August 1999 Volume 80 Number 8 "serving the protectors"
Finance
Which Form of Funds Should I Take Overseas

Experts say it’s best to take three forms:

• Cash.
• Credit/debit cards.
• Travellers’ cheques.

By doing this, you should minimize the chance of getting caught short of money at your destination.

Each of these forms of funds has its advantages and disadvantages.

Cards

Pros

• Convenience - a credit card allows you to make purchases, buy local currency, and even make cash withdrawals from automatic teller machines throughout the world.
• A PCU Visa card enables you to utilize Visa’s Emergency Assistance Centre (VEAC) throughout the world. Assistance is provided on areas such as card replacement and emergency cash.
• Removes the need to carry large amounts of cash.

Cons

• Your balance is recalculated daily so there is a potential risk regarding the movements of the $AUS.
• ATM malfunction/rejection of card.
• Annual fees and high cost of withdrawing money. While purchases through Visa are free, the cost of cash withdrawals can be costly (PCU charges $4 per overseas cash withdrawal).
• Not widely accepted in developing countries.

TRAVELLERS’ CHEQUES

Pros

• Accepted as payment for goods and services by most merchants worldwide and can be exchanged for cash.
• Cheaper than credit card cash withdrawals - they’re available from the Police Credit Union in US dollars, Australian dollars and British pounds, with a 1% commission on the amount sold.
• Can generally be replaced within 24 hours.
• You know how much you have paid for the currency.

Cons

• Least convenient of the three forms of currency.

CASH

Pros

• The easiest way to take funds overseas.
• Convenient - no need to exchange and one is able to purchase goods and services when one first gets off the plane.

Cons

• Can’t be replaced if stolen or lost.
• Exchange rate usually lower than Travellers Cheques.

If you require any further information or assistance in obtaining the above, please call into your local Police Credit Union branch and speak to one of our friendly member service officers.

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