Top Debit Cards for Overseas Travel available in New Zealand

When traveling or making purchases from overseas retailers, using the right debit card can save you money. This article explores the best debit card options for New Zealanders traveling overseas, focusing on minimizing costs and maximizing your spending power. We're also going to reveal a hidden fee that can quickly add up: the markups on mid-market exchange rate.

Can I Use My NZ Debit Card Overseas?

Generally, yes, you can use your New Zealand debit card overseas, but there are several important things to consider:

• Card Network Coverage: Most NZ debit cards are Visa or Mastercard, which are widely accepted globally. However, acceptance can vary depending on the specific merchant and country. Visa and Mastercard enjoy near-universal acceptance in most developed countries and tourist destinations. Look for their logos at point-of-sale terminals and ATMs.
• Digital Wallets: In many countries, you can use your NZ debit card with digital wallets like Google Wallet and Apple Pay for contactless payments. However, ensure your card is compatible and that contactless payments are widely accepted in your destination.
• Activating for Overseas Use/Informing Your Bank: It's crucial to inform your bank of your travel plans before you depart. This helps prevent your card from being blocked due to suspicious activity (i.e., sudden overseas transactions). Some banks may require you to "activate" your card for overseas use through their online banking platform or by contacting them directly. It's always best to check with your specific bank's policies.
• Sufficient Funds: Ensure you have sufficient funds in your account to cover your anticipated expenses. Remember to factor in potential exchange rate fluctuations and any fees that may apply.
• Transaction Limits and ATM Withdrawal Limits: Be aware of any daily or transaction limits on your debit card. These limits can restrict how much you can spend or withdraw from ATMs in a single day. You can usually find this information in your cardholder agreement or by contacting your bank. It is possible to request temporary increases to these limits, but this should be done before you travel.

Countries Where Cards May Not Work

There may be certain countries or regions where international card acceptance is limited. This is more common in less developed countries or those with specific political or economic situations. Research your destination beforehand to avoid any surprises.

Some countries may have specific requirements or restrictions. For example, some countries may prefer cash transactions, particularly in smaller establishments or rural areas.

What to Look for in an Overseas Debit Card

When choosing a debit card for international use, consider the following factors:

• Card Issuance and Annual Fees: Some cards charge a fee for issuing the card or an annual maintenance fee.
• International Transaction Fees: This is a fee charged each time you make a purchase in a foreign currency.
• International ATM Withdrawal Fees: Fees incurred when withdrawing cash from overseas ATMs.
• Exchange Rate Markups: Many providers often add a markup to the mid-market exchange rate (the one you usually see on Google). This hidden fee can significantly increase the cost of your purchases.  

Review of using popular NZ Debit Cards Internationally

Wise Card

Wise card excels with its mid-market exchange rate, meaning no hidden markups in currency conversion costs. There's a one-time NZD 14 fee for the physical card, but a digital card is free (which can be used with Google Wallet and Apple Pay in supported countries). You get two free ATM withdrawals per month, up to a combined NZD 350. After that, a fee of 1.75% + NZ$1.50 per withdrawal applies. The lack of foreign transaction fees makes Wise a strong contender for frequent international travelers. Wise also offers a multi-currency account that you hold and convert money in multiple currencies, potentially locking in favorable rates.
Complete review of using Wise Card 👉

ASB Debit Card

The ASB Visa Debit card has no card fees, which is attractive. However, it imposes a 2.10% foreign transaction fee on all international purchases. ASB does not use the mid-market exchange rate, and uses its own published rate for currency conversion.
Complete review of using ASB Debit Card Overseas 👉

ANZ Debit Card

Similar to ASB, the ANZ Visa Debit card has no card fees. It has a lower 1.3% foreign transaction fee than ASB, making it slightly more appealing for international use. ANZ does not use the mid-market exchange rate either, and uses it's own published rate for currency conversion.
Complete review of using ANZ Debit Card Overseas 👉

BNZ Debit Card

The BNZ Flexi Debit Visa also offers a free card. However, it has a high 2.25% foreign transaction fee and a 2.25% international ATM withdrawal fee. It uses the Visa exchange rate for currency conversion, which is higher than the mid-market rate and can increase your expenses while abroad.
Complete review of using BNZ Debit Card Overseas 👉

Westpac Debit Card

The Westpac Debit Mastercard has an annual fee of NZD 10, although this is waived for the first year. It charges a 1.95% foreign transaction fee. International ATM withdrawals incur a NZD 3 fee, but you can avoid this by using ATMs within the Global Alliance network. It uses the Mastercard exchange rate for currency conversion, which is higher than the mid-market rate.
Complete review of using Westpac Debit Card Overseas 👉

Kiwibank Debit Card

The Kiwibank Visa Debit card also has an annual fee of NZD 10, waived for the first year. It charges 2.5% foreign transaction fee and charges NZD 6 fee for each international ATM withdrawal. These combined fees make Kiwibank a less favorable option for international spending. ANZ does not use the mid-market exchange rate, and uses its own published rate for currency conversion.
Complete review of using Kiwibank Debit Card Overseas 👉

Comparison of Best Debit Card for Overseas

Here's a table for easy comparison of using the debit cards internationally.

• Please be aware that overseas ATM providers can separately charge a cash withdrawal fee which varies depending on the provider.

Conclusion: The Best Debit Card for Overseas Spending

It's important to remember that even small markups on mid-market exchange rates can add up to significant amounts, especially for larger transactions. Based on this consideration, choosing a card with a favorable exchange rate, such as Wise Card appears to be the most cost-effective option for New Zealanders.

Get Started with Wise 🚀

Wise also offers a multi-currency account, which can be particularly useful for those who travel frequently or make international purchases regularly. With its transparent pricing and user-friendly interface, the Wise travel card available for a one-time of NZD 14 can help you make the most of your international travel budget.

Sources verified on 15 December 2024.