Travel money cards are prepaid cards preloaded in foreign currency. Commonly known as “foreign currency cards”, “prepaid travel cards” and “travel cash cards”.
Unlike credit cards, they do not offer a line of credit so you cannot incur debts. This is more than a non-overdraft debit card. Therefore, they can be used for purchases from resellers abroad (shops, restaurants, attractions, etc.). You can also withdraw foreign currencies at ATMs abroad.
Advantages of travel money cards
The first users of travel money cards will benefit from a significant improvement over the traditional methods in foreign currency described above. However, travel money cards also offer unique advantages that distinguish them even from conventional bank cards.
Foreign currencies can be withdrawn at an ATM as needed. You should never drop cash in your hotel room. Like traditional debit cards, Chip & Pin technology protects cash cards. Therefore, your money is protected even if your card is lost or stolen. And, although pin number compromise might see you lose the money you have loaded onto the card, your card is not directly connected to your current account so you can minimise potential losses. If you lose ownership of your card, just contact the issuer of your card to block it. In some cases, card issuers can send you a new card.
Unlike credit cards, which require customers to verify their creditworthiness (and meet other eligibility criteria), prepaid cards are available to all over 18 years of age most especially if you are in the UK. Who can provide the required identification?
Since you cannot get into debt with a prepaid card, you can make sure you do not spend too much money abroad.
For some travel money cards, users can set their exchange rate when they are transferred to the card. While this means that you could lose the pound strengthens against other currencies, it says you can avoid losing when the pound falls in value. It also says that you can plan your vacation more because you know how much money you are going to spend.
If you use a standard credit or debit card abroad, transaction fees other than the pound sterling are usually charged around 3%. This means that cash withdrawals and purchases overseas cost 3% more.
Many travel money cards allow the user to bypass these fees because transactions can be made in the local currency.
What Is The Best-Prepaid Card
The market has grown enormously in recent years. There are many options for people who want a currency card. Some of them are specialised in cutting-edge technology that uses peer-to-peer trading for the benefit of their customers. Some cards offer customers a particular currency, while others provide their users with the ability to make multi-currency transactions with a single card. Because of the different strengths and weaknesses of the cards in certain situations, there is no “best travel money card”. There can only be the best card for you and your travel plans.