Asia Pacific Travelers Use ATMs as the Smarter Way to Access Cash

As holidaymakers plan their next getaway, smart travelers from Asia Pacific are less likely to carry large sums of cash from home, opting instead to withdraw cash at the ATM once they had arrived, according to a consumer survey by Visa.

The survey, which covered 13 countries and territories found that almost half (46%) of respondents had withdrawn cash at an ATM overseas during their last holiday.

Four in ten (38%) respondents also said they prefer to only take a small amount of cash to cover initial expenses and access more cash overseas when required. Less than one in five (19%) choose to take all the cash needed for a trip and not access more cash at the destination.

Ross Jackson, Head of Cross-Border Business - International, Visa, said, “Carrying a large sum of cash is increasingly unnecessary for travelers. Apart from the option of using payment cards at a shop or restaurant, ATMs that accept international payment cards are generally well located at most airports and major tourist and shopping areas so travelers can avoid the risk of carrying large amounts of cash and easily access their holiday funds when they need it.”

As reported by respondents, travelers will on average withdraw US$435 at ATMs at their destination. Respondents from China (US$742) are likely to withdraw the most money from overseas ATMs, followed by respondents from India (US$719) and Australia (US$691).

Women and older travelers preferred using an ATM for their cash needs while on holiday. 13% of female respondents said they used the ATM most often to get cash as opposed to 10% of male respondents. 15% of respondents aged 45 years and above used an ATM most often as compared to 10% of respondents younger than 45. The preference for ATMs among older respondents could also be linked to how almost 7 out of 10 (69%) of this group said they would not exchange more cash than they needed during their trip.

When asked about the benefits of obtaining cash via overseas ATMs, nearly half (48%) of the respondents said getting cash on demand at ATMs was a convenient means of accessing local currency. 41% were concerned with personal safety and hence did not like to carry a lot of cash when they leave their home countries. 37% also agreed ATMs are a good way to access cash for emergencies.

Jackson said, “Visa has a network of more than 1.7 million ATMs worldwide that offer cardholders hassle-free access to local cash anywhere. Accessing cash when you are overseas can minimize the problem of dealing with large sums of leftover local currency. Cash withdrawals via ATMs also leave a transaction record which makes it the smarter way for travelers to enjoy their holiday while keeping track of spending.”

Visa tips for safe and convenient holiday cash access

• Withdrawing cash in another country is exactly the same as it is at home – you use the same card and PIN and the machine will dispense local currency. Currency conversions are done automatically – the conversion rate and any fees will be shown on your regular statement, in your usual currency.

• Exchange a small amount of cash in advance if you wish and bring along just enough local currency for immediate small expenses such as taxi fares or a quick meal en route. Any other local currency that travelers need can be accessed at overseas ATMs.

• Be aware that all types of money changers will charge you nominal charge for changing your cash to local currency. Sometimes these charges are built into the exchange rate, so be on the lookout for unfavorable rates.

• It is prudent to consider ATMs, which are available at all major tourist areas, and offer fixed exchange rates and have clearly listed ATM access charges. There is no need to worry about complicated currency conversions. You will typically get a competitive rate, which is calculated automatically. The conversion rate and any fees should be clearly shown on your regular bank statement or passbook, in your home currency.

• Unlike banks and money exchange bureaus, most ATMs operate 24 hours a day so travelers will not be stranded without access to their funds while overseas.

Visa commissioned the online survey which was conducted by The Nielsen Company in May 2010. The survey asked 6,714 respondents from 13 markets (Australia, China, Chinese Taipei, Hong Kong, India, Japan, Korea, Malaysia, New Zealand, Singapore, Thailand, the United Kingdom and the United States) about their travel cash access habits. All respondents were internet users and aged 18 years or above.

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