Whether you are going on holiday for just a week or for a longer period of time, such as on a gap year, then you may wish to consider a prepay card as one option for taking cash away with you.

Why prepay travel cards?

There has been a trend recently away from the more traditional travellers cheque to prepay cards as the main alternative.  Why? Well it’s really simple.  You put your holiday spending money on to your card and you are done.  You aren’t carrying cash, so it’s safer, and if you lose your card you can call up and get a replacement sent to you (check the charges for this).

Extra benefits!

With some prepay cards you actually get extra benefits and gifts if you use them. For example, if you go to the cash back sites you may get a discount off any shopping you do. Additionally, if you are going for an entire gap year, look for cards that you only have to pay a one-off fee for (rather than monthly fees) and can use all over the world. Again, one of the currency cards may work, if someone can top-up for you at home, or a Virgin one where you can get discounts on other Virgin products.

How does it work?

Just like any other card, simply put your money on your card and use it anywhere that displays the logo of the card you have (e.g. MasterCard brand mark or Visa sign).

Why not prepay travel cards?

Well if you put your cash on too far in advance of your holiday you will lose any interest you may have gained if it was in a normal savings or current account.  Additionally, there can be some drawbacks, such as if you don’t spend all of your cash, depending upon your card choice of course, you could get slammed for fees back home.  Also, you need to pick the right one for where you are going.  If you are going to the States, you may want to avoid a Maestro and go for a MasterCard or Visa.

Choose wisely!

Short breaks:  If you are going for a short period of time, less than 3 weeks and only want a card for that holiday, you may be better off with one designed specifically for that purpose – check out the Caxton FX cards.

Longer term:  if you are going for a longer time, such as away for a gap year, you may want a more multipurpose card that you can use anywhere in the world.  Ideally, for an annual trip, you would only want to pay a single one-off fee for your card but we can't find a provider that openly offers, this so see any of the monthly fee cards, such as Tuxedo, Virgin or cashplus Gold card.

Top tip!

If you are going away, if you get an additional card on your account you will be able to leave it behind and let a family or friend use it to top up your account in an emergency!  Clearly, check that your chosen provider will allow this but most of the mainstream companies do.  Alternatively, take both cards with you, leave one in a safe at your hotel, and if you lose your main card you have a back up.