Travel

Travel money cards have recently hit the market and they are becoming extremely popular. Now, you may be asking yourself, what exactly is a travel money card and how do they differ or how are they better than my old debit or credit card?

Old forms of travel money – travelers cheques or bank cards

If you were going to be traveling anywhere, then it was always the rule of thumb and safety to get travelers cheques. This was the easiest way to access your available cash and you could have some security if your money was stolen. But travelers checks have been on the decline since most banks now make it very easy to use your debit or credit cards, worldwide.

Due to the internet and money saving expert websites, people are beginning to understand that different banks have different fees they charge cardholders.

You are not in business to make the banks richer and they claim that they charge such high international fees because they are also charged high rates. That might be the case, but they make plenty of money, as is evident because they always have the nicest buildings in town!

How travel money has evolved

Over the last few years there have been amazing advancements in technology. The use of the Internet and the availability to broadband connectivity have increased exponentially. This allowed for many people to begin managing their money using the Internet.

Because of this, and the public’s demand for more applications to be able to do their online banking, it has opened up a whole new market in the world of finance.

One of the forerunners – The FairFX Travel Money Card:

When this market opportunity opened up in the travel money industry, the financial gurus at FairFX.com sensed that a need could be filled very profitably by providing the public with an economical travel money card.

In the beginning FairFX provided 2 travel money cards. The one card used US dollars, while the other was in euros. These cards were designed to charge about 1% on exchange rates, charged nothing for making purchases, and only charged $1-$2 at ATMs.

The procedure for these two cards is to guarantee the currency exchange rate in force at the time that you designate, and this guarantees that you will keep this rate. Occasionally you win, occasionally you lose. These products are still out there.

Many individuals do not care to speculate with travel money

However, others like the idea of possibly getting more out of their travel money. With this in mind, they deal with the ever changing exchange rate whenever they make a transaction, instead of simply buying their travel money in advance.

In addition, the general public did not understand that they would save money overseas by making purchases with the FairFX dollar card instead of their normal debit card. Another, easier to understand product was needed – a travel money card that was more economical than standard credit or debit cards and was accepted everywhere.

The FairFX Anywhere Card

FairFX realized that the general public still did not understand that they were paying too much in bank fees by using their standard credit card when they went overseas.

FairFX realized they could step in and create a card that anyone in the world, from just about anywhere in the world could use without having to take out a second mortgage on their home just to access their money! And now we can explore the world with the FairFX Anywhere Card.

So, bottom line, how much is a FairFX Anywhere Card going to cost you?

Would you believe, nothing? That’s right. The FairFX Anywhere Card features NO loading, ATM or exchange rate fees! It does, however, charge a 1.5% transaction fee for any and all transactions. That being said, it is still one of the cheapest travel money cards on the market for UK folks.

When this article was written, there was also no charge to order the card. You simply have to make an minimal load of 10 when you ordered. It is important to understand that in the future there could be a fee associated with ordering the card, so save yourself money and order yours now.

There’s a great offer right now with travel money card FairFX where you can get a free euro card, free dollar card or free sterling global travellers card and save the normal 9.95 setup fee (Subject to a very small initial load). Start saving on exchange rates with a travel money card from FairFX exchange travel money services today!!

categories: travel money,currency,foreign exchange,forex,exchange rates,currency exchange,credit cards,debit cards,prepaid cards,finance,money

Low foreign exchange rates have put many of us off from taking a trip abroad to the United States or the Eurozone, but there’s a well-kept secret that’s becoming increasingly popular from a financial and practical perspective: travel money cards.

So what are travel money cards, you ask?

A new entry into the plastic money family, travel money cards let you load up a card at a fixed exchange rate, which you can spend at your leisure when you arrive at your destination.

You can apply for these cards on the providers’ websites online, and the transfer of funds to the card can be made on the phone, the internet, or through SMS services, in some instances. At this time, only the pound, euro, and U.S. dollar can be uploaded onto currency cards.

How are travel money cards better than traditional credit cards?

Importantly, the rate of exchange is usually higher than you’ll find in a local foreign currency exchange office. Also, the exchange rate is unchangeable at the time you upload money to the card — so when you spend while travelling, you already know what it’s costing you. This is certainly different than credit and debit cards, which use an exchange rate that’s dynamic — whatever the going rate is at the moment you use the card.

Is there more?

No, not really. These cards, not like regular debit and credit cards, don’t have a foreign currency exchange rate charges, which can be an additional 2.75%, that some providers will include on to the basic exchange rate!

If you didn’t know, debit and credit cards might also elicit an additional “till charge” when used in restaurants or shops, though the currency exchange card doesn’t have this charge. Be aware that debit and credit cards have high rates for any money withdrawals, but the cash on the currency card have been prepaid, not borrowed, so it’s not applicable.

That is great news! Now, what are the possible drawbacks?

Since you are uploading cash onto the card prior your trip, your vacation is paid for up front, not with credit, so you must save for your trip. But, that may not be a draw back in the current economy. Currency cards do have fees for requesting cash from ATMs, but the associated fees are much lower that those incurred with credit or debit cards.

RBS and NatWest (for example) at present have a withdrawal fee of 2%, which is a whopping 10 if you withdraw 500! For reference, you’d pay a one off fee as low as 1.50 for an ATM withdrawal on a currency card.

The real disadvantage for you is the cost you’re charged for using your card to pay for something in a currency other than one specified – and FX convert fee; using the example of a dollar transaction which is made with a euro currency card, you could be paying a fee of up to 2.75%. However, there are a number of cards that don’t charge this fee (see list below).

What about credit cards that can be used without FX fees?

Traditional credit cards like Post Office, Nationwide Gold, and Abbey Zero fit into this group. The first two cards, though, have 2.5% withdrawal fees for cash with a minimum charge of 3 per transaction, even though they don’t carry FX costs. This isn’t as good as a travel money card, unless you don’t have the cash upfront for your holiday.

The Abbey card is an great best-buy – no cash withdrawal expenses or foreign exchange, however there is a rather high interest rate of 25.9% on cash withdrawals! (Note: currently the rate is 22.9% for Nationwide and 20.83% for the Post Office).

Keep on going, I’m convinced! So what are considered the best travel money cards out there?

The finest card available for euros is the FairFX Euro Currency card, because its ATM fee is the least at 1.50; it has no foreign currency exchange fees and has excellent exchange rates. Another euro card, the Indigo Travelcard Euro has just a slightly higher ATM fee of 1.95, but its convert fee is high at 2.75%. There is no convert fee associated with the ICE Travellers CashCard Euro, but the ATM fee is a costly 3.

When it comes to dollar cards, FairFX ranks at the top again: its Dollar Currency Card gives you a low $2 ATM fee with no fee for converting. Another good deal is ICE Travellers CashCard Dollar with its’ $3 ATM fee and again, no convert fee. Don’t forget no convert fees gives you the option of using these cards in any country.

What’s the best travel money card for world travel?

An ‘Anywhere Card’ has just been introduced by FairFX as a new global travellers card – an ideal card to take everywhere in the world.

One of the brilliant things about the Anywhere Card is that there are no ATM charges, and no loading fees either! A 1.5% transaction fee is the only fee you’ll incur – and that’s at the time of the transaction, so you don’t need to worry about exchange rates.

There’s a special offer right now with travel money card FairFX where you can get a euro card, dollar card or sterling global travellers card for free and save the normal 9.95 setup fee (Subject to a very small initial load). Start saving on exchange rates with a travel money card from FairFX travel money exchange today!!

categories: travel money,currency,foreign exchange,forex,exchange rates,currency exchange,credit cards,debit cards,prepaid cards,finance,money