Prepaid Travel Cards

So you’re jetting off on your next big adventure, lucky you! Holidays are meant to help you relax, so don’t put yourself in an embarrassing position where you’re stuck unable to pay because you don’t know how your prepaid travel card works. If you’re looking to set your budget in advance by locking in a great exchange rate, a prepaid travel card could be the right fit for you.

Before you start thinking about how many pairs of socks and undies you need (it’s less than you think), have a look over some frequently asked questions about prepaid travel cards so you can really kick your feet up knowing you’re set, money-wise.

How do prepaid travel cards work and how do I use it?

Prepaid travel cards work much the same as your everyday debit card - you take it along with you on your overseas holiday to pay for everything from souvenirs to fancy dinners without having to carry cash around. The difference is, it’s designed to be used overseas, giving you access to money in the currency of whatever destination you’re visiting. Here’s a quick and easy guide to using your prepaid travel card:

• Shop for the card. Getting a travel money card is simple and can either be ordered online or picked up in branch (or foreign exchange store). It’s a good idea to shop around as fees and exchange rates can vary between banks and foreign exchange providers.
• Think about your itinerary and budget. You’ll have to consider in advance what currencies you’ll need and how much you’ll spend in each place so you can top up your card before you go.
• Load your card. Once you know what you need, loading your card with money couldn’t be simpler. Go online to transfer money onto your prepaid travel card in the appropriate currency. Don’t fret - you can always reload your card with more money if need be, or add a new currency if your travel plans change on the go.
• Keep an eye on your account. Monitoring your spending is a great way to make sure you’re keeping within budget and avoiding potential fraud.

What are the benefits of using a prepaid travel card?

Made for ease and convenience, prepaid travel cards offer great features to make sure you can do what you originally intended to do on your holiday: relax. Here are just a few perks of using a prepaid travel card:

• Locked in exchange rate. One benefit of using a prepaid travel card is that you’ll be able to lock in an exchange rate so you won’t have to worry about the Aussie dollar dropping while you’re away.
• Easy budgeting. With locked in exchange rates, your budgeting will become easier as you’ll know exactly how much you have to spend overseas. And if you’re visiting more than one country, you can transfer money in each currency you need so you know how much you have to spend in each place.
• Spending your own money. There’s little risk of going over budget when all of your funds are pre-loaded. There is the option of reloading your card, but it’s harder to do than simply swiping a credit card.
• Safer than carrying cash. Prepaid travel cards are PIN protected so it means that you don’t have to carry lots of cash on you.

How do I compare prepaid travel cards?

With the number of prepaid travel cards floating around, it can be both a blessing and a curse for Aussie travellers. Because while you may find yourself spoilt for choice, it’s tricky to know which card will deliver on value. So if you’re thinking about picking up a prepaid travel card for your upcoming trip, here are a few things to consider: 

• The exchange rate - This is possibly the make or break for any prepaid travel card, so take the time to compare exchange rate offers from different providers to make sure you’re getting the best bang for your buck. 
• Fees - Many card providers can charge a range of fees, such as a purchase fee to set up the card, a reload fee to add more cash to the card and a card closure fee once you decide to close the card. 
• Available currencies - This feature is especially important if you’re travelling to multiple destinations with different currencies. You’ll need to be sure the card you choose caters to the currencies you’ll need while overseas.