The Ultimate Control for Your Budget During A Vacation or Road Trip


For holiday makers who would love to travel for a considerably long period of time, prepaid travel credit cards can be the best budget control tool to use while on vacation. These cards are more like travelers checks but they are relatively hassle-free. All the card holder needs to do is load it before traveling and use it to spend or withdraw cash just as one would use a debit card. And because they’re preloaded, one can keep tight control of the spending during holiday or trip.

Are They Safe?

Most of them are offered or backed by reputable banks and building societies hence they are completely safe. Ideally, when one loads cash into a prepaid card, the cash goes directly into a ring-fenced account that’s separate from the card provider’s account. This means if the prepaid card company runs out of money, the card holder’s money will still be retained in the bank or building society the individual has banked the money in. However, should the bank the holder is registered with go bust, the cash in question will not be protected. Hence, choosing to work with a reputable banking institution is very important to anyone wishing to use the credit card.

What Will Happen If One Is Lost Or Stolen?

After the card is lost or stolen, the first thing the holder should do is contact the provider of the prepaid card to get it blocked. And to continue using the services of the credit card, one might need to replace the stolen Card. It might cost some few bucks but it’s the only way through which one can continue enjoying the money and services using the credit card. Those wishing to acquire prepaid credit cards should pay attention to credit cards that are without contacts. Contactless cards, if stolen, can be used in carrying out a series of fraudulent transactions which might result in the card holder losing lots of money.

Do Prepaid Credit Card Providers Offer Higher Exchange Rates?

While most of the specialist cards that use Visa and MasterCard offer almost similar exchange rates, prepaid cards tend to use different rates most of the time. When setting exchange rates, prepaid credit cards usually take a certain percentage as their exchange fees. Hence, it’s upon the individual wishing to acquire the card to do a comparison between the ‘perfect exchange rate’ in the market and prepaid card rates to identify the best.

Are Prepaid Card Exchange Rates Affected By Currency Fluctuations?

Unlike the conventional credit and debit cards that provide different exchange rates depending on the day the holder spends, prepaid credit cards only use the same exchange rate which was set on the day the card was loaded. The lock-in rate is very important and can either work for or against the card holder. For instance, if the dollar or pound weakens, the card holder wins because the rate is high and fixed. On the other hand, if the currency in question strengthens, the card user will not be able to enjoy the high exchange rate when spending on the particular day. But generally, prepaid cards are the best for holiday makers because one is guaranteed of a fixed rate throughout the holiday period.

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