A complete guide to prepaid cards for travel

Prepaid travel cards have emerged as a simple and secure way to manage money on holiday, offering a safer alternative to carrying cash or a normal credit card.

In this guide, we’ll take a close look at the advantages of using a prepaid card when travelling, the kinds of prepaid cards you can get, and how to make the most of them.

Just like your suitcase, there’s a lot to unpack here, so we’ll also offer some useful tips on how to choose the best prepaid cards for travel based on your personal needs!

What is a prepaid card for travel?

A prepaid travel card works just like a debit card, only you load a specific amount of money onto the card before use.

Once loaded, through cash at a PayPoint, bank transfer, or salary deposit, you can use the card for both purchases and taking out cash while abroad.

This is safer than using your normal debit card since the prepaid card isn’t linked to your bank account and you can minimise the risk of fraud or theft.

It’s also a practical method of managing money while travelling as you can top up only what you need. Solutions like Pockit also come with a handy app to manage your money.  

Types of prepaid cards for travel

Here are the three main types of prepaid cards for travel:

Single-currency travel cards 

These are loaded with the specific currency for the country you’ll be travelling to. This makes them straightforward if you only need to spend in that currency and won’t use the card in transit or at connecting airports etc.

Multi-currency travel cards

These can hold multiple currencies at once, making them useful for travel across different countries. They’ll automatically select the right currency for local transactions, but some people find having their funds splintered across multiple currencies more complex to manage.

General prepaid cards

These are general use prepaid cards that can be used both at home in the UK and on holiday, making them a flexible payment method for the whole trip. When you spend abroad with a general prepaid card, the money is automatically converted using a live exchange rate, making it simple to manage your funds. 

How to use a prepaid card for travel

Using prepaid cards for foreign travel is simple and secure. Here’s how you can use them:

1. Load funds. Top up your prepaid card using a debit card, bank transfer, or cash via an in-store PayPoint.
2. Spend abroad. Use your card for in-store purchases, online transactions, or for taking cash out at ATM’s. You can use your card anywhere you can a regular debit card, and transactions will be automatically converted to local currency.
3. Track spending. Prepaid cards like Pockit come with a handy mobile app to manage money. Keeping track of your holiday budget is easy with features like real-time transaction updates and daily spend summaries.

It’s also helpful to note that since the money you spend abroad is automatically converted to the local currency when paying on card in shops or restaurants abroad, you can select the local currency instead of GBP (£). This saves you from having to pay the card machine company's exchange rate fee.

Benefits of prepaid cards for travel

Prepaid travel cards offer numerous benefits for holidaymakers over other payment methods. These include:

• Budget control. Since you can only spend what’s loaded onto the card, prepaid cards can help to control overspending.
• Security. Since they aren’t linked to your main bank account, prepaid cards are safer to use and minimise the risk of fraud overseas. They’re also safer to carry than large sums of cash, and you can freeze them from your phone if they get stolen.
• Avoiding currency exchange hassles. With cards that feature automatic conversion, there’s no need to worry about exchanging currency before you go or carrying large amounts of cash.

Disadvantages of prepaid cards for travel & alternatives

While prepaid cards are generally a great option for travel, some might not come with all the features you need. These include:

• Limited acceptance. Some less established prepaid cards might not be accepted at every location. Make sure the prepaid card you're looking into is backed by a well-known card provider. Pockit, for example, offers a Mastercard®, meaning it’s accepted almost everywhere
• Exchange rate costs. Since the exchange rate used when making payments is determined at the point of transaction, it can fluctuate slightly from payment to payment. However, it’s still generally much cheaper than exchanging pounds for foreign currency at exchange booths. You also won’t have leftover funds that you need to convert back and pay double fees on.
• Fees. Most prepaid cards have small fees for things like ATM withdrawals or certain kinds of spend. Be sure to look for a transparent provider so you can understand these before travelling.

How to get a prepaid card for travel

Prepaid cards are much simpler to get than a bank account or a credit card since you can apply online in a few minutes with basic documents. With Pockit, for example, you can get approved with just proof of address and one of over a dozen forms of ID.  

There are also no credit checks or lengthy security procedures, so they’re accessible to almost anybody. 

Once approved, you’ll get your physical prepaid card in the post within a couple of days and can use your virtual card straight away for online or contactless payments.

The best prepaid card for travel

If you’re shopping around for the best prepaid card for travel, keep these factors in mind:

• Fees. Look at the fees associated with foreign transactions and ATM withdrawals. Make sure they are reasonable and fit in with your intended use.
• Acceptance. Ensure the prepaid card you choose is widely accepted in the country you’ll be travelling to. 
• Exchange rates. Look at the general exchange rates offered by each prepaid card provider. Try to find a card with competitive exchange rates.

Introducing Pockit

Pockit offers all these features in more, with a great solution for travellers needing a convenient and affordable prepaid card. Enjoy transparent fees, broad acceptance, and features to make holiday spending a breeze.

You’ll also get up to 15% cashback at massive high-street retailers like Argos, Sainsbury’s and Footlocker when topping up on holiday essentials, which means more spending money for the trip!

Order your card.

FAQs

What are the alternatives to prepaid cards for travel?

Alternatives include methods like credit cards, debit cards, or carrying large amounts of cash. Each of these can be viable but come with significant drawbacks like high fees, risk of fraud, and risk of theft.

What exchange rate do you get with a prepaid card for travel?

Pockit provides competitive exchange rates based on the live standard rates provided by Mastercard®. These are updated in real-time and your charge is calculated at the point of transaction.

What costs/fees are there with prepaid cards for travel?

Common fees include things like ATM withdrawal fees or foreign transaction fees. Look for a provider like Pockit which offers transparent pricing so you can fully evaluate these costs before travelling to ensure they’re suitable for your needs.

‍