Prepaid Credit Cards compared side by side

Consumers who are worried about taking cash with them on holiday could find prepaid cards to be a better alternative. Credit cards can cost consumers a small fortune when they are used abroad. This is down to foreign exchange fees, cash withdrawal fees and other fees associated with international travel. Prepaid cards do not tend to come with the same charges.

One advantage to a prepaid card is that if you lose it while you are abroad you can get it replaced really quickly. Speaking of this, the managing director of Global Prepaid Exchange, Kevin Harrington, states:

“The exciting thing from a traveller’s point of view is that, if you lose the card you can stop it and you’re supplied with a free emergency card straight away.”

Typically they can be topped up with different currencies. Each provider may offer slightly different currency options. However, most will accept US dollars, Euros and Great British Pounds. Most prepaid cards are designed for everyday use. However, there are some that are speciality travel money cards.

One good advantage to this type of card is that if it gets stolen you do not have to worry as much as if it were a bad credit credit card. The thief will only be able to spend what is available on the card. They will not be able to get you into any kind of debt.

There are several ways to top up the card while you are abroad. You can use the internet or you might even be able to do it through SMS. If you have already set up your debit or credit card as a payment method then you can easily top up using them via SMS.

Taking a prepaid card with you on holiday also helps you to better manage your money. When you use a credit card abroad it is all too easy to just buy whatever you see. Many people make the mistake of spending their credit card on everything and then they return home to a huge bill. It can cause you to plummet into debt if you aren’t careful. With a prepaid card you know that you can only spend what is currently topped up on the card. This means that you do not waste money and you think more about your purchases.

A lot of credit card fraud does take place abroad. If you use a prepaid card a fraudster is less likely to cause you problems. It is not linked to a bank account so they will not be able to get your bank details.

Overall prepaid cards are becoming a more popular option for consumers. They are safer to use, they will not get you into debt and they can be really convenient. You may even just want to invest in a one off prepaid card that you can use while travelling. These expire as soon as the balance on the card runs out. Using a prepaid card abroad also often avoids fees that credit card users are faced with.