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)


  • 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


  • 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
  • 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 

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