artistic merit and/or innovative security features” as well as use of colour, contrast and balance. <img width="500" height="244" src="https://oversixtydev.blob.core.windows.net/media/19187/nz-in-text-one_500x244.jpg" alt="NZ In Text One" style="display: block; margin-left: auto; margin-right: auto;"/> Almost 150 new banknotes were released last year, with the International Bank Note Society deeming over three dozen eligible for nomination. New Zealand’s five-dollar note was described as the “clear winner” with Sweden’s new 20 kronor note, Russian’s 100 ruble note, Kazakhstan’s 20,000 tenge note and Scotland’s five-pound polymer note named as runners-up. <img width="495" height="240" src="https://oversixtydev.blob.core.windows.net/media/19188/nz-in-text-two_495x240.jpg" alt="NZ In Text Two" style="display: block; margin-left: auto; margin-right: auto;"/> Geoff Bascand, the deputy governor of the Reserve Bank of New Zealand, said “We are proud of all of New Zealand’s new banknotes, but to have our $5 note recognised internationally is very special. The note incorporates some of the world’s most advanced security features, yet still beautifully showcases New Zealand’s history, culture and heritage.” What do you think of the winning design? Image credit: International Bank Note Society Related links: <a href="/news/news/2016/04/cat-meets-dogs-at-dog-show/" target="_blank">Watch this friendly cat meet 50 dogs at a dog show</a> <a href="/news/news/2016/04/prince-george-president-barack-obama-photos/" target="_blank">The story behind Prince George’s presidential photos</a> <a href="/news/news/2016/04/lifeguard-helps-wheelchair-bound-veteran-surf/" target="_blank">Lifeguard helps make wheelchair-bound army vet's dream come true</a>

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