Travel Money Finder

Benefits of using a prepaid travel card

• Multiple currencies. When you load dollars onto a prepaid travel card, you can transfer them into a supported foreign currency so that you can spend or withdraw your own funds without the cost of currency conversion fees.

• Locked-in exchange rates. When you convert your dollars into a supported foreign currency, the funds will be locked in at the current exchange rate. Depending on which way the currency goes, this can be a good way to avoid negative exchange rate fluctuations while traveling.

Things to consider using prepaid travel cards

• Availability. Most prepaid travel cards are either Visa or Mastercard, meaning you can use them worldwide.
• Fees. The fees you’ll have to pay will depend on the card, but some include a purchase fee, loading or reloading fee, currency conversion fee, inactivity fee and account inactivity fee.
• ATM withdrawal limits. If your prepaid travel card charges a fee per transaction and you need a large amount of money, it could get expensive quickly if the ATMs you withdraw from only allow a small amount per transaction .
• Currencies. Your prepaid travel card will support a number of foreign currencies, though the exact ones will depend on the individual card.

Benefits of using a credit card overseas

• Access to credit. A line of credit is often larger than your savings, which can come in handy for large or emergency purchases. Remember that you have to repay everything (plus interest) to the card.
• Rewards. These cards are typically more expensive, so make sure that the value of the rewards you redeem will outweigh the costs.
• Extras. Complimentary travel insurance, purchase protection and concierge services will surely benefit any traveler.

Considerations when using credit cards for travel

• Availability. Visa, Mastercard and American Express should be accepted widely around the world. Some cards can’t be used in some locations (such as Cuba, Iran, Myanmar, North Korea, Sudan and Syria) due to economic sanctions. Check with the provider to confirm whether your card can be used in your destination before you leave.
• Fees. If you use your regular credit card overseas, it’s likely you’ll be charged currency conversion or foreign transaction fees. You’ll also be charged cash advance fees — which tend to be pricey — if you use your card for ATM withdrawals
• Currencies. Look for a card that will waive currency conversion or foreign transaction fees, otherwise you’ll rack up fees every time you use your card for purchases in the local currency.

How debit cards can benefit you overseas

• Access and manage your own cash. Unlike a credit card with a line of credit or a prepaid card with a loaded amount of funds, a debit card gives you direct access to your savings. This saves you the inconvenience of loading a prepaid card, but might deter the overspending that comes with credit.
• Fewer fees than credit cards and prepaid travel cards. If you get a debit card designed for overseas use, you might not have to pay ATM withdrawal, currency conversion or foreign transaction fees.
• ATM availability worldwide. If your debit card is a Visa or Mastercard, you should be able to withdraw from ATMs around the world. To avoid ATM withdrawal fees, look for a card that belongs to the Global ATM Alliance like a Barclaycard or Bank of America card.
• Fraud protection. Your provider is likely to offer protection against fraudulent transactions made on your account so long as you follow the necessary steps to report unusual activity.

Considerations to keep in mind

• No backup or additional card. Debit card accounts don’t provide a backup. This means that you may have to wait up to two weeks for a replacement to arrive to your overseas destination.
• Daily currency exchange rate. You’ll receive the daily exchange rate for your withdrawal from Mastercard or Visa. Due to the uncertainty of exchange rates, it is wise to do market research to find which option may be better for you.

How a traveler’s cheques could still work for you

• Secure. Traveler’s cheques are an extremely secure method to spend money overseas.
• Safe. They can be easily replaced if lost or stolen.

Considerations to keep in mind

• Cost. You might be charged a purchase fee when you first pick up your traveler’s cheque.
• Acceptance. Traveler’s cheques are generally accepted less than Visa or Mastercards.
• Difficult to use. Can be bulky and awkward to carry. Plus, you’ll have to go to the effort of getting them cashed rather than having immediate access to your cash like you would with a card.