Pre-Paid Currency Cards

Pre-paid currency cards are a relatively new entrant into the travel money marketplace. They have a unique offering, in so much as they provide a very simple service, the easiest comparison is to that of a pay-as-you go mobile phone. If you require additional credit, you top up!

This can normally be done through a variety of methods, which normally include online, and over the telephone. However some providers also offer a SMS service.

These cards are provided through Visa and Mastercard, and offer almost all of the benefits that you would expect from your debit or credit card. This will include cash withdrawals and the ability to pay for goods or services over the counter.

These cards provide a good level of security, as to withdraw cash a pin number is required. Also many of the providers will offer a service whereby if the card is lost or stolen you can get a replacement arranged with the currency still on the card! This is much better than trying to negotiate with an insurance company if your cash is stolen!

Prepaid currency cards are cheap! Fact! - Compared to using your debit or credit card abroad.

The rates of exchange offered by the providers are extremely competitive, normally better than you will find on the high street or even online!

Most banks will charge a 2% per transaction or minimum £3 fee for ATM withdrawals abroad.

In addition they will be charging a premium on the exchange rate that is offered.

With prepaid currency cards, you know how much you will be charged to withdraw cash (£1.50 is a competitive charge per transaction - Currently offered by FairFx).

Your exchange rate is agreed when you transfer the funds onto the card, so that you know that there are not going to be any nasty surprises when you get home from your holiday.

Most credit cards will charge a loading fee for foreign currency transactions, even Abbey who have no withdrawal fees for their credit card charge an interest rate of 25.9% for foreign transactions.

You can use the card in most shops and restaurants.

As far as we have been able to identify, so far there are none!

- They work the same way as your usual debit/credit card. - There are some regions that do not accept the cards according to some reviews that I have recently read, so I would double check with the card provider prior to travelling.

- If you have cash left on the card after the holiday you have several options, you can either:

- Leave it on there until the next holdiay.

- Alternatively transfer the funds back to your home currency. - This may detract from the exchange rate that you initially achieved as some providers may add a slight premium   to the exchange rate that they offer. Therefore my advice would be to ensure that you only top up the card as much as required.