Holidays aren’t just the best time of the year. Quite often, they’re also the most expensive time of the year: In ordinary cases, there are various charges that are automatically levied when a person uses his/her plastic card abroad. This has made traveling quite cost-intensive. With increasing product innovation, pre-paid currency cards have emerged to provide excellent benefits to cardholders, in particular when travelling abroad. Pre-paid currency cards can be loaded with various currencies and used at different cash points to make payments. In most cases, these cards are issued by Visa, MasterCard, or Maestro. Most currency cards enable their card provider to top them up through the Internet or ordinary telephones.
No credit checks
There is usually no credit checks required when obtaining currency cards and this implies that such cards can be used by young people or students who have not had the opportunity to establish a strong credit history. When an individual applies for a card, he/she is sometimes asked to link their current bank account so that funds can be withdrawn from the bank automatically. Some of these cards come with a minimum amount that can be withdrawn. These currency cards can also be topped up anytime during the day provided that the user has access to internet or e-mail facilities.
How does it work?
The entire process that involves loading the pre-paid currency requires pre-conversion towards the user-chosen currency when the card is being loaded. This capability is extremely beneficial in the scenario when it is anticipated that the exchange rate is likely to become less competitive in the near future. Many experts therefore strongly recommend closely oberving the currency markets, waiting for the best exchange rate and then getting a currency card to lock the foreign exchange rate. After all, pre-paid currency exchange rates are always fixed when currency is being loaded and this ensures that clients get better monetary value with their cards compared to physically changing cash at money bureaus or banks. Once the money’s on the card, the process of paying or withdrawing cash is more or less the same with a debit or a credit card – and therefore highly convenient and easy. In addition, there are also certain currency providers who waive overseas charges.
Many preferences, many options
Travelers may choose to have their currency card in Pounds, Euros, or Dollars. It is also possible having separated pre-paid currency card for various currencies. Currencies cards usually do not allow for overdrafts of any kind, which means that they prevent you from overspending when on holidays – which can be great, when you’re prone to impulse spending. At the same time, you won’t have to worry about running out of cash because a currency cash can be topped up over the internet or phone directly from your bank account in case of an emergency.
Most pre-paid cards come with a security advantage, because many service providers who offer protection against theft by ensuring that in case of robbery incidents clients get their money back together with the replacement card. However, this sometimes takes a lot of time and cardholders may eventually be charged for card replacement.
Another key benefit is that funds that have not been exhausted can always be rolled up again to be used next time the card user go for holidays or trips. In addition, card users are not required to show some ID proof to use some of these cards, and this implies there is less risk because certain documents do not have to be carried frequently. Not only do currency cards therefore ensure your holiday is truly the best time of the year – they also prevent it from being the most expensive time of the year.
By Gavin Whittaker – This article was written in association with Tuxedo, one of the UK’s leading service provider in the field of travel currency cards and prepaid credit card solutions.