When you are planning a vacation, it’s very important to organize your travel money, especially in today’s economy. The currently weak dollar means your money won’t go as far as it did before. It is therefore vital that you find the best travel money rate.
Alternatives for travel money
There are a number of travel money options that one can go for.
*Cash – The only thing you need to do in order to use cash for your travel money is convert it into the appropriate currency for your destination. You can exchange it before leaving home or after you arrive in the country you are traveling to. Cash is probably the oldest form of travel money, but its disadvantages have led to the development of other options. Its main drawback is a lack of security, because cash can be stolen or misplaced.
*Standard Credit Cards or Debit Cards – These cards are associated with one of the large international card brands, like Visa, MasterCard, Discover, JCB or American Express, for example. The charges that are typically applied to each transaction are the main issue with using these cards, but there is also a risk of fraud.
*Travelers Checks (TC) – Travelers checks are fee-free, unlike credit and debit cards. TCs are also fairly safe because they must be countersigned to use them and they are replaceable if stolen or lost. The currency exchange rate is typically not very competitive, however. Moreover, most currency exchanges and banks charge a fee to exchange TCs. This fee makes their overall travel money rate even worse.
*Pre-paid Currency Cards – This option for travel money is relatively recent and is designed to be convenient for international travelers while countering the drawbacks of other types of travel money. More details about this option are provided below.
Prepaid Currency Cards
Prepaid cards are somewhat similar to standard credit and debit cards and they offer the same ability to purchase products and services but with one big difference – you can only spend up to the total amount that has been preloaded. This means there is no risk of running into debt as it has no credit or overdraft facility. As with cash, loading up a pre-paid currency card involves converting cash into your chosen currency; this means that you are subject to the exchange rate offered by the provider. The benefit is that you are able to hedge against exchange rate fluctuations during the trip. You will be issued with a PIN number and, similar to your normal international debit and credit your card can be used virtually anywhere on the planet.
Advantages of Prepaid Currency Cards
*The Application Process – You don’t need to worry about your credit history because there are no credit checks. All providers of prepaid currency cards will, however, do an identity check to make sure you are who you say you are.
*Control Over Spending – These cards are popular among parents and guardians who send their children to study in other countries because they help control spending. The cards are loaded with money based on a budget, and if that budget is exceeded it is easily detected because money would then need to be loaded again.
*Improved Travel Money Rate – Although this doesn’t always occur, pre-paid currency cards frequently offer a better exchange rate than other options for travel money.
Fair FX give some of the best travel money rates available on their range of prepaid cards. Check out at their current exchange rates, and check out exactly how much you could save.