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Compare our best prepaid travel cards
Simplify your spending abroad with a prepaid travel card
What is a prepaid travel card?
A prepaid travel card, also known as a 'travel money card', is a debit card that you preload with money and take on holiday. It's a good way to stick to your holiday budget and avoid carrying a lot of cash.
Prepaid travel cards can be used at cashpoints, in shops and restaurants, and almost anywhere else that accepts Mastercard or Visa debit or credit cards.
There are exceptions, one being self-service petrol stations, where you insert your card before filling up. Reports abound of blocked transactions. However, a prepaid travel card is not the same as a credit card for two key reasons:
You can only spend the amount you have put on the card; the pre-loaded limit prevents you overspending and getting into debt
You can choose which currency to preload your travel money card with depending on where you're going, which often means you can secure a better exchange rate
Pick a card with fees that suit how you plan to use it, e.g. choose one with no withdrawal fees if you'll be withdrawing cash often while travelling.”
What are the different types of prepaid travel cards?
What are the different types of prepaid travel cards?
Multi-currency prepaid cards
These can be loaded with several different currencies, making them ideal for both frequent travellers and those taking trips to multiple destinations. For example, if you holiday in Europe but often visit the US on business, you could use a prepaid travel card to cover your everyday spending wherever you are by topping it up with say £400 then exchanging £200 into euros and £200 into US dollars. The different currencies will then be stored in separate “wallets”, allowing you to switch currencies when you like.
Sterling prepaid cards
These can be used at home and abroad, making them even more flexible than the best travel cards offering multiple currencies. You don’t need to worry about setting up a wallet for the currency you want to use; the card provider simply converts your pounds to the required currency each time you make a purchase. However, this can make holiday budgeting harder and may increase your costs, depending on the charging structure.
How to get a prepaid travel card
Getting a prepaid travel card is simple. Just follow these steps:
Compare cards
Check your eligibility
Apply for the card
What are the eligibility requirements?
Anyone can get a prepaid travel card. There's no need to have a bank account, and no credit checks are required. Some providers have a minimum age of 18, but others will let you have a prepaid card from the age of six with parental consent.
Sometimes parents like to use travel money cards to give their children a set amount of holiday money, and to help teach them about budgeting and financial responsibility.
Pros and Cons
Pros
Cons
What exchange rate do you get?
Exchange rates vary over time depending on what is happening in the wider economy. That means the exchange rate you get for US dollars today, for example, might not be the same as you get tomorrow or next week.
What prepaid cards offer is the ability to lock in today's rate to use later on. That could see you better off if the pound weakens, but might also mean you get a poor deal if the pound strengthens.
Either way, it offers certainty - you'll know exactly how many dollars, euros, lira or whichever currency you load onto the card you have to spend on holiday.
At what point is the currency exchanged with prepaid travel cards?
Some prepaid travel cards hold the balance in pounds sterling. These convert the required amount to the local currency every time you spend on them.
The exchange rate isn’t fixed, so you’ll only know how many pounds you have on the card - not what it will buy you while overseas.
But the cards in our comparison tables convert your money when you add it onto the card. This means you know the exchange rate used and your card's exact balance before you go away.
Compare the rates before you choose a prepaid card. Although rates can change several times a day, some travel cards will be more competitive than others.
Using a card with competitive exchange rates will mean you get more local currency for your pound.
You also need to watch out for fees as well as withdrawal limits when choosing a card, as these can vary between providers.
What are the alternatives to prepaid travel cards?
What are the alternatives to prepaid travel cards?
Travel credit card
A travel credit card works just like a regular credit card, with which you can make purchases by borrowing money. The main difference is that some travel credit cards don't charge foreign transaction fees for spending abroad, while others only do after an introductory period has passed.
Travel money
For many people, cash is the most comfortable form of payment when travelling. It's hassle-free and universally accepted. But it’s riskier, as you'll lose out if it’s lost or stolen. Even if you have travel insurance, there is a limit on how much cash is covered, which could be from £100 to £750, depending on the policy. Also, you’ll need to budget carefully to ensure your foreign currency lasts the length of your trip.
Travel debit card
These days, there are plenty of specialist banks and providers that offer bank accounts that don't charge foreign transaction fees when used abroad. This offers you a chance to take advantage of the best exchange rates. And if it's your main current account, you won't have to worry about topping up your account before you go.
What other costs or fees are there with prepaid travel cards?
As well as the exchange rate, you might have to pay several other charges on your prepaid travel card.
These could include:
A fee to buy the card
A monthly or annual fee for keeping the account open
Cash withdrawal fees
Transaction fees when you pay for anything on the card
Inactivity fees
Loading fees when you add money onto the card
Some cards also charge fees for withdrawing cash or making purchases inside the UK.
But some of the cards in this comparison do not charge fees in countries that use currencies loaded on the card - just make sure the right one is selected before spending on them.
Check carefully for fees before you pick one.
Read our full guide on how much it costs to use a travel prepaid card and how to choose one.
"With multi-currency cards, check you've selected the right currency before you arrive."
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