Prepaid travel cards

You don’t want your bank card to get in the way of spending while abroad, which is where a prepaid travel card could come in handy. Plus, if you play your (literal) cards right, there could be some savings to be made.

This guide will take you through the benefits of prepaid travel cards and help you compare some of the best options currently available. Here we focus on prepaid cards, but we have a separate guide on debit cards with low or no overseas transaction fees that are linked directly to your current account.

Latest reviews of prepaid cards you can use abroad

Revolut - Revolut Standard

Finder score

4.2 ★★★★★

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£0

Min. opening balance

£0

Account fees

0% AER

Interest (AER)

• Account info
• Pros/cons
• Details

Get a £20 welcome bonus when you spend your first £20 (T&Cs apply).

You can use the Revolut card to spend and withdraw cash abroad and no fees will be charged, provided you stay within your monthly limit and carry out transactions on a weekday. Monthly limits will depend on the plan you have chosen. You can also convert money in 36 currencies within the app, enabling you to convert some spending money into the local currency before you go on holiday - this could work to your advantage if exchange rates are favourable. If you don’t exchange currency before you go, Revolut will use its own variable exchange rate to carry out the conversion when you pay for something with your card.

• Low overseas fees
• Quick application
• Earn cashback on spending
• Set budgets for financial goals
• Virtual cards for online purchases
• Easy to transfer money internationally
• Linked 'Junior' account available for one child

• 1% currency conversion charge on weekend spending abroad
• Free cash withdrawals in the UK and abroad both limited to £200 per month
• Cannot deposit cash or cheques into the account
• Charged a fee to receive your bank card

Minimum opening balance	£0
Account fee	£0
Overseas cash withdrawals	0% Mon-Fri (max. £1,000 per month)

Monese - Monese

Finder score

3.8 ★★★★★

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£0

Min. opening balance

£0

Account fees

0% AER

Interest (AER)

• Account info
• Pros/cons
• Details

You can use your Monese prepaid Mastercard instore, online or in ATMs worldwide and you’ll get Mastercard’s exchange rate. If you have the Simple plan, card spending in foreign currencies incurs a 2% fee, but there is no fee for the Classic and Premium plans. Similarly, there is a 2% fee for cash withdrawals with the Simple plan, while the Classic and Premium plans allow you to withdraw a set amount each month fee-free. Monese offers multilingual customer support and you can manage your account online or via the app.

• UK current account that does all you can expect, including direct debits and standing orders.
• Fast and easy set-up (no credit check or proof of local address needed).
• Colourful app that is easy to use, allows you to categorise your transactions and freeze the card if you lose it.
• Free card payments and ATM withdrawals abroad.
• You can load cash into the account for free.
• Can open both a UK and European account and switch instantly.

• With a free plan, fee-free ATM withdrawals and cash loads are limited to £200 per month.
• You can’t put your savings in a separate account or earn interest on them.
• It doesn’t offer anything more than a current account.
• No physical branches.

Minimum opening balance	£0
Account fee	£0

Monzo - Monzo Free

Finder score

4.6 ★★★★★

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£0

Min. opening balance

£0

Account fees

0% AER

Interest (AER)

• Account info
• Pros/cons
• Details

Monzo Instant Access Savings Pot earns you 4.10% AER interest (variable), paid monthly into the Pot you create.

If you use Monzo as your main bank account, you’ll be able to make unlimited fee-free cash withdrawals in the European Economic Area (EEA) and up to £200 every 30 days for free outside the EEA. A 3% fee applies after that. No foreign transaction charges apply to spending you make on your card across the globe and you’ll benefit from Mastercard’s exchange rate every time you spend. For Monzo to be your main bank account, you need to meet certain conditions, such as having paid £500 into your account in the last 35 days and having at least one direct debit on the account.

Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable . Account fee of £0.

• Easy to set up
• Good for budgeting and categorising spending
• Automatic saving feature
• Fee-free spending abroad
• Slick app with face login
• Overdrafts and loans available

• Free ATM withdrawals outside the EEA limited to £200,
• £1 fee for depositing cash at PayPoints,
• Maximum cash deposit of £1,000 every 6 months
• No rewards program

Minimum opening balance	£0
Switch service guarantee	Yes
Account fee	£0
Overseas cash withdrawals	0%

Starling Bank - Current Account - Age 18 and over

Finder score

4.7 ★★★★★

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£0

Min. opening balance

£0

Account fees

3.24% AER

Interest (AER)

• Account info
• Pros/cons
• Details

Open a Starling bank account and the debit card that comes with it can be used anywhere in the world fee-free. There are no foreign transaction charges for spending on your card or for withdrawing cash abroad. You’ll benefit from Mastercard’s exchange rate, with nothing added on top. The account can be managed online or via the app and there's no monthly account fee to worry about either. You’ll also earn interest on your balance and have the option of applying for an overdraft. Plus you can send money internationally with no hidden fees.

Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 15% EAR variable .

• No monthly-fees
• No overseas fees
• 100% digital sign-up
• 24/7 UK customer support
• 'Settle up' feature to split joint bills
• Pays interest on current account balance
• Overdrafts available (only on personal accounts)

• No branch network
• Limited options for depositors
• No competitive switch incentives if you switch your account
• Limited product range compared to other banks
• Lower ATM withdrawal limit than some other digital challengers
• No group savings feature
• Doesn't have a specific monthly budgeting tool

Minimum opening balance	£0
Minimum operating balance	£0.01
Switch service guarantee	Yes
Account fee	£0
Overseas cash withdrawals	£0

What is a prepaid travel card?

A prepaid travel card works like a debit card which you use to spend or withdraw cash while abroad. Many prepaid cards don’t charge foreign transaction fees which can make them a cost-effective option while travelling.

Alongside the card, you often get an online account to load money and swap pounds sterling for other currencies. The exchange rate is either set by the payment provider – such as Visa or Mastercard – or some providers use the “interbank” rate (which is what the banks pay when they trade currencies).

The different types of prepaid travel cards

There are 2 main types: a simple prepaid card or a multi-currency one.

The simpler type doesn’t let you exchange currency in advance. Instead, you simply load pounds sterling onto the card and when you spend, it converts the pounds into the currency using the exchange rate at the time. This makes the account very similar to a debit card.

Meanwhile, multi-currency cards have the added bonus of letting you lock in an exchange rate before you travel, while also holding multiple currencies within your account at once

How do they work?

Once the account is open, you’re sent a physical card to use in the same way you would a debit card. Most providers have a website and app to load money on the go.

For some banks, you have to load money in pounds sterling first before you’re able to swap for another currency. If you can exchange in advance, each currency is held in a virtual wallet within the account. It sometimes can be worth exchanging in advance to secure a competitive rate on your chosen currency. However, keep in mind that currency values fluctuate, so it may not always work in your favour.

When you spend using a prepaid card, money is automatically deducted from the wallet containing the currency you’re spending in. The good news is that you can’t spend more than what’s in the account. Which could help you budget while abroad.

Are there cards that under 18s can use abroad?

There are several prepaid debit cards designed for young people. These look to give parents some degree of control over their kids’ money and some don’t charge foreign transaction fees.

Here are a few to consider:

• GoHenry. A prepaid debit card for 6-18 year olds, GoHenry doesn’t charge commission or cash withdrawal fees when your child pays/withdraws money in the local currency. However, it does have a monthly fee.
• Revolut .18> A card for 6-17 year olds, the currency conversion is similar to the adult version of the account, except kids can’t hold foreign currency in their own account. If you have an adult Revolut account, depending on which plan you are on, you’ll have access to a set number linked Revolut
• Starling Kite. Designed for 6-15 year olds (Starling has its own teen account), Starling Kite doesn’t charge fees for foreign transactions or cash withdrawals and is also free.
• Nationwide FlexOne. A free account for 11-17 year olds, this account allows your child to have a debit card or a cash card. Additionally, the account has no fees for using the card abroad or for withdrawing cash outside the UK.

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What are the benefits of using a travel card?

• Safer than carrying cash. This is the main advantage of a travel card. You don’t have to worry about losing loads of money, or getting pick pocketed on the beach.
• Save on fees. Unlike many regular bank cards, you might be able to save on foreign transaction fees when you spend while abroad.
• Works like a debit card. Unlike a credit card, you won’t be able to run up debts on a prepaid travel card. There are however a range of credit cards designed for travellers with benefits attached.
• Choice of currencies. Most travel card providers offer a range of currencies for you travel card. We have a separate guide on accounts where you can hold multiple currencies.
• Good for budgeting. One of the best things about a travel card is that once it’s loaded it is loaded. You can’t run up debts, and it helps you to keep on top of how much you’re spending.
• Good to give to youngsters going on their first holiday. For the same reason, travel cards are good to give to first time holidayers. It’s a good way to teach kids how to spend responsibly, but without much risk. We have a separate guide on prepaid cards for children under 18 that can be used abroad.
• Better rates than banks. Most prepaid card companies offer a more competitive rate than banks, and certainly better than a Bureau de Change in airports or in foreign countries.

What should I look out for when comparing travel cards?

• Topping up. Most prepaid card companies allow you to do this while you’re abroad, but make sure you check out how to do it. There’s nothing worse than being out of money while on holiday, and being forced to withdraw money at a terrible rate. A lot of companies have apps, or will let you top up over text. Also, be sure to check how much this might cost you.
• Fees. This is where travel card companies make a lot of their money so make sure you wrap your head around all the costs before you sign up.
• Rates. Similar to fees, you should also keep on eye on exchange rates and make sure you’re getting a fair deal. Many travel card companies will match a better exchange rate from a rival company so this is something to be aware of.
• Protection. This might go without saying, but it’s important for you to be aware of where you stand if things go wrong. Check the company’s policies regarding lost, stolen, or undelivered cards.

What’s the alternative to using a travel card?

It could be worth looking at some of the challenger banks, many of which don’t charge foreign transaction fees. They also tend to have slick banking apps so you can also manage the whole process on your phone, saving you a visit to your local bank branch or post office. Apps like Starling, Chase and Revolut have favourable fees when spending abroad.

Pros and cons of a prepaid travel card

Frequently asked questions

• At what point is currency exchanged with prepaid cards?

  It depends on the type of card. If it’s a simple prepaid card that doesn’t let you swap pounds sterling before you travel, the currency is exchanged at the point you spend money or withdraw cash. Meanwhile, multi-currency cards use the exchange rate at the point you swap your pounds sterling. By buying currency before you travel, you can lock-in an exchange rate at a time of your choosing.

• Is it worth getting a prepaid travel card?

  If your usual bank account charges foreign transaction fees, a prepaid travel card could save you money, especially if you travel a lot. One of the main perks of some prepaid currency cards is you can lock in an exchange rate before you go away. But if you aren’t bothered about that, you might want to look at travel debit or credit cards that don’t charge non-sterling transaction fees.

• What is the difference between a prepaid travel card and a travel debit card?

  They are very similar; both will let you spend using either contactless or chip and pin without charging foreign transaction fees. The main difference is that many prepaid currency cards let you exchange and hold onto currency before you travel, whereas debit cards don’t.

To make sure you get accurate and helpful information, this guide has been reviewed by Katherine Denham, a member of Finder's Editorial Review Board.

Written by

Charlie Barton

Publisher

Charlie Barton was a publisher at Finder. He specialised in banking and investments products, including banking apps, current accounts, share-dealing platforms and stocks and shares ISAs. Charlie has a first-class degree from the London School of Economics, and in his spare time enjoys long walks on the beach. See full bio