There are a plethora of ways to take your money with you when you travel, and recently there has been a wave of pre-paid travel cards which have flooded the market promising the cheapest withdrawals, the lowest purchase fees and complete ease of use. I must admit, after being stung by some serious fees while travelling in Australia last year I was more than tempted to try one for an upcoming trip to Greece, so I did some research and decided to go for an Escape pre-paid Master Card as I was promised no fees on withdrawing money overseas. This was after paying for the card which was £20, and after which I could use the card as little or as much as I wanted in the future. I had read some good reviews for the card online, so I was looking forward to leaving most of my cards at home and not having to worry about over-spending – as Id given myself a limit when I pre-paid the card I was definitely going to have to stick to it – I had no choice!
All was going well until I arrived in Athens and went to the ATM, which abruptly told me – ‘card invalid’…Hmmm, OK, this sometimes happens overseas so I’ll try another machine…’card invalid’. S**t! The friends I was travelling with tried their normal bank cards which all worked fine and they were able to withdraw money…I couldn’t believe it! I luckily had a back up card just in case but the majority of my money was on the pre-paid card so I assumed I could get everything straightened out over the phone and soon have the rest of the cash in my hot little hands. Not so…after about five phone calls and some of the worst customer service I’ve ever experienced they told me that the card I’d bought wasn’t for overseas and could only be used in the UK. WTF?!
Thankfully, I was able to push my frustrations aside to have a blast on my holiday, but once I returned I was back on the case…it turned out I’d been mis-sold a card with free transactions for the UK, but it couldn’t be used overseas….the overseas cards actually charged you more fees than my usual bank card would have, plus they slug you with the £20 fee upfront! It took me a lot of time and a nasty complaint letter to eventually get my money back and the £20 I payed for the card refunded. My advice to anyone thinking of using one of these cards is to very carefully read the fine print, and don’t listen to what someone tells you in the shop or even the website as there are a lot of catches! I know a lot of people who swear by them for travel, but just make sure you don’t end up like me, having to scrimp on your summer holiday and wishing you’d never bought the damn thing in the first place!
I’m planning some extended travel next year so am researching how I’ll take my money with me, and I hate to say it, but it seems that the good old fashioned way of just travelling with your bank card and using a credit card for purchases might be the easiest and cheapest way after all! Plus, with Internet banking you can always keep your eye on your funds, and you may even be able to negotiate lower fees with your bank if you’ve been with them for a while, or you can switch to a bank who will. Whatever you do just make sure you have a travel money back-up plan when things go wrong, and always, always carry enough money for a beer – it will get you through anything!
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I’d never even thought of using a pre-paid credit cards for travels. We’re planning to use debit/credit card and just make sure that only a limited amount is available on the debit (through scheduled monthly transfer).
We use banks that not only have 0% foreign transaction fee, but also refund ATM fees you get charged with by using other banks’ ATM. So, in short — no fees! Yay!
wow! i’d be too afraid to carry a pre-paid while traveling! it gets lost/stolen and poof! so does the money! i use the old fashioned way you mention and haven’t had a problem yet- even in less-touristy places. there are some great ones out there as jill says above no fees and all availability. found you through chicky bus and look forward to reading more! 🙂
Thats great – no fees! Unfortunately the banks over in the UK are pretty rough with their fees, but Im more than happy to pay them after my ‘little adventure’ in Greece!
One thing I think the pre-paid cards do get right is that your money is secure just like a normal card, so you’re covered if its stolen…but still, I’ll stick with the old fashioned way like you I think! : )
Thanks for stopping by!
I really hear what you are saying, but it is based on one company. The absolute best advice here is to really check out pre-paid cards fully, make sure all the terms & conditions are clear and understood.
There are many out there, some are better than others, I have one and so far no difficulties, they even produce a seperate card that if used soley for euro withdrawals within Europe does not charge.
However I believe the best use of a well researched pre-paid card is for emergency funds. Use debit cards and credit cards for cash and purchases, but have some funds on a pre-paid card which you only use if really necessary.
Though the added bonus is if you haven’t needed to use it by the end of the trip you have some additional funds for spending if you wish.
Thanks for sharing
Thanks for sharing this – we are currently looking into new bank cards to use because Nationwide, who we signed up with because of their ‘free overseas withdrawals’ (haha, not anymore!!) sent out new cards which do not work overseas either. We were thinking about using pre-paid credit cards but after reading your post I think we’ll stay away from them 🙂
I would go through the main branch of your bank. I use US Bank in the States and at their area where they do currency exchange you can get a Cash Passport, which is essentially a pre-paid ATM card with a Mastercard logo, in either Euros or Pounds, and you also get a PIN number so you can use it at ATMs. The withdrawal fee was 2 Euros I think, so I made sure to make large withdrawals of 100 or 200 Euros at a time to make it worthwhile. They are completely secure like a travelers check or a credit card, so if you lose it or it gets stolen, you call a number and they get a new one to you the next day.
I walked across Spain, used it in small towns, along with stops in Barcelona and Rome before continuing my travels and never once had a problem. I even had my sister add money to my account while I was in Barcelona. I believe the website is http://www.cashpassport.com. Feel free to email me if you want more information on it.
Yes, I think you are exactly right…although I did do my research, I was given a different card to the one I actually asked for! Anyway, I know some people love them, so it just comes down to preference I guess!
Thanks for your comment!
A bank could do so well if they come out with a travlling bank card or didnt charge you for a certain number of overseas withdrawels…maybe we can pitch to them?! I hope you find something that doesnt cost too much overseas! : )
That sounds cool – thanks for sharing! : )
That’s terrible that they sold you the wrong card…that’s good to know for future reference. Sometimes those prepaid cards don’t work well for use in restaurants because of tipping since they have to be manually adjusted with the tip once you’ve already left the restaurant. You can be made to feel so vulnerable when something like that happens while you’re traveling abroad. Luckily you had the extra card and were able to follow up to get your money back.
Thanks for the warning! I am always looking for a better way to carry what little money I have 🙂 Has anyone here ever tried travelex cards? Wonder what you think of them.
Anyways, just one more thing to watch out for now – make sure the card you get is made for overseas.
Hi Sarah, completely, I dont know what I wouldve done if i didnt! Thanks for commenting : )
Hi Oswald, I havent tried them, although Id imagine if they carry the Travelex name they would probably be quite useful? If you ever try them let me know! : )
Hello, whilst we were away in Asia we used an STA Cash Card. We had a couple of issues with some bank machines not working with the card but 90% did. It gives you supposedly free withdrawals but in Cambodia we did get charged, so it depends on the bank and finding the free ones! Its only supposed to charge if you use it to withdraw money in the UK.
I have a Fairfx pre-paid card and it’s been great in Euro and other currency countries. I got the recommendation from Money Saving Expert which is all upfront about its affiliations and has lots of user comments so maybe that’s another place to look when researching?
Hey Lisa! Good idea – I don’t use that site enough… I may give cards another try one day : )
Hi,
Good article. Thanks.
I’m going to be traveling Australia, New Zealand and Tailand early next year and was wondering the best way to withdraw my money.
Like another one of your readers I’ve used Nationwide debit card as they used to give free foreign withdraws. Now they charge £1 per transaction withdraw. On a short trip to Europe this was ok as I’d just make 2 or 3 big withdraws and the exchange rate was good. However on a 4month traveling trip a £1 charge every time I withdraw will start to add up. Also, I’m backpacking staying in hostels so don’t want to have lots of cash on me.
I’m particularly interested if you find a better solution, particularly for extended traveling.
Thanks.
Chris
Hi Chris, Thanks for your comment – I know this is an issue for a lot of people, and it certainly is for me too! 1 pound per withdrawal is actually not too bad compared to all of the other cards and especially the prepaid cards which may charge up to 4 pounds per transaction. You may not find a better deal than this at the moment – I know T&Cs are constantly changing though, so there may be some ‘holiday promotions’ on. Check out money saving expert website as they compare the best deals of the moment, otherwise Id stick with nationwide and plan to make 1-2 withdrawals a week and budget for exactly how much you think you will need each time. Good luck!
I used one to go to America a few years ago. Even though I had bought one that was fine to use in America, VERY few places accepted it. The New York Subway for one, many cash machines, restaurants, etc. Really disappointed and wouldn’t use one again. Took me back to my student days when my ‘electron’ card was sniffed at in most establishments! 🙂
Hi Sarah – Ive heard so many stories like this, its a wonder people still buy them! Haha – the old Electron card, I remember it well! Thanks for stopping by! : )
After our current 5 continuous months on the road FairFX or Caxton have served us well. Simple to use, good exchange rates and small fees. One bad experience with a company that has an up front fee does not make a summer..or something similar that Shakespeare said. every bank (and I have 9 separate credit cards) charges a larger fee and gives a worse rate, so I guess you’re right in saying everyone has an opinion…and as Dirty Harry said..opinions are like a########s, everyone has one.
Haha, thanks for the feedback Ted – Im glad you had a good experience with them, hopefully they are getting better and it’s not just a one off! All the best with all those options of yours ; )