Although prepaid currency cards have been around for a while many people are still unsure of what they are or how they work. Put simply…..Currency cards provide an alternative way of carrying currency whilst you are abroad!
Prepaid currency cards work in a similar fashion to prepaid gift cards or phone cards. You load money onto your currency card which can then be used in restaurants, shops or to withdraw money from an ATM abroad. The cards are issued by Visa, MasterCard and Maestro and are available in all currencies. You simply load the card with your chosen currency e.g. Dollars or Euros at a set exchange rate and then can top the card up at any point using a variety of methods.
For a wide range of currency cards check out ourcomparison tables which show the exchange rates and fees offered by the UK’s leading currency providers.
Fees V Exchange Rates
Once you have visited our comparison table it will soon become apparent that exchange rates available do vary considerably between providers as do the fees that they charge for the initial purchase of the card and fees for overseas withdrawals.
Companies offering the best exchange rate do not necessarily give you the best deal. Large purchasing fees can often wipe out any gain from a competitive exchange rate especially if you are loading your prepaid currency card with a couple of hundred pounds. The bottom line is you need to find out when I exchange X amount of pounds I will receive X amount of currency after all initial purchasing fees have been paid.
Here is an example comparison to show how fees and exchange rates will affect the amount of travel money you get.
Company Purchasing Fee Exchange Rate ATM withdrawal fee Currency
Company A £9.99 1.1460 £2.00 217.75
Company B Free 1.1180 Free 223.60
In this example £200 has been converted into Euros by two different providers. Although Company A offered by far the best foreign exchange rate the initial purchasing fee caused the actual amount of Euros received by the customer to be less than what Company B was offering (even though Company B was offering a less competitive exchange rate.)
Withdrawal Fees
When purchasing a currency card find out if they charge any withdrawal fees when you use the prepaid currency card abroad, some providers offer this service for free whilst others will charge up to £2.00 each time you use an ATM. Remember you are taking your holiday money on a currency card to spend! Check that you are not going to have to pay over the odds in order to do so!
For a further information about prepaid currency cards visit our blog or alternatively check out our comparison tables to find out who is offering the best deal.
