Post office prepaid travel card reviews
Prepaid travel cards, also known as 'currency cards', allow you to load money in pounds and spend in another currency. Show
They typically come with no foreign exchange fees on spending or cash withdrawals and usually allow you to lock in competitive exchange rates, saving you money compared with using your everyday debit or credit card. Here are the different types of prepaid travel cards to consider packing for your next trip:
This newsletter delivers free money-related content, along with other information about products and services. Unsubscribe whenever you want. Your data will be processed in accordance with our Privacy policy The best multi-currency prepaid cardsMulti-currency prepaid cards allow you to load a variety of major currencies in one place. We've analysed the main providers of multi-currency prepaid cards including the type of currency offered, load fees (loading money onto the card), fees for withdrawing cash, and inactivity fees that could catch you out. Please note the table is ordered alphabetically, not ranked in order of features. Information in the table was updated on 10/07/2023 The Post Office Travel Money Card can load the most currencies, however, charges apply for cash withdrawals at an ATM - so if you're planning on doing this during your holiday, you might be better off with a different card. Sainsbury's, Travelex and Asda had similar offers with free ATM withdrawals and £500 limits. Nectar cardholders can get better exchange rates at Sainsbury's, so this may be worth considering. All the cards allow you to load money that is immediately converted to a foreign currency free of charge. However, more than half of the providers charge a fee of up to 2% for topping up your wallet with pounds to convert at a later date. So if you plan on doing this often you may be better off with one that doesn't charge. The best sterling prepaid cardsSterling prepaid cards offer the most flexible option for travellers and our analysis shows they can be as competitive as single and multi-currency deals. We looked at the exchange rates offered, as well as the fees you'll pay and maximum balances. Please note the table is ordered alphabetically, not ranked in order of features. Information in the table was updated on 10/07/23 These cards are convenient as it means you can load as much currency as you want into your account, however, you'll need to download an app to use them. The Revolut card is free and you will incur no fees on the exchange rate if you convert money Monday to Friday - therefore it's worth loading up and exchanging before the weekend. You'll be charged fees if you withdraw more than £200 a month. The Wise card uses the interbank exchange rate but charges a smaller 0.45% fee every day of the week. It also has two fee-free cash withdrawals of up to £200 each month. Both Wise and Revolut are regulated by the Financial Conduct Authority and operate under e-money licenses. This means your money is not protected by the FSCS, however, your money is held in ring-fenced client accounts with a bank which means your money can't be lent out. What exchange rate do you pay?Prepaid card providers offer different exchange rates. Some use the 'interbank rate' (the rate banks charge one another) and others may use Mastercard or Visa's exchange rates. In some cases, a provider may pick one of these rates, then apply a percentage on top, usually between 1% and 2.5%. When picking a prepaid travel card you should compare the exchange rates offered as well as the card's fees. Fees and charges to watch out forPrepaid cards designed for spending abroad are usually cheaper than spending on your everyday debit or credit card. However, almost all prepaid cards currently on the market come with a variety of fees and charges. Common charges to watch out for include:
Prepaid cards also often come with limits on loading and transactions, which could leave you in a tricky situation if you aren't aware of them. Alternatives to prepaid travel cardsPrepaid cards are a safe way to carry cash overseas. But you won't be able to spend from your main current accounts or borrow money in an emergency. A credit card with low fees on overseas spending can work out as the best option for purchases made abroad, as long as the bill is paid off in full each month. For a credit card with low overseas spending fees, check out the best travel credit cards. Alternatively, many banks offer debit cards with fee-free overseas spending. We round up your options in our guide to the best debit cards to use abroad. That said, applying for a credit card or current account for a debit card requires a credit check, whereas applying for a prepaid card doesn't. So if you have a poor or no credit history it will be easier for you to get a prepaid card. CurrenseaCurrensea has launched what it calls the 'first UK direct debit travel card'. This card is linked to your bank account which means you do not need to top up the card, as long as you have money in your account. It provides a layer over your existing bank account that will allow you to spend in all 180 currencies without charges. It uses the interbank exchange rate for 16 major currencies and Mastercard rates for all other available currencies. Currensea doesn't charge any non-sterling transaction fees or dormancy fees. For personal accounts, there is a 0.5% markup on the exchange rate. ATM withdrawals are free under a limit of £500 a month. After this, a 2% fee will be applied. Is it worth getting a prepaid card?If you're considering getting a prepaid travel card, here are the pros and cons to weigh up. Each card provider will have its own terms and conditions, so read them carefully before you sign up. What are the pros of getting a prepaid card?
What are the disadvantages of getting a prepaid card?
Still have questions about prepaid travel cards? Take a look at our FAQs to see if we have the answer. Do you get charged for using post office travel card?There are no charges when using your card in retailers in the country of the currency on the card. This means that a €20 purchase in Spain would cost you €20 and will be deducted from your euro balance. What are the disadvantages of prepaid travel cards?There are only a few downsides to using prepaid cards, but they are significant. Prepaid cards come with fees. Cardholders may have a lot of fees, including activation fees, transaction fees, ATM withdrawal fees, reloading fees, monthly fees, or inactivity fees. Is it worth getting a prepaid travel card?Travelers should be wary of the fees connected to prepaid cards, as they can add up to a lot of money during an international trip. Many prepaid cards carry foreign transaction fees. Today, it's far easier to find credit cards with no foreign transaction fees than to find prepaid cards without them. Does the post office do a prepaid travel card?Is there another Post Office product that I can apply for? We offer a Travel Money Card which is also a prepaid MasterCard and you can load your money on to it in the same way. |