28 Degrees MasterCard Alert! Beware expensive new ATM fee
The 28 degrees MasterCard was a favourite amongst Australian travellers due to its no-fee structure and competitive exchange rates. But a recent change to the cards structure could have the travel card darling fall from favour and card holders looking for alternative methods to access their cash while overseas.
Withdrawing cash while in a foreign country recently became a lot more expensive for the tens of thousands of Australians holding one of the best travel cards in the market. A recent change to the fine print (as of Jan 1 2014) ushered in a new $4 minimum ATM fee every time the card holders use the 28 degrees card to withdraw cash at an ATM.
Since January 1, more than 250,000 holders of a 28 Degrees card have faced a 3% charge. Prior to 2014 the card was the only fee free credit card in the market and was names on of the best travel money cards by both Mozo and independent consumer champions Choice.
However, today if a traveller withdraws $1000 in cash from an ATM the can expect to be hit with an ugly $30 in ATM fees, even if they withdraw in small amounts as the minimum charge is $4 per withdrawal.
The institution behind the card, GE Money is suffering a backlash from disappointed cardholders. The company has advised customers concerned about the fee to avoid using ATMS to perform a cash advance or alternatively to purchase and cash-in casino chips as a way to convert to cash without an ATM withdrawal fee.
The card remains a good card for overseas travel with no other fees, but the new cash advance rule makes it no longer a great to use as an ATM card when overseas. According to Mozo experts, for access to cash internationally, your best bet is now a free-free debit card linked to a Citibank plus account.