What Are The Bonuses Of Exchanging A Debit/Credit Card For A Travel Money Card?
There are many people living in the United Kingdom that have postponed trips to the U.S or Europe because of the terrible currency exchange rates; however, you can remedy this situation by using travel money cards, which are not extensively know but provide an appealing variation.
So what are travel money cards, you ask?
A modern entry into the plastic money family, travel money cards let you load up a card at a known exchange rate, which you can spend at your leisure when you arrive at your destination.
You can apply for these cards on the providers' websites online, and the transfer of funds to the card can be made on the phone, the internet, or through SMS services, in some instances. At this time, only the pound, euro, and U.S. dollar can be uploaded onto currency cards.
What's the big difference?
First, you'll find a much better exchange rate with these cards than conventional bureaux de change, located on the High Street. You also receive a fixed rate when you have downloaded money to the card, so you can keep track of how much you're spending each time it's used abroad; while credit and debit cards operate on a real-time exchange rate for each transaction, so it's hard to track your spending.
Is there more?
Not at all. When you use a traditional credit card or debit card to make a purchase abroad, you are typically charged around 2.75% of the transaction as a fee for the foreign currency exchange.
These foreign currency exchange charges also apply in shops and eating establishments; however, a travel money card does not have these associated costs. The rates charged for obtaining cash with a credit or debit card can be very high, but since you have prepaid the amount on your currency card, it is not a loan, and there are no fees for the service.
Anyway... Is there a catch?
Well, since the cards need to have funds transferred to them before you leave, you might find yourself having to save up for your travels, instead of just relying on your credit cards. However, considering these economic climate that's not such a bad thing, is it? Another trivial drawback is the costs required for ATM withdrawals, but the good news is those fees will be a lot less on prepaid cards than on credit or debit cards.
To give you an example, when this is being written, RBS and NatWest have a 2% withdrawal fee, which means a 6 fee for every 300 you take out. The comparison is currency exchange cards fees could be as little as 1.50 for any amount you take out from an ATM.
The real downfall for you is the charge you're charged for using your card to pay for something in a currency other than one fixed - and FX convert fee; using the example of a dollar transaction which is made with a euro currency card, you could be paying a fee of up to 2.75%. However, there are a number of cards that don't charge this fee (see list below).
What about credit cards that can be used without FX costs?
These traditional credit cards are: the Abbey Zero, Nationwide Gold, and the Post Office. The problem that continues (i.e. the last two) is that even though they're a fantastic deal (no foreign exchange fees), they have cash withdrawal costs of 2.5% at the time of this writing (minimum 3), and don't measure up with travel money cards (unless you're opting for credit for your holiday).
In contrast, the card from Abbey has no cash withdrawal costs no foreign exchange conversion fees,costs as always, there's a catch -- it's got the highest interest rate of the three, at 25.9% presently.
Tell me more. So which travel money cards are the best?
The best card available for euros is the FairFX Euro Currency card, because its ATM fee is the least at 1.50; it has no foreign currency exchange fees and has excellent exchange rates. Another euro card, the Indigo Travelcard Euro has just a slightly higher ATM fee of 1.95, but its convert fee is high at 2.75%. There is no convert payment associated with the ICE Travellers CashCard Euro, but the ATM fee is a whopping 3.
FairFX also leads the pack on cards where the Dollar is the main currency. It has no conversion fee, and an ATM cost of only $2. No conversion fee and $3 ATM withdrawals brings the ICE Travellers CashCard Dollar in at a close second. No conversion charge means you can use the cards anywhere.
What's the best travel money card for world travel?
An 'Anywhere Card' has just been lauched by FairFX as a new global travellers card - an ideal card to take everywhere in the world.
One of the great things about the Anywhere Card is that there are no ATM costs, and no loading fees either! A 1.5% transaction fee is the only charge you'll incur - and that's at the time of the transaction, so you don't need to worry about exchange rates. - 23159
So what are travel money cards, you ask?
A modern entry into the plastic money family, travel money cards let you load up a card at a known exchange rate, which you can spend at your leisure when you arrive at your destination.
You can apply for these cards on the providers' websites online, and the transfer of funds to the card can be made on the phone, the internet, or through SMS services, in some instances. At this time, only the pound, euro, and U.S. dollar can be uploaded onto currency cards.
What's the big difference?
First, you'll find a much better exchange rate with these cards than conventional bureaux de change, located on the High Street. You also receive a fixed rate when you have downloaded money to the card, so you can keep track of how much you're spending each time it's used abroad; while credit and debit cards operate on a real-time exchange rate for each transaction, so it's hard to track your spending.
Is there more?
Not at all. When you use a traditional credit card or debit card to make a purchase abroad, you are typically charged around 2.75% of the transaction as a fee for the foreign currency exchange.
These foreign currency exchange charges also apply in shops and eating establishments; however, a travel money card does not have these associated costs. The rates charged for obtaining cash with a credit or debit card can be very high, but since you have prepaid the amount on your currency card, it is not a loan, and there are no fees for the service.
Anyway... Is there a catch?
Well, since the cards need to have funds transferred to them before you leave, you might find yourself having to save up for your travels, instead of just relying on your credit cards. However, considering these economic climate that's not such a bad thing, is it? Another trivial drawback is the costs required for ATM withdrawals, but the good news is those fees will be a lot less on prepaid cards than on credit or debit cards.
To give you an example, when this is being written, RBS and NatWest have a 2% withdrawal fee, which means a 6 fee for every 300 you take out. The comparison is currency exchange cards fees could be as little as 1.50 for any amount you take out from an ATM.
The real downfall for you is the charge you're charged for using your card to pay for something in a currency other than one fixed - and FX convert fee; using the example of a dollar transaction which is made with a euro currency card, you could be paying a fee of up to 2.75%. However, there are a number of cards that don't charge this fee (see list below).
What about credit cards that can be used without FX costs?
These traditional credit cards are: the Abbey Zero, Nationwide Gold, and the Post Office. The problem that continues (i.e. the last two) is that even though they're a fantastic deal (no foreign exchange fees), they have cash withdrawal costs of 2.5% at the time of this writing (minimum 3), and don't measure up with travel money cards (unless you're opting for credit for your holiday).
In contrast, the card from Abbey has no cash withdrawal costs no foreign exchange conversion fees,costs as always, there's a catch -- it's got the highest interest rate of the three, at 25.9% presently.
Tell me more. So which travel money cards are the best?
The best card available for euros is the FairFX Euro Currency card, because its ATM fee is the least at 1.50; it has no foreign currency exchange fees and has excellent exchange rates. Another euro card, the Indigo Travelcard Euro has just a slightly higher ATM fee of 1.95, but its convert fee is high at 2.75%. There is no convert payment associated with the ICE Travellers CashCard Euro, but the ATM fee is a whopping 3.
FairFX also leads the pack on cards where the Dollar is the main currency. It has no conversion fee, and an ATM cost of only $2. No conversion fee and $3 ATM withdrawals brings the ICE Travellers CashCard Dollar in at a close second. No conversion charge means you can use the cards anywhere.
What's the best travel money card for world travel?
An 'Anywhere Card' has just been lauched by FairFX as a new global travellers card - an ideal card to take everywhere in the world.
One of the great things about the Anywhere Card is that there are no ATM costs, and no loading fees either! A 1.5% transaction fee is the only charge you'll incur - and that's at the time of the transaction, so you don't need to worry about exchange rates. - 23159
About the Author:
Currently, FairFX is offering a free dollar, euro or sterling travel money card, which usually costs 9.95, for a very small initial load. Why are you dragging your heels? Save yourself more holiday money by getting a travel money card today!
posted by X - Men @ 2:45 AM
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