How do travel money cards work?

A fresh entry into the plastic money family, travel money cards let you load up a card at a fixed exchange rate, which you can spend at your leisure when you arrive at your destination.

You can purchase these cards through online providers, then upload money anytime you choose on the internet, or by phone, or possibly via SMS services. At the minute the cards are available with simply these currencies: dollar, euro, and pound.

What’s the big difference?

One major gain is that you will be given an exchange rate that is much better than if you went to High Street and use the services of the bureaux de change. Another plus is that the exchange rate of the uploaded funds is fixed, so there will be no shocks after you use it. Conventional credit cards and debit cards typically use the exchange rate that applies at the moment of the transaction, so you never know what you have spent until you see your bill.

So is that all there is?

Yes – there’s more. How about no additional fees for the currency conversion? Some credit and debit card providers tack on an additional fee of around 2.75% on top of the exchange rate — which costs you even more.

If you didn’t know, debit and credit cards might also elicit an additional “till charge” when used in restaurants or shops, but the currency exchange card doesn’t have this fee. Be aware that debit and credit cards have high rates for any cash withdrawals, but the money on the currency card have been prepaid, not borrowed, so it’s not applicable.

Anyway… Is there a catch?

Well, since the cards need to have money transferred to them before you take off, you might find yourself having to save up for your travels, instead of just relying on your credit cards. However, considering these economic climate that’s not such a bad thing, is it? Another trivial drawback is the charges required for ATM withdrawals, but the good news is those fees will be a lot less on prepaid cards than on credit or debit cards.

One case of this is that, when this article was written, NatWest and RBS both had a withdrawal fee of two percent, which amounts to about 6 each time you withdraw the sum of 300. Currency exchange cards, however, have a flat fee that amounts to as little as 1.50 no matter how much your ATM withdrawal is.

The major draw back of a travel money card is that you will be charged as much as 2.75% if you use the card for a currency that wasn’t assigned to it when it was issued. For instance, if you paid for something in U.S. dollars on a card issued in euros, then you be required to to pay this foreign currency exchange fee. There are cards, however, that don’t carry an FX fee.

What about credit cards that can be used without FX costs?

Yes, there are such cards (Post Office classic, Nationwide Gold, and Abbey Zero), but the first two — even though they’re good deals, and include no conversion charges — still have big withdrawal fees (3 minimum, 2.5% of withdrawal) and this doesn’t compare favourably with travel money cards — unless you certainly need credit while travelling.

The Abbey card is an brilliant best-buy – no cash withdrawal expenses or foreign exchange, however there is a rather high interest rate of 25.9% on cash withdrawals! (Note: currently the rate is 22.9% for Nationwide and 20.83% for the Post Office).

That’s me, convinced — tell me more. Who has the best deal on travel money cards?

FairFX Euro Currency is simply the leading card on the market at the moment, with exceptionally good exchange rates, a 0% fee for the exchange rate conversion, and a very low ATM cost (1.50). You’ll also find a low ATM fee (1.95) with the Indigo Travelcard Euro, but it has a high conversion cost of 2.75%. For no conversion fee, there’s the ICE Travelers CashCard Euro… but it has a higher ATM fee (4).

When taking into consideration dollar cards, again, FairFX is the top deal, as the currency card charges just $2 for ATM transactions, and it doesn’t have a convert fee. Another bargain for dollar cards is the ICE Travellers CashCard, because it does not have a convert charge, and the fee for ATM transactions is just $3. Don’t forget that when there is no convert charge, the cards can be used for any available currency.

What’s the best travel money card for world travel?

FairFX have just launched what they call an ‘Anywhere Card’ which at the time of writing appears to be the top value of all the travel money cards for worldwide use.

The are no ATM costs with the FairFX Anywhere Card, and no loading fees either! A 1.5% transaction charge is the only fee that applies so it certainly appears to be the cheapest global travel money card on the market.

Be advised that for the moment FairFX has a special offer going which offers you a free euro, dollar or sterling card (normally 9.95) which just requires a small minimum initial load. So what are you waiting for? Get your own travel money card and start getting more value for your money!

There are countless ways to bring in cash these days. The old nine to five job is certainly not the greatest way of making money. In fact, millions of people have ventured out beyond the standard career in order to supplement their income.

The stock market for example is a huge vehicle to making money. People around the world trade and maintain portfolios on a daily basis to ensure that extra cash for the future. Yes indeed, investing is a goal that many of us venture into at some point in our lives. The regular traditional job just doesnt offer the security it once did. Its time to get smart and explore the world of money making. One of the more recent opportunities to capital is currency trading online.

Have you ever heard of currency trading, foreign currency exchange, or Forex? I was doing some browsing through cyberspace and spotted a website that dealt with learning currency trading. At first it seems a scam, but trading in currency is a long held investment tool. It has only come to light of the masses in recent years.

Apparently you can invest an amount of money in specific companies and turn a regular profit. This process concerns buying and selling via the World-Wide-Web. What if you could acquire a percentage every time certain transactions were made in cyberspace? I know, it sounds strange. Even if you gained a small amount each day, wouldnt it be well worth it? Lets say you invested 50 dollars, or a similar amount of money that wouldnt faze you.

Now, each day that sum of money has the ability to earn a certain percentage. If you made one percent every day for an entire month, then you just earned 60 extra dollars. Of course this is just an example. Who knows; you could get five percent some days and more or less on others. The point is, with currency trading online you would be consistently earning capital. You can hardly beat that.

If you are further interested in currency trading online, you should search on the internet now and gain a better understanding of the process. There are numerous websites that will help you fathom the concept of currency trading online so that you too can do a little investing for the future if you wish.

When traveling to foreign countries, travelers need to think about how and when they will convert their currency. Luckily, there are many options for travelers to choose from when it comes time to make the exchange. There are two major factors to look at when exchanging currency: the exchange rate and the amount of commission charged.

Travelers are often fooled into exchanging for the lowest rate, while being charged a high rate of commission on their transaction. The strength of the US dollar is an important concern when planning to pay for a trip. When the dollar is losing strength, it is best not carry the dollar. Also, if the dollar is losing strength, try to pay for expenses such as airfare and hotels in advance. This way, the large expenses are paid for when the dollar is at its potentially highest point, therefore benefiting you the most in terms of expense. Find out what the current exchange rate is at www.gocurrency.com.

Exchanging Currencies While Still in the States

While still in the states, travelers can exchange their currency at the local bank. Although this may seem to be a convenient way to prepare for your vacation, the costs associated with exchanging in this way can be large. Also, there are several online venues which allow you to pay American funds, and the currency you desire is then sent to your home. These sites generally offer decent exchange rates but charge fees and delivery charges. With these services, there is also the risk that the company is fraudulent or that the currency could be stolen while in transit. Exchanging a currency through this online medium may seem convenient, but be sure to weigh the risks involved.

Exchanging at Hotels and Airports

Your best bet is to exchange currency once you get to the country you’ll be staying in. Your hotel may offer an exchange service, and once again, this may seem like a convenient alternative, but watch out. Hotels may charge fees of 20% or more to exchange currency, so try to stay away from hotel exchanges unless it is an emergency. Use one of the three free currency converters to find out how much extra your hotel is willing to charge you. Airports also offer an exchange, but as with hotel exchanges, airports tend to make a good deal of money off of the exchange.

Credit Cards

Many people travel abroad planning to put the majority of the charges on their credit card. Although credit cards generally offer the best exchange rates, you must be careful about using credit cards when the strength of the dollar is falling. Credit card transactions are not immediate, so when the dollar is falling you could end up with a less favorable exchange rate due to the time it takes for transactions to post. We recommend Canadian Credit Cards and Canadian Balance transfer credit cards with Travel Rewards Capabilities.

Don’t Want to Carry Large Amounts of Cash?

If you don’t feel like carrying cash all the time, ATM’s are a convenient way to get foreign currencies. ATM’s generally offer a good exchange rate, and are located in many places. One thing to consider before deciding to use an ATM to get cash is what fee your bank charges for withdrawing money abroad. These fees will add up, especially if you plan on using an ATM many different times throughout your trip.

Another alternative to cash is to bring travelers checks with you. Travelers checks can be replaced if they are lost or stolen, and can be used at exchanges to get the currency of the country you are in.

Banks

Another logical place to look to exchange currency is at banks. The exchange rate at banks is usually pretty good, although a bank has two alternatives as to what rate to provide. In some banks, the exchange rate depends on the supply and demand of the currency, and with this system, you end up with an exchange rate fairly close to the ones being offered in major exchanges. The second option is that the government of the country you are traveling sets the exchange rate, and all exchanges must stick to that rate. In either case, banks do offer a convenient way to exchange currency without incurring a large amount of costs.

No matter what way you plan on exchanging your money, be sure to bring along a list of current exchange rates. These rates can be found online or in many major newspapers. With this information in hand, you can judge where the best rates are being offered.