Euros

Prepaid cards are not eligible for protection under the Financial Services Compensation Scheme

Euro prepaid cards

With a euro prepaid card, you load it up with euros before you go on holiday and then use it in the same way as a debit or credit card. However, the advantage of a euro prepaid card is that you will avoid the expensive fees debit and credit cards usually charge for overseas use.  

You can top up the card whenever you want to and, if you lose it, you can cancel the card with ease and prevent anyone else from spending your money.  

Cheaper charges

Euro prepaid cards are usually cheaper to use overseas than a standard debit or credit card. This is because debit or credit cards often charge a foreign exchange fee of around 2.75% to 2.99% when you spend on them abroad – so if you spent £200, this would cost you about £6. 

You'll also often be charged for withdrawing cash on your card – you'll typically be hit with a cash transaction charge of between 2% to 3% and if you're using your credit card, you'll be charged interest on top from the day you make your withdrawal. 

However, some euro prepaid cards allow you to avoid these fees altogether, while others will charge much less. Read the small print carefully to ensure you know whether your card charges or not.

Additional fees to watch out for with a euro prepaid card include those for topping up your card with funds, an 'inactivity' fee if you don't use your card for 12 months, an application fee and a replacement card fee. You can also be charged for using your card to pay for items in a different currency to euros.  

Useful for budgeting

If you take a debit or credit card on holiday, there’s always the temptation to spend that little bit more than you’d originally planned. But with a prepaid card, you can only spend what you’ve put on it, making it a useful tool for ensuring you stick to your budget. 

Take advantage of currency movements

If you are planning on taking a euro prepaid card with you on your holiday, keep an eye on exchange rates and try to load money onto your card when the exchange rate is favourable. 

Bear in mind however, that if you load up the card with cash a long time before you go away and the pound subsequently strengthens, you won’t be able to benefit. But on the flip side, if the pound weakens, you will be in a stronger position, as your euros will be worth more.

Peace of mind

If you carry around wads of euros with you on holiday and your wallet gets stolen, your cash will be lost forever. But if your euro prepaid card is stolen, most card providers will send you an emergency card or cash replacement. 

Prepaid cards have the added advantage that they aren’t linked to any of your other financial accounts, such as your current account, so a thief can only spend what is on the card and not go into your overdraft.

Compare your options

You can compare a wide range of euro prepaid cards with MoneySuperMarket. Be sure to read the terms and conditions carefully and select the card that suits your needs best.