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
Travel Money
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6536
GBP: 0.4810
EUR: 0.5575
NZD: 1.0897$0 for virtual card, $10 AUD fee for a physical card$0 on first 2 withdrawals per month up to AUD $350/month, then 1.75% of withdrawn amount and AUD $1.50.Have access to over 40 currencies. Card automatically converts your money at real exchange rates. Transfer money worldwide at competitive rates. Spend instantly with Google Wallet and Apple Pay. Get cash from more than 3 million ATMs worldwide (free from Wise fees, up to 350 AUD per month).
Travel Money
Have access to over 40 currencies. Card automatically converts your money at real exchange rates. Transfer money worldwide at competitive rates. Spend instantly with Google Wallet and Apple Pay. Get cash from more than 3 million ATMs worldwide (free from Wise fees, up to 350 AUD per month).
- Currencies available
40 currencies
- Reload fee
- $0 for AUD, 2% fee can applies for certain currencies
- Closure fee
- $0
- Cross currency conversion fee
- From 0.33% at mid-market exchange rate
- Other benefits
- Once a balance is opened in another currency in an account, using the card in that currency conversion is free. Ability to use Google and Apple straightaway as part of virtual card.
- Other restrictions
- Monthly ATM withdrawal limit is $7,000 AUD
Read reviews and learn more about prepaid travel cards
Personal Account
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6519
GBP: 0.4798
EUR: 0.5564
NZD: 1.0889$0$0 under AUD $350 or 5 withdrawals for Standard, AUD $700 for Premium, AUD $1,400 for Metal, then 2% (AUD $1.50 min)Personal 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 reviews and learn more about prepaid travel cards
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