Multi currency

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

What is a currency card?

A currency card is a type of prepaid card which allows you to make transactions abroad without expensive fees or charges. Depending on your location, you have a choice of currencies you can put on the card, including pounds, euros or US dollars. The currency loaded onto the card is fixed at that day's exchange rate. 

Other currency prepaid cards

Like travellers cheques for the modern holidaymaker or business tripper, foreign currency prepaid cards offer a secure way to take your travel money away with you. 

Some prepaid cards allow you to pre-load them with sterling and you can then use them for your holiday spending anywhere in the world, across multiple currencies. By doing so, you can side-step expensive foreign transaction fees charged by many debit and credit cards and, because you pre-load your card with cash in advance, it's ideal if you're on a budget.

Avoid foreign exchange charges

Most debit and credit cards charge high fees when you use them abroad. On purchases, for example, you'll usually have to fork out a foreign currency charge of between 2.75% and 2.99%, which means paying an extra £3 every time you spend £100.

And if you withdraw money from a cash machine, you will often face a further 2% to 3% charge, plus daily interest if you make a withdrawal using a credit card.

The good news, however, is that foreign currency prepaid cards charge either much lower overseas fees, or nothing at all.

When comparing deals, you just need to remember to look out for charges for loading money on to the card, as well as so-called 'inactivity' fees that can kick in if you don't use your card for a number of months. 

Stick to a budget

It's easy to relax the purse-strings a little on holiday, but we can easily end up regretting it if our excess leads to a debt headache on our return.

However, unlike a credit card, or a debit card that allows you to go overdrawn, a prepaid card will only allow you to spend what you’ve put on it.

And that makes it a helpful tool for sticking to your holiday budget (although you may want to carry another form of payment in case of emergencies). 

Stay secure

A small amount of local currency can be very useful when you arrive at your holiday destination. 

But taking your entire budget in cash is very risky and could leave you in a sticky situation if your wallet, purse or bag gets stolen, for example. If, on the other hand, your foreign currency prepaid card is lost or stolen, all you need to do is contact the card provider immediately to cancel it and many providers will either issue you with emergency cash or even send out a replacement. 

Find the best deal

With MoneySuperMarket, you can compare and apply for a range of foreign currency prepaid cards with ease. So take a look at our tables to ensure you're getting the right one for your particular needs.