TRAVEL TIP OF THE DAY - USING PREPAID TRAVEL CARDS - 4.5.2017 TRAVEL TIPS

The Ins & Outs of using prepaid travel cards!

Years ago everyone used travelers checks and many places  took them for payment.  Today you will most likely have to go to a bank or exchange bureau and you will get horrible exchange rates.  The new alternative is a prepaid travel card.

Before we discuss where to get one lets discuss the pros and the cons!

Pros:

• They can be used anywhere credit cards are accepted, including ATMs for cash withdrawals 
• Funds are pre-loaded allowing you to keep spending in check and stay on budget
• Withdrawal amounts can be up to $1,000 unlike debit cards that max out between $400 and $500 
• Funds can be loaded to the card at anytime using a smart phone app
• You can lock in exchange rates at the time of load
• You do not have to have credit - anyone can purchase a card 
• Loadable with multiple currencies
• Easy to cancel and replace
• Ability to cross-convert currency
• If lost or stolen remaining balance can be transferred to replacement or backup card

Cons:

• Most charge monthly fees
• Some charge activation fees and reloading fees
• If you don't use all of the money you might have to pay to cash out
• Currency conversion fees are high
• Reload delay - funds might not be available immediately
• Locked-in exchange rate could be a con if rates change in your favor
• Overall higher fees than regular credit/debit cards - especially credit cards that wave foreign exchange fees
• No credit establishment
• No rewards
• Cross-conversion even though a pro can be a con because it may result in a horrible exchange rate

If you are still interested in prepaid travel cards here are some options: (as of 4.5.2017)

Visa TravelMoney Card

• Cost up to $14.95
• Retail Reload Fee $0
• Foreign ATM withdrawal fee $3.00
• Foreign Transaction Fee 3.00%
• Replacement Card $5.95
• Inactivity fee per month $1.25
• Network - Visa (accepted in 200 countries & territories)
• Option for Chip & PIN
• Funds expire

Travelex Cash Passport Card

• Retail Reload Fee $0
• Foreign ATM withdrawal fee $0
• Foreign ATM Balance Inquiry fee $0
• Foreign Transaction Fee 5.50%
• Balance Refund fee $20.00
• Inactivity fee $3.00
• Network - MasterCard (accepted in 210+ countries & territories)
• Free backup and replacement cards
• Chip and Pin enabled
• Funds do not expire

Multi-Currency CASH Passport card

• Cost $9.95
• Retail Reload Fee $5.00
• Foreign ATM withdrawal fee around $2.50
• Foreign Transaction Fee 5.50%
• Replacement Card $9.95
• Inactivity fee per month $3.00
• Balance refund fee $20.00
• Network - MasterCard (accepted in 210 countries & territories)
• Chip & PIN
• Funds expire

If you want our recommendation the only time we would suggest a prepaid travel card is if you do not have a credit card or you will need to withdraw more funds per day than your debit card allows.  (Usually $400/$500 upon request from your financial institution per 24 hour period)

If you have decent credit we suggest getting a credit card with no foreign exchange fees for purchases and a debit card for cash withdrawals.  We never use our debit card for purchases overseas. 

Checkout our tips on using Credit & Debit Cards overseas. Using Credit & Debit Cards Overseas

#prepaidtravelcards #smartmoney #travelingmovesme