Travelers have many options for what to carry in their wallets when traveling in other countries. WalletHub recommends no foreign fee credit cards and no foreign fee debit cards for, as they combine the best available exchange rates with the lowest fees.
But if those aren’t available to you, you can get a prepaid card designed specifically for people traveling abroad. Functionally similar to other prepaid cards, like Green Dot or Bluebird, prepaid travel cards can be used to make purchases or withdrawals anywhere the accompanying card network is accepted. You can also use them to make travel reservations, pay bills online and receive direct deposits.
Here are some key characteristics of prepaid travel cards:
- Locked-In Exchange Rates. Like major credit cards, prepaid travel cards offer the best exchange rates available anywhere. But unlike other cards, conversion happens when you load funds on the card, not when you use the card for individual purchases. And while exchange rates are favorable, you’ll be charged up to 7% in fees for each conversion.
- In addition to the conversion fee of as much as 7%, prepaid travel cards charge many of the same fees as regular prepaid cards, including signup fees, monthly maintenance fees, reload and reactivation fees, and many others.
- Travel Perks. Prepaid travel cards have features designed specifically with travelers in mind. With the VISA TravelMoney Card, for instance, you’ll be reimbursed up to $250 if you lose your luggage.
- Reload Delay. You can add funds to your card at any time, but reloaded funds won’t always be available immediately. Some issuers make you wait a few days to access your money after reloading.
So if you would prefer to lock in your exchange rates before leaving home to avoid surprises while you travel, we have details below on the best prepaid travel card options.
Best Prepaid Travel Cards
Prepaid travel cards — known by other such names as travel money cards, prepaid currency cards, international prepaid debit cards and travel cash cards — are not as popular in the U.S. as they are abroad. Consequently, the four cards in the table below are the only prepaid travel cards that are widely available for purchase in the U.S. We compare the features of these cards so that you can choose the one that is best for your needs.
Card |
VISA TravelMoney Card |
MasterCard Prepaid Travel Card |
American Express GlobalTravel Card |
Travelex Cash Passport Card |
Main Fees Charged | Retail Purchase Fee: $3.95Monthly Fee: $5.95
Retail Reload Fee: $3.95 Foreign ATM Withdrawal Fee: $3.95 Foreign ATM Balance Inquiry Fee: $0.95 Foreign Transaction Fee: 2.00% Card Reissue Fee: $0 Replacement Card Fee: $5.95 Backup Card Fee: $4.95 Expedited Card Shipping Fee: $25 Check Request Fee (for balance refund if account is closed): $5.95 |
Retail Purchase Fee: Amount Not SpecifiedMonthly Fee: None Listed
Retail Reload Fee: $0 Foreign ATM Withdrawal Fee: $2.50 Foreign ATM Balance Inquiry Fee: $0 Foreign Transaction Fee: 5.50% Balance Refund Fee: $20 Inactivity Fee: $3 |
Initial Load Fee: Amount not specifiedMonthly Fee: None listed
Retail Reload Fee: Amount not specified Foreign ATM Withdrawal Fee: $0 for initial withdrawal each month; $2 thereafter Foreign ATM Balance Inquiry Fee: None listed Foreign Transaction Fee: 2.70% Inactivity Fee: $0 |
Retail Purchase Fee: Amount Not SpecifiedMonthly Fee: None Listed
Retail Reload Fee: $0 Foreign ATM Withdrawal Fee: $2.50 Foreign ATM Balance Inquiry Fee: $0 Foreign Transaction Fee: 5.50% Balance Refund Fee: $20 Inactivity Fee: $3 |
Load, Withdrawal & Spending Limits | Min. Initial: $20Max. Initial: $500
Min. Reload: $20 Max. Reload: $2,500 Max. ATM/Bank Teller Withdrawal: $500 |
Max. Balance: $8,500Min. Initial: Varies by locationMax. Initial: $10K per 7-day period $20K per 30-day periodMin. Reload: $250 Max. Reload: $30K per 12-month period Max. ATM Withdrawal: Max. Bank Teller Withdrawal: Max. Purchase: |
Max. Balance: $9K any timeMin. Initial: $0
Max. Initial: $9K any time Min. Reload: Max. Reload: $9K any time Max. ATM Withdrawal: |
Max. Balance: $8,500Min. Initial: Varies by location
Max. Initial: $10K per 7-day period Min. Reload: $250 Max. Reload: $30K per 12-month period Max. ATM Withdrawal: Max. Bank Teller Withdrawal: $250 per 24-hr. period Max. Purchase: $5K per 24-hr. period |
Number of Available Currencies | Not specified | 7 | 1 (but will convert every transaction) | 5 |
Network Acceptance | VISA:2.3 million ATMs
200 countries & territories |
MasterCard:2+ million ATMs
210+ million countries & territories |
AmEx:1.2+ million ATMs
140 countries |
MasterCard:2+ million ATMs
210+ million countries & territories |
Additional Perks | Lost Luggage Reimbursement (up to $250 per trip/$1,000 per registered cardholder)24-hr. Translation Assistance
Purchase Protection Within First 90 Days of Purchase (replacement, reimbursement or repair for eligible items up to $500 per claim) Emergency Assistance (medical & legal referrals, emergency trip arrangements and emergency messages to relatives) |
None | 24/7 access to: -Emergency travel assistance -Lost luggage assistance -Lost passport assistance & card cancellation -Medical & legal assistance referrals -Medical transportPurchase Protection Within First 90 Days of Purchase (replacement, reimbursement or repair for eligible items up to $1K per claim/$50K per year)Backup card with separate PINFree Emergency Funds Access (for up to $1K of your card balance thru Western Union while you are waiting for replacement card) |
None |
Free Backup or Replacement Card? | ||||
Chip & PIN-Enabled? | ||||
Funds Expire? | ||||
$0 Liability? |
*Some issuers will provide an inactive backup card that can be activated if your primary prepaid travel card is damaged, lost or stolen. Backup cards are not the same as replacement cards, which are issued only if both your primary and backup cards have been damaged or compromised.
Pros & Cons Of Prepaid Travel Cards
Without access to cheaper payment methods, prepaid travel cards can provide a good value. But they can be restrictive as well, as illustrated in the table below.
Pros | Cons |
---|---|
Guaranteed approval with ID verification (no credit check) | Minimum/maximum load, withdrawal & spending limits |
Great for budgeting (spending limited to card balance, so no overdraft fees, either) | Locked-in exchange rate may work against you if the dollar grows in value |
Provides fraud protection and even more security than debit cards (not tied to a bank account) | Higher fees than credit and debit cards, especially ones that don’t charge foreign transaction fees |
Reloadable online and at numerous retail locations worldwide from different funding sources (e.g., cash, direct deposit) | Reload can take days from the time of deposit, depending on the issuer |
Loadable with multiple currencies | Does not help establish or build credit |
Ability to lock in prevailing exchange rates | Does not earn rewards |
Easy to cancel & replace | Cross-conversion may result in an unfavorable exchange rate |
Ability to cross-convert* between different currencies | Info |
If lost or stolen, remaining balance can be reinstated on a backup/replacement card | Info |
*If the local currency of a country you visit is not pre-loaded on your card, an existing currency will be converted to cover the transaction.
Money-Saving & Other Useful Tips
Although prepaid travel cards will keep your money safe and your wallet light during your overseas travels, their costs can sometimes outweigh their benefits. Here’s some frugal travel wisdom to help you keep your budget in check:
- Load More Money Initially: More often than not, travelers exceed their budgets. It’s best to load your prepaid travel card with a higher balance than you originally intended to cover any additional expenses, especially if you have a card that requires you to wait several days after replenishing your balance.
- Have A Backup Money Source: No matter how cautious you are, there’s always a chance your card may be damaged, lost or stolen. In addition, prepaid travel cards are not accepted universally, especially at luggage cart rentals, parking garages and transit terminals outside the U.S. If you have the option, leave a no foreign fee credit or debit card or extra cash in your hotel room.
- Limit Your Withdrawals: If you expect needing more cash than you planned, make a bigger withdrawal once or twice. By doing so, you’ll avoid incurring multiple foreign ATM fees, international transaction charges and foreign ATM owner surcharges, which can quickly eat away at your budget.
- Use Up Unused Funds: If you were more frugal than you anticipated during your trip, there’s good news: Your prepaid travel card will work just like a regular prepaid card when you return to the homeland. But bear in mind a few don’ts: 1) Don’t use it to withdraw cash to avoid paying ATM fees; 2) don’t cash out your remaining balance — it’ll cost you (e.g., $20 with the Travelex Cash Passport); and 3) don’t save your balance for your next overseas trip unless it’s coming up soon. Otherwise, you could be charged an inactivity/dormant account fee if you don’t use your card within a certain period (e.g., one year).
- Don’t Throw Away Your Card: Even after you’ve returned from your travels and used up all the funds in your prepaid travel card, don’t toss it just yet. In case you need to request a refund, you’ll need your card so that funds can be added back. That process usually takes between three and seven business days, depending on your issuer.
- Watch Out For Authorization Holds: Hotels and rental car companies — but also gas stations and some bars, restaurants, phone companies, salons and cruise lines — will place a hold on your card for an amount that may exceed the total cost of your stay or rental. The hold is released only after you’ve settled your final bill, which means less disposable funds for days or even weeks. Always try to make the reservation with a credit card instead, which freezes only your credit card limit, not your actual money. Your card issuer may also require a minimum balance (e.g., $75) before allowing you to conduct certain transactions (e.g., fueling up).
- Select The Right Type Of Account: When withdrawing cash from a foreign ATM, you’ll be asked to select the type of account you’re accessing. Choose “Checking” first. If that doesn’t work, choose “Credit.”
- Look Into Other Payment Options: Because of the potentially prodigious costs associated with prepaid travel cards and other payment vehicles designed for overseas travel, we recommend carrying instead both a no foreign fee credit card for spending and a no foreign fee debit card for withdrawing cash. These cards offer the best foreign exchange rates as well as the fewest and cheapest costs.
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