Travel Cashcards VS Cash

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No (smart) traveller wants to carry buckets of cash around with them when they're travelling, simply because it's such a risk, and it's particularly a problem if you're travelling for a long time and don't want to pay the extra fee a credit card charges abroad. Travel Cash Cards allow you to top a card up with money at home, take it with you and use abroad in replacement of cash.


What are they?

Travel Cashcards are cards that you can put money on before you travel and spend it while you're out there. It works similarly to a phone top-up or debit card I guess. They also act like a debit card in the sense you can't overdraw, so it helps you budget your money better. You don't have to pay for constant exchange rates as the money is converted when you first put it on the card and you can choose between a Sterling £, Euro € or Dollar $ card.

Do they cost?

Yes, and no. It depends on which card you choose. For example, some cards cost £10 to get and are free to withdraw from ATMs abroad, whilst others are free but you pay extra to withdraw, ranging between €1,50 to €3,00 and some often charge in pounds so the amount is greater. Check out my post Travel Cash Cards: Which one's best? to see my ranking of Top 10 travel cashcards and the ways they can catch you out.

Is the exchange rate better?

Depends. It depends on which card you choose and the current exchange rate at the time. Some cards take a small commission in the exchange rate, but then often it's no more (and sometimes less) than it would be if you were exchanging cash at the Post Office or in an airport. So you need to have a look at the current exchange rate and the rate the card's offering at the time to really know if it's a good deal or not.

Advantages of a Travel Cashcard

It's safe - You're not carry obscene amounts of cash around that's just asking to be stolen. Plus, there's no overdraft facility so you can easily budget what you spend and can't rack up an unexpected bill by the end of your trip.

It's secure - A chip and pin system ensures only you can access the money on the card. It's also not linked to your bank account, so if by unfortunate chance your card does get stolen, the thief can only access what's on the card.

It's easy to top-up - Parents or friends can top-up your card if you run out of money, and wages and salary can easily be recieved on the card.

Disadvantages of a Travel Cashcard

Hidden costs - Beware! Honestly, read the small print on any card before you buy it. These costs aren't necessarily hidden but they can be extra and they're often very hard to find in the card info. They can include an additional/replacement card fee: ranging from free to £6, a redemption (or cancellation) fee: £1.50-£10 and even an inactivity fee on some cards : £10 if unused for 12 months.

It's not great for everything - You can't use currency cards on most European toll roads. Security deposits on hostels, hotels or car hire bookings may block the amount on your card and prevent you from using the money for up to 30 days (nightmare!). Automated petrol stations in Europe take a security deposit on any sort of card so this may reduce your balance by more than the petrol cost for a few days (not always ideal...)

Last minute tips...

DON'T leave money on the card when you come home. It will be nabbed. That's, after all, how the companies make their money.

DO always pay in the local currency. If a retailer offers you to pay in Sterling, say no - even if he says it's cheaper, because it's not. And check the card machine screen before you confirm a payment just to make sure it is. If it's in pounds, ask to have it changed.

DO look after your card. Treat it like cash. If you lose it, it's not a problem to get a replacement but it could cost. And spending unnecessary money isn't exactly what a frugal traveller wants to be doing...