The benefits of using pre-paid travel cards when travelling abroad

29 Nov
2009

Those of us who are thinking of escaping from the dreary British evenings as winter closes in could benefit from taking a travel money card with them on their trip.

Travel money cards, issued by companies such as MoneyCorp, CaxtonFX, FairFX, and MyTravelCash can save the card holder money on currency exchange, leaving them with more cash to spend whilst when they reach their destination.

As an example, FairFX, offers rates for euros and US dollars at less than 1% above wholesale rates.

This means that all travellers, be it those who are taking a city break, a half-term week in the sun, or those mixing up business and pleasure in one of the bright-lights cities around the world, can have access to business level foreign exchange rates when using these cards.

Those who choose to buy currency at the last minute whilst in the airport risk paying more for currency exchange, when compared with those who purchase it in advance using a travel money card.

A survey by FairFX.com found that holidaymakers who choose to buy their currency last minute at the airport pay up to 14% more for their foreign currency than if they had bought it in advance. The travel money card provider found that Birmingham and Luton airports offer the worst deals.

Travel money cards have the additional benefit of being very easy to use. They can be topped up online, or by text, and work in the same way as a debit card. The FairFX currency card, for example, is a MasterCard chip and pin enabled prepaid debit card. The cards are issued in either Euros or US dollars, and can be paid for using a sterling debit or credit card, or internet bank transfer. Similar prepaid cards allow top up by paying cash over the counter in the post-office or through the payzone scheme at participating local shops.

MyTravelCash is also a prepaid MasterCard, issued in euros or US dollars. Travellers who do not use all the money loaded on their MyTravelCash cards can withdraw the outstanding amount from an ATM abroad or in the UK, ask for a refund, or save the money for their next trip.

As well as offering good foreign exchange rates, the cards can also be bought ahead of time, meaning that travellers can take advantage when the exchange rate between sterling and the dollar or sterling and euro is up.

Written by Credit card consolidation