Travel Money Card Award Australia Finalisation · Travel Money Card Award Australia 4. Methodology A Travel Money Card is a product that allows you to preload the currency of your

Date: 02//06/2017

Prepared by: Aleks Milosev – Graduate Research Analyst

Travel Money Card

Award

Australia

Finalisation

Page 2 of 19 Travel Money Card Award Australia

Contents 1. Project Personnel ................................................................................. 3

2. Providers and Products ........................................................................... 3

3. Approved Logo for external use ................................................................. 4

4. Methodology ....................................................................................... 5

4.1 Eligibility Requirements ................................................................... 5

4.2 Profiles ....................................................................................... 5

4.3 Methodology Tree .......................................................................... 6

4.4 Price Score ................................................................................... 7

4.4.1 Travel Cost Scenario .................................................................... 8

4.5 Feature Score ............................................................................... 9

5. Summary of changes ............................................................................. 10

6. Model Updates and Upgrades ................................................................... 10

7. Release Requirements ........................................................................... 10

8. Project Timeline ................................................................................. 10

9. Summary of Results .............................................................................. 11

9.1 US Dollar ....................................................................................... 11

9.2 Euro ............................................................................................. 15

9.3 NZ Dollar ....................................................................................... 16

9.4 Pound Sterling ................................................................................. 17

9.5 Thai Baht....................................................................................... 17

9.6 Japanese Yen .................................................................................. 19


1. Project Personnel

The following persons are assigned to the delivery of this rating/award:

Department Title Person/s

Research Research Analyst Aleks Milosev

Research Senior Research Analyst James Slack

Product Data Product Data Analyst Rafaela Spelta/Jen Anderson

2. Providers and Products

Company Product

Aust

ralian D

ollar

Bri

tish

Pound

Canadia

n D

ollars

Chin

ese

Renm

inbi

Em

irati

Dir

ham

Euro

s

Hong K

ong D

ollar

Japanese

Yen

New

Zeala

nd D

ollar

Sin

gapore

Dollar

South

Afr

ican R

and

Thai Bhat

US D

ollar

Vie

tnam

ese

Dong

ANZ Travel Card Yes Yes Yes No No Yes Yes Yes Yes Yes No Yes Yes No

Australia Post Cash Passport Yes Yes Yes No No Yes Yes Yes Yes Yes No Yes Yes No

Australia Post Load&Go Travel Card Yes Yes No No No Yes No No Yes No No No Yes No

Commonwealth Bank Travel Money Card Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

MasterCard Cash Passport Yes Yes Yes No No Yes Yes Yes Yes Yes No Yes Yes No

NAB Traveller Card Yes Yes Yes No No Yes Yes Yes Yes Yes No Yes Yes No

QANTAS Qantas Cash Yes Yes Yes No Yes Yes Yes Yes Yes Yes No Yes Yes No

St.George Bank Global Currency Card Yes Yes Yes No No Yes Yes Yes Yes Yes Yes Yes Yes No

Suncorp Bank Cash Passport Yes Yes Yes No No Yes Yes Yes Yes Yes No Yes Yes No

Travel Money Oz Key To The World Yes Yes Yes No No Yes Yes Yes Yes Yes No Yes Yes No

Travelex Cash Passport Yes Yes Yes No No Yes Yes Yes Yes Yes No Yes Yes No

Velocity Frequent Flyer Velocity Global Wallet Yes Yes Yes No No Yes Yes Yes Yes Yes Yes Yes Yes No

Westpac Global Currency Card Yes Yes Yes No No Yes Yes Yes Yes Yes Yes Yes Yes No


3. Approved Logo for external use


4. Methodology

A Travel Money Card is a product that allows you to preload the currency of your choice to meet

your travel expenses while overseas. You can lock in the exchange rate when you purchase and load

the card, or at a later date.

4.1 Eligibility Requirements

To be eligible for consideration in the CANSTAR Star Ratings, each product must:

Have the ability to store multiple foreign currencies on one card.

Allow you to lock in an exchange rate before travel.

Allow you to use your own funds – no credit or borrowing is allowed.

Provide an up-to-date exchange rate on its website.

4.2 Profiles Travel Money Card

Based on a weighted basket of 6 currencies.

All 6 currencies must be supported for a product to be eligible

Currency USD NZD EUR GBP THB JPY

Weight 30%

(-5%)

20%

(-5%)

20%

(-5%)

15%

(-10%) 10% 5%

The weightings proposed take into account the number of short term movements, as well as the

wider spread use of the USD compared to other countries.

Short Term Movements - Resident Departures

Country Number of Movements % of Total Movements

Japan 43,900 7.31%

Thailand 48,900 8.15%

UK, CIs & IOM 70,800 11.79%

United States of America 101,000 16.82%

Europe 151,000 25.15%

New Zealand 184,700 30.77%


4.3 Methodology Tree

To arrive at the total score CANSTAR, applies a weight against a Pricing and Feature Score. The

total score for each travel money card is weighted 70% towards Price and 30% towards Features.

Pricing

70%

Features Based on 10 categories

30%

Non-Native

Transaction Cost 10%

Travel Cost

Scenarios 90%

Multiple

Currencies

Total Score = Pricing Score + Feature Score

USD 30%

NZD 20%

EUR 20%

GBP 15%

THB 10%

JPY 5%


4.4 Price Score

There are many different fee structures in the Travel Money Card market. Some providers charge

for ATM withdrawals in foreign countries and others do not. There are products where the initial

load is free but subsequent reloads are not, and some where there are almost no fees at all. When

exchanging many thousands of dollars into a foreign currency, in many cases, the exchange rate

applied to the purchase is the largest part of the overall cost of the transaction, even though few

or no direct fees are being charged to the customer.

To find the overall cost of taking a Travel Money Card on an overseas trip, CANSTAR has designed a

scenario that includes the fees for loading, reloading, and using the card overseas, as well as

calculating how much will be available to spend in the purchased foreign currency.

These costs are benchmarked against a hypothetical cheapest product in the market – one with no

load, reload, ATM, POS, or closure fees, with the best average exchange rate observed during our

survey period of four weeks.

Travel Cost Scenarios

The Net Travel Cost of each card is calculated in nine different currencies.

For the overall Travel Money Card Award, a weighted score based on these nine currencies is

calculated based on the net cost in each currency.

The exchange rates used are taken from provider’s websites twice a week, for four weeks.

Non-native transaction cost

The second component of the Pricing Score is the non-native transaction cost. This is a fee payable

where there are insufficient funds available in the local currency, or the card is used for a purchase

in a currency that is not supported. The product with the lowest fee in the market will receive the

highest score, which is then added onto the Travel Cost Scenario Score to arrive at the total Pricing

Score.

Pricing

70%

Non-Native

Transaction Cost 10%

Travel Cost

Scenarios 90%


4.4.1 Travel Cost Scenario

The Net Travel Cost of each card is calculated in five different currencies.

CANSTAR firstly considers how much foreign currency will be available to the cardholder for

spending on their trip, after fees for loading and using the card are subtracted.

Net Foreign Currency Available To Spend

Converted To Foreign

Currency At The

Card’s Exchange Rate

Total loaded amount of $5000

minus initial loading cost for $3,500

minus reload cost for $1,500

minus cost of 10 foreign ATM withdrawals (conv. to AUD where applicable)

minus cost of 10 point-of-sale transactions (conv. to AUD where applicable)

minus closure fee and/or refund fee.

plus the dollar value of reward points earned*

This is compared to a hypothetical product that has no fees, and an exchange rate equal to the

best average rate observed in the travel money card market during our survey period. This is known

as the Benchmark Net Foreign Currency.

The net cost of using each travel money card is then calculated:

Net Travel Cost = Benchmark Net Foreign Currency – Product Net Foreign Currency

*QANTAS Cash offers 1.5^ point per $1 spent on overseas POS transactions.

Velocity Global Wallet offers 1 point per $1 spend on overseas POS transactions.

As per CANSTAR credit cards methodology, is based on domestic flights.

^From 1st May 2017

Reward Points

CANSTAR considers that Travel Money Cards by certain providers offer the ability to earn reward

points. The points will be earned on the spend basis outlined below for each of the currencies

CANSTAR takes into consideration.

Country POS Spend ATM Spend

NZD

50% of Total Loaded Amount 50% of Total Loaded Amount

USD

EUR

GBP

THB

JPY


4.5 Feature Score Travelex has provided feedback on new features added to their product:

• No International ATM Fees

• Contactless

• Free Global WiFi (provided by Bongo)

• Global Emergency Assistance is still a feature of the card, but we also enhancing the

product with Travel Assistance for our customers

What is Travel Assistance?

The Travelex Money Card provides you piece of mind with access to worldwide travel assistance

before your trip, during your trip and even when you return

• Pre-departure information

• Passport and visa requirements

• Travel advisories and customs information

• Embassy referrals

• Interpretation assistance

• Lost luggage assistance –status updates

• Medical referrals & arrangement of medical appointments

• General information on local customs and business etiquette

• Information on national holidays and business trading hours

• Airport sales tax refund information and VAT regulations

• Emergency services referrals

Proposal: Include new tag for free global WiFi available

Currently we capture contactless capabilities, international fees and emergency services related to card

service

Feature Category Weights Examples Of Data Captured

Terms And Conditions 40%

Terms & Conditions 40% Ability to lock exchange rate , Inclusion of back-up card, Emergency card replacement, Emergency fund access

Currencies Available 20% Single/Multiple currency card, Maximum number of currencies at a time in the card, currencies available

Dispute Resolution 20% Maximum time for disputes to be resolved, method of disputing transactions, average dispute resolution time, authorisation holds.

Fees 10% Fees for card closure, Replacement card fee

Limits 10% Maximum number of cards a single person can hold, maximum amount you can load/reload, maximum ATM withdrawal

Accessibility And Security 60%

Account Facility 30% Purchase the card online, Access the account online, View transactions online

Reload 25% Ability to reload the card, Reload using BPAY, Reload at time of purchase

Convenience 25% Ability to use the card for online purchases, ATMS and POS, Access to free WiFi providers networks

Security 10% Chip & PIN protected, Signature panel on the reverse, Not linked to personal bank account

Distribution Outlet 10% Ability to purchase through credit unions, travel agents


5. Summary of changes

Proposal or Feedback Page No. Action Taken

6. Model Updates and Upgrades

7. Release Requirements

Crystal Reports

CSV Upload

8. Project Timeline

Task Scheduled Date Actual Date

Kick-off Meeting 03/03/2017 03/03/2017

Audits Release Date 24/03/2017 28/03/2017

Data Handover Date 05/05/2017 12/05/2017

Finalisation Date 02/06/2017 05/06/2017

Release Date 23/06/2017

9. Summary of Results

With the introduction of a new product, the Travelex Money Card, Travelex has maintained a 5-Star rating, with improvements in pricing

and the second-best in Feature score (behind Travel Money Oz Key To The World).

The key factor contributing to this result is the better feature score for Travelex as compared to Qantas.

Table 1. Overall Travel Money Card Star Rating

Rank ΔRank Company Product Price ΔPrice Feature ΔFeature Total ΔTotal Star Rating ΔSR

1 2 Travelex Travelex Money Card 68.68 7.12 29.19 1.53 97.87 8.65 5 1#

2 3 QANTAS Qantas Cash 70.00 21.77 26.98 -0.66 96.98 21.11 5* 1

3 5 Velocity Frequent Flyer Velocity Global Wallet 61.82 22.75 25.37 -0.52 87.18 22.22 5* 1

4 2 ANZ Travel Card 53.39 8.22 25.16 0.88 78.55 9.09 4* -

5 -4 NAB Traveller Card 50.75 -13.88 25.38 -0.20 76.13 -14.08 4* -2

6 3 St.George Bank Global Currency Card 42.70 6.68 27.08 -0.64 69.78 6.04 4* -

7 - Westpac Global Currency Card 31.54 -5.78 27.79 0.08 59.33 -5.71 3 -

8 -4 Commonwealth Bank Travel Money Card 29.49 -24.49 28.64 0.02 58.13 -24.46 3 -

9 1 Travel Money Oz Key To The World 20.68 -5.08 30.00 - 50.68 -5.08 3 1

10 1 MasterCard Cash Passport 22.74 -1.94 26.69 0.28 49.43 -1.66 3* -

11 Australia Post Cash Passport 14.58 27.70 42.29 2

12 - Suncorp Bank Cash Passport 11.34 -7.54 27.77 0.11 39.11 -7.43 2* - #Travelex received a 5-Star rating in 2016 for their Cash Passport.


Price Score

Since 2016, Travelex have removed the cash over counter charge of $10, the initial load cost, and reload cost (now only charging an initial

load cost only in AUD—the greater of 1.1% of the initial load or $15).

Travelex have sustained a competitive rate over numerous currencies (as seen in Table 2), having the most competitive exchange rate for

USD, GBP, EUR, NZD and JPY, coupled with less fees, making it value-for-money.

Qantas has the better pricing score primarily due to the rewards benefit with Qantas Cash, with 1.5 Qantas points earnt for ever AUD spent

overseas and an average redemption rate of 0.010457019 (calculated by average across all destinations).

Table 2. Average exchange rate obtained through 10 measurements from 03/04/2017 to 05/05/2017

USD GBP EUR NZD THB JPY

ANZ Travel Card 0.7201 0.5660 0.6650 1.0438 24.7346 79.4090

Australia Post Load&Go Travel Card 0.7184 0.5639 0.6615 1.0286 - -

Australia Post Cash Passport 0.7132 0.5563 0.6519 1.0194 23.7887 77.9209

Commonwealth Bank Travel Money Card 0.7118 0.5597 0.6589 1.0313 24.2100 78.0600

MasterCard Cash Passport 0.7163 0.5591 0.6573 1.0248 23.8567 78.1187

NAB Traveller Card 0.7181 0.5618 0.6593 1.0306 23.8374 77.9833

QANTAS Qantas Cash 0.7197 0.5631 0.6629 1.0314 24.2228 78.3953

St.George Bank Global Currency Card 0.7193 0.5618 0.6616 1.0267 24.4142 78.7350

Suncorp Bank Cash Passport 0.7088 0.5535 0.6475 1.0198 23.8567 76.6228

Travel Money Oz Key To The World 0.7149 0.5577 0.6577 1.0253 24.3013 78.1312

Travelex Travelex Money Card 0.7308 0.5689 0.6691 1.0440 24.6391 80.0682

Velocity Frequent Flyer Velocity Global Wallet 0.7194 0.5618 0.6618 1.0268 24.4210 78.7394

Westpac Global Currency Card 0.7103 0.5592 0.6578 1.0306 24.4420 78.4070

Average exchange rate: 0.7170 0.5610 0.6594 1.0295 24.2270 78.3826


Feature Score

As mentioned above, Travelex is rated better compared to Qantas in feature score, predominately due to the accessibility of

purchasing/reloading in branches, outlets, or, third party networks.

Table 3. Feature Score Comparison

1 2 3 4 5 6 7 8 9 10 11 12

Travel Money

Oz Travelex

Commonwealth Bank

Westpac Suncorp

Bank Australia

Post St.George

Bank QANTAS MasterCard NAB

Velocity Frequent

Flyer ANZ

Features 30.00 29.19 28.64 27.79 27.77 27.70 27.08 26.98 26.69 25.38 25.37 25.16

Accessibility and Security 60.00 56.58 55.86 55.55 51.44 52.27 53.20 49.94 49.47 46.98 49.28 45.86

Account Facility 26.00 24.67 30.00 28.67 26.00 24.67 28.67 28.67 23.33 22.00 28.67 16.67

Convenience 23.91 21.74 18.48 20.65 18.48 18.48 20.65 23.91 21.74 20.65 23.91 25.00

Distribution Outlet 8.95 10.00 6.84 4.74 6.32 8.95 4.74 4.74 6.32 2.63 4.21 6.84

Reload 25.00 23.53 22.06 24.26 22.06 22.06 20.59 11.76 18.38 20.59 10.29 13.24

Security 10.00 8.57 10.00 8.57 7.62 7.62 8.57 9.05 7.62 7.62 10.00 10.00

Terms 38.80 39.54 38.47 35.98 40.00 38.96 35.98 38.92 38.41 36.61 34.27 37.00

Currencies Available 17.46 17.46 20.00 17.46 17.46 17.46 17.46 18.73 17.46 17.46 18.73 17.46

Dispute Resolution 16.67 20.00 20.00 15.00 20.00 20.00 15.00 20.00 20.00 11.67 11.67 20.00

Fees 4.86 6.86 8.00 10.00 4.29 3.71 10.00 8.00 4.29 8.00 7.71 8.00

Limits 10.00 10.00 9.33 7.33 10.00 10.00 7.33 8.00 10.00 8.67 8.67 6.67

Terms and Conditions 40.00 36.36 30.91 32.73 40.00 38.18 32.73 34.55 36.36 38.18 31.82 32.73


9.1 Tables & Charts 9.1.1 US Dollar

Company Product Load Amount Initial Load Cost Reload Amount Reload Cost ATM Cost POS Cost Fee Close Rewards Total Value

Travelex Travelex Money Card 2557.83 0.00 1096.21 0.00 0.00 0.00 -7.31 0.00 3646.74

QANTAS Qantas Cash 2518.99 0.00 1079.57 0.00 -19.50 0.00 0.00 39.21 3618.26

Velocity Frequent Flyer Velocity Global Wallet 2518.01 0.00 1079.15 0.00 -19.50 0.00 0.00 28.50 3606.15

NAB Traveller Card 2513.31 0.00 1077.13 0.00 0.00 0.00 0.00 0.00 3590.44

St.George Bank Global Currency Card 2517.69 0.00 1079.01 0.00 -20.00 0.00 0.00 0.00 3576.70

ANZ Travel Card 2520.32 -7.92 1080.14 0.00 -25.00 0.00 0.00 0.00 3567.53

Australia Post Load&Go Travel Card 2514.23 0.00 1077.53 0.00 -20.00 0.00 -10.78 0.00 3560.97

Australia Post Cash Passport 2496.13 0.00 1069.77 -8.57 0.00 0.00 -7.13 0.00 3550.20

MasterCard Cash Passport 2506.91 0.00 1074.39 0.00 -25.00 0.00 -7.16 0.00 3549.14

Travel Money Oz Key To The World 2502.15 0.00 1072.35 -7.15 -25.00 0.00 0.00 0.00 3542.35

Commonwealth Bank Travel Money Card 2491.44 0.00 1067.76 0.00 -25.00 0.00 0.00 0.00 3534.20

Westpac Global Currency Card 2486.16 0.00 1065.50 0.00 -20.00 0.00 0.00 0.00 3531.65

Suncorp Bank Cash Passport 2480.62 0.00 1063.12 0.00 -25.00 0.00 -7.09 0.00 3511.66

0.6925

0.6975

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0.7075

0.7125

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USD ANZ - Travel Card

Australia Post - Load&Go Travel Card

Australia Post - Cash Passport

Commonwealth Bank - Travel Money Card

MasterCard - Cash Passport

NAB - Traveller Card

QANTAS - Qantas Cash

St.George Bank - Global Currency Card

Suncorp Bank - Cash Passport

Travel Money Oz - Key To The World

Travelex - Travelex Money Card

Velocity Frequent Flyer - Velocity Global Wallet

Westpac - Global Currency Card


9.1.2 Euro






ANZ Travel Card 2327.53 -7.32 997.51 0.00 -22.00 0.00 0.00 0.00 3295.73









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0.684

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EUR ANZ - Travel Card














9.1.3 NZ Dollar




ANZ Travel Card 3653.16 -11.48 1565.64 0.00 -45.00 0.00 0.00 0.00 5162.32











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1.055

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NZD ANZ - Travel Card














9.1.4 Pound Sterling






ANZ Travel Card 1980.83 -6.23 848.93 0.00 -20.00 0.00 0.00 0.00 2803.52









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GBP ANZ - Travel Card














9.1.5 Thai Baht



ANZ Travel Card 86571.10 -272.08 37101.90 0.00 -950.00 0.00 0.00 0.00 122450.92











23.45

23.65

23.85

24.05

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24.65

24.854

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9.1.6 Japanese Yen



ANZ Travel Card 277931.50 -873.50 119113.50 0.00 -2600.00 0.00 0.00 0.00 393571.50











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JPY ANZ - Travel Card













Documents

Travel Money Card Award Australia Finalisation · Travel Money Card Award Australia 4. Methodology A Travel Money Card is a product that allows you to preload the currency of your