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What’s the difference between a debit card and credit card? A debit card provides access to your own money held in a transaction account. A credit card is a loan provided by your bank that gives you access to funds or ‘credit’. This becomes a debt and you will need to repay the minimum balance each month. Spending your own money versus the banks is one of the key differences between a debit card and a credit card. Find out more about our low rate Visa credit card, or to easily access your own funds, check out the features of our Visa debit card. How Do Debit Cards Work? Debit cards are used to access funds directly from the account they are linked to. You can only spend what is in your account. For example - if you try to spend $500 but only have $250 in your account, your transaction will be declined. You’ll need to keep an eye on your balance, as you might face overdrawn fees if you try to spend more money than is in your account. Debit cards can be used to withdraw cash directly out of your bank account at ATMs. Know your transaction fee allowance to avoid any unnecessary costs prior to withdrawing money. You can be confident that our debit card offers security from Visa, so you can make secure purchases at the counter or online. You can easily apply for a Visa debit card from Horizon by calling or visiting any of our branches. You can also apply for a Visa debit card online and one of our friendly staff will process your application. A feature of our debit card is having access to an overdraft facility. You can apply for an overdraft which will provide you access to extra funds in case of emergency. This is a form of credit that will need to be paid back monthly. How Do Credit Cards Work? Your credit card, unlike a debit card, is a loan. When you apply for a credit card, you're approved for a certain amount, which is an ongoing line of credit. The amount you’re approved for is known as your credit limit and it’s how much you can spend before your card is ‘maxed out’. If you reach this threshold, you won’t be able to make any further purchases until you make a credit card repayment. Each month, you'll receive a statement from us which will include: Your opening credit card balance Total amount spent on purchases The total amount of cash advances Payments, refunds and other credits Total interest charged Fees and charges – for example, any late payment fees Your closing balance When making a repayment, you’re required to cover the minimum payment (and not the whole balance) however you'll typically pay higher interest on your closing balance in the long term. To easily manage repayments, set up a regular direct debit to your credit card account to avoid a late payment fee. You could also ask us to set up a payroll split, so when your pay comes in, a portion will go directly to your credit card. Read our blog on how credit cards work which includes tips on how to use one effectively. You can apply for a Visa credit from Horizon by calling or visiting any of our branches. You can also apply for a Visa Credit Card online. What about security? We take the security of your funds very seriously. If you suspect a fraudulent transaction on any of your accounts, please notify us immediately. Taking control of card security is also in the palm of your hands. You can lock or unlock your card from within Horizon’s mobile banking app. Locking your card suspends any further transactions from occurring until you unlock it again from within the app. You can also report your card lost or stolen from here as well and we will order you a replacement. Shopping online is secure as Visa has developed a program that helps confirm your identity when you make an online purchase. During an online purchase from your desktop, mobile or other digital devices, you may be guided through an extra check to verify your identity. This helps us ensure it is you making the purchase and better protects you from fraud. This is the one way Horizon Bank and Visa have teamed up to secure your account(s). Which is better?  Whether you choose a debit or credit card is a matter of personal preference in how you prefer to spend your money. At the end of the day, a debit card is your own money and a credit card is a loan from your bank or financial institution. If you believe you can manage the repayments on a credit card, then use our budgeting calculator to see how repayments will fit into your spending. A debit card will always be you spending your own money, however, you can apply for an overdraft to have access to extra funds in case of emergency.   Get in touch with the team at Horizon Bank to learn more about whether a debit card or credit card is best for you. With convenient locations across the Illawarra and South Coast regions, we are happy to help you with any questions you may have about debit and credit cards. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant Product Disclosure Statement and Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

In this blog, we’ll compare the different ways you can take money overseas. Organising your money should be the first thing on your travel checklist. We’ll look at the pros and cons to give you the best information to takeaway with you, and to help make an informed decision on taking and accessing money overseas when travelling. Cash It is always useful to have a small amount of foreign cash on hand, for small purchases such as water, public transport tickets, little souvenirs and so on. Depending on where you go, some small retailers and market stalls may only accept cash. Unfortunately cash can be a safety risk so ensure it is secured on you at all times because if stolen, there’s no way to get it back as it cannot be traced. Be as prepared as you can and do your research ahead of time so you're taking the best travel money type with you. To compare travel money, you can use our foreign exchange rate calculator to keep an eye on rate fluctuations, so you get the most out of your Australian dollar when you’re converting money. Ordering foreign cash from us is easy and hassle-free. Order before midday to have major currencies (US Dollars, British Pounds, Euro and New Zealand Dollars) delivered to your branch the next day. Credit Cards Credit cards are a convenient option for taking overseas as there is no need to open a new separate account and they’re good for accessing money in emergencies. They can however be a risk for scammers and card skimming so you need to keep an eye on where you are swiping or inserting your card. Where possible, avoid swipe machines. Inserting your card to read a chip is much safer. Conversion fees may apply and could be a flat fee or percentage of your purchase. Travellers Cheques Are great because they never expire and they can be replaced if lost or stolen. They’re also less risky than cash as you need ID and a matching signature to cash them. However, with the rise of debit cards and travel money cards, travellers cheques are no longer widely accepted and are expensive to purchase. Travel Money Cards These cards are pre-loaded so you can easily stick to a budget and limit your spending. Complete a travel currency comparison to get the best value on exchange rates then load your card before you go. Check for fees on using the card in an ATM and the fee to payout the remainder on your card. Most issuers come with an app so you can top up your card using your mobile phone while you're away. Visa Debit Cards With a Horizon Visa debit card you’ll be spending your own money, so you can keep track of your purchases through our mobile banking app and internet banking as you would here in Australia. Visa is accepted worldwide so you won’t have trouble making purchases. Keep in mind that a currency conversion fee may apply to overseas debit card transactions and ATM withdrawals. *Tip avoid suspect ATMs by only using ATMs that are attached to a bank where possible. Want to know more about ordering foreign cash or find out about any fees associated with international transactions? Contact us today and we’ll be happy to help you with your query. Are you planning a trip and looking for a quote on travel insurance? Get in touch with the friendly team at Horizon today for a quick obligation free quote. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

Sorting out your money before you go What is the best way to take money overseas? You have a few different options. Rather than just relying on cash, consider taking a cash passport or travel money card too. Your own visa debit or credit card can be taken as well for extra flexibility when it comes to paying for things. Plus, having back-up options for lost or stolen cards is always a good idea. Keep an eye on exchange rates leading up to your holiday, then order foreign cash or load up your travel card when the exchange rate is in your favour. With some clever timing you may be able to make your dollar stretch that bit further. This is particularly for those currencies that are worth more than the Australian dollar, such as the British Pound or Euro. Consider the fees and charges While no one wants to have to worry about fees and charges, it’s important to remember that if you pay for things on your debit or credit card oversees, you may pay more than you think. Overseas merchants tend to charge a higher conversion rate for the trouble of converting your money into their currency. Check with us about the costs of using your card for overseas eftpos purchases and in foreign ATMs. Talk to us about travel insurance Without travel insurance, cancelling your holiday due to sickness or injury means you’re unlikely to get back any money you’ve paid so far.  What you’re getting up to on your holiday is also important. Make sure your policy includes cover for dangerous sports if you’re planning on skiing, skydiving or taking part in any other adrenaline filled activity. Get a quote online here. How about those bills? Missing a bill while you’re on holiday can lead to late fees. Or in extreme circumstances, stopping services all together if payments are frequently late. Take the hassle away by setting up direct debits before you go. Tell us before you go By letting us know you’re out of the country and where you’re going, we’ll know it’s you conducting those international transactions. We’ll continue to keep an eye out for any suspicious activity on your accounts and credit cards while you’re away. Looking for more money advice for your overseas trip? Get in touch with Horizon Bank today and let us help you on your journey. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.