One of the things you need to prepare when preparing for an overseas trip is money to be used abroad. In the past, it was standard to exchange money for overseas travel into cash in advance, but now many people seem to use cards while traveling abroad.
Of course, there are some places that do not accept card payments, so you will need some cash, but since card payment is so easy, you will probably end up using the card wherever it is accepted.
As a result, an increasing number of people are looking for overseas payment cards to save on fees before traveling abroad.
In this article, we will learn about the Travel Wallet card, which has been mentioned a lot among international travelers recently.
What is Travel Wallet and Travel Pay?
Travel Wallet’s Travel Pay can be considered a type of foreign currency recharge + payment service.
We have a system where you download the Travel Wallet app, issue a card, and then charge it with foreign currency in advance and use it overseas.
You can recharge by exchanging it for a foreign currency of your choice, such as US dollars or Japanese yen. If you recharge in a foreign currency in advance, the payment amount will be deducted from the recharged amount when you pay in that currency locally.
Since it can be used at VISA affiliated stores around the world, you can make payments as conveniently as using a regular card, and it is also possible to withdraw the exchanged foreign currency at a local ATM.
Travel Wallet Advantages: No card payment fees
The biggest advantage of Travel Wallet is that there are no foreign card payment fees.
Usually, when a card issued in Korea is used overseas, brand fees and overseas usage fees are charged.
In the case of the Samsung card I am using, I found out that a 1% brand fee and a 0.2% overseas usage fee are charged, for a total fee of 1.2%.
Travel Wallet is affiliated with VISA, so these fees are not charged.
Travel Wallet Advantages: Low currency exchange fees
At Travel Wallet, currency exchange fees are free for US dollars, Japanese yen, and European euros. Other currencies are said to be subject to a relatively low exchange fee of 0.5% to 2.5%.
Especially when the exchange rate is low, I think you can create an even more synergy effect by exchanging money in advance and then paying locally without any fees.
Another advantage is that there are various types of foreign currency that can be recharged. It is said that a total of 38 types of foreign currencies are supported.
All currencies from most countries are supported, including the US dollar, European euro, British pound, Japanese yen, and Chinese yuan, as well as Thai baht, Vietnamese dong, Philippine peso, Malaysian ringgit, Singapore dollar, and Taiwanese dollar.
Travel Wallet Advantage: ATM fee exemption
Card company fees are waived for monthly withdrawals of $500 or less. However, if it exceeds $500, a 2% fee is charged.
Monthly withdrawal amount card company fee
Exemption under $500
2% over $500
However, you should be aware that there may be a separate ‘ATM fee’. It is said that fees vary by country and device, so it is essential to check before using.
Please note that ATM fees are sometimes charged per transaction, so please be careful as you may incur significant losses if you frequently withdraw money under the illusion that there is no fee.
Disadvantages of Travel Wallet?
Some people may find it a bit inconvenient to have to exchange and recharge foreign currency in advance. With a regular card, you just need to make a payment, but with Travel Wallet, you have to charge it in advance to use it.
If you run out of money, you need to recharge it right away. If you are in an environment where the Internet is not smooth, you may end up in an awkward situation. Therefore, while using it, you should carefully check how much money is charged.
It is also a bit disappointing that the minimum recharge amount starts from $50. You may say it is a small amount, but depending on how you feel, it may be a bit burdensome.
Additionally, there is a disadvantage that recharging money that has already been recharged cannot be cancelled. Since there is a minimum recharge amount, unless you calculate the money accurately and use it accurately, you will have no choice but to have money left over.
You can change the remaining money back to Korean Won through the ‘Refund’ function, but please be careful as the ‘exchange rate at the time of sale’ is applied in this case and you may incur an exchange loss.
So far, we have learned about the Travel Wallet (Travel Pay) card, which is well known among travelers.
As you can see by reading the above, there are not unconditional advantages, so it would be a good idea to think about whether it is a good fit for you before making a choice.
Personally, I think it would not be a bad idea to prepare a certain amount of cash to be used locally in advance by receiving the most favorable exchange rate in the country, and to use it appropriately in parallel with credit card payments.
This is because additional fees may apply if you use an ATM locally, and the process of going to the ATM may feel cumbersome.