Prepaid cards for all currencies
Planning an overseas trip, or do you travel abroad regularly? A prepaid travel card could help you save on costly foreign exchange fees. See what they are, how they work and if one could be useful to you.
Planning an overseas trip, or do you travel abroad regularly? A prepaid travel card could help you save on costly foreign exchange fees. See what they are, how they work and if one could be useful to you.
What is a prepaid travel card?
A prepaid multi-currency card isn’t a debit or credit card. Think of it more like a gift card that you load up with cash. It's an alternative to carrying foreign currency or traveller's cheques, and can save money on overseas transaction fees.
- Simply load it up with the currency you need
- Use it for shopping, dining out, and withdrawing cash abroad
- Reload the card if needed.
You can’t get a prepaid card in every currency under the sun, but there are a number of cards available in multiple currencies. Providers include Asda Money, Post Office, Revolut, Sainsbury’s Bank and Wise.
While you can’t compare prepaid multi-currency cards with us, our simple guide can help you decide if it’s worth getting one.
How do prepaid currency cards work?
Prepaid holiday money cards are pretty straightforward. You load them up with a set amount in your chosen currency and can then spend up to this amount, just like a debit card. But the money is taken from the amount loaded on the card, rather than your bank account.
When you take out a multi-currency prepaid card, you’ll get a PIN, expiry date, card number and verification code on the back (CVV). Most prepaid cards also have contactless payment so you can just tap and go.
Simply load money onto the multi-currency card using any of the following:
- Your debit card
- A bank transfer
- Online or mobile banking
- Your card provider’s app.
You can usually link your prepaid card account to your current account via the app, then instantly move money across to reload it when you need it.
Some holiday money card providers let you hold separate balances in individual currencies – for example, sterling, euros and US dollars. Once your money’s loaded you can then move it between these balances.
This flexibility lets you, for example, load £200 onto your card and move it to your euros balance. You can lock in the exchange rate before you leave for a European trip.
Prepaid travel cards are typically accepted in all the same places as Mastercard and Visa. So, you should be able to use it abroad wherever you see the Mastercard or Visa symbol.
The main exceptions to this can be car hire companies, petrol stations and toll booths, which often don’t accept prepaid cards.
Bear in mind…Never use a credit card to top-up your prepaid travel card. This will be counted as a cash withdrawal, so you’d face the same fees as you would if you used your credit card at an ATM. Instead, use your debit card, so the money comes straight out of your bank account and you don’t have to pay a fee. |
What currencies can you get on a prepaid travel money card?
There are two main types of prepaid currency cards, and the supported currencies depend on the card you choose:
- Sterling cards – these hold your money in pounds sterling, then let you spend in different currencies. Every time you use your card, your money gets converted to the currency you’re spending in. While it’s a simpler option, keep in mind that you won’t know exactly what exchange rate you’ll get each time.
- Multi-currency cards – these let you hold your balance in different currencies – for example, sterling, euros and dollars – and move your money between them. They can be handy if you’re hopping between countries and want to fix your exchange rate ahead of travelling. They’re also useful for helping you to budget and knowing what you have to spend while you’re away.
Quick tipIf you have a prepaid currency travel card and are offered a choice between paying in GBP or the local currency, always choose the local currency. If you pay in GBP, the foreign retailer’s bank (or ATM provider) will handle the currency conversion, not your card provider. This is called ‘dynamic currency conversion’ and the exchange rates can be horrendous. |
What exchange rate will I get on my currency card?
Your exchange rate depends on your card provider:
- Some providers offer ‘interbank’ rates – the rate the banks use – which is a fair, mid-market exchange rate
- Others might charge a small exchange rate fee.
If your card holds your money in sterling and lets you spend in multiple currencies, you’ll get the current exchange rate each time you use it.
If your prepaid travel money card is in multiple currencies, you’ll get the exchange rate that’s in place when you:
- Load money onto your card, or
- Move your balance from one currency to another.
Do prepaid travel cards charge fees?
It’s important to read all the terms and conditions when you take out a multi-currency prepaid card, as some may hit you with fees for:
- Opening the card
- Replacement cards (if you lose yours)
- Putting money on your card
- Spending
- Cash withdrawals
- Using a credit card to top up your balance
- Not using your card – often around £2 a month if you’ve not used the card for at least 12 months
- Closing your account.
What are the advantages of a prepaid currency card?
The advantages of using a prepaid holiday money card include:
- Cheaper to use abroad – some cards don’t charge a fee for spending or cash withdrawals up to a certain limit
- Many cards offer the interbank exchange rate
- Multi-currency cards let you lock in exchange rates in advance so you know exactly how much the transaction will cost you
- Less risk of overspending – you can only spend what’s on the card
- Easy to top up
- Safer than carrying cash around
- Can be used in the same way as a debit card
- Typically accepted in the same places that take Mastercard and Visa, with the exception of car hire companies, petrol stations and toll booths
- You can’t borrow on them, so you won’t risk interest charges or overdraft fees
- Quick and easy to convert into different currencies
- As you’re not borrowing money you won’t need a credit check.
What are the disadvantages of a prepaid travel card?
- Unlike travel credit cards, prepaid cards don’t have Section 75 protection
- Unlike your bank account, money on your prepaid card isn’t protected by the Financial Services Compensation Scheme (FSCS)
- Unlike a 0% credit card, you can’t borrow money then spread your repayments over a period of time
- You might lose out on a better exchange rate if you lock in ahead of time and the pound strengthens after that
- Some prepaid cards limit how much you can load, withdraw or spend during a certain period – for example, per day or per month
- Some cards limit how often you can withdraw money or how many transactions you can make per day or month
- Some places, such as petrol stations and toll booths, might not accept prepaid cards
- Any balance left at the end of a trip may end up sitting there from one year to the next, not earning interest. Plus, if the currency on your card drops in value, you could lose out. If you want to take money back out, you’ll usually need to ask your provider – and check for any fees
- Prepaid cards can hit you with surprising fees if you’re not careful – always check the T&Cs before applying.
Is it worth getting a prepaid travel card?
Before you decide to get a holiday prepaid card, you might want to think about:
- How frequently you travel abroad and how much you'll use it
- Any fees involved
- What the limits are for spending and cash withdrawals
- Whether your chosen currencies are supported.
While a prepaid currency card can be a cheaper way to store and spend your money in different currencies, check the terms and conditions carefully for any unexpected fees.
Please note: Compare the Market doesn’t offer a comparison service for prepaid cards.
What our expert says...
“Prepaid travel cards can be handy if you’re a frequent traveller and want to avoid relying on a travel credit card. They offer greater budgeting power as you can only spend what you’ve pre-loaded, and you can also lock in an exchange rate before you travel.
“But they can also end up costing a surprising amount in fees, so always read the terms and conditions before signing up. And, if your provider allows it, move any remaining cash back to an interest-paying account when you return from your trip to avoid losing money due to inflation.”
- The Editorial Team, Experts in personal finance, insurance and utilities
What are the alternatives to a prepaid travel card?
You might want to consider a travel credit card instead of a prepaid foreign currency card if you prefer to borrow and then pay back what you’ve spent. Travel credit cards:
- Can help you spread the cost of your holiday spending, but you’ll pay interest too (unless you clear the full balance when you receive your statement)
- Offer low, or sometimes no, fees on overseas spending
- Can give you Section 75 protection on items you buy costing between £100 and £30,000
- Like prepaid cards, they often offer better exchange rates than a standard credit or debit card.
Compare travel abroad credit cards
Prepaid travel cards for under 18s
Most prepaid travel cards are for over 18s only. But there a number of UK children’s bank accounts with debit cards that can be pre-loaded with cash and used abroad. Examples of providers offering this include GoHenry, Nationwide, and Revolut.
Always do your homework to make sure the account works for your child. This includes looking out for any:
- Monthly use fees
- Age limits
- Fees for spending or taking money out.
Frequently asked questions
Am I eligible for a prepaid travel card?
You should be able to get a prepaid card if you’re:
- At least 18 years old
- Can give proof of ID and address
The good news is you won’t need to undergo a hard credit check to apply for a prepaid card.
Can you have more than one prepaid currency card?
Yes, most prepaid card providers let you take out an additional card linked to the same account. For example, you can get a spare card or an extra card for your partner or child, though you might have to pay extra for it.
You could also go for cards from different providers. Just make sure to double check the fees so you don’t end up paying more than you need to.
Can I get a travel currency card with a bad credit rating?
Yes, you should be able to get a travel currency card with a bad credit rating. That’s because you can’t borrow on a prepaid card – you can only spend what’s there, so there’s no need for a credit check.
Just be sure that putting money onto the card isn't going to push you into further debt.
Will a holiday prepaid card affect my credit score?
Prepaid cards don’t usually show up on your credit file, so they shouldn’t affect your credit rating. That means they won’t help your credit score go up, but they won’t hurt it either.
Just keep in mind that loading money onto your prepaid card using a credit card or overdraft could affect your score.
Is money on prepaid cards for travel protected?
Prepaid cards aren’t protected by the Financial Services Compensation Scheme (FSCS) in the same way bank and savings accounts are.
Any funds you add to a prepaid card is seen as ‘e-money’. All prepaid card providers must keep your money in a separate ring-fenced bank account from their own, so it’s protected if they go bust.
This means your money isn’t actually looked after by the prepaid provider, but a bank or building society. Just be aware that if the ring-fencing bank went out of business, you might not get the money on your card back.
How can I find out the balance on my prepaid card?
You should be sent instructions with your card about how to do this. You can usually check by:
- Going to the card issuer's website
- Installing its app
- Calling a number on the back of the card.
Some shops may also be able to read the card's balance for you – but this isn’t possible everywhere.
Looking for a credit card?
Compare credit cards quickly and easily. Use our eligibility checker to find out which credit cards you’re likely to be accepted for without affecting your credit score.
Compare nowLike this?
Then you'll like these
The Editorial Team - Compare the Market
Experts in personal finance, insurance and utilities
Compare the Market’s Editorial Team is made up of industry experts with decades of experience in personal finance, insurance and utilities. Each of our authors has an area of expertise, where they can share their extensive experience to help you get a better deal, by finding the right product and saving money.