Spend Less Money: Get Hold Of A Better Rate For Travel Money With FairFX
July 4th, 2010 by Samantha Clarke, under Travel and Leisure. No Comments
Organizing your travel money is very important when you are thinking of going on a vacation, especially in today’s economic climate. The dollar is weak, and it won’t go as far as it did in previously. This means it is essential to get the best travel money rate possible.
Alternatives for travel money
There are a number of travel money options that one can go for.
*Cash – You just pick your cash, convert it to the appropriate currency for the country you are travelling to either before you leave your home country or after you arrive at the destination. This is probably the oldest alternative as far as travel money is concerned and it is its disadvantages that almost single handedly spawned all other alternatives for travel money. The main disadvantage with cash is lack of security – it may be stolen or misplaced.
*Standard Credit or Debit Cards – These are associated with one of the major international card brands, such as American Express, Visa, MasterCard, Discover or JCB. Although fraud can be a risk, the main concern with standard credit or debit cards are the charges they typically apply to each transaction you make.
*Travelers Checks (TCs) – Travelers checks do not apply a fee to transactions, unlike credit and debit cards. TCs are also fairly secure because they must be countersigned and can be replaced if lost or stolen. The exchange rate applied is usually not competitive, however. In addition, most banks and currency exchanges charge a fee to exchange them, making their overall travel money rate even worse.
*Prepaid Currency Cards – This travel money option is a relatively recent development. These cards are designed to counter the disadvantages of other types of travel money while remaining convenient for international travelers. Prepaid currency cards are discussed in more detail below.
General Information About Prepaid Currency Cards
These cards somewhat resemble standard credit and debit cards, and they provide their users with the same ability to buy products and services. The most significant distinction between pre-paid cards and standard credit and debit cards is their limit on how much you can spend: you are only allowed to spend up to the total pre-loaded amount. They don’t provide credit or overdraft protection, so there is no risk of going into debt. Like cash, they require the conversion of cash into the appropriate currency, so you are subject to the card provider’s designated exchange rate. They do allow you to hedge against currency exchange rate fluctuations during your trip, which can be beneficial. After your PIN number is issued you can use one of these cards virtually anywhere, much like a standard international debit or credit card.
Benefits of Prepaid Currency Cards
*The Application Process – You don’t need to worry about your credit history because there are no credit checks. All providers of prepaid currency cards will, however, do an identity check to make sure you are who you say you are.
*Control – Control is one of the reasons prepaid currency cards are popular with parents and guardians sending their children overseas for studies as it helps manage spending. One loads the card based on a budget and any excesses are easily picked up since the card would have to be loaded again.
*Better Travel Money Rate – Although there are exceptions, prepaid currency cards often feature a better currency exchange rate than other types of travel money.
FairFX give some of the best conversion rates around on their range of prepaid cards. Have a look at their current exchange rates, and check out exactly how much you could save.
