A travel money card is a popular way of spending abroad. See how it works in our guide.
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Prepaid cards for travel
Travel money cards explained
How does a prepaid travel money card work?
Unlike regular debit and credit cards, a travel money card is prepaid. You’ll usually top it up online or on an app with a specific amount. Then once you’re on holiday, you can use it to pay for things until the balance falls to zero.
Your spending is ring-fenced, since you can only use the funds preloaded on to the card. To spend more, you’ll need to add extra money.
A prepaid travel money card keeps your holiday and day-to-day spending separate since it isn’t usually linked to a bank account.
Depending on the product, you may have the choice to make contactless, chip and PIN, or online purchases abroad.
Pros
- Help with holiday budgeting. By loading a set amount before you travel, you’ll know exactly what is available to spend.
- Peace of mind. Keeping travel spending separate from your everyday cards and bank accounts can stop things falling into the wrong hands.
- Flexibility. You could use a travel money card for trips in Europe or much further afield. Many are reloadable too.
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Cons
- Fees and charges. You might face application, top-up or cash withdrawal fees, among others. It all depends on the card.
- Limit on spending. With a ring-fenced balance, you may find it harder to cover unexpected or emergency costs.
- Lack of FSCS protection. Travel money card deposits might not be covered by the Financial Services Compensation Scheme.
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What is the best travel money card for you?
The best travel money card will be different for everyone. It could depend on your needs, plus your family’s approach to holiday spending. And you may decide it’s not the right option for you.
Here’s what to think about when researching prepaid travel cards.
- Which country are you heading to? Some cards offer more currency options than others. And it’s worth checking how widely accepted these cards are in your destination country.
- What fees will you pay? Potential charges range from application and monthly fees to cash withdrawals. Even a travel money card that’s free to set up might incur costs further down the line.
- What exchange rates are available? With a multi-currency card, you can fix the exchange rate when you load money. Meanwhile, sterling cards convert pounds to the right currency each time you spend abroad, at the current exchange rate.
Debit card
You may be able to spend money abroad with your regular debit card. Unlike a travel money card, you won’t need to preload it with a set amount before leaving the UK.
You could face non-sterling transaction fees when paying for items or withdrawing cash overseas. So, it’s useful to check the terms and conditions of your bank account and card first.
Some of our reward accounts offer fee-free debit card purchases abroad.
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Travel account
Heading to the eurozone? With our Travel account, you could link euros to an existing debit card. It means you can spend like a local, keep your holiday budget separate, and make fee-free purchases.
Just remember that you’ll need an eligible bank account and debit card with us. And cash machines abroad may charge local fees. Eligibility criteria apply.
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Credit card
Many regular UK credit cards can be used abroad. But they’ll often charge foreign transaction fees.
Specialist travel credit cards are also available, offering 0% foreign transaction fees on overseas purchases.
So, it’s worth comparing the different options first, and carefully checking whether borrowing is right for you.
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Cash
Physical money could be useful in some countries.
It’s easy to convert pounds into different currencies via a bureau de change service.
You’ll just need to make sure you’re happy with the exchange rates being offered. And that you’ll have enough cash to cover all your holiday expenses.
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