Prepaid travel cards: Should you lock in a foreign exchange rate now?
It’s no secret that the Aussie dollar has continued to take hit after hit over the last 12 months, whether it’s the trade tensions between the US and China, the recent bushfires or RBA cuts.
One of the latest blows comes from the recent outbreak of the Coronavirus (COVID-19), pushing it to the lowest it’s been in 11 years - with 1 AUD currently sitting at 65.05 US cents.
And the unfortunate truth is, as the crisis continues to develop, there’s no knowing when the dollar is going to bounce back.
(Source: RBA website - screenshot taken 12 March 2020)
So if you have plans to travel and are considering a prepaid travel card, you may want to think about locking in an exchange rate incase the dollar drops even further.
And according to the Reserve Bank of Australia’s (RBA) data a lot can happen in a short period of time, even in six months.
In fact, check out our full rundown of 10 popular currencies and the changes over half a year:
Foreign Currency | 11 September 2019 | 11 March 2020 |
---|---|---|
United States Dollar (USD) | 0.6875 | 0.6505 |
European Euro (EUR) | 0.6222 | 0.5738 |
Japanese Yen (JPY) | 74.12 | 67.94 |
UK Pound Sterling (GBP) | 0.5560 | 0.5032 |
Canadian Dollar (CAD) | 0.9037 | 0.8911 |
Chinese Renminbi (CNY) | 4.8907 | 4.5221 |
Swiss Franc (CHF) | 0.6817 | 0.6084 |
Hong Kong Dollar (HKD) | 5.3899 | 5.0535 |
New Zealand Dollar (NZD) | 1.0689 | 1.0345 |
Indonesian Rupiah | 9661 | 9341 |
(Data taken from RBA's spreadsheet 12 March 2020)
How do prepaid travel cards work?
Prepaid travel cards can be a convenient way for travellers to exchange and access their money overseas.
It works just like a debit card where you can pay electronically or make cash withdrawals, however you load the card with particular or multiple currencies before you leave and while you are travelling as well.
A handy feature of these cards is that often you can lock in an exchange rate for foreign currencies on the day you load the card. This means that if you need to load more money on the card later on, you’ll receive the same rate as you did the first time around.
And while you can take your regular debit card overseas,, the downfall is that you can’t lock in an exchange rate. Instead, you are subject to whatever the exchange rate is on the day you make a purchase with the card - which may be higher or lower than the day before.
Just bear in mind though, prepaid travel cards do come with a range of fees from purchase, reload, cross currency and closure fees, so it’s worth weighing up whether it’s suited for the type of travel you are doing.
RELATED ARTICLE: Travelex site is back in Australia, but is it all smooth sailing again?
Want to find out how prepaid travel cards stack up against each other? Head over to our prepaid travel card comparison table or jump across to our travel money hub for more options!
Prepaid Travel Cards 2020 - rates updated daily
Revolut Account
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6512
GBP: 0.5169
EUR: 0.6013
NZD: 1.0851$0$0 under AUD $350 or 5 withdrawals for Standard, AUD $700 for Premium, then 2% (AUD $1.50 min)Revolut Account
- Currencies available
30+ currencies
- Reload fee
- up to 1% using domestic cards (up to 2.5% from international cards)
- Closure fee
- $0
- Cross currency conversion fee
- 0% - 1.50% (depending on amount and time when transfer is made)
- Other benefits
- A Revolut account includes International Money Transfers, Share Trading and Multi-Currency Account features.
- Other restrictions
- Exchange fees apply on transactions made between Friday 5pm (New York time) and Sunday 6pm (New York time).
Read our Mozo Review to learn more about the Revolut Account
Money Card
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6347
GBP: 0.5009
EUR: 0.5841
NZD: 1.0520$0 Online (greater of 1.1% of initial load amount or $15 in-store)0 AUDThe Travelex Money Card can be used wherever Mastercard is accepted online or in-store at millions of outlets around the world. $0 Eftpos and ATM fees, $0 currency conversion and online shopping fees. Better rates available on amounts over AUD$2,000.
Money Card
The Travelex Money Card can be used wherever Mastercard is accepted online or in-store at millions of outlets around the world. $0 Eftpos and ATM fees, $0 currency conversion and online shopping fees. Better rates available on amounts over AUD$2,000.
- Currencies available
AUD, USD, NZD, EUR, GBP, SGD, HKD, JPY, CAD, THB
- Reload fee
- $0 when booked via www.travelex.com.au, otherwise 1% using BPay (BPay fee applies when not loading via the website or app).
- Closure fee
- $10
- Cross currency conversion fee
- $0
- Other benefits
- -
- Other restrictions
- -
Read our Mozo Review to learn more about the Money Card
Platinum Prepaid Currency Mastercard
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6254
GBP: 0.4936
EUR: 0.5756
NZD: 1.0383$0 online (greater of 1.1% of initial load amount or $15 in-store)2.50 USDGet Free Global Wi-Fi when you travel with Cash Passport. The Platinum card has many beneficial attributes, including free global WiFi.
Platinum Prepaid Currency Mastercard
Get Free Global Wi-Fi when you travel with Cash Passport. The Platinum card has many beneficial attributes, including free global WiFi.
- Currencies available
AUD, USD, NZD, EUR, GBP, SGD, HKD, JPY, CAD, THB, AED
- Reload fee
- $0 online (free using BPay, 0.5% of the amount loaded per transaction using debit card)
- Closure fee
- $0
- Cross currency conversion fee
- 0%
- Other benefits
- Free global Wi-Fi at millions of Boingo hotspots, complimentary access to LoungeKey airport lounges worldwide upon a flight delay, and instantly transfer money from one Cash Passport account to another with Card to Card.
- Other restrictions
- -
Read our Mozo Review to learn more about the Platinum Prepaid Currency Mastercard
Travel Platinum Mastercard
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6189
GBP: 0.4849
EUR: 0.5623
NZD: 1.0241$0 when loaded at Australia Post or online. (1.1% when loading AUD)3.50 AUDTravel Platinum Mastercard
- Currencies available
AUD, USD, NZD, EUR, GBP, SGD, HKD, JPY, CAD, THB, AED
- Reload fee
- $0 online (1% using BPay, $5 using debit card)
- Closure fee
- $0
- Cross currency conversion fee
- 0%
- Other benefits
- -
- Other restrictions
- -
Read our Mozo Review to learn more about the Travel Platinum Mastercard
Currency Pass
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6300
GBP: 0.4908
EUR: 0.5726
NZD: 1.0324$0 online2.50 USDCurrency Pass
- Currencies available
USD, AUD, NZD, EUR, GBP, SGD, HKD, JPY, CAD, THB
- Reload fee
- $0 online (1% using BPay, 1.1% using debit/credit)
- Closure fee
- $10
- Cross currency conversion fee
- No percentage or flat fee, based on Spend Rates set by Travel Money Oz
- Other benefits
- -
- Other restrictions
- -
Read our Mozo Review to learn more about the Currency Pass
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