Half-Term Travel: The Benefits of Travel Money Cards Revealed

Oct. 19, 2010 - PRLog -- As cash conscious families and travellers continue to look to save money when going on holiday and following the collapse of Crown Currency Exchange last week, Compareprepaid.co.uk stresses the need for British holidaymakers to shop around for the best foreign money deals before travelling this autumn.

The collapse of Crown Currency Exchange last week – which meant that up to 18 million people lost travel currencies already paid for, highlights the risks involved in buying foreign currency in advance.

The UK’s leading comparison website for prepaid travel money cards, www.compareprepaid.co.uk argues that everyone travelling abroad this year should buy a prepaid travel money card if they are looking for peace of mind and to make money savings.
Raffick Marday from compareprepaid.co.uk explains;

“Crown offered travel money that you paid for now in advance of travel, often as much as 9 months in advance. Their rates were attractive, particularly the further in advance that you bought currency for, however, the major drawback was that – as the collapse has illustrated – currency purchased was not secure.

“Travel money cards however offer consumers far more security as their money is held in segregated accounts and most travel money cards are actually issued via Newcastle Building Society, a financially sound 'mutual' Building Society that is far more conservative in terms of risk compared to banks.

“Anyone going on holiday this half term or winter should certainly get a travel money card if they want to save money on currency and charges while away. There are great new cards on the market now that are easy to buy and top-up, leaving you in complete control of exactly how much you are spending, too, so you don’t have to face any nasty credit card surprises on your bill when you come home.

“Another benefit of travel money cards over travel cash is that you typically get better exchange rates from prepaid travel money cards compared to most foreign exchange bureaus, plus you do not have to pay traditional foreign charges associated with using credit and debit cards abroad either such as withdrawal fees and purchasing fees.

“As with all personal finance products however, it is always advisable to compare different travel money cards to find the best deal for your individual travel plans and financial circumstances.”

Compareprepaid.co.uk Highlights Five Ways Travel Money Cards offer the Best Option for Travellers:

1.   Better Exchange Rates
Prepaid travel money cards typically offer better exchange rates.  As many normal cards add a three percent cost to the exchange rate banks get, travel money card providers tend to not add this extra charge.

2.   No Purchase Charges
Unlike most credit and debit cards if you purchase the right travel money card you will not be charged for individual purchases while abroad.

3.   Security
A travel money card can reduce the amount of cash you have to carry on your person at any one time.  All your holiday spending money can be transferred onto the card and the card used to purchase items minimising the need to carry an excessive amount of cash.  Also, the money you add onto the card is safe, held in segregated accounts and most cards are credited by risk-averse Building Societies, not banks.

4.   No Withdrawal Fees
A travel money card does not typically incur charges for use abroad – typically around 3% of each withdrawal - if you use the card to withdraw cash. Some cards do charge though so be sure to shop around for the best deal for your specific needs.

5.   Budgeting
It is all too easy to use a debit or credit card abroad and lose track of what you are spending. If you have a specific budget planned before you depart, a prepaid travel card enables you to transfer holiday money onto your card so you know you will only spend the amount on the card and not go over that amount. You can also get a prepaid card without having to worry about a bad credit history.



Notes:

Raffick Marday is available for interview. Please contact Dale Lovell on 01753 859 588 or email: dlovell@searchnewsmedia.co.uk  to arrange an interview.

Compare Prepaid is the leading comparison site which provides information, reviews and news on prepaid cards, credit cards and bank accounts available in the UK. Visit: www.compareprepaid.co.uk for more information.