The ever-changing exchange rates and transaction fees make the entire process of managing your finances during travel somewhat complicated. This is why quite a few travelers have gone from old-fashioned bank cards to prepaid travel cards. They’re safer, easier to use, and you can spend wherever you go. But what’s the catch? Is it worth getting a prepaid travel card for your next getaway, or is it just a passing trend?
How a Prepaid Travel Card Works
A prepaid travel card is a debit card you can load with money without it being connected to your bank account. Before going abroad, you load it with a certain sum and use it for transactions. Some let you choose how many different currencies you can have on your card, making it perfect for longer, multi-destination trips. And the biggest advantage? As you’re loading your card, you fix your exchange rate. No matter how large the fluctuations, that card will still have the same value.
In general, you can use a travel card at boutiques, restaurants, hotels, or ATMs without any problem. But they’re not accepted everywhere. Some small businesses or rural areas only take cash or regular bank cards.
A Money-Saving Tool or an Added Expense?
The most common reason travelers use this card is that it helps them save money. Most of the bank cards charge foreign exchange fees, meaning that every time you buy something, you pay more. By preloading travel funds, you also keep a close eye on your budget.
However, such cards aren’t entirely free of any cost. Loading fees and withdrawing cash charges- if enough time goes by and you’re not using your card, you may have to pay for that, too.
Safety and Security for International Travelers
There’s no point in sugar-coating it: losing your wallet while on holiday is a living nightmare. Especially if it contained your bank card or credit card. This cannot happen with a travel card. If lost or stolen, that card is connected to your bank account. Only the cash you loaded is gone – but not all of your savings.
Furthermore, your travel card will most likely come with fraud protection and card replacement services, which is a lot safer than carrying around all your holiday budget in cash. Some travelers even use it for daily purchases and use their credit cards for emergencies.
Where a Prepaid Travel Card Falls Short
A prepaid travel card has a lot going for it, but it’s not a magic bullet for travelers. Many people complain about how long it takes to load up the card with money, which can be a problem if you’re in a hurry. If you somehow run out of cash during your trip and need to reload, you could run into additional lag time depending on your card issuer and how you go about reloading your card. Many travelers don’t feel the hassle is worth the headache and opt to carry a credit card instead.
Also, you’ll quickly realize there are certain circumstances in which a prepaid travel card doesn’t cut it. Certain types of transactions, especially at hotels or car rental companies, place temporary holds on funds, where prepaid cards are not accepted. If you’re renting a car or staying at a nicer hotel where this is a common practice, you definitely want to consider a credit card as a Plan B.
How to Make the Most of a Prepaid Travel Card
To get the best value, plan your trip with your travel card. Instead of scrambling to load your card last minute, take a look at exchange rates and load the card in the currency that will give you the most ATM withdrawals possible. And, if you will be traveling in multiple countries, also make sure to look out for cards that allow you to use multiple currencies to avoid unnecessary conversion fees.
Then, if you want to make sure you don’t overspend or just want to have a backup way to pay, you should ask yourself a few more questions. How easy is it to track what I am spending? Will I have time to log in and check everything each day? Many companies have an app you can download to check activity, load money, and more.
Deciding if a Prepaid Travel Card Is Right for You
If you’re someone who wants an extra layer of security, you really can’t go wrong with a prepaid travel card on your next trip! You can keep track of all the money without having to comb through your email, keep all the bills organized, and not worry about the hassle of exchanging money.
The savviest move is likely to rely on a combination of cards. You can slide a prepaid travel card into pole position for everyday purchases abroad and use a credit card to back you up in emergencies or for larger expenses. And although technology is advancing daily, it’s still wise to carry some cash.
A prepaid travel card can be helpful, relieving you of worry about money while you go traveling. But eventually, it comes down to your spending behavior and your taste for financial stability.
What say you?
Thoughts on if it is Worth Getting a Prepaid Travel Card?
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