Our Pick Of The Best Prepaid Travel Cards

We researched the market (July 2024) to uncover our pick of the best prepaid cards for overseas spending and cash withdrawals We considered the exchange rates on offer when loading a card, plus the associated fees and charges. Our full methodology is explained below.

To arrive at our Forbes Advisor star ratings we looked at multi-currency prepaid cards with no monthly fee and no charge to load funds.

We then looked at other fees and charges, such as the foreign exchange fees and fees for overseas ATM withdrawals.

We also analysed the exchange rates used, the minimum and maximum currency loads permitted and the maximum daily ATM withdrawals allowed to try to find the most flexible cards for those travelling overseas.

Prepaid travel cards – sometimes known as currency cards – enable you to preload cash in different currencies, such as euros or US dollars, fixing the exchange rate at the time.

The card can then be used for everyday spending, or to withdraw cash from ATMs while abroad with low fees, or in some cases, no fees at all.

The best prepaid cards on offer come with contactless technology and are part of the Mastercard or Visa payment network. This means you’ll be able to use them just as you would your debit or credit card.

If your prepaid card is lost or stolen you can cancel it immediately – and the balance will be reimbursed on a new card. Prepaid cards also come with advantages over most standard bank debit and credit cards in that the charges for foreign exchange transactions will be lower.

That said, some prepaid cards can come with high fees and charges and some have monthly fees. Check these, as well as any terms and conditions, and the minimum and maximum limits applied for loading up the card and spending.

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Prepaid travel cards enable you to preload currency ready to spend when you’re overseas. You can load one, or multiple currencies in advance – depending on the type of card you have. With a multi-currency card you could have £500, $500 and 500 euros all loaded onto the card in different ‘wallets’.

The exchange rate is fixed at the time you load the card. The card provider may sometimes charge a foreign exchange (FX) fee on top – such as 2% or 3% of the transaction.

With most good prepaid currency cards there won’t then be a charge to use the card for transactions overseas – so long as it’s in the right currency. This includes cash withdrawals from ATMs, although be aware that the ATM itself may charge fees.

Here’s a run through of the different types of prepaid cards currently on the market.

Multi-currency prepaid cards

As the name suggests, multi-currency travel cards can be pre-loaded with more than one currency at a time. This is useful for travellers embarking on round-the-world trips through multiple countries, for example. While holding multiple currencies could make it tricky to keep track of your spending, you can usually view and top up balances in the app or online at any time.

Pound sterling prepaid cards

This type of travel card can only be loaded with pounds sterling, which is converted to local currency when used overseas. Since you don’t need to pre-load multiple currencies, this could be a convenient, low-effort option. However, because currencies fluctuate in value all the time, you’ll get a slightly different exchange rate each time you use the card abroad, rather than locking in a single rate. This could work out more expensive than exchanging currencies in advance. Depending on the provider, you might also have to pay foreign exchange fees or cash withdrawal fees.

Euro prepaid cards

These travel cards are preloaded with euros – currently accepted in 20 European nations. A prepaid euro card could make sense if you’ll be travelling exclusively within the eurozone and want to lock in a favourable exchange rate before you go.

US dollar prepaid cards

This type of card may appeal if you’re travelling within the USA. It can be pre-loaded with dollars, at a single exchange rate. A prepaid US dollar card allows customers to lock in a favourable exchange rate when travelling to the US. By spending in the local currency, you’ll also avoid foreign exchange fees.

There are a number of advantages and disadvantages to consider before applying for a prepaid currency card.

Pros

• Your money is safe – the prepaid card is not linked to your bank account so there is no risk to the rest of your money if it is lost or stolen. Also if you do lose your card or it is taken, you can immediately cancel the card and you’ll get a replacement with all your money back
• No credit checks to get a card
• Good for budgeting – you can’t spend more money than is loaded on your card so there’s no risk of getting into debt
• You can use chargeback – prepaid cards are eligible under chargeback rules. This means you can apply to get your money back if an item or service you paid for was damaged, not as described or never arrived (including if the retailer or service provider has gone bust). Chargeback is a voluntary scheme and not based in law as with section 75
• Lock into favourable exchange rates. If you see that a particular currency exchange rate is strong you can load up your card, fixing into the good rate, even if this is well in advance of your trip overseas
• Low or no fees for overseas use. The cards can work out cheaper for foreign transactions compared to a debit or credit card, where exchange rates and foreign use fees and charges can be high
• Contactless and digital wallet. Many prepaid cards can be used via your digital wallet, such as Apple Pay or Google Pay. The cards will usually be either a Mastercard or Visa, and will typically have contactless technology and chip and Pin, making them flexible for payments globally.

Cons:

• Fees and charges. Prepaid cards can have a baffling array of fees and charges attached, for loading and spending. The best value cards won’t charge a monthly usage fee, but some will charge an inactivity fee if not used for 12 months and there can be fees for sending a replacement card or cancelling a card. Always check what fees will apply to a card before you apply
• Spending limits. Many prepaid cards put a cap on daily transactions and daily cash withdrawals, which can be quite low. They may not be suitable in an emergency or if you needed a large amount of cash in one go, for example. There can also be a maximum amount you can hold in a balance on some cards
• No section 75 protection. Unlike a credit card you will not have legal protection under section 75 of the Consumer Credit Act with a prepaid card. Section 75 is a law that makes credit card providers jointly liable with retailers for any breach of contract or misrepresentation in purchases over £100 and under £30,000. It means consumers can legally pursue their money back from their credit card provider
• Can’t be used for pre-authorised transactions. This means you can’t usually use the card to pay for something where the end or final cost is not known, such as car hire or a hotel bill, for example
• Not usually economical for UK use. There can be high fees on UK ATM withdrawals and sometimes for UK spending so if you did want to spend your cash balance at home be wary of the charges.

Eligibility criteria varies between travel card providers, but you’ll typically need to be a UK resident aged 18 or over.

Most travel card providers, including those listed above, accept applications made online or through an app, but you may also be able to apply in person or over the phone.

Applying for a prepaid travel card does not involve a credit check, and will have no effect on your credit score.

When issued by a reputable provider, prepaid travel cards are safe to use, and can be a secure way to carry local currency while travelling.

All the providers above are regulated by the Financial Conduct Authority (FCA), the UK watchdog, which means they are required to safeguard customers’ money in a ring-fenced bank account.

This account is used to refund customers in the event their travel card provider goes bust.

You’ll also be covered if your prepaid card is lost or stolen. Should this happen, your provider will transfer the remaining balance to a fresh card so you don’t lose the money.

There are a range of options for taking and using currency when travelling overseas. These include:

• Bank debit card: Convenient and accepted almost everywhere, a Visa or Mastercard debit card is likely to be one of the most popular ways to pay for things when overseas for work or on holiday.But although it’s quick and easy, many cardholders will be hit with steep foreign exchange fees when using their card abroad for purchases and when withdrawing cash from a ATM.There could also be daily spending and withdrawal limits on your account. Some accounts offer debit cards with attractive features for overseas use, such as low or no fees.
• Credit card: Like debit cards, credit cards are a convenient and globally accepted payment method – perfect for world travellers.But be aware some of the overseas use and foreign exchange fees can be high and you might not realise until you get home and see your card statement.Some travel credit cards are specifically targeted at people who want to use them abroad because they have low or no foreign exchange and foreign usage fees.Consumers will undergo a credit check when they apply for a credit card, so if you have a low credit score a prepaid card could be easier to get.

• Cash: Many holidaymakers still prefer to carry hard currency in cash when they go away. Cash is likely to be accepted in most places and it can make budgeting easier. But clearly the downside is the risk of loss or theft.Unless you have travel insurance that covers cash – and many policies don’t or if they do up to a stated limit – you could end up with no way to reclaim it or get compensation after a theft.Since the Covid pandemic more retail outlets, hotels and restaurants have become card-payment only, so it’s worth bearing in mind that cash use could be less universal than before.