Travel Money: FX Currency Cards Frequently Asked Questions

Answers to Frequently Asked Questions

What is a Foreign Exchange Currency Card?

Foreign Exchange Currency Cards are still relatively new travel money products in the UK. They allow you to take your foreign currency away with you on an easy to use and secure card while also giving you great exchange rates on your travel cash.

These cards come in three currency denominations Euros, Dollar and Pounds. When you purchase your card you load it with your selected currency, at a quoted exchange rate. Your card can then be used as a debit card at the ATM, in a shop, online etc and with CHIP and PIN your money is protected while you travel.

These cards do not require a bank account or credit rating as they offer no credit facility and can be also be used by people under 18. However, verification of identity may also be required, to prevent money laundering.

Why should I use a foreign exchange currency card as opposed to buying currency before I go?

Whatever currency you want to buy, Foreign Exchange Currency Cards offer a number of advantages when compared to travellers cheques or cash for use abroad.

• Great exchange rates: Prepaid currency cards typically offer some of the best exchange rates, with competitive rates compared to cash and travellers cheques. To compare the rates visit our comparison pages and check out the latest rates.
• Security: Your foreign currency is also protected from theft and fraud unlike if you buy Euros or dollars in cash, as each card has CHIP and PIN.
• Flexibility: With a foreign exchange currency card you have 24 hour access to your cash. If you need to withdraw currency you can go to an ATM, if you need to make a payment you can use your card. This is a clear advantage compared to travellers cheques, where you will need to find a bureau de change, check the opening times and then exchange your cheques for cash.

Also, as these cards are MasterCard or Visa, you can use them worldwide, so you never need to be without foreign currency abroad.

How do these cards compare to using my credit and debit cards?

Foreign exchange currency cards operate just like a debit card, they are powered by MasterCard or Visa so will be accepted worldwide. Some of the main benefits of these cards have been described above. However, when compared to credit or debit cards these currency cards offer another benefit, they have much lower fees for use abroad.

FX currency cards will not charge you for a point of sale transaction, i.e. a purchase in a shop, a purchase online etc. Whereas a UK bank card will charge you a commission fee and a foreign exchange loading fee. So you will save pounds on each transaction.

How do I use a foreign exchange currency card?

It is very simple to use a foreign exchange currency card. When you purchase the card, you will be given the option to load currency onto the card at a quoted foreign exchange rate. Once you receive your card and CHIP and Pin you are ready to go. It is advisable to only use your card outside the UK, as these cards are designed for use abroad there are additional fees for use in the UK.

When you get abroad your card can be used just like a debit card to pay for purchases and withdraw cash from the ATM. If you need to top up the credit on your card, most prepaid cards offer a range of different methods for allowing you to load or top up the currency on your card. The most common methods for buying currency for your card are via the internet or over the phone, but it will vary by card. Some cards even allow you to top up your travel money via SMS. If you are away for a long period of time, it is worth checking what the options are for reloading each card.

Does my credit rating affect whether I can get a prepaid currency card?

No. As Foreign Exchange Currency Cards are prepaid, you load your card with currency before use, and the cards do not have an overdraft facility so good credit is not a requirement.

How do I select the best foreign exchange currency card?

There are a few things to look out for when selecting your foreign exchange currency card. Firstly, decide which currency you require. This is simple if you are going to the US or Europe, but if you are spending a lot of time outside these two regions then a GBP card may be the best option. With GBP cards, your card will be credited in pounds and then you will be charged a competitive exchange rate for purchases in other currencies.

The main fees to look out for when considering using a Foreign Exchange Currency Card are :

• Foreign exchange rate
• Purchase or dormancy fees
• ATM Withdrawal fee
• Replacement card charge, if the existing card is lost or stolen?
• Currency conversion rate (for purchases outside of the card currency)

These costs need to considered togehter. For example a better exchange rate can make a card with a worse exchange rate and free ATM withdrawals more expensive. If your purchase is for a one-off trip and you have no further need for your travel money, it is also worth checking whether there is a charge to convert your foreign currency back to British pounds, or an account termination fee. The main advantage of a currency card, in addition to comparatively good exchange rates, is that you are generally not charged for point of sale (Pos) transactions as you would be with a bank card or credit card.

What happens if use my currency card in another country, with another currency?

If you buy a foreign exchange currency card loaded with Euros, and then travel to Switzerland you can still use your prepaid foreign exchange currency card to withdraw Swiss Francs.However, you will be charged a cross currency conversion charge for this withdrawal, usually between 2.5-3%. The exact rates vary by card, so if you know you will need to withdraw multiple currencies then check out the currency conversion rates for the different cards.

If you purchase a GBP card, then these cards will have a fixed FX conversion charge for any payments or withdrawals while you are abroad. This rate is usually very competitive and you still get the advantage of lower fees when compared to UK bank or credit cards. If you are travelling to lots of different countries outside of the Eurozone then we recommend a GBP card rather than a dollar or Euro card.

Will I be charged for withdrawing cash while abroad?

The charges for withdrawing cash abroad vary by provider.CaxtonFX do not charge you for ATM withdrawals, whereas some providers will charge you $1 etc.It is worth reviewing the charges in our comparison pages before you select a currency card.

Can I withdraw any remaining currency left on my card when I return to the UK?

When you return home from your trip, there are a number of options for accessing the credit left on your currency card

• Keep using your currency card in the UK, where you may be charged a FX conversion rate or small fee for each transaction.
• Withdraw the remaining currency off the, usually for a small fee, by contacting the card provider.This currency will then be converted back to pounds.
• Keep your foreign exchange currency card until you next travel abroad, and require further travel money, saving the hassle of further currency conversion.

To compare the fees for different Foreign Exchange Currency Cards, please see our foreign exchange currency card comparison pages.

What happens if I lose my card or it gets stolen?

One of the advantages of prepaid currency cards are that they are safer than buying foreign currency in the UK and taking the cash abroad. When you realise your card is lost or stolen, inform your prepaid currency card provider and typically they will be able to provide you with a replacement card, allowing you to re-access your funds. The use of CHIP and PIN on these cards also helps to keep them more secure if stolen or lost.