The Best Travel Debit Card for Bali

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If you are looking for a sure-fire way to save money while travelling, the Transferwise Debit Card is a must-have. I’ve been using Transferwise to transfer money between bank accounts in different currencies for a couple of years, and I swear by it.

Why Transferwise is cheaper than banks and credit cards.

The reason Transferwise can exchange currencies cheaper than your bank is that they process so much volume they acquire real-time foreign exchange rates without the markup your bank charges for the privilege of exchanging currencies.

Think of it this way – every moment there is a market between two commodities. The amount you are buying another currency (for example, the Indonesian Rupiah) and the rate someone else (your bank) is willing to sell that Rupiah. Your bank charges a fat margin – Transferwise has lower margins – therefore you get more Rupiah for your Dollar.

In the screenshot below, transferring AUD$1,000 using Transferwise would net you IDR9,556,012.59.

Transferwise Screen Shot - Bali Holiday Secrets

That’s Rp531,091.77 more than doing exactly the same transaction using Commonwealth Bank. Now go and think about what you get for AUD$50 in Bali and work out how much better that is if you transfer AUD$10,000 or more.


Using Transferwise for sending money overseas.

The Transferwise smart-phone app allows you to connect your local bank account so you can withdraw funds and have it deposited into an online account and swap money into another currency far cheaper than using your own bank to transfer funds.

For example, paying for a lease on a property in Indonesia means you have to transfer funds from your home bank account (for example, an Australian account) into an Indonesian bank account. Every bank sticks it to you in 3 (or more) ways:

  • You get charged an “administrative fee”, usually around $20-50.
  • The exchange rate they transfer your money is the retail rate – they take a significant margin.
  • A “delivery” fee is often charged – your bank charges you for the funds being delivered.

Transferwise cuts out the middle-man, in this case, your bank, and withdraws the money from your account (without fees), exchanges it for the destination currency (which is where you save the most) and deposits it in the recipients account without any extra charges.


The Borderless Travel Debit Card.

If you apply for a Transferwise Debit Card, you can use it to spend Indonesian Rupiah while in Bali without any transaction fees at all. Click on the Borderless Account link at the top of their page.

Think about this. You go to dinner in a restaurant in Seminyak and in a fit of generosity pay the bill for your four guests. Maybe drinks and dinner come to Rp 4,000,000. Using the rates in the above example, you will be charged around AUD$446.80 if you pay with your Visa or Mastercard. The bank decides what exchange rate it will charge you in Australian Dollars, and let’s be frank – the rate isn’t great.

On top of that they may charge you an “overseas transaction fee” because, well, they can. That’s just another bank tax. Since the consumer commissions in several countries made “overseas transaction fees” against the law, most banks simply sneak it in with an even worse foreign currency conversion rate.

Either way, they get you.

With a Transferwise Debit Card, you pay… Rp 4,000,000 for dinner. No extra fees, no transaction charges. That’s because the money you are holding in your IDR currency is used to pay just like a local would using their Indonesian debit card.

And the best feature is that whenever you make a transaction you get an alert on your smartphone telling you where the transaction was made and how much. That means whenever I use it (and I make several transactions a day) I get an instant confirmation showing the local currency transaction.

Not only does this give me a great sense of security but I can also confirm how much is left in the local currency account where I’m travelling.


No leftover foreign currency at the end of the holiday.

One of the biggest pains when travelling is using up the local currency before you leave. Or conversely, for me, it’s not having any when I land in a new country.

Using the Transferwise smartphone app I can move money between currencies at the most competitive rate on the market. Which means if I’m a bit short because of a big splurge with a few days to go, I can exchange money from one of my other currency wallets into the local currency.

And when leaving, or anytime after I leave, I can move the leftover money into the currency I’m going to use next. Because the rates are better than I can find anywhere else, the stress of getting a horrible exchange rate for small or large amounts is no longer a factor.

It’s just one less friction point when travelling, so I can focus on making my Indonesian Rupiah, Vietnamese Dong, Malaysian Ringgit or Euro go further.


Save money by spending local currency during airport transits.

One of the pains of travelling far and wide is the transit times while changing flights at foreign airports. There’s not enough time to get outside immigration, but enough time that you may want some food or drink (always a good idea), or check-out the local airport shopping (never a good idea).

The problem is you don’t have any local currency, and using the currency exchange booths means paying either a commission or a shockingly expensive exchange rate, especially for small amounts.

My solution is to figure out what I’m going to get (usually food or drink while waiting for my connecting flight) and transfer that amount using my Transferwise smartphone app and then paying for it using my Borderless Debit Card.

That way I get the most competitive rate even with small amounts, and paying for it using my card means it’s being transacted in the local currency.

So buying a laksa at KLIA doesn’t mean paying my credit card issuing bank an “overseas transaction fee” along with a grossly uncompetitive exchange rate. The last time I tested the difference I paid 54% more than I would with my Transferwise debit card using local currency. An AUD$8.20 curry turned into a $12.67 charge on my credit card.

And if you doubt this, or have had a similar experience, please leave a comment below.


Saving for a holiday made easy.

We all know that saving for a holiday is hard work. And when you go to change your hard-earned cash into the local currency you are at the whim of the prevailing exchange rate.

What I do is transfer money from my home bank account into my Transferwise account and regularly exchange those dollars into my destination currency.

For example, for a holiday to Vietnam, I transfer a few hundred dollars a month into my Transferwise account and then swap those dollars for Vietnamese Dong regularly. That way I’m averaging the exchange rate over a length of time – which means I won’t get the best rate or the worst rate – but an average rate over the time I’m saving for the trip.


So there it is. Put funds into your Transferwise account, change it into any currency you like, and spend like a local. You can try it out by getting a Transferwise account, connecting it with your own bank account, putting in a small amount to try it out (that’s what I did) and testing the exchange rate by using the same amount as a foreign exchange transaction using your own own Internet banking, or asking for an over-the-counter transaction at your local bank branch (like that’s somewhere we go any more).


While most anyone can open a Transferwise account, Debit Cards can only be issued to residents of certain countries.

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Disclaimer: Using the links from this website means I get a very small commission from anyone who signs up for a Transferwise account and makes a currency conversion. I’ve been using Transferwise for over two years and I love it. Ask any questions in the comments section below.

  • Georgia power says:

    Hi Michael, I just have one quick question, i’m only going on a very short trip to Bali (6 days) and was wondering if i should take just cash or a mix of cash and possibly this debit card?

    • Michael says:

      Hi Giorgia,
      Cash and card are better. That way you can exchange your cash at a money changer and get the best possible exchange rates while using this travel card to spend in local rupiah and avoid expensive transaction charges, as well as transfer money in and out of your chosen currency at the absolute best rates on the market.

      I’m currently in Vietnam, and I just travel with the card as I can withdraw local currency from ATM here.

      Safe travels,
      Michael

  • karl audrins says:

    What a clever and convenient concept. I can see all the advantages, with no obvious flaws. Must have taken a fair bit of experience and thought to put it together. We are still considering all the permutations and combinations of our proposed trip, this one being another possible link.However, as this could be our last overseas journey, perhaps another card in the wallet may not be necessary. Once again, many thanks for your past help and information. Your website is truly very helpful to all those who are fortunate enough to find it. Terima kasih, Karl.

    • Michael says:

      Hi Karl,
      Thanks for the kind words, it’s very much appreciated. Hope you have a fantastic time on your Bali holiday.

      Safe travels,
      Michael

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